Consumer Products State of the Industry 2012

Consumer Products State of the Industry 2012

At the end of 2012, tendencies in the overall beauty industry suggest a continued recovery of the market following the recession. While the robust numbers on the global level are driven by the emerging markets, the mature markets post steady growth in almost all industry segments.


Professional Sectors

Nail care has been one of the fastest growing categories in professional salons. Professional nail care accounts for almost 11% of the global nail care market. The nail industry got a huge shot of adrenaline with the introduction of over 30 important new gel-brands in the past two years, and gel products continue to rise in popularity. Kline estimates that professional nail polishes and gels (those used in salons) will grow close to 30% globally in 2012.

The professional skin care products market sees some contradictory numbers in 2012. While in Europe in 2011 the market posted 4.0 % growth, growth is estimated to be below 2% in 2012, affected by the difficult situation in southern Europe. The professional skin care market is buoyed by growth coming from the east, particularly Russia. In the United States, a modest 1.3% from 2011 will be maintained in 2012.

Beauty Devices
According to Kline’s findings for 2012, the market for at-home beauty devices posts a robust growth of over 19% in the United States. Sales are driven by higher priced devices with prices tags of $150.00 and up. Equally imperative for sales boost are the venues showcasing at-home and portable skin care gear whilst concurrently educating consumers regarding their benefits. Beauty devices such as NuFace, Clarisonic, and TRIA continue to be sought after in exclusive retail spots such as Neiman Marcus, Bloomingdale’s, and Nordstrom. While prestige device sales soar, a few mass brands in this market struggle to sustain sales in 2012.

Male Grooming
The global male grooming market returns to a growth path with sales increased by almost 4% in 2012. The highest growth comes from the Asian market (China, India, South Korea), followed by the United States. As of 2012, Europe is the leading region in male grooming products sales with an estimated 35% global market share. Men are becoming more interested in anti-aging products for the face and eyes. Young adult men increasingly purchase skin care products for acne treatment, particularly face wash and oil-free moisturizer.  Some of the preliminary findings from the consumer research show that about 35% of U.S. men claim to not use any skin care products, including facial wash or body moisturizer, while less than 2% of Chinese men say the same; German men have the highest usage of facial moisturizers, while Chinese men have the lowest of all countries surveyed.

Cosmetics & Toiletries
The fragrance market is likely to post a full-year growth around 4.5% in 2012. Factors that are helping to buoy the industry in 2012 include successful new scents targeting a younger demographic; classics, celebrity, designer, and artisan scents; distinctive packaging; gift sets and smaller sizes offering a lower price-point. Kline’s research indicates that Lady Gaga’s “Fame” is expected to be the most successful celebrity launch of 2012 while Chanel’s “Coco Noir” is predicted to be the most successful designer launch.

Health and Wellness
Largely untapped health and wellness devices can be a burgeoning opportunity for healthcare, beauty, and technology manufacturers. One of the trends driving the strong growth in this market is that consumers are looking to build healthier lifestyles in order to improve their quality of life and reduce medical costs. Health-conscious consumers are also slowly shifting their focus to home care using devices such as blood glucose and pressure monitors, heart rate monitors, pedometers, etc. One of the opportunities for health and wellness devices will be the integration of wireless technologies, such as Bluetooth. The penetration of consumers who use wireless devices is expected to grow from 4% in 2011 to 15% in 2016. The key driver for wireless technology is its ability to monitor an individual’s health using electronic devices, such as smartphones, which help collect and view the information.

For more information, see Kline Consumer Product listing HERE.

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