Melanin and Peptides Create a Buzz in Sun Care but Skin Care Looks Brighter

Analyst Insight by Anais Mirval, Analyst - Ingredients, Euromonitor International

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Up until now, peptides have been essentially used to provide firming and anti-wrinkle properties in anti-agers. However, they are now spreading beyond their core facial care market. Indeed, the sun care industry is thriving after regulatory modifications have led to ingredient innovation in sun protection, with Melanin Activating Peptides (MAPs) now gaining momentum in self-tanning thanks to their efficacy. However, ingredients manufacturers could increase their sales by promoting their use in multi-functional skin care products.

Diluted Market Focus Affects Coty’s Performance

Oru Mohiuddin, Senior Home and Personal Care Analyst, Euromonitor International

In light of its impending IPO, Coty’s performance makes for an interesting analysis. Coty’s value share in the global beauty and personal care market fell by 10 basis points in 2012, mainly due to it losing ground in some of its key categories, a factor which can be attributed to a relatively slow innovation pipeline. Between 2009 and 2010, Coty embarked on an ambitious growth programme through acquisitions, exposing the company to various different markets and categories. The process of becoming familiarised with a variety of new markets which have their own dynamics and challenges while engaging in a multifaceted complex integration process diverted Coty’s attention away from much-needed product development and marketing in a very fast-paced market environment, resulting in an overall loss in share.

South Korea: Largest Market for Men's Skin Care Globally

Analyst Insight by Geok Leng, Head of Research - Asia Pacific, Euromonitor International

Sales of men’s skin care in South Korea was US$565 million in 2012. This represented nearly 21% of global sales of men’s skin care, placing South Korea as the biggest market for men’s skin care globally. China is expected to overtake South Korea as the biggest market globally for men’s skin care sales from 2013. In terms of per capita spending however, South Korea will remain at the top over the 2012-17 period with Korean males spending more than double of their counterparts in Denmark – the country ranking second highest where per capita spending on men’s skin care is concerned.

Men are increasingly image-conscious globally. It is becoming increasingly acceptable for men to care about their looks – vanity is no longer women’s prerogative and has not been so for a while now. Manufacturers are recognising this need as well as driving it through providing products targeted at men. One of the latest global brands to jump onto the men’s skin care bandwagon is SK II with its SK II Men range of products launched in 2012. In South Korea, male-specific skin care brands include Hera Homme, O Hui for Men, Vonin, Odyssey as well as The Face Shop for Men, Missha for Men and so on. Endorsement of skin care brands by South Korean male celebrities is also not uncommon and has helped to drive the trend of male grooming in South Korea. With the spread of K-pop culture across the globe, especially following Korean singer Psy’s runaway Gangnam Style hit, Korean brands’ presence worldwide has also increased. A consistent marketing message, including the same male Korean celebrities, is typically adopted for most of these Korean brands in their international locations with local celebrities being roped in as well to promote the brands. This has resulted in a very visible male endorsement of skin care products and relatedly, a reinforcement of the message that it is ok for men to use skin care products and even cosmetics.

Premium Beauty Dynamics

Premium beauty sustained its growth levels in 2012, aided by the strong performance of premium skin care, which outshone all other categories. In 41 out of 80 markets, premium sales grew faster than mass. China in particular is seeing strong growth, with premium beauty adding a further US$4.5 billion by 2017, resulting in sales of premium cosmetics in Asia Pacific to exceed any other region. This could benefit the leading premium beauty companies, which all have a foothold in this region.

Understanding Australia's Business and Consumer Environment: A Guide for Successful Business Down Under

Understanding Australia's Business and Consumer Environment

How will Australia's economy, business environment and consumer trends impact the success of your business? This e-book examines the fundamentals businesses must understand to successfully expand or operate in Australia.

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Heralded as the success story among advanced economies for weathering the global economic downturn of 2008-2009, Australia’s high income levels and steady growth offer good opportunities for consumer goods and services in a wide range of sectors.

Key Findings:

• At the height of the global slowdown, advanced economies as a whole contracted by 3.5% - contrasting with Australia’s 1.4% growth.
• Whereas incomes and consumer expenditure have stagnated across many advanced economies, Australia’s per capita disposable income and expenditure have expanded by 9.8% and 3.5% respectively in real terms since 2008.
• In 2012, Australia was ranked 15 out of 183 economies on the World Bank’s Ease of Doing Business Index, meaning it is the fifteenth easiest place in the world to start and operate a local firm.
• Australia has an educated population: 99.9% of adults (those aged 15+) were literate in 2011, but suffers from skills shortages.
• In 2011, the population aged 45-49 in Australia had the highest average gross income: A$77,810 (US$80,259).

Topics include:

• Ease of doing business rating
• Corruption index
• Literacy rate
• Future challenges
• Natural resources
• Media consumption
• Consumer trends
• More

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Hear Us Speak at COSME TOKYO 2013

Event Dates: June 26-June 28, 2013
Location: Tokyo Big Sight
Presentation Date and Time: June 27, 13:30-14:30
Cosme Tokyo Website

Cosme Tokyo is Japan's only international B-to-B trade show specialised in finished cosmetic products. It is the only show of its kind in Japan and serves as the ultimate venue to discover, compare and purchase the latest Japanese and Asian cosmetics. COSME TOKYO is the perfect platform to make new business connections and catch up with the latest trends in the Japanese/Asian market.

Euromonitor’s research analyst, Hatsumi Hirota, will examine global trends in the beauty and personal care industry and uncover potential opportunities for overseas markets. Japan's beauty industry has entered another year of uncertainty with the country's economic growth far from stable. While the recovery of luxury beauty has remained largely sustained globally with premium sales performing strongly, there has been increased activity with mass products.

HBA Global Expo

Date: June 18-20, 2013
Location: Jacob K. Javits Convention Center, NYC
Presentation Date and Location: Wednesday, June 19, 2013; 4-5 p.m.
More information about the HBA Global Expo

Virginia Lee, Senior Research Analyst at Euromonitor International, will discuss beauty and personal care sales in Asia. Driven by economic growth and a natural tendency to embrace skin care, Asia's beauty sales are blossoming. This session will discuss key demographics, consumer trends driving Asia's beauty market, sourcing suppliers and manufacturers' strategies to create consumer loyalty.

HBA Global Expo provides top personal care and beauty manufacturers with the entire spectrum of new ingredients, solutions, supplier resources as well as world-class education to help bring new products and innovate concepts to market.

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Kenyan Acquisition to Give L’Oréal a Boost in Sub-Saharan Africa

Analyst Insight by Oru Mohiuddin, Senior Analyst - Home and Personal Care, Euromonitor International

L’Oréal’s acquisition of Interconsumer Products Ltd (ICP), the largest local manufacturer of beauty products in Kenya, is a good move. L’Oréal stands to gain three clear advantages from the acquisition. Firstly, L’Oréal will be able to access an already established R&D centre dedicated to sub-Saharan beauty needs, which prior to the acquisition enjoyed relatively weak coverage in the company’s global portfolio. In addition, ICP’s infrastructure, including a manufacturing plant in Kenya and a distribution network in rapidly growing East African countries, will allow for deeper market penetration. Last but not least, L’Oréal will be able to further expand its brand portfolio along ethnic lines. 

Why The Anti-Ageing Trend Is Set To Succeed in The US and Japan

During the last few years, value sales of hair care have stagnated in most developed countries. The anti-ageing trend will give opportunities to increase sales in value and volume terms, by raising the use of specialty ingredients and by introducing multi-step regimes. Japan and the US will embrace the anti-ageing trend in hair care, although lower incomes in the BRICS could limit such opportunities.

Growth and Opportunities for Lotion Pumps in Beauty and Home Care

Following her presentation at Plastic Closure Innovations 2013, Regina Maiseviciute, Senior Packaging Analyst at Euromonitor International, discusses how plastic Lotion pumps are one of the fastest growing closure types in beauty and home care products. The growth of these closures is propelled by categories such as liquid soap. Lotion pumps are also being added to categories that traditionally have other closure types. For example, anti-aging creams can usually be found with screw closures; however, pumps are being added to this category as a way to dispense this expensive product with precision.  Pumps are not as prevalent in home care; but have been added to products such as concentrated laundry detergent.

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