Colour Cosmetics in the US

PROSPECTS

A slowdown for colour cosmetics after several years of hyper-consumption

Growth in overall colour cosmetics began decelerating from mid-2018, after years of steep increases since 2013. Several factors contributed to the slowdown: heavy purchasers of cosmetics bought fewer items; consumers switched to skin care products as health and wellness trends assumed a higher priority; and a lack of novelty compared with the numerous product and brand launches from several years ago were all relevant.

Premium colour cosmetics decelerates, while mass colour cosmetics recovers

The slowdown in colour cosmetics starting in mid-2018 after the hyper-consumption cycle from 2013 to 2017 was more pronounced in premium than mass colour cosmetics. This was expected, given that premium colour cosmetics flourished from 2013 to 2017, seeing double-digit growth, whilst mass colour cosmetics saw minimal growth.

Prospects are positive for certain categories

Mass colour cosmetics outperformed premium colour cosmetics in several categories in 2018, signalling opportunities for mass categories in the forecast period. In 2018, growth in mass lip liner/pencil and mass colour cosmetics sets/kits slightly exceeded the growth of their premium counterparts.

COMPETITIVE LANDSCAPE

L'Oréal USA’s investment in digital beauty makes it better poised to compete

L'Oréal USA led colour cosmetics in 2018, followed by Estée Lauder and Coty. L'Oréal’s performance was boosted by the double-digit growth of IT Cosmetics in 2018, especially through beauty specialist retailers, and above-average growth for Maybelline, NYX and L'Oréal Paris.

Greater competition amongst many new players for beauty consumers

The slowdown in growth in colour cosmetics may result in several outcomes for the forecast period. Mergers and acquisitions, which were common in the beauty industry from 2010, will become less frequent.

Colour cosmetics brands expand shade offerings to communicate inclusivity

The 2017 launch of Rihanna’s Fenty Beauty and its 40 foundation shades in LVMH’s Sephora stores reshaped facial make-up launches in 2018. Over 20 brands across all price positionings increased their shade offerings as a result of a broader consumer-driven push for inclusivity.

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