05.15.23
Univar Solutions enjoyed a record year in 2022, despite some of the supply constraints that carried over from 2021 into the first half of 2022. The company continued to add new specialty supplier authorizations across the globe and announced two key acquisitions to start 2023: Kale Kimya, a specialty ingredients distributor based in Turkey with a focus in homecare and industrial cleaning and beauty and personal care will help Univar expand and grow in Europe, the Middle East, and Africa. More recently, Univar announced the acquisition of ChemSol in Central America that will expand its specialty footprint in the region. Just this month, Univar was appointed suncare distributor for Croda in Brazil.
Happi recently caught up with Aaron Lee, global VP-homecare & industrial cleaning for Univar Solutions, to discuss the trends impacting the household and industrial & institutional cleaning space.
Happi: What is your outlook for 2023? What factors will decide success in the new year?
Lee: Despite initial headwinds to start 2023 in the homecare and industrial cleaning space, we came out of the American Cleaning Institute annual meeting with a lot of optimism for the year ahead. Customers are working through higher inventory levels, but we don’t anticipate that lasting past the first quarter. Univar Solutions’ homecare and industrial cleaning business has premier supplier partnerships and global solution center lab capabilities with impressive technical experts who assist with reformulations and innovation. With this, we have the flexibility to grow in expanding and retracting markets. If customers are looking for new innovative products that have multifunctionality or are more environmentally friendly, we can support them with those formulations. We can also help formulate to optimize costs while maintaining the efficacy needed to perform. With our global distribution network, technical capabilities, and the product portfolio we have in place, we are ideally positioned no matter what 2023 has in store.
Happi: How are supply chains? Are they less stressed than a year ago? What moves has Univar Solutions made to ensure a strong supply chain in 2023?
Lee: The supply chains are in a stronger position than a year ago. However, one thing remains consistent in the chemical and ingredient industry, there are always disruptions: weather related, pandemic related, raw material shortages, and unforeseen downtime. And that’s precisely why Univar Solutions is here: our reliable and sustainable network acts as a buffer as we assist our customers and suppliers during disruptions and supply chain uncertainty. We have 90 million gallons of bulk storage globally. We deliver to 115 countries. Our network has 600 distribution facilities, 2500 railcars and 3700 tractors, trailers, and tankers that help us stay resilient and ensure our customers and supplier partners have the products they need, when they need them, through supply disruptions.
Happi: We hear a lot about biosurfactants. What does Univar Solutions offer in the space and how do they help formulators improve their finished product profile?
Lee: Sustainable and natural formulations continue to be at the forefront of discussions at ACI and with our customers. Our customers are looking for sustainable formulations that offer multifunctionality while maintaining performance at a comparable price point to conventional chemistries. Globally, biosurfactants have seen a resurgence. While sophorolipids and rhamnolipids are not new, their sustainability profile has found functionality in various homecare applications. We have partnered with key producers in this space on the various alternatives available. Realizing that some customers are still early on the path of adoption of biosurfactants, we have solutions no matter where they are in their sustainability journey. Whether biosurfactants are used as a primary or secondary surfactant, the investments in this area cannot be ignored, and we are proud to support our customers as a leader in this space.
Happi: Similarly, what other sustainable solutions will Univar Solutions promote in 2023?
Lee: Univar Solutions homecare & industrial cleaning (HIC) business will lead the way in sustainable solutions in 2023. Sustainability drives innovation and growth and it is one of our strategic growth pillars. We are aligning with suppliers that are taking similar climate actions to reduce carbon emissions and have like-minded codes of conduct for sustainable sourcing and solutions. We are already working with many of the leaders in sustainable products such as enzymes and microbials, through our partnership with Novozymes. We have also partnered with leaders in surfactants and green preservation. Our solution centers worldwide have more than 300 HIC projects with most having a sustainable facet supporting our customers. Whether it is a 100% bio-based detergent or a customer looking to make their product more “green” or eco-friendly than it is today, our technical services team excels at sustainable innovation, helping our customers formulate multifunctional products to provide a more sustainable cleaning portfolio.
Happi: What finished product trends will drive the cleaning industry in 2023?
Lee: There are three key trends in 2023 for cleaning products:
1. Refillables and ecofriendly products. According to Mintel, the top two innovations that consumers are looking for are ecofriendly products that are in reusable or refillable packaging.
2. Products with dual functionality. Green is not enough. Although products must be green, they also must provide some other functionality. For example, a hard surface cleaner that also provides immunity support. Or a natural laundry detergent that eliminates the buildup of biofilms or functions in low temperature.
3. Cost-effective reformulations. A growing number of consumers traded down to less expensive cleaning brands in 2022: 20%. The younger demographic is also starting to trade down due inflation. And 27% of consumers are worried about utility costs, according to Mintel.
Happi: How does Univar Solutions help its customers develop the right products and product claims?
Lee: Our very impressive and experienced market dedicated homecare and industrial cleaning sales, product management, marketing and technical team, supports our customers in so many ways, including helping them formulate the right solutions to meet existing trends. Whether it is an ingredient change, a new formulation request or formulation optimization, our team can assist with “paper” recommendations or take on a project, big or small, in our global solution centers to fully build out a solution for a new product.
Happi recently caught up with Aaron Lee, global VP-homecare & industrial cleaning for Univar Solutions, to discuss the trends impacting the household and industrial & institutional cleaning space.
Happi: What is your outlook for 2023? What factors will decide success in the new year?
Lee: Despite initial headwinds to start 2023 in the homecare and industrial cleaning space, we came out of the American Cleaning Institute annual meeting with a lot of optimism for the year ahead. Customers are working through higher inventory levels, but we don’t anticipate that lasting past the first quarter. Univar Solutions’ homecare and industrial cleaning business has premier supplier partnerships and global solution center lab capabilities with impressive technical experts who assist with reformulations and innovation. With this, we have the flexibility to grow in expanding and retracting markets. If customers are looking for new innovative products that have multifunctionality or are more environmentally friendly, we can support them with those formulations. We can also help formulate to optimize costs while maintaining the efficacy needed to perform. With our global distribution network, technical capabilities, and the product portfolio we have in place, we are ideally positioned no matter what 2023 has in store.
Happi: How are supply chains? Are they less stressed than a year ago? What moves has Univar Solutions made to ensure a strong supply chain in 2023?
Lee: The supply chains are in a stronger position than a year ago. However, one thing remains consistent in the chemical and ingredient industry, there are always disruptions: weather related, pandemic related, raw material shortages, and unforeseen downtime. And that’s precisely why Univar Solutions is here: our reliable and sustainable network acts as a buffer as we assist our customers and suppliers during disruptions and supply chain uncertainty. We have 90 million gallons of bulk storage globally. We deliver to 115 countries. Our network has 600 distribution facilities, 2500 railcars and 3700 tractors, trailers, and tankers that help us stay resilient and ensure our customers and supplier partners have the products they need, when they need them, through supply disruptions.
Happi: We hear a lot about biosurfactants. What does Univar Solutions offer in the space and how do they help formulators improve their finished product profile?
Lee: Sustainable and natural formulations continue to be at the forefront of discussions at ACI and with our customers. Our customers are looking for sustainable formulations that offer multifunctionality while maintaining performance at a comparable price point to conventional chemistries. Globally, biosurfactants have seen a resurgence. While sophorolipids and rhamnolipids are not new, their sustainability profile has found functionality in various homecare applications. We have partnered with key producers in this space on the various alternatives available. Realizing that some customers are still early on the path of adoption of biosurfactants, we have solutions no matter where they are in their sustainability journey. Whether biosurfactants are used as a primary or secondary surfactant, the investments in this area cannot be ignored, and we are proud to support our customers as a leader in this space.
Happi: Similarly, what other sustainable solutions will Univar Solutions promote in 2023?
Lee: Univar Solutions homecare & industrial cleaning (HIC) business will lead the way in sustainable solutions in 2023. Sustainability drives innovation and growth and it is one of our strategic growth pillars. We are aligning with suppliers that are taking similar climate actions to reduce carbon emissions and have like-minded codes of conduct for sustainable sourcing and solutions. We are already working with many of the leaders in sustainable products such as enzymes and microbials, through our partnership with Novozymes. We have also partnered with leaders in surfactants and green preservation. Our solution centers worldwide have more than 300 HIC projects with most having a sustainable facet supporting our customers. Whether it is a 100% bio-based detergent or a customer looking to make their product more “green” or eco-friendly than it is today, our technical services team excels at sustainable innovation, helping our customers formulate multifunctional products to provide a more sustainable cleaning portfolio.
Happi: What finished product trends will drive the cleaning industry in 2023?
Lee: There are three key trends in 2023 for cleaning products:
1. Refillables and ecofriendly products. According to Mintel, the top two innovations that consumers are looking for are ecofriendly products that are in reusable or refillable packaging.
2. Products with dual functionality. Green is not enough. Although products must be green, they also must provide some other functionality. For example, a hard surface cleaner that also provides immunity support. Or a natural laundry detergent that eliminates the buildup of biofilms or functions in low temperature.
3. Cost-effective reformulations. A growing number of consumers traded down to less expensive cleaning brands in 2022: 20%. The younger demographic is also starting to trade down due inflation. And 27% of consumers are worried about utility costs, according to Mintel.
Happi: How does Univar Solutions help its customers develop the right products and product claims?
Lee: Our very impressive and experienced market dedicated homecare and industrial cleaning sales, product management, marketing and technical team, supports our customers in so many ways, including helping them formulate the right solutions to meet existing trends. Whether it is an ingredient change, a new formulation request or formulation optimization, our team can assist with “paper” recommendations or take on a project, big or small, in our global solution centers to fully build out a solution for a new product.