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Changing face of cosmetics market

Changing face of cosmetics market

“The over-50s are the fastest-growing segment of the population in many European countries and, by 2030, there will be three people in their 50s in Europe for every one in their 20s.” 

‘Cosmetics and Fragrances’, a new Market Report Plus from market intelligence providers Key Note, analyses the UK cosmetics and fragrances market, and examines the impact of demographic trends on branding and product development.

The UK’s ageing population does not bode well for the industry.  Even so, whilst younger women tend to be heavier users of cosmetic products and fragrances, those older women who have used products in their youth are unlikely to stop using them when they reach a certain age.
Indeed, many may also have more disposable income to spend on premium-priced products.
Percentage penetration of cosmetic products and fragrances is high, with a survey undertaken for Key Note’s report revealing that 89.7 per cent of women used fragrances and 80.4 per cent used lipsticks.
Between 2005 and 2006, retail sales of cosmetics and fragrances (as defined in the report) increased in value by 5.1 per cent, with fragrances showing the stronger growth.
Another significant demographic influence on the future of the industry is the growth of the minority ethnic population.
Companies are increasingly expanding their ranges, with major manufacturers, such as L’Oréal and Avon, investing in research and development capabilities to design products for specific ethnic skin requirements, as they recognise the potential for growth.
Between 2007 and 2011, Key Note forecast value growth of cosmetics and fragrances to be 3.6 per cent, with decorative cosmetics showing slightly stronger growth, driven by sales of premium skin make-up products.
The population of the UK is forecast to reach 61.6 million by 2010, with women outnumbering men, which is of benefit to the beauty industry.
The UK cosmetics and toiletries industry is increasingly focusing its attention on older women who are keen to look after their appearance.
The fast-growing minority ethnic population and the male grooming sector are the other areas which will see increasing attention in the future.

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