With major markets, including the US, Brazil and China, witnessing growth pressures and innovation becoming saturated, the beauty industry needs to find new frontiers for expanding revenue potential. Cross-category product developments have been explored and brands continue to be inspired by synergies among beauty segments and cross-industry shifts. Despite the slowdown, Brazil and China will remain crucial to expansion strategies, while hair and skin care should see dynamic innovation activitie
Despite a moderate slowdown, beauty industry growth remained robust at over 5% in 2013, down from close to 6% in 2012. Resulting from poor consumer demand in emerging markets and restrained demand in traditional markets.
2013 year-on-year growth in Asia and Latin America was moderately down, but the sheer size of China and Brazil meant the global impact was clearly evident. While Western Europe’s growth in 2013 strengthened marginally, led by positive signs in the UK.
Amongst the smaller markets, those outside the top 20 beauty and personal care markets, there is a group forecast to register a compound annual growth rates (CAGRs) well above the global average in the coming year, e.g. Indonesia and Saudi Arabia.
China and Brazil combined will contribute some 53% of the global BPC market value growth over the 2013-2018 period. Staple products, such as soap and shower gel, are receiving a strong boost in India. Deodorants, fragrances and hair care reflect the magnitude of the Brazilian market.
Although mass beauty products will continue to dominate national markets, with largest expected absolute value growth up to 2018, the forecast percentage growth for premium products is more dynamic in both emerging and developed markets.
Retail value growth in China, the US and Indonesia will largely be generated by skin care to 2018. While in Brazil, Turkey and Central Asian markets hair care will add most significantly to the total beauty market in sales terms.
Many brands have already experimented with multi-benefit combinations but this is becoming more mainstream. Consumers are now more than ever preoccupied with their own image; 2014 will be the year of “selfie” beauty. However interest in fashion brands and “luxury at home” remain key trends.
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