09.15.06
Tubes Report
Tube suppliers race to provide better tubes faster at more economical price points.
Christine Esposito
Fueled by consumers’ never-ending demands for convenience, tube suppliers are facing stiff competition in their quest to provide the beauty care industry with what it demands: better tubes faster at more economical price points.
No longer relegated to basic toiletry products sold at mass retailers, upscale cosmetic and personal care companies seem to be smitten with tubes for a wider range of products, which is also increasing demand for customization and improved decoration.
Berry Tubed Products’ metallic-look tubes offer the drama of metal, without sacrificing squeezability and return to shape memory of polyethylene. |
According to The Freedonia Group, demand for plastic cosmetic and toiletry tubes is expected to reach 4.9 billion units in 2009, posting 2.8 percent growth per year. The market research company contends that although there is maturity in the laminate tube segment, above-average advances are expected for plastic squeeze tubes fueled by overall strength in skin and body care, hair care and cosmetic markets as well as by the performance attributes and convenience they offer customers.
With this increased interest in tubes comes greater opportunities for suppliers, and there’s been a steady rise in the number of companies touting tubes, which has made for a much more competitive marketplace.
“I’ve been selling plastic tubes since 1984,” says Jeff Hayet of World Wide Packaging. “The amount of tube manufacturers has increased greatly in the United States.”
One new entrant to the U.S. is UK-based Arista Tubes, which in May announced it would set up manufacturing in Danville, VA. The opening, scheduled for early 2007, will mark Arista’s first foray in the U.S. market and the second for its parent company, Essel Propack, which has manufactured tubes in Danville since 2003.
HCT Packaging’s So Squeezy surlyn tottle, delivers glass-like clarity with squeez-ability and tactile softness. |
Understandably, when it comes to how much the globalization of the supply chain speeds up the process, tube suppliers can be found on both side of the coin.
“Many overseas [Asian] manufacturers have come on stream, however the lead-time issue still remains because of transportation time as well as inherent delays due to language and distance,” notes Craig Sawicki of Tricor Braun, which has created a strategic alliance with a European manufacturer to bring more products to U.S. shores.
Others, including Lou Della Pesca of 3C, Inc., see alliances with Asian suppliers as the best way to accommodate customers who need smaller runs and fast turnaround. In addition, suppliers report that their overseas partners are investing in new equipment, which enables them to keep up with modern decoration processes.
The $40 Tube
For certain products, such as a basic petroleum lip product or toothpaste, a tube is a no-brainer. But nowadays, consumers are likely to find upscale companies selling more expensive cosmetics and toiletries in tubes. Take Bliss, the successful New York-City based spa company and skin care formulator, which has recently launched Steep Clean, a new self-heating body polish formulated with pineapple and beeswax beads. A 5oz. supply of Steep Clean, sold in a tube, retails for $42.
Also, beauty companies are considering — and choosing — tubes for more sophisticated formulations, such as anti-aging skin treatment products.
“We are seeing more sophisticated treatment products — that almost had to go into a glass jar — moving to tubes,” said Della Pesca.
When selling more sophisticated products in upscale markets, key packaging issues are appearance and feel. The customer who is willing to pay upwards of $40 for a small tube of skin lotion doesn’t want to feel as if she is squeezing a value-priced bottle of hair gel. Across the board, tube suppliers are paying greater attention to detail, zeroing in on appearance, feel and function.
One area of focus is clarity, according to Sawicki, who reports that Tricor-Braun is close to introducing a crystal clear tube made from biaxially oriented polypropylene, which also removes many compatibility issues common to most other commercial available tubes.
“Clarity is on the rise, “ agrees Yasmin Siddiqi of DuPont Cosmetic Solutions, who notes that Surlyn TF resin provides excellent flexibility and visual clarity for converters, as showcased in a tube manufactured by German firm Tubex for a Mexx body gel. Dupont also offers an anti-static product, which she says won’t migrate into the product and helps keep tubes looking pristine on the shelf.
Shelf presence is critical, especially in the highly competitive beauty industry. High end graphics are being employed more and more in the tube market, as companies look to wow customers browsing the aisles at Target, Wal-Mart and other big box retailers.
A popular way to attract customers is through the use of metal. Berry Tubed Products has recently added a new line of metallic look tubes that offer the drama of metal, without sacrificing the “squeezability” and return to shape memory of polyethylene. According to Berry, the tubes are suited for new decoration techniques, combining silk-screening on top of, or in connection with, full-wrap hot foil stamping.
An ongoing issue in the tube market is run size. Even as retailers take a tougher stance on how much shelf space brands will get, beauty care companies are expanding their SKUs to offer more customized products to gain greater attention from consumers who want more personalized products, which often means smaller runs. Yet smaller runs — which are sometimes all that’s needed for a market test or by a start-up — aren’t economical.
Surplus packaging can be the solution, insists Jodie Ruana of McKernan Packaging Clearing House. For fledgling start-ups, there’s a key advantage to using surplus. “They don’t have to invest a large amount of their capital in packaging up front. Many tubes are similar, so it’s not a real gamble purchasing smaller quantities from McKernan,” she says.
Physicians Formula (left) and Nad’s both chose a foam applicator tube from HandsFree Marketing. |
O.BERK Company too is offering a complete line of flexible tottles in sizes ranging from 0.5oz. to 12oz. Available in HDPE natural and white, the company also offers soft touch as an option, according to the Union, NJ-based supplier.
From the consumer’s point of view, the only drawback to the tube might be product evacuation. Suppliers to the market continue to address this issue, making it easier for consumers to get more of what’s inside out. At HBA this month, 3C says it will introduce an airless pump tube, which will help to dispense the majority of product inside.
As always, sizes matters too. World Wide Packaging has added new one-piece oval tubes in 16mm, 25mm, 35mm, 40mm and 50mm sizes, and Hayet reports that one-piece oval tubes in 19mm, 22m and 45mm sizes are due out in 2007.
Alcan Beauty Packaging is offering the mini oval tube, a small diameter elliptical tube suitable for single does of facial treatments. Presented in a standard box with thermoformed plastic inserts, the tubes provide the perfect dosage of product and offer increased portability, a welcome attribute with today’s always-on-the-go customer.
Topping It Off
Market innovation isn’t relegated to the tube itself. Companies continue to explore ways caps, closures and other components can deliver added value. For example, the cap selected oral care provider Dr. Fresh for its new Fire Fly anti-cavity toothpaste features a LCD light that blinks for 60 seconds when opened, teaching kids to brush longer.
HandsFree Marketing is focused on bringing value to tubes by offering applicator tips and attachments that make it easy to apply product that end users don’t necessarily want to touch, such as depilatories or topical analgesics. In the personal care market, the Fountain Valley, CA firm has supplied Avon and Nad’s with applicator tubes, and more recently worked with Physicians Formula on its new Mineral Wear Talc-Free foundation, which features a Yukilon foam applicator to ease application and blending and cut down on contamination.
HandsFree’s stable also includes Tube Tools, which offer the ability to injection-mold a specific part to a tube — think shaving cream with a razor attached or hair conditioner with a comb attached.
Are built-in applicators and tools taking the basic tube too far? Not according to Bijan Hosseini, president of HandsFree, who says he is working with “major product companies” on new launches that will come to market over the next few months. As Hosseini notes, “Consumers, especially women, like innovation.”