Ethnic Hair, Skin, and Cosmetics Products in the U.S., 8th Edition

• Publication date: June 2012
• Report size: 244 pages

There is good reason to be optimistic about ethnic hair, skin, and cosmetics products in the United States, and for marketers to be ramping up in new products and marketing campaigns now rather than later. With the rapid expansion of racial and ethnic minorities in the U.S. over the next ten years, ethnic health and beauty care product (EHBC) marketers have a fast growing target market. Hispanic, African-American, and Asian population growth is...

There is good reason to be optimistic about ethnic hair, skin, and cosmetics products in the United States, and for marketers to be ramping up in new products and marketing campaigns now rather than later. With the rapid expansion of racial and ethnic minorities in the U.S. over the next ten years, ethnic health and beauty care product (EHBC) marketers have a fast growing target market. Hispanic, African-American, and Asian population growth is far outpacing that of whites, with minorities expected to collectively be the majority of the U.S. population as soon as 2042.


Compared to many consumer packaged goods categories, EHBC did remarkably well during the recession, continuing to chart steady growth even though U.S. minorities were especially hard hit by the economic downturn, including in terms of high unemployment rates. The loyalty of the minority populations to their HBC products kept the market on track to resume impressive growth as soon as economic conditions began to improve.


During 2010, the EHBC market posted growth of nearly 13%, and during 2011 the market continued to advance at a healthy pace to reach almost $3 billion.


As more and more EHBC products are introduced, they are meeting the needs of people of color that had previously been either ignored or mis-marketed to. As of 2012, market drivers include a desire for more natural products; greater participation in HBC categories on the part of men overall, but especially men of color; and the surge of innovative, better quality products entering the market. At the same time, ethnic consumers still spend vastly more on general market HBC products than they do on targeted ones, a discrepancy that highlights the opportunity for EHBC marketers to dramatically expand their reach.


This completely updated Packaged Facts report examines the market for EHBC products within the context of broader HBC trends in new product development and marketing, segmenting EHBC into three categories: hair care, skin care, and color cosmetics. Fully exposing the driving forces behind this market, the report analyzes market size and drivers, new product introductions, and competitive strategies, as well as the social and lifestyle patterns shaping the fortunes of ethnic health and beauty care products. Marketer and brand profiles specific to each of the three categories help to define the relationship between consumer attitudes and new product development and marketing strategy.

Skin Care Products Industry in the United States

Chapter 1: Executive Summary

Scope of Report

The African-American Tilt

Terminology

Three Product Categories: Hair Care, Color Cosmetics, and Skin Care

Overlap of EHBC and General-Market HBC Use

A Note on Sales Data

Report Methodology

Ethnic HBC Sales Near $3 Billion in 2011

Hair Care Category Leads at Retail

Table 1-1: U.S. Retail Sales of Ethnic HBC Products by Category, 2010 vs. 2011 (in millions of dollars)

B&Bs, Mass Retailers Account for 75% of Sales

Figure 1-1: Share of U.S. Retail Sales of Ethnic HBC Products by Retail Channel, 2011 (percent)

Ethnic Population Boom = Opportunity for EHBC Marketers

Table 1-2: Projection of U.S. Population by Race and Hispanic Origin, 2010 vs. 2020 (in millions)

Varied Groups a Challenge to EHBC Marketing

Ethnic Hair Care Marketers

Ethnic Color Cosmetics Marketers

Ethnic Skin Care Marketers

Hispanic, African-American Populations Retain Youthful Vigor

Tech Usage High Among Ethnic Minorities

Natural and Organic Hold Promise

Environmental Concerns a Top Priority

EHBC Products in the “Mansome” Era

Minorities Hopeful About Financial Conditions

Table 1-3: Selected Economy-Related Psychographics: U.S.

Minority Consumers, 2011 (index)

Market Projection: Sales to Near $4 Billion in 2016

Table 1-4: Projected U.S. Retail Sales of Ethnic HBC Products, 2011-2016 (in millions of dollars)

Chapter 2: Market Overview

Scope of Report

The African-American Tilt

Terminology

Three Product Categories: Hair Care, Color Cosmetics, and Skin Care

Overlap of EHBC and General-Market HBC Use

A Note on Sales Data

Market Size, Growth, & Composition

Ethnic HBC Sales Near $3 Billion in 2011

Hair Care Category Leads at Retail

Table 2-1: U.S. Retail Sales of Ethnic HBC Products, 2007-2011 (in millions of dollars)

Table 2-2: U.S. Retail Sales of Ethnic HBC Products byCategory, 2010 vs. 2011 (in millions of dollars)

B&Bs, Mass Retailers Account for 75% of Sales

Figure 2-1: Share of U.S. Retail Sales of Ethnic HBC Productsby Retail Channel, 2011 (percent)

Natural/Organic and E-tailing/Mobile Sales Channels Hold BigPotential

Spending on General HBC Products Eclipses EHBC Sales

Table 2-3: U.S. Minority Purchases of General-Market HBCProducts vs. EHBC Products, 2007-2011 (in millions ofdollars)

Market Outlook

Ethnic Population Boom = Opportunity for EHBC Marketers

Hispanics

African-Americans

Asians

Other Groups

Table 2-4: Projection of U.S. Population by Race and Hispanic Origin, 2010 vs. 2020 (in millions)

Varied Groups a Challenge to EHBC Marketing

Assimilation Not a Given Amidst “Cultural Melting Pot” Ideals

Concepts of Halal Have Cross-over Potential

U.S. Ethnic Spending Power Rivals That of Small Nations

Personal Care Prices Defy Inflation

Table 2-5: Consumer Price Index for All Items vs. Personal Care Items: 2001-2011

Rise in Cosmetic Surgeries Among Ethnic Consumers A Positive Signal for HBC Spending

Hispanic, African-American Populations Retain Youthful Vigor

Tech Usage High Among Ethnic Minorities

Table 2-6: Opinions on Internet and Mobile Technology by Race or Ethnicity, 2011 (percent)

Natural and Organic Hold Promise

What Is Natural?

More Retailers Carrying Natural EHBC Products

Illustration 2-1: Target Announcement for CARA B Naturally

Environmental Concerns a Top Priority

Sustainability Crucial to Consumer Good Will

“Green” Packaging

EHBC Products in the “Mansome” Era

Illustration 2-2: Still from the movie Mansome

Latinos, Asian Men Drive Growth in Men’s Grooming

Illustration 2-3: Andrés Guardado Degree Ad

EHBC Market to Hit $3.9 Billion in 2016

Table 2-7: Projected U.S. Retail Sales of Ethnic HBC Products, 2011-2016 (in millions of dollars)

Minority HBC Consumer Overview

Experian Simmons Consumer Survey Data

U.S. Minorities to Number 146 Million in 2020

Hispanics Will Number 66 Million by 2020

African-American, Asian Populations Continue to Grow

The Overall Gauge

Minorities Skew as Green—or Greener—Than Whites

Minorities Seek Organic/Natural HBC Products

Minorities Hopeful About Financial Conditions

Sparing No Expense to Look Younger

Women of Color Shop JC Penney, Discount Stores

Minority Shoppers Favor Sav-On, Osco

Table 2-8: U.S. Population Projections by Race, Gender, and Hispanic Origin, 2010-2020 (in millions)

Table 2-9: U.S. Population by Race or Ethnicity, 2011 (in millions of adults)

Table 2-10: Selected Sustainability Related Psychographics: U.S. Minority Consumers, 2011 (index)

Table 2-11: Level of Agreement with Statement, “When I shop for health and beauty care products, I look for organic/natural items,” by Race/Ethnicity: 2011 (index)

Table 2-12: Selected Economy-Related Psychographics: U.S. Minority Consumers, 2011 (index)

Table 2-13: Selected Health & Beauty Shopping Psychographics: U.S. Minority Consumers, 2011 (index)

Table 2-14: Cosmetics Purchasing Patterns at Selected Department Stores and Discount Stores: U.S. Women Minority Consumers, 2011 (index)

Table 2-15a: Drugstore Chains Shopped During Past Four Weeks: U.S. Consumers by Race or Ethnicity, 2011 (index)

Table 2-15b: Drugstore Chains Shopped During Past Four Weeks: U.S. Consumers by Race or Ethnicity, 2011 (index)

Chapter 3: Ethnic Hair Care

The Products

Category Definition

Five Product Segments

Characteristics of Ethnic Hair

African-American Hair

Hispanic Hair

Asian Hair

Market Size, Growth, and Composition

Ethnic Hair Care Sales Near $1.6 Billion in 2011

Styling Products Account for Largest Category Share

Table 3-1: U.S. Retail Sales of Ethnic Hair Care Products by Segment, 2010 vs. 2011 (in millions of dollars)

Growth Driven by Innovation, Expansion

Sales by Retail Channel

Table 3-2: Share of U.S. Retail Sales of Ethnic Hair Care Products: By Retail Channel, 2009 vs. 2011 (percent and in millions of dollars)

The Marketers

Company Types and Mass-Market Leaders

Marketer and Brand Leaders by Segment

“Ethnic-Appropriate” Products an Important Market Component

B&Bs Offer Variety, Pop Prestige Positions on Function

Specialization the Norm for Ethnic Hair Marketers

Few Products Specifically Target Hispanics or Asians

Table of Ethnic Hair Care Marketers and Brands

Table 3-3: SymphonyIRI-Tracked Retail Sales of Leading Ethnic Hair Care Marketers and Brands, 2010-2011 (in thousands of dollars)

Table 3-4: SymphonyIRI-Tracked Retail Sales of Leading Ethnic Hair Care Products by Segment, 2010-2011 (in thousands of dollars)

Table 3-5: Selected Ethnic Hair Care Marketers and Their Brands, 2012

Marketing and New Product Trends

Going Natural

Michelle Obama and the Natural Wave

Sesame Street Encourages Children to Love Their Natural Hair

Quest for Natural Ingredients a Related Trend

Keratin Treatments

Illustration 3-1: Joico RevitaLuxe Bio-Advanced Restorative Treatment

At-Home Straightening Systems: An Alternative to Relaxers

Illustration 3-2: John Frieda Frizz-Ease 3-Day Straight

Illustration 3-3: Suave Professionals Keratin Infusion Line

Illustration 3-4: SoftSheen-Carson Optimum Advanced Keratin Relaxer

Botanical Oils

Argan Oil

Illustration 3-5: Organix Moroccan Argan Oil Line

Other Oils

Antioxidant Content: Omega 3 and 6

Illustration 3-6: L’Oréal EverCrème Line

Encouraging Hair Growth

Illustration 3-7: DOO GRO Mega Thick and Mega Long

Men’s Hair Care

Illustration 3-8: Moco de Gorila

Table 3-6: Hair Product Usage Among U.S. Men by Product Segment and by Race/Ethnicity, 2011 (index)

Cross-over Brands

Illustration 3-9: Laila Ali Professional Repairing Hair & Scalp Conditioner

Illustration 3-10: The Faces of Carol's Daughter’s Diversity Campaign

Marketer and Brand Profiles

Marketer Profile: Unilever

Motions: Filling a Crucial Need

Illustration 3-11: Motions Naturally You! Product Line

Brand Profile: Ojon

Mainstreaming Relaunch

Illustration 3-12: Ojon Damage Reverse Ritual

Brand Profile: Mixed Chicks

Illustration 3-13: Mixed Chicks Deep Conditioner

Battling Sally Beauty Supply’s “Mixed Silk”

Consumers of Ethnic Hair Care Products

Experian Simmons Consumer Survey Data

Hair Regrowth, Removal Products Popular Among Minorities

Shampoo Use Nearly Universal Among Minority Consumers

Asians, African-Americans Use Conditioner

Hispanics Choose Hair Styling Gel, Mousse

Hispanics, Asians Color Hair; African-Americans Favor Relaxers

Minority Use of Hair Removers, Hair Growth Products High

Shampoo Use Remains Steady, Styling Product Use Drops

Table 3-7: U.S. Consumer Use of Hair Care Products by Race or Ethnicity, 2011 (index)

Table 3-8: U.S. Consumer Use of Shampoo by Race or Ethnicity, 2011 (percent)

Table 3-9: U.S. Consumer Use of Hair Conditioning Products by Race or Ethnicity, 2011 (percent)

Table 3-10: U.S. Consumer Use of Hair Styling Products by Race or Ethnicity, 2011 (percent)

Table 3-11: U.S. Consumer Use of Hair Coloring Products by Race or Ethnicity, 2011 (percent)

Table 3-12: U.S. Consumer Use of Home Permanents and Relaxers by Race or Ethnicity, 2011 (percent)

Table 3-13: U.S. Consumer Use of Hair Removal Products by Race or Ethnicity, 2011 (percent)

Table 3-14: U.S. Consumer Use of Hair Regrowth Products by Race or Ethnicity, 2011 (percent)

Table 3-15: U.S. Minority Hair Care Product Usage Trends by Product Type, 2006-2011 (percent)

Table 3-16: U.S. Hispanic Hair Care Product Usage Trends by Product Type, 2006-2011 (percent)

Table 3-17: U.S. African-American Hair Care Product Usage Trends by Product Type, 2006-2011 (percent)

Table 3-18: U.S. Asian Hair Care Product Usage Trends by Product Type, 2006-2011 (percent)

Chapter 4: Ethnic Color Cosmetics

The Products

Category Definition

Four Ethnic Makeup Segments: Eye, Lip, Face and Nail

Eye Makeup

Lip Color

Facial Makeup

Nail Products

Color Balance, Undertones Important in Makeup Choice

Ethnic Skin Has Other Special Needs

Ethnic Makeup a Recent Phenomenon

Hispanic Market Holds Great Promise

Asian-Specific Makeup Still Rare

Market Size, Growth, and Composition

Ethnic Color Cosmetics Sales Surpass $1 Billion in 2011

Table 4-1: U.S. Retail Sales of Ethnic Color Cosmetics by Segment, 2010 vs. 2011 (in millions)

Eye Color the Largest Segment

Table 4-2: Share of U.S. Retail Sales of Ethnic Color Cosmetics by Segment, 2010 vs. 2011 (percent)

Table 4-3: Mass-Market Share of Ethnic Makeup Product Sales by Segment and Sub-segment, 2011 (percent)

Ethnic Makeup Sales by Channel

Table 4-4: Share of U.S. Retail Sales of Ethnic Color Cosmetics by Retail Channel, 2009 vs. 2011 (in millions of dollars)

Financial Worries Have Minimal Impact on Sales

Table 4-5a: Cosmetics Use Among U.S. Minority Women Indexed by Financial Event: Past Twelve Months, 2011

Table 4-5b: Cosmetics Use Among U.S. Minority Women Indexed by Financial Event: Past Twelve Months, 2011

Ethnic-Specific vs. Ethnic-Appropriate Makeup

Both Upscale and Value-Positioning Drive Sales

The Marketers

Six Major Players in Mass Channels

Table 4-6: SymphonyIRI-Tracked Retail Sales of Leading Ethnic Color Cosmetics Marketers and Brands, 2010-2011 (in thousands of dollars)

Table 4-7: SymphonyIRI-Tracked Retail Sales of Leading Ethnic Color Cosmetics Products by Segment, 2010-2011 (in thousands of dollars)

Majority of Ethnic Makeup Marketers Are Specialists

Table of Marketers and Brands

Table 4-8: Selected Ethnic Makeup Marketers and Their Representative Brands, 2012

Marketing and New Product Trends

Finding the Right Shade

Illustration 4-1: KISS New York Second Skin Moisturizing Foundation

Illustration 4-2: CoverGirl Queen Lasting Matte Pressed Powder

Color, Color and More Color

Illustration 4-3: NARS Cosmetics Thakoon-Inspired Nail Color

Illustration 4-4: Milani Eye Shadow Palette

Illustration 4-5: Milani Shadow Eyez

Botanical Oils

Illustration 4-6: KISS New York Maxi Shine Lipstick

Exotic Ingredients

Illustration 4-7: BABOR Deluxe Foundation

Mineral Makeup

Illustration 4-8: Black Opal Mineral Brilliance Eyeshadow Mosaic

Marketer and Brand Profiles

Fashion Fair, LLC

Illustration 4-9: Fashion Fair's "Chocolate Seduction" Line

Ada Cosmetics

“No One Left Out”

Makeup That’s Good For You

Shiseido/Bare Escentuals

Acquisition of Bare Escentuals

A Challenging Partnership

Consumers of Ethnic Color Cosmetics

Experian Simmons Consumer Survey Data

Minorities Skew Low for Blusher/Bronzer, Foundation Use Lip Color Most Popular Makeup Choice

Fewer Minority Women Use Eye Makeup

Facial Makeup Worn by Fewer Minority Women

Lipstick Use Falters, Eye Makeup Use Soars

Table 4-9: Makeup Usage Among U.S. Women by Race or Ethnicity, 2011 (index)

Table 4-10: U.S. Women’s Use of Lip Color by Race or Ethnicity, 2011 (percent)

Table 4-11: U.S. Women’s Use of Nail Products by Race or Ethnicity, 2011 (percent)

Table 4-12: U.S. Women’s Use of Eye Makeup by Race or Ethnicity, 2011 (percent)

Table 4-13: U.S. Women’s Use of Facial Makeup by Race or Ethnicity, 2011 (percent)

Table 4-14: Makeup Usage Trends Among U.S. Minority Women by Product Type, 2006-2011 (percent)

Table 4-15: Makeup Usage Trends Among U.S. Hispanic Women by Product Type, 2006-2011 (percent)

Table 4-16: Makeup Usage Trends Among U.S. African- American Women by Product Type, 2006-2011 (percent)

Table 4-17: Makeup Usage Trends Among U.S. Asian Women by Product Type, 2006-2011 (percent)

Chapter 5: Ethnic Skin Care

The Products

Category Definition

Four Ethnic Skin Care Segments

African-Americans’ Skin Care Needs

Acne Keloidalis Nuchae

Ashiness

Keloid

Melanin Imbalances

Oiliness

Razor Bumps

Vitiligo

Asian Skin “Delicacy”

Cosmetics vs. Drugs

Is It Really Safe?

Industry Representation

Ten Controversial Ingredients

Artificial Color

Diazolidinyl Urea

Diethanolamine (DEA)

Hydroquinone

Imidazolidinyl Urea

Parabens

Petroleum, Petrolatum

Phthalates

Propylene Glycol

Sodium Lauryl/Laureth Sulfate

Market Size, Growth, and Composition

Ethnic Skin Care Sales Rise to $232 Million in 2011

Table 5-1: U.S. Retail Sales of Ethnic Skin Care Products by Segment, 2010 vs. 2011 (in millions of dollars)

Hand & Body Lotion Is Largest Segment

Table 5-2: Share of U.S. Retail Sales of Ethnic Skin Care Products by Segment, 2010 vs. 2011 (percent)

Share of Sales by Retail Channel

Table 5-3: Share of U.S. Retail Sales of Ethnic Skin Care Products by Retail Channel, 2009 vs. 2011 (in millions of dollars)

Ethnic Consumers Struggle to Find Products That Fit

Skin Care Category Affected by Overall HBC Trends

The Dark/Light Divide

Many Still Seek Lighter Skin

The Marketers

Hundreds of Participants, Few Majors

Segment Leaders

Table 5-4: SymphonyIRI-Tracked Retail Sales of Leading Ethnic Skin Care Marketers and Brands, 2010-2011 (in thousands of dollars)

Table 5-5: SymphonyIRI-Tracked Retail Sales of Leading Ethnic Skin Care Products by Segment, 2010-2011 (in thousands of dollars)

“Ethnic-Appropriate” Products an Important Market Component

Specialists the Norm in Ethnic Skin Care Market

Hispanic-Focused Marketers and Brands

Asian Consumer-Focused Marketers and Brands

Table of Ethnic Skin Care Marketers and Brands

Table 5-6: Selected Ethnic Skin Care Marketers and Their Brands, 2012

Marketing and New Product Trends

Shea Butter: Tried and True

Illustration 5-1: Dr. Miracle's Tingling Facial Toner

General HBC Marketers Expand Lines with Shea Butter Formulations

Illustration 5-2: Olay In-shower Body Lotion

Illustration 5-3: Curel Skin Nourishing Deep-Conditioning Lotion

Reinventing Skin Lighteners

Illustration 5-4: Dr. Jart+ BB Creams

Natural and Organic Products

Plant Power

Illustration 5-5: Habibi Body Balm

The More Exotic the Better

Illustration 5-6: Josie Maran Argan Day + Night Eye Cream

Bumps Be Gone

Illustration 5-7: Barc Cutting Up (Skin Saving) Shave Cream

Just for Children

Illustration 5-8: Cara B Body Lotion

Marketer and Brand Profiles

Carol’s Daughter, Inc.

Wide Selection of Bath and Body Products

Reentry into Facial Care

Illustration 5-9: Carol's Daughter Acai Hydrating Face Butter

Illustration 5-10: Carol's Daughter Açai Product Line Ad Featuring Cassie

Newhall Labs: La Bella

Illustration 5-11: La Bella Cosmetic Gel with Snail Extract

Courting Hispanic Youth

Laila Ali

Organic and Sustainable

Illustration 5-12: Laila Ali Derm Essentials Line

Consumers of Ethnic Skin Care Products

Experian Simmons Consumer Survey Data

Minority Skew High in Skin Care Product Usage

Use of Skin Cleansing Products High Among Minorities

Minorities More Likely to Use Moisturizers, Baby Oil

Minorities Less Likely to Use Shaving Cream/Gel

Use of Sunscreen Weak Among Hispanics, African-Americans

Hand Soap, Body Wash Use Grows Among Minorities

Table 5-7: U.S. Consumer Use of Skin Care Products by Race or Ethnicity, 2011 (percent)

Table 5-8: U.S. Consumer Use of Skin Cleansing Products by Race or Ethnicity, 2011 (percent)

Table 5-9: U.S. Consumer Use of Deodorant/Antiperspirant by Race or Ethnicity, 2011 (percent)

Table 5-10: U.S. Consumer Use of Skin/Lip Moisturizers by Race or Ethnicity, 2011 (percent)

Table 5-11: U.S. Consumer Use of Body/Baby Powder by Race or Ethnicity, 2011 (percent)

Table 5-12: U.S. Consumer Use of Shaving Products by Race or Ethnicity, 2011 (percent)

Table 5-13: U.S. Consumer Use of Sunscreen/Tanning Products by Race or Ethnicity, 2011 (percent)

Table 5-14: U.S. Minority Skin Care Product Usage Trends by Product Type, 2006-2011 (percent)

Table 5-15: U.S. Hispanic Skin Care Product Usage Trends by Product Type, 2006-2011 (percent)

Table 5-16: U.S. African-American Skin Care Product Usage Trends by Product Type, 2006-2011 (percent)

Table 5-17: U.S. Asian Skin Care Product Usage Trends by Product Type, 2006-2011 (percent)

Chapter 6: Looking Ahead

EHBC Products Target a Growing Population

Ethnic Spending on General-Market Products

Opportunities in Those Who Resist Assimilation

“Green” Concerns Continue to Take Priority

Natural and Organic Products Continue to Pique Consumer Interest

Growth of EHBC Products at Mass to Include Private Label

Men’s Grooming Products on the Rise

Growth in Online Shopping

E-Marketing EHBC Products

Individualized Marketing

QR Codes Allow High-Tech Purchasing

Social Networking: Facebook, Twitter, Then…

User-Driven Content: Pinterest

International Opportunities

Growth in Developing Markets

Different Standards Lead to Confusion

International Expansion—Both Ways

Free Trade Legislation Encourages Global HBC Market