Euromonitor International released its latest data on beauty and personal care on 14 April, at in-cosmetics Barcelona.
According to the global analysis firm, the beauty industry remained largely resistant to strong economic and political headwinds, generating US$465 billion in sales in 2014. With five per cent growth, the global industry saw:
- continued penetration of staple products in emerging markets
- consumers upgrading to more superior products
- the adoption of more extensive beauty routines across all product segments.
Stuck on skin
Skin care remains the largest segment across most markets, with global sales expected to reach over US$130 billion by 2019. ‘Of all beauty segments, consumers continue to spend most on skin care items at US$15 per person annually, compared to US$10 for hair care and US$7 for colour cosmetics,’ says Euromonitor International’s head of beauty and personal care, Irina Barbalova. ‘One third of global beauty revenues by 2019 will come from skin care, compared to 23 per cent between 2009 and 2014.’
Masks on the up
The face masks subcategory was highlighted as an up and coming major hot spot, with China being the biggest market for these products.
According to Barbalova, 70 per cent of female consumers in China use face masks at least weekly. ‘Currently in China 86 per cent of face masks consumed are mass products; face masks offer a new potential revenue stream for brand owners and manufacturers,’ she comments.
The skin care market is transforming in terms of product diversification and exploration of innovative growth concepts. Technological developments have encouraged a demand for personalisation and unique product engagement, and Asia continues to inspire innovation in terms of new formats, textures and product benefits.
Markets to watch
A total of 80 per cent of global skin care revenue gains by 2019 will come from Asia, with China set to account for 75 per cent of the total regional absolute growth. ‘Indonesia and India will be the next growth frontiers to watch, with Indonesia expected to enter the top 10 global skin care markets by 2019,’ added Barbalova.
Sub-Saharan Africa is also showing solid growth with the region’s middle class consumers reported among the top 10 growing consumer groups. Nigeria is a hot bed for development within the continent, with its growing premium cosmetics market. ‘Colour cosmetics brands like MAC, Mud and House of Tara enjoy phenomenal success in Nigeria,’ she added.
Ultimately, sub-Saharan Africa presents great prospects for growth and development for local and international cosmetics brands with the various markets throughout the African continent being home to a wealthier emerging middle class.