This text focuses on the far-reaching challenges facing the European detergent business in the near future. For the very first time, the Central and Eastern European region (CEE) will be included in a European detergent market presentation, as a result of the upcoming enlargement of the European Union (EU) as of 2004. The EU aims to integrate 10 additional member states from CEE with 105 million people. This represents a 23% increase in the EU's population and a 67% rise in the number of members, but only an additional 5% in total GDP. A comparative overview of the developed EU region and the emerging CEE markets will be presented, focusing on the candidates for EU membership and on the laundry detergent business. Four major areas will be dealt with: (ⅰ) Economic considerations, encompassing the macro-economic trends including trade: in 2002, Western Europe continued to be marked by slow growth, low inflation, and high unemployment. Economic growth rates for the future EU member states surpassed 3 percent, which is higher than in Western Europe. In Western Europe, laundry detergents represent a 6 billion Euro market, which is currently stagnating in contrast to the ongoing growth in previous years. The EU's detergent market is also characterized by the growing share held by hypermarkets as well as increasing trade concentration. Discounters took advantage of uncertainties surrounding the Euro when it was launched as a new currency and boosted private label penetration. In CEE, the laundry detergents market reached a level of 1 billion Euro, whereas market growth is slowing down. There is a change in the "trade landscape," from traditional trade to international key accounts, from small outlets to hypermarkets. (ⅱ) Consumers: consumer trends include the desire for high washing performance, greater efficiency, improved care of fibers and colors, washing at lower washing temperatures without bleach, with increased convenience, ready to use, and smart purchases. (ⅲ) Technology: focusing on the latest trends in the washing machine industry, and the latest developments in detergent raw materials, especially high-performance ingredients and new builders, as well as new manufacturing processes. (ⅳ) Environmental and legislative changes: today detergent producers are being confronted with existing and future chemical policies of the EU, the Biocide's Directive, detergent and packaging regulations. The voluntary initiatives of the AISE, such as the "Code of Good Environmental Practice," the "Charter on Sustainability," and "HERA" (Human and Environmental Risk Assessment), a project of CESIO and AISE, are also covered. The transposition of the Acquis Communautaire of the EU also represents a huge challenge for the candidate countries. Innovation for the detergent market that provides new benefits in performance and convenience as well as new applications represent industry's response to these many challenges.
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