Techno-Economic and Commercial Aspects of Palm-

based Soaps/Soap Noodles

Dr. TAN LUCK PHENG
Prime Oleochemical Industries Sdn. Bhd., Selangor Darul Ehsan, Malaysia.
APRIL 24, 2001 CHEMICAL WEEKLY 147
INTRODUCTION
Soap has been used for more than 5,000 years. When we
start a barbecue, the animal fat drips down the fire and the
molten fat reacts with the burnt wood, rich in potassium car-
bonate to give soap and that is good for washing plates and
utensils, a fact known to boy scout and campers. Early soaps
derived in this way were known as clay tablets. The recorded
production of soap dates back to 2500 BC when potash soap
was made from potassium carbonate and oil and used for
washing wool.
The Romans collected urine, rich in ammonium carbonate
from public toilets and boiled it with fat of wool (lanolin) to
get ammonium soap. After washing and pressing the soap
into tablets, they were sold. The soap makers made so much
profit that Emperor Vespasian (190 AD) had to impose what
they called smelly tax to collect extra revenues from soap
makers. Vespasian said pecunia non olet money does
not smell.
Before the second world war, soap production was mainly
a cottage industry until Le Blanc of France started the con-
tinuous process of manufacturing caustic soda and mass pro-
duction of soap began to roll out at Monsavon in Marseilles,
Mazzoni in Italy and De Laval in Germany. For the produc-
tion of hard soap, it was necessary to salt out the resultant
soft potash with common salt. Up to the last decade, soap
making was still considered as an art. Today soap-making is
more of a science than an art.
World market today
In recent years, the overall use of toilet soap has declined
in certain countries due to promotion and popularity of non-
soap personal cleansers, such as bath and shower prepara-
tions, facial cleansers or liquid soap. Inspite of this competi-
tion, toilet soap still remains the most widely used personal
cleanser. At least on price-performance basis, a soap bar still
has advantages. It costs less per unit weight; it is easily trans-
ported; it has long shelf life and saves shelf space.
To meet the challenge of other cleansing preparations, and
to satisfy the ever increasing demand of consumers today,
soaps are more personalised than ever before. As a result, we
now have mild cosmetic soaps, marbled soaps, deodorant
soaps, high glycerine soaps, soaps with special extract added;
translucent and transparent soaps. We also have combination
bar (combo) and synthetic bar. Overall, the average increase
in worldwide consumption of soap has been maintained bet-
ween 5% to 10%, although it varies from country to country.
If we look at the global sales figures (Table 1), we can see
that Asia Pacific has the biggest market for bath and shower
products contributing to 34% values at USD 6.5 billion and
soap is the traditionally preferred and the most widely used
surfactant in this region.
Just take the figure in India, In 1997, India spent USD 856
million on soap, for its population of less than 1 billion, a
figure that is double of that of China (See Table 2 & 3). When
the economy improves, and per capita expenditure increases,
expenditure on food and personal care products will be the
first to increase. For 1 billion population, just assume that
100 million get an increase in income of USD 1.0 and that
they spend USD 0.1 in cleaning up their bodies, the market is
increased by USD 10 million.
This illustrates the great potential and elasticity of soap
market in this region. By elasticity, we mean a small decrease
in price would give rise to an increase in sale or a small in-
crease in the income of the people would also give rise to an
increase in sale of the product.
Categories of soap
It is clear that there is good opportunity for investment in
soap making. Conventional soap-making involved heavy
equipment and investment. On the contrary, soap-making can
now be done with simple equipment and small capital. The
equipment required are simple-mixer, plodder, cutter and
stamper with mould. The starting materials are soap noodles
or chips, fragrance and colour. However, before one begins,
one must decide on which sector of the market one decides
to attack. Basically, the soap market can be classified accord-
ing to the types of soap given below and the breakdown of
each market share and profit margin can be seen in Figure 1.
(1) Laundry soap
(2) Toilet soap
(3) Translucent soap
(4) Transparent soap
(5) Novelty & toy soap
Although a modest investment may just be adequate to
* Presentation at Malaysian Palm Oil Promotion Council Soap Noodle Pro-
gramme in South Asia held on 16 December 2000 at Mumbai.
TABLE 1
GLOBAL SALES OF PERSONAL CARE AND COSMETIC PRODUCTS, 1997
Bath & shower Hair care Skin care Colour cosmetics Total
Country US$ bn % US$bn % US$ bn % US$ bn % US$ bn %
Western Europe 4.8 26 9.9 28 8.7 30 5.5 21 29.7 27
Asia-Pacific 6.5 34 9.3 26 9.6 34 6.1 23 32.4 29
North-America 3.2 17 8.3 23 4.5 16 10.2 39 26.7 24
South America 2.2 12 4.0 11 2.3 8 1.3 5 10.1 9
Eastern Europe,
Africa & Middle East 2.3 12 3.8 11 3.4 12 3.0 11 12.8 11
World 18.9 100 35.3 100 28.5 100 26.0 100 111.7 100
Source: Soap, Perfumery & Cosmetics
148 CHEMICAL WEEKLY APRIL 24, 2001
Figure 1: Market share & profit margin of soaps categories
TABLE 2
SOAP SALES BY COUNTRY IN ASIA PACIFIC
1997 (USD MILLION)
Country USD Per capita % Regional
million expenditure expenditure
China 422 0.35 15.6
Hong Kong 58 9.35 2.1
India 856 0.92 31.6
Indonesia 159 0.82 5.9
Japan 662 5.30 24.4
Malaysia 64 3.20 2.4
Philippines 129 1.87 4.8
Singapore 22 7.33 0.8
South Korea 85 1.89 3.1
Taiwan 80 3.64 2.9
Thailand 162 2.79 6.0
Vietnam 13 0.18 0.5
Total 2,712
Source: Soap, Perfumery & Cosmetics, Asia.
TABLE 3
INDIA COSMETIC & TOILETRY MARKET BY
CATEGORY (FORECAST) USD IN MILLION
Item 1995 2005 Percentage
increase
Bath, shower & grooming 847 1,389 164
Oral hygiene 354 762 215
Hair care and styling 435 779 179
Skin care 111 345 311
Colour cosmetics 53 180 342
Fragrances 92 264 285
Total 1,892 3,719 1,496
Source: Cosmetics & Toiletries, Asia.
start production of any of the above mentioned type of soap,
it is the long term commitment that will eventually yield re-
sults.
The commitment to keep improving your product quality
and packaging, and above all, the commitment in marketing
your products. As an oleochemical based company, concen-
trating, in downstream products. We have gone through them
all and we would like to share our experience so that the new
investors in this field can make the right choice and that those
already in the field can widen their scope in the business.
Laundry soap
Laundry bar is a necessity outside the urban area where
hand-washing takes over machine. Laundry bar today is more
of a combination bar containing synthetic ionic, non-ionic
detergents and soap as typified in formula (Table 4).
The presence of soap improves tremendously the proper-
ties of the bar. It helps to bind the other detergents, prevents
hardening and cracking and improves the stain removing
power. It may also contain scrubbing agent like kaolin.
The sale of laundry bar requires good distribution network.
The bars have to be transported far and wide: a business suit-
able only to those who operate food distribution network.
Although the profit margin is low the quantity is big.
TABLE 4
A TYPICAL COMBINATION LAUNDRY BAR
Fatty acid (or PFAD) 45%
Soda ash 15%
Linear alkyl benzene sulphonate (LABs) 4-10%
Sodium sulphate 10%
Sodium silicate (liquid) 20%
Citric acid 0.5%
Water 3.0%
Nonyl phenyl ethoxylate (NP 10) 2.0%
Fluorescent whitener 0.1%
Fragrance 0.3-1.0%
Dye q.s.
Toilet soap
The vast toilet soap market allows plenty of space for new
and old players to maneuver. Hence competition is very keen.
New innovation and variation are needed to satisfy the fashi-
on conscious and demanding consumers. In countries where
cosmetic and toiletry products are not regulated, fictitious
names such as anti-cellulite, hair-removing and whitening
soaps are marketed.
For long term business however it is the quality of the prod-
uct that matters. The cost of a toilet soap is governed by the
quality of the ingredients particularly, the soap base. Soap
chips or noodles produced in Malaysia have been used world-
wide in making exceedingly good and well known soaps.
The superb quality of our base is attributed to the freshly
available palm oils and the advancement in oleochemical tech-
nology.
When fresh RBD palm oil and kernel oil are skillfully sa-
ponified, the resultant soap base is whiter, chemically more
stable and has no undesirable odour. The resultant soap bars
will have better appearance, longer shelf life and good perfor-
mance in term of lathers and after-feel. Our soap base is in fact
superior to other sources be it vegetable or animal origin.
It would be very difficult to remove coconut smell from its
oil and soap made from coconut oil tends to have slight nutty
smell. Soap base derived from tallow has religious barrier
and may carry disease like Bovine Spongiform Encephal-
opathy (BSE) or mad cow disease which is creating havoc in
Europe at this moment. With the present low price of palm
oils, Malaysian soap base is very competitive. Good quality
coupled with aggressive marketing strategy will ensure a good
share in the market. Initially, it is difficult, but when your
brand moves, it gathers momentum like snowball.
Translucent soap
The appearance of translucent soap in the market came
naturally to bridge the gap between the common toilet soap
and the luxurious transparent soap. In term of quality, trans-
lucent soap is slightly more moisturing than toilet soap be-
cause of its higher glycerine content of 2-4%.
However, it takes advantage of its translucent appearance
and it sells at almost the same price as transparent soap. In
order to differentiate a transparent soap from a translucent
soap, one has to place a 1-centimeter thick soap on a news-
paper. If one can read the prints under it, it is a transparent
soap. Otherwise, it is translucent. Malaysian Palm Oil Board
has recently produced a calibrated transmittance meter to
measure the degree of transparency of a soap.
Translucent soap can be processed from its base by a modi-
fication of the ordinary automatic toilet soap finishing line.
The end plodder or extruder needs a twinscrew configura-
tion with vacuum suction and temperature regulating jacket
or barrel to extrude the high glycerine soap. Soap with high
glycerine content to regurgitate and slow down production
rate.
Specially made soap chips or noodles are required to pro-
duce this kind of soap. The main supplier is Unichema of
Netherland, while other small manufacturers are located in
Germany. The soap base from Unichema International
Netherland is known as Prisavon. The production started in
1980, but only recently Unichema could successfully rectify
its tendency to darken in colour. The price of the noodles is
almost double of ordinary toilet soap noodles.
Transparent soap
Transparent soap is a premium soap. In order to acquire its
attractive and clear appearance, it is made through a more
vigorous process which usually takes more than one week to
complete. The manufacturing process is carried out batchwise
and cannot be automated. Hence, extensive manual work is
required. Adding to this, the selection of starting materials
requires stringent control. Every ingredient has to be pure,
colourless and compatible in the system so that the resultant
product is as clear as untinted glass. All the ingredients form
a homogenous and transparent medium, unlike the other
soaps, utilising the soap noodles to blend with additives like
extract, perfume and colour.
TABLE 5
SPECIFICATION OF PRISAVON
Fatty acid composition 80/20 palm oil/kernel oil
Total fatty matter 68%
Water content 15%
Free fatty acid 2.5%
Polyalcohols 12%
Sequestrants 0.1%
APRIL 24, 2001 CHEMICAL WEEKLY 149
As a result of all these strict requirements, transparent soap
provides better quality and the following advantages:
(1) Transparent appearance.
(2) Good moisturising and rinsability by nature of high
glycerine content (5-10%).
(3) No excess alkali by batchwise quality control.
(4) Good homogeneity all ingredients are compatible.
(5) Vast variation allows many additives.
The making of transparent soap is more of a Science than
an Art. The manufacturing process is controlled by more than
8 technical parameters assuming that the formula is correct.
These parameters can be summarised in a hypothetical three
dimensional graph as shown in Figure 2. Within the graph
there is less than 5% restricted area to operate in.
Figure 2: Graphic representation of variables in
transparent soap making
In order to save money, effort and time in R&D and to
enable small manufacturers to make transparent soap, we have
worked out a simple procedure (Table 6) for making trans-
parent soap from our base with simple equipment. With a
simple melting pot, casts, wire-cutter, trimmer and stamper,
anyone can now make transparent soap of any shape, size,
colour and fragrance, utilising our soap base. Our soap base
is now exported as far as Korea, Australia and Turkey.
Our soap base has following specification:
Total fatty matter (sodium soaps of
palm and kernel oil) 50-55%
Glycerine 6-8%
Polyols 25-30%
Sodium citrate 0.3-0.5%
Free fatty acid 0.5-2.0%
SD alcohol and water qs to 100% (~10%)
pH p 5-10
TABLE 6
PROCEDURE FOR PROCESSING TRANSPARENT
SOAP FROM SOAP BASE
(1) Cut soap base into smaller pieces to facilitate melting.
(2) Heat up 8% w/w of industrial alcohol (95%) over hot
water bath until 65-70
o
C. (Alcohol may be added up to
10-12% w/w).
(3) Gradually add the soap chips with stirring to melt com-
pletely while heating up to 76
o
C. (Not exceeding 78
o
C-
BP of alcohol).
(4) After all the soap chips have melted, allow it to cool down
to 68-70
o
C again when colour and fragrance can be added.
(5) Pour it through a sieve to remove dirt or unmolten soap
into a container (preferably plastic) and allow to harden.
(6) Remove the soap from container and cut into appropriate
shape and size for stamping, if necessary.
(7) Allow it to dry (preferably in dehumified room) before
packing.
(8) Transparency improves as soap hardens with evapora-
tion.
Novelty soap
As far as novelty soap is concerned, art plays a major role.
The soaps can be stamped into all kinds of fancy shapes. Soap
can also be handcrafted into figures like animal, toy and
flower. These are ornamental items for decoration and exhi-
bition but have little daily usefulness.
Combination and synthetic soaps
As its name suggests, combination bars (combo) are made
from the combination of soaps and synthetic detergents. These
bars exhibit all the properties of normal soap with improved
cleaning power from the added synthetic detergents like
sarcosinate and isothionate. Bars made solely from synthetic
detergents have very good cleansing efficiency, giving a
squeaky clean after-feel, but they are very soluble and tend
to waste off. The synthetic bar allows a variation in pH. Manu-
facturers take advantage in adjusting them to pH 5.5, the pH
of the skin and claim its bactericidal effect. Studies by ICI
group have shown that soap with this pH has very little func-
tional significance, as the pH of the skin can be restored to
5.5 within 20 minutes regardless of the pH of the cleansing
medium. In fact, it is the pH of the water which washes off
the soap, that matters the most.
It is my hope that this presentation will give a clear view
of the technoeconomic and commercial aspects of soap and
its manufacturing. This may serve as a guide for new comers
in soap industry and for further investment by the existing
manufacturers. The industry is very big and there is room
and fortune for everyone who ventures into it.
150 CHEMICAL WEEKLY APRIL 24, 2001