How to Maximise Growth in the US Colour Cosmetics Market?

Why colour cosmetics in the US?

In the next five years, US colour cosmetics will gain another USD2.9 billion. It is the second most lucrative market in the world (behind China) and the third country in the world with the biggest unmet potential.

Facial make-up and lip products have the highest growth prospects and potential

Facial make-up’s latest quarterly update forecast remains the strongest in absolute retail value terms; the market will grow by USD1.2 billion by 2022. According to Euromonitor’s Industry Forecast Model, it also has the biggest unmet potential; meaning, there still some room for growth. Lip products is also showing good prospects and potential. Lip products is expected to gain USD881 million by 2022 and has an unmet market potential of almost USD1 billion.

Growth drivers

Income (GPD per capita) is not the most impacting driver. As consumers are becoming more affluent, they buy more facial make-up and lip products but habit persistence and soft drivers play a more important role with the growth of those two markets.

How to win

To win, beauty brands need to target the right distribution strategy. Beauty specialist retailers and internet retailing are two dynamic distribution channels, which have both increased by five percentage points in five years. However, a shift in attitudes in consumers means that an online strategy needs to be carefully planned. Consumers of all age are digitally influenced but not to the same extent. This means beauty brands need to refrain from a one-size-fits-all policy when it comes to digital investment. The same can be applied to products variety; think about diversity. Lastly, consumer lifestyles are changing; and therefore, brands should change too and align with lifestyle choices.