According to Euromonitor’s new research, premium beauty and personal care outperforms mass segment for the second consecutive year, growing at nearly 6%. The future looks increasingly premium. China and the US are expected to contribute just over half of the US$20 billion in premium beauty and personal care absolute growth by 2021.
Colour cosmetics posted a stellar performance in 2016 with 7.2% growth, driven by the premium segment. Skin care slowed marginally to under 5%. Forecasts point to a greater value delivered by premium brands in these discretionary categories.
Brazil and Russia rebound, and are back on track as key growth markets. India and Indonesia grew 9.2% and 10.6% respectively in 2016, as their market sizes nearly doubled over 2011-2016 to reach US$12 billion and US$4.6 billion, respectively.
North America dominates premium beauty and personal care prospects per capita spend. Asia Pacific leads absolute growth over 2016-2021 (<US$14 billion) as more consumers from its large demographic, trade up to premium products.
Premiumisation is driving standards across all levels in the beauty industry, from the low-end mass segment to the prestige level. Changing consumer lifestyles and priorities are the key drivers, including the quest for healthy living, environmentally responsible consumption, “experiencing” over “owning”, and demand for targeted products. The digital force is reinforcing these lifestyle changes. As standards improve across the industry, luxury is becoming more accessible to the ordinary consumer, notably millennials, who tend to be the protagonists of these lifestyle changes. For the wealthier consumer, this is more pronounced through personalised services, such as smart diagnostics.