According to market researcher Lucintel, the global personal care products industry is to reach $630 (€487) billion by 2017, with a CAGR of 3.4 per cent over the next five years.
The report 'Global Personal Care Products Industry 2012-2017: Trend, Profit, and Forecast Analysis' highlights rising consumer incomes and changing lifestyles as driving the personal care segment.
In particular, the market researcher notes that an increasing demand in Asia Pacific (APAC) and Europe will drive overall industry growth, due to rising GDP, greater product awareness, and a rise in organized retail.
"An increased awareness has resulted in higher demand for luxury products, especially cosmetics. However, providing quality products at a low cost is a challenge for manufacturers."
The market researcher then pointed to skincare, the largest segment, as representing good growth prospects during the forecast period, and that an "increased demand for multi-feature products such as moisturizing cream with sun protection and anti-ageing or anti-wrinkle properties as likely to drive market growth."
Hair care came in second in terms of future growth potential, with North America then highlighted as the fastest-growing region while Europe was pinpointed as dominating the industry with the highest market share.
In terms of growth challengers, Lucintel identified maintaining good quality, a rise in packaging expenses, and an increasing cost of raw materials as major ones for the industry, with maintaining a balance between price and quality being the biggest.
The industry researcher further noted that although the cosmetics industry was affected by the recession in 2009, it recovered in 2011 as the global economy improved.
Persevering through the recession
Meanwhile, fellow market researcher Mintel also agreed that the industry has weathered the economic downturn relatively unscathed, turning its focus to the UK market in particular.
It’s recent report revealed that, despite flat sales in 2009 at height of the economic downturn, the total value of the UK cosmetics and personal care sectors increased 50 per cent over the last decade.