Page 26 - CTPA Annual Report 2011

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Cosmetic Industry in Figures
23.
The UK cosmetic industry continues to grow total value sales
year-on-year, growing +4.1% vs 2010.
In the special collaborative report for CTPA on the GB market
from Kantar Worldpanel and SymphonyIRI Group, Steve Jones
comments :
“Colour cosmetics and fragrances were again the fastest
growing sectors, growing +8.4% and +4.5% respectively.
However, this value growth is mostly driven by average price
increases: total unit sales in the cosmetic market grew by only
+0.1% vs 2010, held back by skincare (-3.3%) and haircare
(-0.4%). This picture hints that in some sectors consumers
may well be cutting back on their purchases as economic
uncertainty, rising unemployment and below-inflation salary
increases continue to bite.
There are other more tangible factors at work here too:
within skincare, handcare (unit sales -14.7%) lip salves
(unit sales -13.1%) were the biggest drivers of unit sales decline,
and we know that the unseasonably warm Oct-Dec period will
have impacted these traditional ‘cold weather’ categories. By the
same token, another disappointing summer in the UK (as well
as people potentially cutting back on holidays abroad) may well
have driven the -4.9% decline in sun preparations unit sales.
The star-performer categories again show us that in times
of recession consumers often look to treat themselves:
mass fragrance (value sales +13.5%), nail cosmetics
(value sales +23.8%) and hair colorants (value sales +12.9%).
The growth in hair colorants in particular could be linked
back to the economic climate – as consumers look to curb
their discretionary spend they are bringing ‘in house’ treats
that they might previously have gone to a salon for,
such as changing hair colour.
The trends in personal care mirror what we are seeing across
FMCG – growth in volume, units is slowing or declining across
a number of macro categories, thanks to economic hardship
and increasing average prices. However, value sales continue
to increase as the volume declines are not enough to counter
the impact of rising prices. To try and incentivise consumer
purchase during this unprecedented economic environment,
levels of promotion are increasing consistently across almost
all FMCG categories, and cosmetics categories are amongst
the most heavily promoted. For example, deodorants,
shampoos and conditioners all see more than 70% of volume
sold with a trade promotion, compared to a total FMCG
average of just over 50%. Average price discounts are also
significantly higher in beauty / cosmetics / personal care than
the total FMCG averages.”
The UK cosmetic industry maintains its growth pattern
CTPA category estimates December 2011
£000s
£000s
Dec 10
Dec 11 % Change
Fragrance*
1,277,664
1,334,979
4.5
Female Fine Fragrance
707,408
736,651
4.1
Male Fine Fragrance
397,976
407,838
2.5
Female Mass Fragrance
85,781
96,400
12.4
Male Mass Fragrance
57,452
66,154
15.1
Unisex Fine Fragrance
26,367
25,067
-4.9
Unisex Mass Fragrance
2,680
2,869
7.1
* includes gift packs/coffrets
Colour Cosmetics
1,218,333
1,320,690
8.4
Face
464,837
507,751
9.2
Lips
368,061
381,070
3.5
Eyes
196,985
208,232
5.7
Nails
169,220
209,497
23.8
Gift Packs
19,230
14,140
-26.5