At the 2017 Cosmetics Europe Week, Ildiko Szalai, of Euromonitor, provided an overview of the cosmetics market condition on the global level. Beyond satisfactory overall results, the analyst highlighted the major impacting trends to identify lessons learnt and development prospects for cosmetics companies.
The share of cosmetics in consumers’ global expenses is still one of the smallest, far behind the budgets dedicated to housing, food, and transport (the three most expensive fields), and right behind education and communication. However, according to Ildiko Szalai, it is set to rise over the next few years, and the cosmetics industry should even record the fastest growth – within a changing context, though. Consumers change, and cosmetic products interplay with global trends related to changing lifestyles associated with keywords like Experience, Health, Digital, Ecology, Personalization, Premiumization, Authenticity, New Buying Journeys…
The industry’s performances
According to Euromonitor, today, the real growth driver of the cosmetics industry is the Premium segment. By 2021, it should bring in a yield of 20 billion additional dollars, mainly thanks to the USA and China, which represent 55% of the market. The impact of this trend is particularly strong on two product categories: skincare and makeup. As for mass market products, they should keep growing, only at a slower pace.
From a regional standpoint, the market is developing extremely fast in certain parts of the world. Asia boasts the best results in terms of value (141 billion dollars), although the growth rate is much higher …
