1. The beauty and personal care industry has been driven by the premium segment and active categories in the past year, notably colour cosmetics in North America.
2. The top five companies combined command 30-45% value share
3. Avon struggled between 2011 and 2015, seeing an annual average decline in sales of 2% globally, and more severely -16% Compound Annual Growth Rate (2011-2015) in North America
4. Over 2016-2021, a third of the global US$16 billion in absolute gain is forecast to come from premium beauty, with the US and China contributing 55%.
5. North America is projected to contribute 25% of the global absolute gains in premium BPC between 2016-2021.
6. Skin care dominates the beauty and personal care market
7. Local competition creates challenges for heritage brands
8. We are seeing substantial impact from large-scale mergers & acquisitions
9. Intensifying competition for share in dynamic premium space
The white paper can be accessed here.
Major challenge: competition
As local markets continue to diversify and see the rise of nimble indie players responding more rapidly to local consumer demands, competition is increasing for the industry as a whole.
“Some major challenges industry players are facing include the rapid rise of local competition in the most attractive growth markets and the increasing number of disruptors with alternative business models,” explains Euromonitor in a recent blog.
Other key challenges are related to balancing brand approaches to new product development vs. continued promotion of established brands, the firm suggests.
“Internal challenges lie with the complexities of integrating large-scale new assets and finding the right balance between brand repositioning along major trends versus launching brand new labels.
“Lastly, one of the defining challenges in recent years has been the increasing competition international players and heritage brands face from local and regional companies, niche labels and alternative business concepts.”