Beauty Geographic Hotspots: Exporting Regional Concepts

December 2019

Euromonitor has coined the term “Geographic Hotspots” to describe the country-branded beauty movement, whereby brands are categorised by their region of origin. This concept of home-grown beauty has long impacted domestic markets, through the ability to meet specific racial, cultural and environmental needs. Today, demand for hotspot brands is escalating, due to globalisation and peaked interest in foreign travel and culture, with the “Made in” stamp carrying more meaning than ever before.

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This report comes in PPT.

Key findings

Beauty hotspots refers to a group of brands nurtured in the same country or region

The existence of beauty hotspots can be explained by significant variations in beauty standards and regimes around the globe, influenced by one’s race, religion and local lifestyle. This, combined with differences in technological capabilities and access to native ingredients, is what creates beauty hotspots.

Curiosity in foreign culture and travel benefits hotspot brands

The evolution of the hotspot trend can be attributed to consumers growing interest in international travel and culture, with the number of foreign trips for leisure purposes rising by 28% globally over 2014-2019. Beauty hotspot brands thrive on their association with local culture, providing something more meaningful to consumers than just a simple beauty purchase.

Korean beauty slows, while other key beauty hotspots spread their reach globally

Korean beauty arguably paved the way for the hotspot movement, but now K-beauty giants such as AmorePacific and LG Household & Health Care are seeing weaker performance. A wave of new beauty hotspots have gained popularity, including Japanese, Chinese, Australian and Scandinavian beauty.

A new wave of brands from upcoming regions expected to see traction

The success of certain beauty hotspots has encouraged brands in other regions to consider how they capitalise on their own cultural associations. Notably we are seeing a rise in beauty brands from Germany, Brazil, the Middle East and Africa particularly, as consumers warm towards local players.

Future investment opportunities exist for major beauty players as a way to consolidate market share

Multinationals such as L'Oréal and Unilever are participating in the hotspot trend, through acquisitions and investments of independent hotspot players. We are also seeing more “hotspot-inspired” brands, as well as brands using cross-cultural influences as a strategy to reach more international consumers. However, debate ensues over what classifies as a true hotspot brand.

Key findings
Beauty hotspots thrive on their association with local culture
Perceptions of beauty influenced by race, religion and lifestyle
Standards of beauty differ significantly around the globe
Curiosity in foreign culture benefits hotspot brands
We asked consumers which beauty hotspots they had heard of…
Top beauty hotspots spread their reach globally
K-beauty paved the way for hotspot trend
Is the reign of K-beauty over?
K-beauty brands must look towards new innovation
A new generation of K-beauty brands
J-beauty regains momentum as consumers prioritise efficacy
Tech-led innovations drive sales of J-beauty
Japanese brands promote J-beauty as the new powerhouse
J-beauty: spotlight brands
C-beauty revives ancient Chinese beauty practices
C-beauty brands know how best to target Chinese consumers
The trend for Chinese beauty remains strongest locally
C-beauty: Spotlight brands
Australia’s laid-back lifestyle promoted through A-beauty
Vegan and cruelty-free claims are the norm
A-beauty: spotlight brands
Scandinavian beauty brands keep it pure and simple
Sleek packaging design is a priority for Scandi brands
Scandi-beauty: spotlight brands
Indian-beauty evolves with new premium Aryuvedic concepts
Opportunities for Aryuvedic beauty are strongest in Asia Pacific
Indian-beauty: spotlight brands
American-beauty defies traditional hotspot characteristics
America as the pioneer for cannabis as a beauty ingredient
American-beauty: Spotlight brands
African-beauty develops through offer of targeted beauty products
Consumers of black/African descent have different demands
German-beauty powered by engineering and functionality
G-beauty meets consumers demand for efficacy and high-quality
Brazilian brands capitalise on an abundance of distinct native ingredients
Sales of Brazilian brands remain strongest in local market
Brands contemporise traditional Middle-Eastern beauty customs
Middle-Eastern consumers willing to devote time to beauty
Beauty multinationals pursue participation in hotspot trend
Fast-growing brands make strong investment prospects
Acquisition of hotspot brands as a strategy to consolidate market share
Innovation spill-overs from collaboration with hotspot brands
“Hotspot-inspired” brands on the rise
Future opportunities exist for “cross-country” brands
Is the hotspot terminology being overused?
A product-led focus could help hotspot brands ensure long-term growth

Beauty and Personal Care

This is the aggregation of baby and child-specific products, bath & shower, deodorants, hair care, colour cosmetics, men's grooming, oral hygiene, fragrances, skin care, depilatories and sun care. Black market sales and travel retail are excluded.

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