Consumer and Market Insights: the Skincare Market in the UK

CT0025IS Sample Pages

October 2014

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Example table of contents

Introduction

Category classifications

Demographic definitions

Summary methodology

Market overview

Macro-economic analysis: GDP Per Capita, Population, Consumer Price Index, and Age Profile

Overall market value, (US$ millions), 2008-2018

Overall market growth rate, in value and volume, 2008-2018

Global country comparison of market volume and growth, (millions of KG), 2008-2018

Components of change analysis of market value growth, 2013

Market volume, (millions of KG), 2013-2018, by category

Category value growth, 2008-2018

Change in category value share, 2013-2018

Change in segment value share, 2013-2018

Leading company analysis

Leading brand analysis

Retailer and packaging

Identification of key retailers

Channel analysis: sector and industry distribution, 2010-2013

Channel analysis by category, 2013

Private Label penetration by category, 2013

Brand and Private Label growth, 2010-2013

Packaging Material and Type analysis, sector and category, 2013

Packaging Closure and Outer analysis, sector and category, 2013

Growth in Packaging Material, Type, Closure, and Outer, 2013-2018

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Example table of contents - continued

Demographic cohort consumption patterns

Breakdown of overall consumption occasions 2012, by age and gender

Breakdown of Private Label consumption occasions 2012, by age and gender

Over/under consumption compared to the proportion of society represented

Breakdown of consumption frequency 2012, by gender

Breakdown of consumption frequency 2012, by age group

Private label consumption by age group compared to overall market consumption by age, 2012

Consumer trend analysis

Trend framework

Level of influence each trend has on overall consumption, by volume, 2012

Level of influence each trend has on overall consumption by category, by volume, 2012

Primary market drivers – the top five trends influencing consumption

For each primary market driver:

Sub-trend explanations and analysis

Value of consumption influenced by the trend, (US$ millions), 2013

Volume of consumption influenced by the trend, (millions of KG), 2013

Percentage of consumption motivated by the trend, by category

Percentage of consumption motivated by the trend, by gender

Percentage of consumption motivated by the trend, by age group

Percentage of consumption motivated by the trend, by leisure time group

Percentage of consumption motivated by the trend, by income group

Analysis of how the trend influences consumption habits

Recommendations of how manufacturers can formulate their products to target the trend

How the trend will evolve in the category

What trends will increase in importance over the next ten years?

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Example table of contents - continued

Innovation examples

Innovative country-specific launches in the sector

Innovative global launches in the sector

Recommended actions

For each primary market driver and category, how to target the driver through:

Formulation

Positioning

Packaging

Occasion

Appendix

An explanation of the sub-trends

Detailed methodology

About Canadean

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Reasons to buy this report

This report brings together consumer analysis and market data to provide actionable insight into the behavior of consumers.

This is based on Canadean’s unique consumer data – developed from extensive consumption surveys and consumer group

tracking – which quantifies the influence of 20 consumption motivations within your industry.

Consumer trends analysis An overview of the key demographic groups driving

consumption in your industry, and what their motivations are

for doing so. This enables the reader to identify the most

important trends within the market and also determine

whether beliefs over what influences consumer behavior

within the category are accurate.

Future outlook The report provides insight to highlight the "so what?"

implications behind the data, and analysis of how the

need states of consumers within your industry will evolve

in the short-to-medium term future.

Recommended actions Strategic recommendations of how to capitalize on the

evolving consumer landscape are offered at a sector and

category level, allowing product and marketing strategies

to be better aligned with the leading trends in the market.

Product innovation examples Examples are provided of innovative international and

country-specific product development within your

industry, with analysis of how these products effectively

target the most pertinent consumer need states.

Demographic analysis Key demographic groups driving consumption within the UK

market are identified. The figures showcase the number of

Skincare occasions attributed to specific age groups and

genders, as well as identifying whether these demographic

groups "over" consume in the category.

Market sizing Market value and volumes are given over 2008–2018 for

every category in the sector. In addition, distribution and

packaging dynamics are studied to provide a complete

review of current and future market dynamics.

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Canadean has identified nine mega-trends that drive consumer choice and these can be broken down into 20 sub-trends

Aspiration

Beauty

Better Value

Busy Lives

Changing Age Structures

Changing Life Stages

Connection

Experience Seeking

Fun & Enjoyment

Individualism

Indulgence

Media

Technology

Trust

Urbanization &

Migration

New Gender

Behaviors

Personal Space & Time

Quality Seeking

Health

Ethics

MEGA-TRENDS:

CHANGING

LIFESTAGES

CONNECTIVITY

CONVENIENCE

ETHICS

EXPERIENCE &

ENJOYMENT

HEALTH &

WELLNESS

INDIVIDUALITY

TRUST

VALUE

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The UK Skincare market, currently valued at GBP X.X billion, is forecast to register strong growth over the next five years

Market value of the UK Skincare market,

2008-2018

Market volume of the UK Skincare market,

(Unit Millions), 2008-2018

CAGR 2008-2013 X.X%

CAGR 2013-2018 X.X%

The Skincare market in the UK is valued at GBPX,XXX.X million in 2013 and is forecast to grow at a CAGR of

X.X% over 2013-2018 to reach GBPX,XXX.X million by 2018. This is higher than the historic value growth as

demand for Skincare products continues to grow, as consumers look for tools to enhance their appearance, even

in the difficult economical conditions.

The market volume is forecast to show a slower growth compared to value growth during 2013-2018. This is

primarily due to willingness of an aging population to spend extra on functional benefits.

Local currency (GBP) $US millions

2008 X,XXX.X X,XXX.X

2013 X,XXX.X X,XXX.X

2018 X,XXX.X X,XXX.X

CAGR 08-13 X.X% X.X%

CAGR 13-18 X.X% X.X%

2008 2013 2018

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Women and Older Consumers enjoy the most Skincare occasions in the UK on an annual basis

Number of occasions in the UK Skincare industry, by age, 2012

Number of occasions in the UK Skincare industry, by gender, 2012

The UK female population has a significantly higher number of Skincare occasions compared to males per year,

indicating the importance of personal appearance and habitual grooming rituals among this cohort. Early Young

Adults are the most frequent consumers of Skincare, driven by the desire for individualism and self-expression.

Meanwhile, those aged 55 and over have the highest number of Skincare occasions as a group, due to the large

size of this demographic and their desire to look youthful and active.

Women:

Occasions: XX.X billion

Per person: XXX.X

Men:

Occasions: XX.X billion

Per person: XXX.X

Tweens & Early

Teens:

Occasions:

X.X billion

Per person: XXX.X

Early Young

Adults:

Occasions:

X.X billion

Per person: XXX.X

Pre-

Mid-Lifers:

Occasions:

X.X billion

Per person: XXX.X

Mid-Lifers:

Occasions:

X.X billion

Per person: XXX.X

Older Young

Adults:

Occasions:

X.X billion

Per person: XXX.X

Older

Consumers:

Occasions:

X.X billion

Per person: XXX.X

Kids & Babies

Occasions:

X.X billion

Per person: XXX.X

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How the Individualism trend influences Skincare consumption habits in the UK

The plethora of unique skin characteristics leaves a scope of

opportunities for tailoring Skincare

The importance of the need for individualism reflects consumers’

desire to enhance their appearance via skincare and growing

awareness about unique skin characteristics that require an

individual approach, as opposed to generic products.

A wide range of skin attributes, such as gender, tone, condition,

thickness, dilation of blood vessels, allergies, nutrition, genetic

predisposal, exposure to extreme weathers, humidity, and

environment leave manufacturers with ample room for

opportunities to tailor their products to individual needs.

Age is one of the most important factors in skincare regimes. For

example, young adult consumers are more likely to have oily skin

prone to acne and will look for mattifying and anti-acne products,

while as they age and their skin becomes prone to dryness and

age spots, they will look for the right nourishment and whitening

creams.

The desire for products customized to one’s needs motivates

women more than men, at XX.X% of their consumption vs

XX.X%. This shows how women are prepared to invest more time

in researching Skincare items and see an added value in

products tailored for their skin. Across all age groups, those aged

25-34 are the most influenced and likely to trade-up for the

Skincare that is right for them.

Consumers whose skin

is prone to redness will

look for products that

strengthen blood

vessels, such as this

moisturizer from La

Roche-Posay.

This Organic Homme Scrub

It Exfoliator from Green

People will appeal to

consumers who want to use

Skincare that reflects their

lifestyle views, such as

veganism and agricultural

sustainability.

Tailored Skincare needs to suit different

skin types and conditions

Some consumers will look for Skincare

that reflects their lifestyles

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Innovative new product launches in the UK Skincare market

Brand: Olay Total Effects

Manufacturer: Olay

Launched: 2014,UK

Trend: Changing Age Structures

Olay has introduced Total Effects CC

Cream. The manufacturer states this

product includes the skin protecting

power of a BB cream, as well as the anti-

aging Vita niacin complex, which

improves skin tone appearance.

Brand: Burt’s Bees

Manufacturer: Burt’s Bees

Launched: 2013, UK

Trend: Individualism, Health

Burt’s Bees, known for natural beauty

products, launched a new body lotion in

the UK market called Ultimate Care Body

Lotion. The manufacturer states the

product combines baobab oil, pumpkin

seed oil, and green tea extract, and is

suitable for extremely dry skin.

Brand: Super Restorative Day Cream

Manufacturer: Clarins

Launched: 2014, UK

Trend: Beauty, Individualism

Clarins launched a new Day Cream in

their line of Facial Care products. Clarins

states that the product has organic

Harungana extract, which helps to

replenish the skin as well as prevent the

appearance of dark spots.

Brand: Eau Thermale Avene Cleanance

Cleansing Water

Manufacturer: Avene

Launched: 2013, UK

Trend: Experience Seeking

This new cleansing product from Avene

is specially formulated for blemish-prone

skin. The product claims to contain

glyceryl laurate, which regulates the

hyper production of sebum, as well as

purifying agents that give a matte finish.

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How to successfully target the Individualism trend

Body Care Facial Care Hand Care Depilatories Make-Up Remover

Pro

du

ct

Formulation

• Scented products add a further element of personalisation

• Meeting the needs of different skin types is important in allowing consumers to choose a product personal to their needs

• Specific ingredients such as those for anti-aging or those that create a protective barrier allow consumers to choose a product best suited to them

• Depilatories suited to different skin types such as dry or oily skin, mean consumers have a choice personal to them

• Adding anti-aging, refreshing or moisturizing benefits allows the product to become more customizable

Positioning

• Body Care can take a premium positioning through pairing with a popular brand

• Ranges need to be positioned where consumers feel they can choose the one tailored to their needs

• Taking a regular use, on-the-go position can increase consumption frequency in the Hand Care category

• Although functional, the positioning of depilatories should still include variation between skin types

• Make-up Remover positioned towards different skin types is important, such as being suitable for sensitive skin

Packaging

• The packaging needs to immediately communicate the uniqueness of a product so consumers feel it is tailored to their needs

• Emphasizing the skin type a product is intended for use on is important to ensuring that consumers select the correct product with ease

• Ranges of Hand Care products must include different size packs to allow consumers to choose if they want a product for home use or for on-the-go use

• Consumers may have differing preferences for application types, therefore variation within the range is key

• Packaging needs to be robust such that consumers can take the product on-the-go

Occasion

• Consumers individual needs and preferences need to be targeted at every Body Care occasion

• Facial care is important to women on a daily basis as it serves as a conditioner prior to Make-up application so those suited to skin types are essential

• Hand Care can be targeted towards all occasions but targeting is particularly important in winter seasons when dry hands are more common

• Depilatories can be marketed more effectively by emphasizing seasonal use such as summer wear or Christmas parties

• Consumers preferences could change by occasion, for instance, night time Make-up removal can be targeted with lavender infused items

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Summary Methodology

MARKET DATA

• Method: Analyst triangulation of

consensus numbers based upon

comprehensive primary and desk

research as part of an international

research programme.

• Coverage:

• 50 Countries fully researched

• Category and segment breakdown

• 8 channels

• Value and Volume data

• Internationally comparable data

• 100% standardized definitions

CONSUMER DATA

• Method: Extensive consumption surveys

and consumer group tracking with strict

age and gender quotas to ensure

nationally-representative results.

• Coverage:

• 10 Countries

• 20 Consumer Trends

• 26 Consumer Groups

• Category breakdown

• Integrated market sizing at the

country and category level

• Interim 2013 Consumer data

generated by mapping 2013 Market

size data onto 2012 Consumer data

consumption values

Details on the methodology for both of these research programs can be found in the Appendix.

This report is comprised of two data research programs

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