Euromonitor International’s 2017 edition reveals a strong beauty and personal care industry in 2016, with a respectable 5% growth. For the second consecutive year, the premium segment outperformed its mass counterpart, with nearly 6% growth.
US$1.7 trillion; that’s how much the global apparel and footwear market was valued at in 2016. Although this is an impressive performance given economic headwinds and political turmoil, it was also the industry’s weakest growth since the 2008 recession, at 4%. Notably, performance would have been decidedly weaker had it not been for sportswear; for the third year in a row the category recorded an increase of 7%, at fixed US dollar exchange rates.
According to Euromonitor’s new research, premium beauty and personal care outperforms mass segment for the second consecutive year, growing at nearly 6%. The future looks increasingly premium. China and the US are expected to contribute just over half of the US$20 billion in premium beauty and personal care absolute growth by 2021.
The apparel and footwear industry as a whole has moved into a continuous stream of products. Fast fashion has disrupted traditional buying cycles, while consumer behaviour has shifted to prioritise technology and experience over consumption.
Retail sales in Mexico grew an impressive 7% in 2016 thanks in large part to a stable economic performance despite global uncertainty. Below, Euromonitor International highlights four major trends that will likely shape the industry in 2017, including the impact of the strong US dollar, the proliferation of interest-free financing offers, mobile retailing, and continued company activity in the form of mergers, acquisitions, and expansions.
Despite strong growth in US sportswear sales, sporting goods retailers are struggling as consumers change their purchasing habits, sportswear brands focus more on direct channels, and new players enter the market.
Clean eating, mindful eating is disrupting the old world of health and wellness, with consumers demanding food and drinks that are fresh, natural, and unprocessed or minimally processed. With the continued rise of allergies, digestive problems, food intolerances and sensitivity to numerous food components, consumers seek products that will simply make them feel better.
Shifting lifestyles are driving consumers to demand healthier, safer and more ethically conscious products, which has resulted in the strong growth of interest in organic/natural cosmetics. Japan, Asia’s second largest beautymarket, is no exception. Whilst the market remains small, there are many brands and products entering this arena, and retailers are actively promoting organic/natural products.
Antipollution cosmetics, a well-established trend in Asia Pacific due to the dangerous levels of air pollution, is now going global, driven by a growing consumer desire for a healthy look. Western consumers are increasingly looking for cosmetics with benefits that not only fight the signs of ageing but also protect against pollutants.
A recently published global briefing entitled “Colour Cosmetics Make a Bid for Staple Status: New Growth Concepts Drive Demand” explores how in an era of upheaval in colour cosmetics, new genres of brands are disrupting the marketplace with their nimble networking and ability to instantly gratify.