Potential Investment Implications of Chemical Regulation in the Consumer and Retail Sectors

Aug 31, 2011

Strengthening chemicals-related legislation and an increasing consumer interest in health and wellness are putting heightened pressure on consumer companies to remove hazardous chemicals from their products. Despite strong lobbying campaigns against regulatory reforms and uncertainties around the actual stringency of future restrictions, consumer trends indicate heightened concerns as evidenced by a 200-fold increase in the number of articles in online forums referring to substances such as Bisphenol A or Parabens from 2004 to 2010. Companies lacking a long term strategy to address the most controversial substances could be adversely affected, in particular if chemical restrictions are enacted.