The consultant company Euromonitor has made available its yearly study of the French cosmetic market. Slowing growth,trend to "natural", and fragmentation of the market, nevertheless, still dominated by the L'Oreal group: this study (available for €1,800) provides also clues to face the industry's challenges.
Beauty and personal care still enjoys growth in 2011, but at a slower pace
Following a rebound in 2010, most industry sources expected a better year for the beauty and personal care industry in 2011. The expectation however, did not materialise. Many consumers traded down, switching to more accessible brands or to private label, thus eroding value growth for products such as colour cosmetics. On the whole, personal care products fared better than cosmetics. After a rather bleak year, sales of beauty and personal care recovered at the end of the year, more particularly during the festive period, which was excellent. This manifested in the stronger performance of products such as set/kits and fragrances in 2011. Nonetheless, overall beauty and personal care posted only 1% value growth in 2011; a slower performance compared to 2010.
Consumers seek products offering convenience and safety
Two main themes observed in the beauty and personal care market during 2011 were the ‘natural’ trend becoming more mainstream, and growing competition from electro-cosmetic products. There has been growing consumer distrust of potentially dangerous effects of parabens, phthalate, phenoxyethanol and other chemical ingredients. Therefore, for manufacturers, natural and to a smaller extent, organic products are becoming a …
