Published on : Feb 05, 2016
Cosmetics are products such as cosmetics, perfumes, deodorants, lotions, hair care, skincare and creams and these products are utilized for enhancing the body’s appearance. The market for cosmetics and toiletries is experiencing exponential growth on the basis of technological developments and sales in the past few years owing to the rising consumer awareness for health and personal hygiene. In addition, the rising concerns on skincare are especially stimulating the development in all market segments as well as geographies. There is an increasing demand seen for niche offerings especially in the categories of fragrances and skincare as niche brands offer unique, personalized features and specialize highly within their focus categories.
The prime trends seen in the market are:
- Emergence of New Markets: A broad range of new frontier markets took place and was fuelled by Indonesia, India, and Saudi Arabia. The markets have largely profited by the expansion as well as sophistication of personal care routines and beauty. The change in routines of consumers is a prime growth driver responsible for price segmentation and diversification of categories.
- Cutting-Edge Customizations: The change in beauty habits in both developing and developed markets has been fuelling the trend of customization in the beauty industry. The demand for consumers for tailor-made solutions differ region by region and has been strongly fuelled via digital technologies. This is given rise to new product textures, formats, and functions.
- Emerging Opportunities in Skincare: Customization has remained a prime trend within all beauty categories, and is driving development especially within the skin care segment owing to broad range of benefits, claims, and functions accommodated by this segment. Asia Pacific, in 2014, represented a share of 80% in the market.
An optimistic outlook is seen for the global beauty industry. Though there is a slowdown in Brazil and China, still there is great potential in the beauty industry to expand beyond first-tier cities. India is at its initial stages of development having average disposable incomes even lower than that of Brazil and China. In addition, Indonesia will rise in the beauty industry in comparison to its state in the previous 5 years, majorly fuelled by the skin care segment.