After making inroads into color cosmetics and skin care through several acquisitions in 2010, fragrance and cosmetics player Coty has said it will look to China and Brazil in 2011 as part of its plan to target high-growth opportunities in emerging markets.
"Currently, China and Brazil are two of the fastest growing markets with powerful and lucrative distribution channels. We see them as an opportunity to further expand our brand in emerging markets," a Coty spokesperson told CosmeticsDesign-Europe.com.
Growth potential in China and Brazil
According to Euromonitor International, skin care accounted for 23 per cent of global beauty and personal sales in 2009, and it is the category with the most global growth potential between 2009 and 2014. Growth in this category will mostly be driven by China, said the market researcher, a country where per capita expenditure on skin care in 2009 was five times higher than spend on most other personal care categories.
The skin care market in China was worth €5.7bn ($7.7bn) in 2009, with estimated growth of 58 per cent forecasted by 2014. The color cosmetics market was worth €1.39bn ($1.88bn) in 2009, with growth of 56.9 per cent by 2014 expected. The fragrance market in China was worth €373.2mn ($505.7mn) in 2009 and is it estimated to grow 59.2 per cent by 2014.
In Brazil, fragrance sales, which reached €3.5bn ($4.74bn) in 2009, are estimated to grow by 49.2 per cent by 2014. The skin care market in Brazil was valued at €2.6bn ($3.52bn) in 2009, and is predicted to grow by an estimated 27.8 per cent by 2014. Similar growth in the color cosmetics market (€1.58bn - $2.14bn in 2010) is expected, with 32.7 per cent growth estimated to take place by 2014.
Several acquisitions in 2010
In 2010, Coty acquired nail care brand OPI, skin care brand Philosophy, Calvin Klein Color Cosmetics, Germany-based Dr Scheller Cosmetics and China-based skin care company TJoy.
These acquisitions are just another part of Cotys plan to expand its business beyond fragrance and solidify our position in skin care and color cosmetics, the spokesperson said.