Nail care prises UK colour cosmetics market into a strong position following recession

08-Aug-2012 - Last updated on 09-Aug-2012 at 10:00 GMT

Related tags Cosmetics Compound annual growth rate

In a difficult time for industry, the UK colour cosmetics market is one of the bright sparks following the economic recession as with nail care products driving sales as expected.

According to Companies & Markets, 2011 saw retail sales within the UK colour cosmetics market grow at a compound annual growth rate (CAGR) of 5 per cent, to reach a market value of £1.6 billion (€2.0bn) by the end of the year.

The UK market was one of the only segments that benefited in a positive way following the economic recession; however value growth was slightly less that the estimated CAGR of 6 per cent, as well as growth in 2009 and 2010.

The market researcher claims this is because consumers begun looking for more value for money, meaning manufacturers had to start providing the same, which led to value growth slowing down.

Developing trends

The high growth with the market can also be attributed to the so-called "lipstick effect" in 2009, followed by the "foundation factor" in 2010.

The market then continued to remain stable due to consumers continuing to want to look good and presentable, regardless of the economic climate.

At the in-cosmetics event earlier this year, Euromonitor’s Irina Barbalova echoed this point explaining nail polish was a major trend in 2011, taking over from what used to be the “lipstick effect.”

"Nail polish was one of the fastest growing sub segments in 2011… Finally, the future looks bright for the sector as premium brands will continue to lead innovation and set the bar very high in technology and scientific innovation while retail channel shifts will create opportunities not just for online sales but increasingly so for mcommerce, which is a completely new opportunity zone for many brand owners,” she said.

Market share

According to Companies & Markets’ report, Boots UK Ltd remains the leading player within the UK colour cosmetics market, with a total market value share of 13 per cent.

Its dominance is predominantly down to its Boots No 7 brand, which has a value share of 10 per cent. L'Oréal increased its share in 2011 to 11 per cent, whereas, Rimmel, despite seeing actual sales value increase slightly, its share of the market fell slightly to 9 per cent.

Through to 2016, the UK colour cosmetics market is expected to experience a constant value CAGR of 2 per cent, to reach a market value of £1.8 billion, generated by segments such as eye shadow, mascara and nail polish, in which trends and fashions are fast moving and consumers make frequent purchases.