Asia Pacific and Brazil Shake Up Men’s Grooming

September 22nd, 2012

Ca2_BlogAnalyst Insight by Nicole Tyrimou, Beauty and
Personal Care Analyst at Euromonitor International

The men's grooming
has proven very challenging for many beauty firms. It has thus
remained concentrated in the hands of a few despite the emergence and further
penetration of small niche brands. However, given that men globally are higher
earners and that society is becoming more accustomed to male grooming products, the category continues to
offer a large untapped market for firms to explore.

Stability is key

Despite the media hype surrounding men's grooming, the category has yet to show the
strong double-digit growth that companies have been expecting. Instead, men's grooming has witnessed stable growth of
around 6% on average over the past five years, remaining fairly resilient
during the recession when growth dropped by just 1% point . However, the
category's performance across the various regions has been very uneven, with
Latin America posting double-digit growth and Western Europe a low single-digit
gain. According to Euromonitor International, the category reached sales of
nearly US$33 billion in 2011, making it a close rival to bath and shower with
sales of US$37 billion, and accounting for nearly 8% of global beauty and
personal care sales
. Western Europe remains the largest region for men's grooming, with Latin America closing the gap
to just over US$2 billion, down from US$5 billion in 2007. Click to Tweet!

Toiletries gradually catch up with shaving

The global men's grooming
t is almost evenly split between men's shaving and men's toiletries, which
both achieved growth of around 6% in 2011. This marks a shift as back in 2000
men's shaving accounted for 60% of total men's grooming
sales. While men are becoming gradually accustomed to using toiletries thanks
to increased media coverage and product availability, stereotyping and the
female image associated with some products continue to put some men off.

Men's shaving has remained the dominant category
over the past 10 years. Most men consider shaving part of their daily routine
and thus the lion's share of sales derive from the razors and blades category,
with only a small amount of sales accounted for by men's pre-shave and
post-shave products. Western Europe remained the largest region for men's
shaving in 2011 despite category saturation and the recent trend for an
unshaven look, with shaving still considered a necessity by most men. While the
US still accounted for the largest share of sales in 2011, the gap between
itself and Brazil is now down to around
US$400 million from US$1 billion three years ago. Brazil
is the fastest growing market for men's shaving, posting double-digit growth
rates since 2008. Click to Tweet!

Deodorants target the 'teen'

In men's toiletries, half of sales derive from
deodorants, followed by hair care, showing that men are still prioritising functionality
over beauty. Deodorants are an essential part of men's hygiene routines and in
2011 men spent on average three times more per capita on deodorants than on
skin care. Click to Tweet! The category performed well in 2011, growing by almost 7%, largely
due to the blurring of the boundaries between fragrances and deodorants. As
companies try to differentiate their offerings, deodorant sprays that can
double up as fragrances have been
successful, particularly among teens. The popular campaigns from Axe/Lynx,
Handle It and Sure, which promote the image of a successful, assertive and
sexually irresistible man, have inspired many young men to use these as

Skin care gets a boost from Asia

Men's skin care was the most dynamic category in
2011, experiencing double-digit growth. As features from women's skin care are
replicated in male-specific products, an array of products targeting issues
from ageing and blemishes to brightening has become available. Multi-functional
offerings targeting specific problems such as dryness, hyperpigmentation, acne
and sensitivity are becoming popular among men looking for efficacy and
functionality in their skin care routine. In 2011, almost 60% of total skin
care sales derived from the Asia Pacific region, with men in Japan, China and
South Korea traditionally accustomed to using grooming
products. Click to Tweet! The rise in men's disposable income in the region has helped boost
skin care and men's toiletries in general, with skin care growing by nearly 20%
in 2011.

Super Men have Super Skin

Male perceptions and expectations of skin care
products differ greatly as men prioritise moisturising and do not worry so much
about ageing. As Will King, the founder of the UK brand King of Shaves, rightly
pointed out in his presentation at In-Cosmetics Barcelona this year, they are
likely to be less responsive to the packaging and advertising widely used by
beauty firms. Some good examples are Super Skin for men with sensitive skin
from King of Shaves and Super-Charged Masculine Face Care from a German company
called FaceLube.

Marketers are finally changing their communication
strategies and tailoring them to the male demographic. This is also being seen
in retail where men prefer more straightforward advice from shop assistants and
shop more online than women. Despite using the internet more than women they do
not interact with brands in the same way and tend to use the internet more for
research. Spending so much time online, men are starting to notice online
advertising banners and brands have started using online campaigns and social
media to engage with male consumers. There has even been a rise of 'Pinterest'
sites tailored to men, such as 'Dudepins' and 'Gentlemint'.

Brazil and Germany remain strong but
Asia Pacific
will steal the show

According to Euromonitor International, men's grooming will continue its path of stable
growth, similar to historic levels, over the period to 2016. However, there are
changes predicted within the category by 2016. Brazil
should overtake the US to become the leading market in 2015 and Germany is
forecast to overtake Japan in 2013 to become the third biggest market in
nominal value. Brazil's slowing
economic growth is not forecast to halt Brazilian consumption habits and
despite the exposure to the EuroZone crisis, German men will add another US$250
million in real terms to the men's toiletries market.

Asia Pacific
will be the second biggest contributor to growth after Latin America. The
region's potential for the men's grooming
market remains largely untapped, and considering the promise of skin care
products incorporating features from women's skin care, like whitening and
hyperpigmentation, it is the region to watch for men's grooming. Click to Tweet!

Have a question or a thought to add? Leave us a comment below.

Lydia Gordon

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