Global beauty and personal care market grew by 1.7% between 2012 – 2017, the firm says, with premium beauty and personal care was the fastest growing category at 3.5% between 2012- 2017.
Global beauty and personal care market is forecast to reach US$ 530 billion by 2022, the market research provider suggests.
When it comes to specific categories, baby and child-specific products is set to be the fastest growing category in the coming period, with a 4.2% growth between 2017 - 2022.
Premium will be the greatest contributor towards the BPC performance, experiencing a CAGR of 3.6% between 2012 - 2017.
Resilience in the face of subdued climate
Irina Barbalova, beauty and personal care global lead at Euromonitor International comments, “Amidst a relatively subdued economic, political and social climate that has expressed itself in various forms and dimensions globally, the beauty industry defied the odds yet again in 2017 by recording close to 5% value growth, a slight improvement on the previous year.”
Barbalova indicates that the rising interest in premium is being driven by a larger number of consumers looking to trade up.
She confirms: “This positive business sentiment reinforces the high propensity for trading up in the industry at a time when surging global middle and upper middle classes are willing to invest in new-found luxury, emerging disruptive and digital players are luring in younger consumer cohorts and ageing populations are identifying beauty with new means to healthy ageing and a more youthful appearance.”
Euromonitor says that the industry’s premium segment was “once again the standout story in 2017”, outpacing the overall industry for a third consecutive year.
Looking at the regions, this is the story across nearly all of the global market, with Eastern Europe and Middle East and Africa the regions where this is not happening.
“All other regions marked an improvement in premium beauty growth compared to the previous year,” Barbalova confirms.
“While China and the US accelerated even further, the premium market proved challenging in France, Russia, South Korea and the Gulf countries.”
Skin care and colour cosmetics offer the most lucrative prospects within the premium space (7% and 9% growth in 2017, respectively), two categories where levels of disruption and innovation have been most pronounced, she explains.
“After a few years of subdued results, skin care came back into the spotlight in 2017, expanding by 6% in value, the highest increase since pre-recession years.”