Kline notes US personal care market as ripe for niche and key industry players

By Michelle Yeomans contact

- Last updated on GMT

According to the market researcher, the US cosmetics and toiletries market continues to perform well, posting 3.4 percent growth in 2012, with sales signifying success for both key and niche industry players.

The recently published report highlights the macro level as holding the most promise within the mergers & acquisitions climate, as smaller companies become increasingly attractive to larger, cashed-up, and savvy players in the form of acquisition prospects.

"Such an improving environment is increasingly attractive for M&As and a growing number of smaller, often privately held, cosmetic and toiletry companies are contemplating, developing, and/or executing exits. As such, 2013 portends to offer even greater deal flow as many companies look to invest in new growth opportunities​."

According to Kline’s senior vice president, Eric Vogelsberg, P&G although maintaining its lead in the personal care market is seeing challenges across multiple categories but that others like L'Oréal and Estée Lauder are enjoying steady growth.

"Of particular note, smaller companies are making strong headway and highly viable impressions," ​he adds.

Promising..

The research also reveals particularly promising companies that have been identified as positive net-value prospects and are also presently competing in segments that are expected to post higher-than-industry-average growth.

Kline refers to L’Oréal’s CEO Jean-Paul Agon announcement earlier this year, whereby he said he was ready to make important acquisitions to maintain growth, and that this has already been borne out by the recent acquisition of Interconsumer Products, one of Kenya’s largest manufacturers of personal care and beauty products.

Among the profiles are companies such as New York City-based Anthony Brands with the high potential for acquisition based on a solid presence in the male grooming market and a high level of innovative product launches.

Similarly promising is Vogue International, a distributor of hair care and other personal care products in nearly 42 countries worldwide with a potential based on prolific R&D, mass brands with broad appeal and a recognized name.

Particular categories predicted for success

In terms of the overall cosmetics market performance, the nail polishes category is thought to claim the most success, with 17.4 percent growth, fueled by continual innovation and high consumer demand.

Additionally, skin care products for men are highlighted as showing a strong performance in 2012, gaining formidable traction with innovative brands such as Lab Series Skincare for Men by Estée Lauder and Anthony Logistics For Men by Anthony Brands, performing exceptionally well and posting double-digit growth.

 

Related topics: Market Trends

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