beauty and personal care industry trends and future prospects for the us
TRANSCRIPT
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INDUSTRY TRENDS AND FUTURE PROSPECTS FOR THE US
IN-COSMETICS PARIS - APRIL 12, 2016
PRESS BRIEFING
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US BEAUTY IN THE GLOBAL CONTEXT
PREMIUMISATION OF US BEAUTY
CATEGORY HIGHLIGHTS
CONCLUSIONS
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US BEAUTY IN THE GLOBAL CONTEXT
PREMIUMISATION OF US BEAUTY
CATEGORY HIGHLIGHTS
CONCLUSIONS
![Page 4: Beauty and Personal Care Industry Trends and Future Prospects for The US](https://reader036.vdocuments.net/reader036/viewer/2022081520/58751e4d1a28ab05598b7f61/html5/thumbnails/4.jpg)
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4
Outstanding Growth in North American Beauty MarketBEAUTY BREAKDOWN: INDUSTRY TRENDS AND FUTURE PROSPECTS FOR THE US
2015 Beauty & Personal Care Value Sales and Growth by Region
Wester
n Euro
pe
Easter
n Eur
ope
North A
merica
Latin
Ameri
ca
Asia Pacif
ic
Austra
lasia
Middle E
ast a
nd A
frica
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
Colour Cosmetics Other Beauty & Personal CareColour Cosmetics Growth Total Beauty & Personal Care Growth
US
$ B
illion
s
2014
-201
5 V
alue
Gro
wth
(Cur
rent
, Fix
ed 2
015
Exc
hang
e)
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U.S. Outpaces 2015 Global Beauty Growth Across Categories2015 U.S. Beauty & Personal Care Value Sales and Growth by Category
Skin
Care
Colo
ur Cos
metics
Men
's Groo
ming
Frag
rance
s
Deo
doran
ts
Sun
Care
$0
$20
$40
$60
$80
$100
$120
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
US World US Growth World Growth
2015
Sal
es (U
S$
Billi
ons)
2014
-201
5 V
alue
Gro
wth
(Cur
rent
, Fix
ed 2
015
Exc
hang
e)
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US BEAUTY IN THE GLOBAL CONTEXT
PREMIUMISATION OF US BEAUTY
CATEGORY HIGHLIGHTS
CONCLUSIONS
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2015 U.S. Premium Beauty Sales Grow Across All CategoriesPREMIUMISATION OF US BEAUTY
2015 U.S. Premium Beauty & Personal Care Select Category Value Sales and Growth
Premium
Colo
ur Cos
metics
Premium
Fragran
ces
Premium
Skin
Care
Premium
Sun
Care
Premium
Deo
doran
ts$0
$1
$2
$3
$4
$5
$6
$7
$8
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Market Size Growth
US$
Billi
ons
2014
-201
5 G
row
th
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Power to PremiumPREMIUMISATION OF US BEAUTY
2011 2015 2020
Premium Value Sales ($US billion, constant)
$20 $23 $28
Premium Penetration (% Value)
32% 34% 37%
US$5 BillionU.S. premium beauty growth through 2020
Premiumisation of U.S. Beauty and Personal Care Market Forecasted to Continue
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$2.16
$1.38
$1.15
$0.23
$0.39
Premium Colour Cosmet-icsPremium Skin CarePremium FragrancesPremium Hair CareOther Premium Beauty and Personal Care
The Future Of U.S. Premium Beauty: Growth-Driving CategoriesPREMIUMISATION OF US BEAUTY
Premium Category CAGR
Total Beauty and Personal Care
4.10%
Colour Cosmetics 5.70%
Sun Care 5.60%
Sets/Kits 4.90%
Skin Care 4.70%
Deodorants 4.60%
Bath and Shower 3.80%
Fragrances 3.30%
*Constant Value termsUS$5 Billion
U.S. Premium Beauty Value Growth 2015-2020(US$ Billions, Constant)
U.S. Premium BeautyCAGR* 2015-2020
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US BEAUTY IN THE GLOBAL CONTEXT
PREMIUMISATION OF US BEAUTY
CATEGORY HIGHLIGHTS
CONCLUSIONS
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11CATEGORY HIGHLIGHTS
Top 15 Growth Subcategories for 2015 U.S. Colour Cosmetics
Colour Cosmetics: Growth Subcategories
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
EyeShadow
Mascara
Other EyeMake-Up
EyeLiner
BB & CCCreams
Foundation & Concealer
Other EyeMake-Up
Other LipProducts
Blusher,Highlighter& Bronzer
NailPolish
Lipstick
BB & CCCreams
Powder
Lip Liner
Lipstick
y
2014
-201
5 V
alue
Gro
wth
(Cur
rent
)
Premium Mass
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© Euromonitor International
12CATEGORY HIGHLIGHTS
Top 15 Growth Subcategories for 2015 U.S. Colour Cosmetics
Colour Cosmetics: Growth Subcategories
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
EyeShadow
Mascara
Other EyeMake-Up
EyeLiner
BB & CCCreams
Foundation & Concealer
Other EyeMake-Up
Other LipProducts
Blusher,Highlighter& Bronzer
NailPolish
Lipstick
BB & CCCreams
Powder
Lip Liner
Lipstick
y
2014
-201
5 V
alue
Gro
wth
(Cur
rent
)
Premium Mass
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Sephora introduces South Korean BB Cream brand Dr. Jart+ to the U.S.
Over 15 BB/CC creams launch in the U.S., from Clinique to Maybelline to Dior
BB/CC Creams grow 61% (constant value)
Packaging innovation: Miracle Cushion by Lancôme and Double Wear Makeup To Go Liquid Compact by Estée Lauder
Facial Cosmetics: Innovation Drives Growth
U.S. Facial Make-Up Sales 2011–2020 2011
2012
2013
2015
US BB/CC Cream constant value CAGR 2011-2015: 133%(Projected) US BB/CC Cream constant value CAGR 2015-2020: 12%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020$0
$1
$2
$3
$4
$5
$6
$7
Foundation/Concealer Powder Blusher/Bronzer/Highlighter BB/CC Creams
Other Facial Make-Up
US
$ B
illion
s (C
onst
ant)
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14CATEGORY HIGHLIGHTS
Top 15 Growth Subcategories for 2015 U.S. Colour Cosmetics
Colour Cosmetics: Growth Subcategories
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
EyeShadow
Mascara
Other EyeMake-Up
EyeLiner
BB & CCCreams
Foundation & Concealer
Other EyeMake-Up
Other LipProducts
Blusher,Highlighter& Bronzer
NailPolish
Lipstick
BB & CCCreams
Powder
Lip Liner
Lipstick
y
2014
-201
5 V
alue
Gro
wth
(Cur
rent
)
Premium Mass
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Brow Cosmetics: Boldness Drives GrowthCATEGORY HIGHLIGHTS
US Other Eye Make-Up constant value CAGR 2010-2015: 20%(Projected) US Other Eye Make-Up constant value CAGR 2015-2020: 13%
Boldly Bushy Boldly Defined
May
bel
lin
e N
ew Y
ork
Eye
Stu
dio
Bro
w D
efin
e +
Fil
l Du
o—6
/20
15
Clin
iqu
e Ju
st B
row
sin
g B
rush
-On
Sty
lin
g M
ouss
e la
un
—8/
20
15
An
asta
sia
Bro
w D
efin
er—
1/2
01
6
Bu
rber
ry E
yeb
row
Def
iner
lau
nch
ed—
9/20
15
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16CATEGORY HIGHLIGHTS
Top 15 Growth Subcategories for 2015 U.S. Colour Cosmetics
Colour Cosmetics: Growth Subcategories
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
EyeShadow
Mascara
Other EyeMake-Up
EyeLiner
BB & CCCreams
Foundation & Concealer
Other EyeMake-Up
Other LipProducts
Blusher,Highlighter& Bronzer
NailPolish
Lipstick
BB & CCCreams
Powder
Lip Liner
Lipstick
y
2014
-201
5 V
alue
Gro
wth
(Cur
rent
)
Premium Mass
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Lip Cosmetics: Variety Drives GrowthCATEGORY HIGHLIGHTS
US Lip Make-Up constant value CAGR 2010-2015: 7%(Projected) US Lip Make-Up constant value CAGR 2015-2020: 5%
Glossy, Plump and Natural Vivid Colors in luxurious Finishes
Pix
i Lip
Lift
Max
—3
/20
15
Maybelline Color Sensational Vivid Matte Liquid Lipstick—
1/2016
Burt’s Bees Lipsticks—2/2016Yves Saint Laurent Volupté Tint-in-Oil—1/2015
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18CATEGORY HIGHLIGHTS
Top 15 Growth Subcategories for 2015 U.S. Colour Cosmetics
Colour Cosmetics: Growth Subcategories
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
EyeShadow
Mascara
Other EyeMake-Up
EyeLiner
BB & CCCreams
Foundation & Concealer
Other EyeMake-Up
Other LipProducts
Blusher,Highlighter& Bronzer
NailPolish
Lipstick
BB & CCCreams
Powder
Lip Liner
Lipstick
y
2014
-201
5 V
alue
Gro
wth
(Cur
rent
)
Premium Mass
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Eye Cosmetics: Lashes Drive GrowthCATEGORY HIGHLIGHTS
US Eye Make-Up constant value CAGR 2011-2015: 4%(Projected) US Eye Make-Up constant value CAGR 2015-2020: 3%
NYX Big & Loud Lash Primer—1/2015
Benefit Roller Lash—2/2015
Dio
r D
iors
how
Mas
cara
—6/
201
5
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Skin Care: Growth SubcategoriesCATEGORY HIGHLIGHTS
Top 10 Growth Subcategories for 2015 U.S. Skin Care
Premium
Lip C
are
Premium
Skin
Care
Sets
/Kits
Premium
Face M
asks
Premium
Acn
e Trea
tmen
ts
Premium
Facial
Clea
nsing
Wipe
s
Mass F
ace M
asks
Mass F
acial
Clea
nsing
Wipe
s
Premium
Anti
-Age
rs
Premium
Non
-Wipe
Clea
nsers
Premium
Gen
eral P
urpos
e Bod
y Care
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
$22
$1,166
$119$43 $18 $48
$363
$1,939
$498
$144
2015 Sales 2015 % growth
US$
Milli
ons
2014
-201
5 V
alue
Gro
wth
(Con
stan
t)
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Skin Care: Growth DriversCATEGORY HIGHLIGHTS
Korean Beauty Trends Drive Growth
Successful Skin Care Products Put Focus on Ingredients
Niche Brands Gain Market Share
Source: Sephora Polska
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2015 2016 2017 2018 2019 2020-10%
-5%
0%
5%
10%
15%
20%
25%
Premium Men's Fragrances Premium Women's FragrancesPremium Unisex Fragrances Mass Men's FragrancesMass Women's Fragrances Mass Unisex Fragrances
Yea
r on
Yea
r Val
ue G
row
th (C
onst
ant)
Fragrances: Growth SubcategoriesCATEGORY HIGHLIGHTS
U.S. Fragrance Subcategory Value Growth 2015-2020
2015-2020 Premium Fragrance Growth (constant value) = US$1 Billion
Premium Unisex2015-2020 CAGR:
15%
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2014 2015-10%
-5%
0%
5%
10%
15%
20%
25%
30%
Estée LauderCliniqueDonna Karen New YorkTommy HilfigerJo MaloneTom Ford
2014
-201
5 V
alue
Gro
wth
(Cur
rent
)
Niche Brands Drive Premium Growth
Fragrances: Growth DriversEstee Lauder Company Fragrance Brands
Personalization Through Layering
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US BEAUTY IN THE GLOBAL CONTEXT
PREMIUMISATION OF US BEAUTY
CATEGORY HIGHLIGHTS
CONCLUSIONS
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Macroeconomic Factors Evolving Retail Channels Success of Niche Brands
U.S. Beauty: Overall Trends and OpportunitiesCONCLUSIONS
Source: Mike Mozart
• Newly-Flush Consumers Seek Affordable Luxury
• Premium Beauty: Gateway Purchase
• Rise of Masstige
• Well-Informed Consumers
• “Physital” Customer Engagement
• Internet Retailing, the Great Equalizer
• Millenials Usher in Era of Individualism
• Foreign Brands Garner Attention
• Acquisitions: Large Companies Take Note of Niche
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THANK YOU FOR LISTENINGIrina BarbalovaHead of Global Beauty and Personal Care
For press inquiries, reach out to [email protected]