Encouraging growth predicted in resilient European beauty retail market
The market researcher’s ‘European Beauty Retailing 2010’ report reviewed six major European markets (France, Germany, Italy, Spain, UK and the Netherlands).
It revealed that together, these health and beauty markets are expected to reach a value of €147.4bn ($199.5bn) by 2014, an increase of 12 percent that outperforms the predicted 7 percent increase in total overall retail sales.
“Our research shows that while there has been an impact on spend, the health and beauty sector has shown resilience and growth,” commented Nica Lewis, head consultant at Mintel Beauty Innovations.
“Both manufacturers and retailers have continued to innovate despite difficult economic circumstances across Europe, trying for the ultimate breakthrough product or beauty solution and it is fantastic that this is reflected in such a positive forecast for the industry,” she added.
France and the Netherlands tipped for biggest growth
Breaking the forecasted growth down, France and the Netherlands were predicted by Mintel to grow at above average rates (18 percent and 15 percent respectively).
While the French health and beauty market declined steeply last year, it was noted that increased consumer spending and a pick-up in the country’s GDP should lead to a strong recovery.
Although the German health and beauty sector is expected to grow at a slower rate than that of France and the Netherlands, Mintel expects it to gain more retail market share than the other countries tracked due to the strength of its drugstore retail channel.
Retailing in Spain and Italy were especially hard hit during the economic crisis, and according to Mintel, Spain’s total retail sales are not expected to recover to 2008 levels by 2014. Similarly, a return to 2008 levels for Italy is only predicted to occur in 2013.
Potential of digital media and social marketing
According to Lewis, Europe has not exploited the potential of online beauty retailing to the extent the US has done, meaning it remains a relatively untapped channel through which to boost sales.
“Increasing innovation in digital marketing and social media engagement has great potential l[for brands] to engage with an even broader market base,” she said.
“With the rise of beauty focused smart phone applications and ever more competitive online pricing, these combined factors also contribute to the positive picture of the market as a whole,” she concluded.
