Global Personal Care Industry Trends
The global personal care products industry is concentrated in nature, with the top 50 companies holding a combined market share of around 85%, reports Hoovers. In the US alone, there are as many as 800 firms operating on the market.
The US, EU, UK, Brazil and Russia dominate the global personal care products industry.
The personal care industry encompasses a variety of products, including fragrances, makeup, hair care and coloring products, sunscreen, toothpaste, and products for bathing, nail care, and shaving. The industry overlaps with other markets like chemical, health care, and petroleum. The latter is important as personal care product raw materials, such as propylene glycol, come from petroleum products.
Given the risks associated with toxic materials in personal care products, companies have to invest in research and development to render products safe or to explore alternative raw materials like natural and herbal products.
Demand for women’s beauty products grows at about 7 times the rate of the global cosmetics market, according to industry data. Factors fuelling the personal care products market include higher consumer spending power, new products, better consumer awareness, advertising and lifestyle changes.
Key Market Products
Global deodorant demand will push the market to break the $12.5 billion mark by 2015, according to Global Industry Analysts. Factors driving market expansion include new product formats, gender-specific products and technological developments. Companies are focusing on new products and extending established product lines, with innovative offerings for product applications and formulations. The US and the EU are both mature markets, with the EU accounting for the largest share of the global deodorant market.
MarketLine predicts the world fragrances market will be worth almost $46 billion in 2015, representing an increase of more than 25% in five years. Market volume exceeded 1.3 billion units in 2010, and is expected to reach 1.64 billion units in 2015. Fragrances for women represent almost 64% of the market, and the EU has more than a 45% market share. Coty Inc is the top company operating in the global market, with over 10% of overall market value.
The world suncare market (divided into adult and baby products) is expected to reach almost $9 billion in 2015, reports MarketLine, representing almost 24% expansion in five years. Market volume reached close to 815 million units in 2010, and is expected to exceed 1 billion units in 2015. Sun protection represents the largest market segment, with 66% of the overall market. The EU has a near 42% share of the global market. L'Oreal S.A. is the top company operating in the global market, with almost 15% of the market’s overall value. The market is moderately fragmented, with the three leading companies holding a combined share of 73%.
TechNavio expects the world skincare market to exceed $90 billion by 2014, fuelled by consumer affluence and demand for organic and natural products.
The global bath and shower product market (segment of the beauty and wellness industry) is expected to exceed $12.85 billion in 2015, reports MarketLine, representing a near 19% increase in five years. Shower products represent over 70% of the market. The EU holds a 54% share in the global market, and Unilever is the leading company with more than 17% of overall market value.
MarketLine predicts the global haircare market will record slowing growth of less than 3.5% yearly through 2015 to reach almost $58 billion. Shampoo represents the leading product on the market, registering yearly sales of $19 billion.
The world male toiletries market is expected to reach almost $24.75 billion by 2015, reports MarketLine. Shaving blades and razors account for almost 77% of the market. The EU holds a 45% share in the global market. Procter & Gamble is the market’s number-one company, generating almost 46% of overall market value.
Global Industry Analysts predict the global toothpaste market will exceed $12.5 billion by 2012, fuelled by awareness of oral hygiene.
Leading companies in the global fragrance market include L’Oréal, Estée Lauder, Inter Parfums, and Avon Products. Key players in the world oral hygiene market include GlaxoSmithKline, Procter & Gamble and Colgate-Palmolive.
Just as consumer awareness leads to a trend towards organic and herbal products, greater corporate awareness means companies are committing to environmental protection by reducing packaging, conserving water, reducing carbon emissions and stressing recycling. Companies have built eco-smart facilities, and research and distribution buildings approved by Leadership in Energy and Environmental Design (LEED).
Over the coming years companies are likely to continue investing in eco-friendly practices. Manufacturers will also respond to demand for more natural products, widening their natural and herbal product lines. Marketing efforts will likely be increasingly geared to stress environmental protection and respect for hair and skin through non-toxic ingredients.
Leading Industry Associations