Euromonitor International’s 2017 edition highlights a strong beauty and personal care industry

By Lucy Whitehouse

- Last updated on GMT

Euromonitor International’s 2017 edition highlights a strong beauty and personal care industry

Related tags North america

The market research provider describes the industry’s global growth as ‘respectable’ at 5% in 2016.

In Euromonitor’s 2017 edition of its research, the firm highlights that for the second year, the premium segment outperformed the mass market, with nearly 6%. Nicholas Micallef, senior beauty analyst with the firm, shares insight into the data and findings.

Growth Shifts: US Solid, Emerging Markets Mixed Results of Falter and Recovery

At county level, Brazil and Russia have restored their place among the promising growth markets, according to the analyst.

“While the economic situation improved in Brazil, brand owners also resorted to measures such as frugal innovation and promotional offers to keep demand intact. Meanwhile, Russia was boosted by local players, such as Natura Siberica and Faberlic, and higher spending in Russian high streets, as consumers shunned shopping destinations such as Paris and London, and spent less in travel retail.

“These dynamics helped Brazil and Russia post growths of 4.8% and 9.8%, respectively. India and Indonesia continued to drive growth in 2016, at 9.2% and 10.6%, while their market size nearly doubled over 2011-2016 to reach US$12 billion and US$4.6 billion, respectively.

“Projections point to similar dynamics, with India expected to suffer in the short-term from demonetisation, but is expected to recover quickly as retailers facilitate cashless transactions.”

According to the firm, at 7.2% growth, it was a stellar year for colour cosmetics, further fortifying over the 6% growth in 2015. Dynamic brands fuelled category growth, including Nyx, Urban Decay and Kiko Milano, as well as a plethora of niche labels, such as Milk Makeup and Too Faced.

Asia Pacific and North America in focus

Micallef continues, “Asia Pacific leads premium BPC forecasts over 2016-2021, expected to generate US$6.6 billion in absolute gains. However, this amounts to just under half of the mass segment equivalent. Premium segment prospects are explained by the large demographic, as more consumers in East Asia trade up from the mass segment. Luxury is increasingly becoming more accessible in the form of smaller packs, but also, regional players such as AmorePacific making inroads in several Asian markets.

“For example, in Indonesia, its premium Sulwhasoo brand reached over US$11 million in 2016 since its 2013 debut, while in China it grew exponentially over 2011-2016, reaching US$82.5million, doubling sales over 2015 alone. The company also launched the luxury brand Hera at upscale department stores in Beijing."

The analyst also noted that North America is the region out in front when it comes to premium.

North America conquers in per capita expenditure in premium beauty, which is expected to top US$90 by 2021. The region’s premium beauty forecast predicts absolute gains over 2016-2021 amount to US$5.8 billion, double the prospects in mass beauty.

“This makes North America ripe for the high-end prestige market such as personalised beauty, and upmarket small-batch niche labels. As premium beauty becomes deeply embedded, the competitive challenge lies not in the product quality, but in making it distinct and as individualised as possible.”

Related news

Related products

show more

Collagen Reimagined, Discover Biodesigned Type XXI

Collagen Reimagined, Discover Biodesigned Type XXI

Content provided by Geltor | 20-Mar-2024 | Product Brochure

Collagen is the body’s most abundant protein and a mainstream ingredient for beauty. Type XXI collagen transcends a common protein into a powerful bioactive

Empowering natural barrier function for future-proof skin

Empowering natural barrier function for future-proof skin

Content provided by Lucas Meyer Cosmetics | 14-Mar-2024 | White Paper

Corneopeptyl™ is a new patented peptide biomimetic to the LCE6A protein, obtained by green chemistry-based synthesis. By mimicking the LCE6A protein activity,...

Get your skin ready for summer

Get your skin ready for summer

Content provided by Robertet Health & Beauty | 27-Jun-2023 | Product Brochure

Sunbathing at the beach is the first UV-related skin damage that comes to mind. Whereas, enjoying a coffee on a terrace under the sun can be as harmful.

Related suppliers

Follow us

Products

View more

Podcast

Beauty 4.0 Podcast