Trends in the Personal Care
Category
Source: Euromonitor
2012
Key Takeouts:
Key trends driving the beauty and personal care market in 2014
are
Need for multi-functionality as consumers. All-in-one
products are the norm.
Secondly, consumer preoccupation with image and how
they are perceived by others is attributed to the 'selfie
Hence, products tailored to specific consumer needs
Anatomy of the Global Beauty Market
Interesting trends spotted last decade
There was a noticeable change in the consumer behavior
during the recession in 2009 people started home
consumption as opposed to taking treatments
outside
Another trend was that people started treating cosmetic
purchases as investments rather than indulgent
purchases
Marketing Trends
Continued product diversification in terms of product line
prices, meant new product lines at lowered price levels
Consumers aware of mass product providing the same
quality as their premium counterparts
Significantly sales growth is generated mostly by massproduced products, however, innovations are mostly
introduced by brands in the premium segment
Product innovations saw two trends: the time-saving and the
long-lasting products
Time-saving products are a response to people who want to limit
the amount of time spent on their daily beauty routine
Research has been on products like
-quick drying nail polish
-3-in-1 shower gel
- facial wash with shaving foam
- or hybrid products for the face that include of make-up, skincare
and sun protection
Another new trend is environmental sustainability with
product effectiveness
Vaseline 300ml Rs 190
250 ml Rs 280
Distribution Trends
Distributi
on
channel
2000
2005
2010
Non-store
retailing
10.0
14.0
16.1
Drugstores
13.1
12.4
12.8
Departmen 13.3
t Stores
10.6
9.5
Beauty
Specialists
13.9
13.1
13.4
Super/Hyp
ermarkets
25.6
26.0
26.9
This
channel
includes
direct sale
and sale
over
Internet is
on the
rise.
Source: Euromonitor
International 2012
Product Categories Trends
Product
Category
1998
2010
Skin Care
16.4%
23.0%
Haircare
20.8%
17.3%
Colour
13.5%
12.3%
Fragrances
12.9%
10.4%
Toileteries
31.2%
30.6%
Others
5.2%
6.4%
Total Sales
Value ( billion
USD)
166.1
382.3
Skincare as
a category
is on the
rise
Why is Skincare as a category
growing?
Throughout 2010, skincare was the most significant segment, with its 23% of
the market share and its growth driven primarily by the Asian market
The global skincare market is divided into
- facial care (2/3 of the total sales)
- hand and body care
-sun care
The success of skincare is a prerequisite for the prosperity of the whole beauty
industry
Fairness Creams
A peculiarity of the Asian skincare markets is
- Role of face-whitening products, as pale skin continues to b
considered the beauty ideal in Asia.
- In India, over 80% of face creams have whitening properties
The key consumers for whitening products remain
- young women
- mostly living in urban areas
- typically earn more and are willing to pay a premium
Anti-Ageing Creams
Growth in demand in the skincare segment is due to the
ageing population in developed countries
They are wealthy, demanding customers, who ask for
- value in their purchases
- expect professional advice
- prefer skincare products with a high technological added value
Sun-protection products
Raising awareness of dangers related to exposure to sun is
another factor contributing to the demand growth in the skincare
sector
Sales of skin protection products as well as anti -blemish products,
used for skin disorders frequently occurring in Asia and Latin
America, are also growing
Emerging Markets Trends
China
Brazil
Brazil
The Brazilian beauty and personal care market achieved growth of
15% in 2010
It is one of the fastest growing markets
In 2009 the sales reached 28 billion USD, placing the Brazilian
market in the third rank worldwide (BRIC Report, 2010)
Cosmetics sales through direct sellers accounted for onethird of total sales in 2010. Brazil has more Avon Ladies
(900,000) than soldiers in its army and navy put together
It is presumed that once retail network develops and
reinforces, direct selling will begin to lose its share.
In Brazil the per capita consumption of beauty and personal
care products has almost doubled in a 5-year period due to
rising disposable incomes among mid- and low-income consumers
Impact of improved incomes led to greater penetration of skin
care/ cosmetics among lower income groups
These consumer groups have only recently started buying items
such as conditioners and anti-agers products
Brazilian population is large, but relatively low-income. Hence, large
number of transactions of relatively small value. The increase
in disposable income has generated a new category of consumers the middle class - that drives sales.
China
The personal care industry underwent a significant transformation
owing to its rapid economic development
A stable and continuous economic growth has significantly increased
disposable income levels per household, with people nearly
doubling the amount of disposable income compared to 5
years ago
Total cosmetics and toiletries market in China has tripled in value in
last 10 yrs
The fast-growing Chinese middle class had a crucial impact on
sales volume and consumption patterns
The internet network expanding in China has also modified
distribution of cosmetics and toiletries, boosting consumption
As the Chinese are increasingly getting better educated and better paid,
they dedicate more and more money to consumption. They now pay
more attention grooming their appearance
The focus on health and beauty is not only limited to young
women. However, their role in generating demand for cosmetics is
crucial
The canons of beauty and fashion in China evolved significantly within the
last 20 years. After 2000 they began to notice the style promoted
by the Japanese and the Korean rather than aping the west
In the recent years, as China attains the leading position in the global
world, the Chinese women begin to discover their own beauty
identity and to promote
their own beauty standards
The Chinese society wants to be a two-in-one product: both Chinese and
very international at the same time (Chinas cosmetics, 2011)
Conclusion
Analysis of the trends present in the global cosmetics market in the beginning of the
21st century leads to the following conclusions:
1. The demand for cosmetics will keep growing, fuelled mostly by the emerging
markets of Asia and Latin America, what will contribute to creation of new products,
shape new spending patterns and perhaps even establish new beauty canons.
2. Global cosmetics manufacturers will have to differentiate their products to
adjust
them to the expectations of their new customers, originating from different, non
Western cultures and behaving differently.
3. Skincare is the segment with the biggest growth potential.
4. The deciding factor for market success will be mass cosmetics sales they will
be setting the tone for the entire market. Growing awareness of mass cosmetics
being almost as good as prestige cosmetics will facilitate the growth of the
Masstige segment.
5. The distribution structure is changing as well, as supermarkets and
hypermarkets as well as online sales channels increase their shares in the
overall
market.
6. New product launches are based in an increasing way upon advanced
research
and technologies. On the other hand, there is a growing demand for
organic
products, manufactured in a sustainable way.
