According to a recent report by US market researcher, Packaged Facts, the market for cosmetic products aimed at consumers of ethnic origin is fast growing as figures reveal it rose to $3 billion in 2011.
According to the 'Ethnic Hair, Skin, and Cosmetic Products in the US' report, compared to many consumer packaged goods categories, ethnic hair and beauty care products are doing well during the recession and are continuing to chart steady growth "even though US minorities were especially hard hit by the economic downturn."
The market is noted as posting growth of nearly 13 percent in 2010 and has continued to advance at a healthy pace to approach $3 billion in 2011.
According to the market reseacher, with rapid expansion of racial and ethnic population in the US over the next 10 years, ethnic cosmetics products is a fast-growing target market for the industry.
Moreover, the study reveals that Hispanic, African-American and Asian population growth is far outpacing that of whites and are expected to collectively be the majority of the US population as soon as 2042.
According to the market researcher, loyalty of African-American and other ethnic communities to their products kept the market on track to resume impressive growth as soon as economic conditions began to improve.
"As more and more ethnic cosmetic products are introduced, they are meeting the needs of people of color that had previously been either ignored or mis-targeted."
Ethnic consumers are noted as still spending more on general market HBC (health, beauty and cosmetics) products than they do on targeted ones, a dynamic that highlights the continued opportunity for specialized beauty care marketers to expand their reach.
As of 2012, market drivers are noted as including a desire for more natural products; greater participation in HBC categories on the part of men overall, but especially men of color; and a surge of innovative, better-quality products.
“Traditionally, marketers active in Health, Beauty and Cosmetic (HBC) products have sold some of the most chemically harsh items available, but today manufacturers are taking simple yet significant steps by adding a degree of natural or organic content to their products," says the firm's Tatjana Meerman.