Consumers to spend 2.8% more on beauty packaging, says Euromonitor
This is according to recent market data from research provider Euromonitor International, whose global data on packaging can be accessed here.
The firm says this is likely to fuel premiumisation in beauty products in developed markets, and the adoption of new products and packaging formats in developing markets.
More disposable income, more developed habits
The rising spend on packaging will be made possible by generally rising disposable income on a global scale, the firm suggests.
Mylan Nguyen Senior Beauty & Fashion Analyst at Euromonitor International comments: “Beauty and personal care packaging volume continues to grow globally, driven by changing lifestyles and consumers adopting new hygiene routines.
“Consumers in developing markets see their disposable incomes grow, and as a result change their hygiene routines, as they can afford new beauty products and formats,” he explains.
“This primarily concerns essential toiletries, such as bath and shower, hair care and skin care products, which in terms of packaging translates into growing volumes of HDPE bottles.”
Indeed, the market analyst suggests it is HDPE bottles that will be out in front when it comes to CAGR growth in the coming period.
“While flexible plastic is still expected to grow globally at a 1% CAGR over 2017-2022, this will be at a slower pace than HDPE bottles, expected to post 2% CAGR and generate an additional 2.6 billion units over the same period,” Nguyen confirms.
“While the trend towards greater portability and affordability has led to rising demand for smaller pack sizes, functionality and sustainability in packaging also become essential purchasing criteria.”
Where are consumers spending?
Everyday essential toiletries, namely bath and shower, hair care and oral care, remain the largest categories in terms of volume sales, says the firm.
“Looking at growth, oral care – mainly driven by toothpaste – is forecast to be the greatest contributor to growth in absolute terms, thanks to rising hygiene in developing countries such as China and India, where consumers increasingly use toothpaste as part of their oral care routine,” it explains.
However, it suggests that China will drive a rising in the spending on baby and child-specific products in the coming period.
“Still, baby and child-specific products is expected to be the fastest growing category over 2017-2022, driven by the relaxation of the single-child policy, coupled with rising purchasing power in China.”
