Blurring Lines in Beauty: Current and Future Implications

Strategy Briefing

About This Report

Mar 2015

The process of developing white spaces to drive growth in the beauty industry increasingly involves incorporating claims from other categories. This appears to be blurring the lines between the segments in which these products are positioned. The question is if this is leading to any form of cannibalisation in the industry and is the new generation of products with multiple claims replacing traditional ones.

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Blurring Lines in Beauty: Current and Future Implications

Efficacy over efficiency in beauty products

The beauty industry has seen a series of product innovations, claiming to combine multiple functions and therefore blurring the boundaries between product categories. Products that address more than one beauty concern, may prove more worthwhile for consumers, due to time and cost savings they offer.

Anti-ageing and enhanced claims

A number of beauty categories [such as facial foundations] are including anti-ageing claims to enhance the perceived benefit. As these multi-functions products are meant to be used in conjunction with single function products there has, so far, been no market cannibalisation from either category.

Sun protection is a common feature in anti-ageing

A key enhancement in anti-ageing facial moisturisers and foundations is sun protection. This feature has impacted growth of the sun care category. However, facial sun care products in turn are now exploring anti-ageing and colour cosmetic capabilities to help revive category growth.

Multiple claims become the industry norm

Multiple benefits are becoming the industry norm as manufacturers look for other possible combinations. Fragrance has been being one of the most commonly infused benefits to enhance a sensorial appeal.

Future implications

Cross-category benefits are expected to continue as part of product innovations but only for greater efficacy of the primary function. For example facial foundations with anti-ageing benefits claim to offer more flawless coverage, while fragrances are used to add appeal for products such as nail polish.

Introduction

Scope
Key findings

Shifting market dynamics and consumer expectations

Market maturity and slowdown lead to value-added innovations
Multiple benefits help to boost growth in beauty sales
Drawing inspiration from common features in other categories

Multiple benefits as part of total solutions

Total beauty solutions come in three key forms
Multiple claims and one topical application - the most common form
Multiple benefits as part of total solutions fail to boost lip balms
Product refinement key to driving growth of total solutions
Total solutions now include multiple applications in one format
On average daily grooming routine exceeds half an hour

Incorporating Anti-ageing for targeted benefits

Anti-ageing is most widely used claim in beauty
Ageing demography and higher earnings drive anti-ageing claims
Signs of ageing goes beyond facial lines
Facial anti-agers address lines, wrinkles and firmness
Colour addresses dark spots, even skin tone and luminosity
No cannibalisation for anti-agers and foundations for similar claims
Future growth potential for anti-ageing foundations
Anti-ageing foundations to create opportunity in South Korea
Hair care enters anti-ageing segment
Deodorants offer targeted skin benefits for mature consumers

Anti-aging facial products impact Sun Care category growth

SPF in anti-agers and colour affects sun care growth
Sun care explores anti-agers and coverage in developed markets
Brazil defies dip in sun protection
New markets offer scope for hybrid sun care ranges
Hair care with SPF offers strong potential in new markets

Exploring other combinations for enhanced benefits

Fragrances commonly used in hybrid beauty solutions…
…and derive inspiration from skin care for growth
Emerging markets offer opportunities for fragrance-infused hybrids
Inspiration from segmentation by skin type to add value
Deodorants and skin whitening offer lucrative prospects globally
Some traditional products find new identity through new usage
Africa offers strong prospects for cleansing conditioners

Future prospects for crossover benefits

Future implications for hybrid beauty solutions
Key category crossover prospects for the future