Dramatic Shift in The Trends Drive the Cosmetics Market Worldwide

Today, economic downturn has kept the cosmetics and toiletries industry robust. Rising consumer income coupled with a dramatic shift in the lifestyle sector is driving the beauty industry worldwide. Furthermore, this growth is further driven by the elite as well as ageing baby – boomers. Although, the cosmetics industry, is still maturing, it would provide value growth owing to the growing customer need for better products.

Marketing Trends See a Dramatic Shift

Due to the tremendous sale of cosmetic products in regions such as Latin America, beauty manufacturers have now shifted their focus mainly on mass market. The fragrance category dominated by some of the key market brands, occupies a major market share in the region.  Another trend worth mentioning is constant diversification, when it comes to product range, as brands are now launching beauty products at an affordable rate to stay competitive.  

Introduction of an array of product lines that are often perceived as masstige or prestigious product are being preferred over the traditional range in mature markets such as Japan. This trend, would result in customers becoming highly aware that even mass products are capable of offering the same results at masstige counterparts, mainly in color cosmetics and skincare range. Besides the sales growth garnered the mass – produced range, innovations have also kept many cosmetic brands popular.

Distribution Channel

Non – store retailing channel has experienced great popularity in the last five to six years. The channel majorly focuses on direct sales as well as online sales. Brands depending on direct sales have managed to established a robust sales network in maturing market such as China, Brazil and Argentina. This to a greater extent has been made possible by the preferences of the new buyers, who has just started exploring the market; are seeking professional guidance and need support in selecting the best products.

In addition, the cosmetics sales through internet is also gaining popularity. Another significant fact is the systematically expanding share of supermarkets and hypermarkets as sales channel for beauty products. This is mainly due to the recent expansion of the retail outlets in developing market such as China and Eastern Europe and facelift given to those outlets with regards to beauty products.  

Promising Product Category

Throughout 2015 skincare range was the most notable category, driven greatly by the Asian market. Global skincare category is divided into sun care, and and body care and facial care. A key factor that has contributed to the rising need of the skincare products is the aging population in developed nations. Impact of this factor has become future more important with more and more baby boomers reaching their retirement years. This large population is wealthy and considered as demanding buyers, who know to value their purchases. Likewise, growing awareness about the harmful effects associated with the exposure to sun has also created a demand for skincare products.

Eyeing tremendous growth in the cosmetics market, Allied Market Research has published a report titled “World Cosmetics Market - Opportunities and Forecasts, 2014 - 2020”. The report outlines that the cosmetics market would register a CAGR of 3.7 percent. Besides this, the study also highlight that the segment would generate $390.07 billion by 2020. Key market players such as L’Oréal International, Avon Products, Inc., The Proctor and Gamble Company and Oriflame Cosmetics are also covered in the market research report.

Related Post