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Cosmetics Growth is Skin Deep
The global market for cosmetics and toiletries rose more than 4%in 2004 to almost $150 billion in 2004, according to a study due shortly from Kline & Company. The rise was fuelled by skin care products, which are the largest product category covered and grew by c.5% globally.
Global Cosmetics & Toiletries 2004 gives sales and market data across 20 product categories in 16 countries throughout Asia, Europe, North America, and Latin America.
Whilst Asia as a whole saw cosmetic and toiletry sales rise by less than 4% versus 2003, the markets in China and India grew dramatically, by 12.5% and 7.7% respectively, between them passing the $10 billion mark.
Skin care products represent the largest product category examined in the study and saw the strongest growth from 2003 to 2004, estimated at nearly 5% on a global basis. Hair care followed close behind, thanks in part to strong growth in Asia and Latin America.
Asia is the leading region in terms of skin care product consumption, accounting for approximately $17.5 billion in manufacturers' sales in 2004. While Japan accounts for the bulk of sales, China and South Korea each contributed more than $2 billion to the total and represent larger markets for skin care products than any single country in Europe.
'Europe is the largest market for cosmetics and toiletries, but countries like Argentina, Brazil, Russia, and China are showing the highest rates of growth', says Carrie Bonner, Industry Manager for the Consumer Products practice of Kline's research division. All four of these countries saw their sales at the manufacturer level expand by double-digit rates in 2004. Sales in Argentina rose more than 17% last year, albeit from a small base, contributing to overall growth of nearly 12% for the Latin American countries covered.
Penetration rates for some personal care products are still relatively low in the developing markets in Asia, Latin America, and Eastern Europe, according to Bonner - this is especially true in rural areas. However, 'Channels of distribution are developing quickly, and a greater variety of consumer products are becoming more readily available to more people. We expect to see strong growth in these countries over the next five to ten years as marketers look outside of the mature regional markets for new sources of revenue'.
'Even in developing countries, skin care is helping to drive overall market growth, and in the mature markets, the anti-ageing trend is still going strong', says Bonner. 'New formulas usually carry a high price tag, and consumers are willing to pay more for higher-performance products where they see added value.'
The study is based on data collected from approximately 1,000 interviews with cosmetic and toiletry marketers, distributors, and retailers, as well as government agencies and trade organizations. Kline & Company was established in 1959 and serves clients in the consumer products, speciality chemicals, life sciences, and energy industries. More detail on the report is available at www.klinegroup.com/y559.htm
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