According to the latest market research from Lucintel, rising consumer incomes and changing lifestyles are driving the global beauty care products industry, which is forecasted to reach around $265 billion by 2017.
The report "Global Beauty Care Products Industry 2012-2017: Trend, Profit, and Forecast Analysis,” reckons that the industry will grow at a CAGR of 3.4 percent over the next five years, and highlights an increasing demand coming from Europe and the Asia Pacific (APAC) region.
Last month, the market researcher noted the 'personal care' products industry as reaching $630 (€487) billion by 2017, the report then focused mainly on the likes of sunscreens, deodrants and skin care.
This latest report takes into account the hair care, color cosmetics, skin care and fragrance sectors, the market researcher reports that there is major growth potential for premium and luxury cosmetics as demand increases in the expanding middle class in developing nations.
“Premium cosmetics outperformed mass cosmetics across Western Europe, North America and Asia Pacific in 2011, with 4.7 per cent growth.”
Elsewhere, Lucintel highlights skincare as the largest segment with huge growth potential by 2017, while the second segment, hair care is reported as following closely behind as demand for multi-feature products such as moisturizing cream with sun protection and hair dyes that offer more dramatic coloring effects, are on the up.
Challenges for manufacturers were noted in the form of providing quality products at a low cost, and environmental sustainability.
Meanwhile, like many other market researchers, Lucintel reports the cosmetics industry although having being affected by the recession in 2009, as recovering in 2011 as the global economy improved.
Importance of emerging markets
The report also strives to drive home the importance of emerging markets, as demand from the Asia Pacific region in terms of beauty ingredients, is noted as having generated approximately $21 billion of incremental retail value in 2011.
The global beauty industry is shaped by many trends and influences, and right now; according to the report, science and nature, particularly in the area of hair care, are the two most significant.
Hair care brands of leading Western-based manufacturers, such as Procter & Gamble, L'Oréal and Unilever, are said to be becoming ever more dependent on emerging market consumers to beef up revenue and bottom line.