Rethinking Beauty: Exploring New Growth Models

Global beauty growth accelerates

The global beauty industry saw another strong performance in 2012, and industry growth bettered that of the previous year, reaching pre-recession levels with total sales of over US$433 billion globally.

Brazil remains the star of the beauty industry

Brazil posted its strongest growth since 2004, registering a staggering 17% gain, close to double 2011’s 9% increase, making it the star of the industry in 2012, but with less optimistic prospects for 2013.

Mass dominates but premium outperforms mass in most markets

Mass cosmetics continue to dominate sales and represented 75% of value sales in 2012. However, in 49 of the 80 markets, premium sales outperformed mass in 2012, leading to a strong rebound in premium cosmetics globally. Nevertheless, the mass segment still saw faster growth than premium globally.

Skin care is powerhouse of the industry

Continued demand and innovation in skin care helped the category reach the US$100 billion mark in 2012, and it continued to account for over one fifth of total market sales.

Space for both multi-functional and targeted offerings

Both targeted and multi-functional products are sought after by consumers; however, the need for stressing the primary benefit of a product should remain key in future innovations.

Emerging markets to fuel growth in future

Global beauty sales are projected to grow at an annual average real growth of 3% between 2012-2017, with growth set to be higher in the emerging markets than in the developed markets led by China and Brazil, despite a slowdown expected in both markets. The industry needs to be mindful of relying too heavily on emerging markets to shore up growth and explore niche segments and innovation across developed markets.

What this report includes

• Top-level strategic analysis of how major consumer trends will influence global markets
• Consumer insight
• Impact across all relevant consumer markets
• Unique graphics and case studies
• Key market snapshots
• Accompanying presentation to synthesise main findings

Why buy this report

• Identify factors driving change now and in the future
• Understand motivation
• Forward-looking outlook
• Briefings and presentation should provoke lively discussion at senior level
• Take a step back from micro trends
• Get up to date estimates and comment