In spite of all the bad news about the economy, there were some clear winners last year. According to Kline’s data, in 2008, U.S. cosmetic and toiletry sales reached $35.6 billion at the manufacturers’ level, and the industry as a whole had a positive growth rate. Some categories experienced strong growth while others declined.
Consumers are showing a preference for competitively-priced products from the mass and direct trade classes. Therefore, premium products sales are being affected heavily by these negative market conditions. In fact, salon, specialty, and luxury trade classes all demonstrated negative growth, whereas mass and direct trade classes turned out to be the fastest growing segments.
While consumers are showing a preference for competitively priced products, some premium brands did well too. Find out which brands grew in 2008 and why.
The 2008 edition of Kline’s Cosmetics & Toiletries USA study is about to be completed!
Kline projects a moderate growth over the next five years. Years 2009–10 will be sluggish, but the following three years are expected to witness growth. This growth will be affected negatively by stricter legislation on claims and ingredients and the new consumer mindset of cautiousness on spending. However, it will be impacted positively by product innovations and new alliances and mergers between companies.