WINDS OF CHANGE: REIMAGINING GROWTH IN THE GLOBAL BEAUTY INDUSTRY
NICHOLAS MICALLEFSENIOR INDUSTRY ANALYST - BEAUTY AND PERSONAL CARE04 APRIL 2017
THE GLOBAL PICTURE: DETECTING GROWTH POCKETS
LESS IS MORE: A LIFESTYLE REDEFINING CONSUMER VALUES AND PRIORITIES
SHIFTING CONSUMER PRIORITIES CREATE CROSS-INDUSTRY OPPORTUNITIES
FUTURE SCENARIOS
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2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-20163
4
5
6
7Global Beauty and Personal Care / Premium / Mass
Growth
% R
etai
l val
ue G
row
thPremium Beauty Consolidates As Industry’s Growth EngineTHE GLOBAL PICTURE: DETECTING GROWTH POCKETS
20bn US$ of extra value to come from premium beauty by
2021
54%Of total premium beauty revenues
by 2021 to be generated by US and China
© Euromonitor International
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US$ 7-30BillionUS$ 60 Billion
Growth Shifts: US Solid, EM Mixed Results of Falter and Recovery THE GLOBAL PICTURE: DETECTING GROWTH POCKETS
US$ 141 Billion US$ 92 Billion
8.7%
6.8%
9.2%
5.2%
4.6%
1.8%4%
%value growth US$ fixed 2016
BRAZIL4.8%
INDONESIA10.6%
INDIA9.2%SAUDI
ARABIA1.3%
MEXICO6.7%
EGYPT16.6%
RUSSIA9.8%
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Latin A
merica
Asia Pac
ific
Middle Eas
t/Afri
ca
Easter
n Euro
pe
Australa
sia
North
Amer
ica
Wester
n Euro
pe0
2000
4000
6000
8000
10000
12000
14000
16000
0
1
2
3
4
Beauty and Personal Care Forecasts by Region 2016-2021
Premium BPC Mass BPC % CAGR Total BPC
Abs
olut
e V
alue
Gro
wth
(U
S$ m
illio
n)
% C
AG
R
North America Dominates Scope with Premium BeautyTHE GLOBAL PICTURE: DETECTING GROWTH POCKETS
US$90North America’s per capita expenditure on premium beauty
in 2021. Highest global spend and
increase over 2016
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Skin Care Hair Care Colour Cosmetics Fragrances0
20
40
60
80
100
120
140
0
1
2
3
4
Global Beauty and Personal Care: Historic vs Forecast Sales Growth in Key Categories
Value Sales 2016 Absolute Sales Growth 2016-2021Historic CAGR Forecast CAGR
Ret
ail V
alue
Sal
es (
US$
bill
ion)
% C
AG
R
Premium Segment Buoys Skin Care and Colour Cosmetics THE GLOBAL PICTURE: DETECTING GROWTH POCKETS
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Facial Moisturis-
ers
Anti-Agers Facial Make-Up Lip Make-Up Eye Make-Up Face Masks Facial Cleansers
0
1
2
3
4
5
6
0
2
4
6
8
10
12
14
16
18Top Categories by Forecast Absolute Growth and % CAGR
2016-2021
Absolute Growth 2016-2021 (Constant Prices) 2015 Growth 2016 Growth
Abs
olut
e V
alue
Gro
wth
(U
S$ b
illio
n)
% Y
-oY
Gro
wth
Pursuit of Prevention and Wellness Echoed In Thriving CategoriesTHE GLOBAL PICTURE: DETECTING GROWTH POCKETS
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FoggVult
Urban DecayWardah
BeautrioE.L.F.
HonestInnisfree
The History of WhooIT Cosmetics
One LeafDollar Shave Club
Too FacedRodan + Fields
NYXSeeyoung
Harry's
0 40 80 120
Fast Growing Brands 2015-16
(<20%)
Beauty Industry Growth Drives Reflect A More Diverse Landscape THE GLOBAL PICTURE: DETECTING GROWTH POCKETS
Yunnan BaiyaoLa Roche-Posay
LakméKiko Milano
HimalayaYanbal
OGXTom's of Maine
MonangeFaberlicYunifang
Carolina HerreraPatanjali
Tom FordRituals
KanSBulldog
Smashbox
0 2 4 6 8 10 12 14 16 18 20
Fast Growing Brands 2015-16
(10-20%)
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Skin Care and Make-Up a Hotbed For Niche and Start-Up ActivityTHE GLOBAL PICTURE: DETECTING GROWTH POCKETS
Personalised skin care through diagnostics with
focus on skin renewal over anti-ageing positioning
Exuviance Cover Blend Skin Caring Foundation
SPF 20, make-up born out of a dermocosmetic brand
Deciem’s Niod Photography Fluid, a skin care and make-up hybrid
Dr. Russo’s sun protective facial cleanser
THANK YOU FOR YOUR ATTENTION
For more insights, contact:Nicholas MicallefSenior Industry Analyst - Beauty and Personal CareTwitter: @NichMicallef
To download the full presentation, click here.