CTPA Annual Report 2015 - page 28

Cosmetic Industry in Figures
“Clearly, the report covers a wide range of markets and the
story has changed within some of them, if we take the three
biggest, fragrance, colour cosmetics and skincare we see
colour cosmetics bucking the trend. An increase of 1.6% in
packs is encouraging but 7% value growth highlights that
shoppers (in this case females) are prepared to spend to make
themselves look good, feel better and have the right products
to choose. Lipsticks have done very well as have all the other
sectors except nail varnish (which had a good 2014).
“Fragrance has had another tough year as we see a 3% fall
in sales, there are less buyers but it is Christmas gifting that
is worrying as it has become less popular to include perfumes
and aftershaves as part of the ritual Christmas gifting
behaviour. Black Friday also causes a disruption as some
purchasing is made earlier than normal.
“The varied skincare market has seen mixed fortunes.
Prestige value has fallen but mass facial skincare and body
care has fared somewhat better as shoppers loosen their
spending a little, this has not translated to men’s skincare
though, the proliferation of beards hasn’t helped this sector!
“Mass market sectors like haircare and deodorants have been
victims of the price war i.e. grocers have started to match
discounter pricing so the public get lower prices but it hasn’t
encouraged greater quantities to be bought. In fact, volume
is down further than value (1.6% value v 3.1% yr/yr decline
in units) with shampoo and conditioners suffering, however,
fashionable styling products have performed much better.
“Footcare is another oasis of market growth as more products
are aimed at this area that may have been neglected in the
past. Liquid soap has managed growth at the expense of
bar soap whilst shower products see improved unit sales but
discounting has led to a value fall of nearly 1%.
“2016 looks as if we will see a similar pattern as 2015
as discounters continue to improve market share.
Multiple grocers are losing share (losing 1.1 percentage
share points from 2014 now at 28.9%) not just to the food
discounters (Aldi/Lidl) but also to the bargain stores such
as Home Bargains and Poundland. Discounters now have
6.5% share from 6.1% share in 2014.
“Department stores and perfumery outlets (where beauty
is the main focus) have maintained a 14.9% share whilst
duty free (shops in international travel hubs) have experienced
leaner times. Interestingly for total cosmetics, the High Street
is in revival and chemist and drugstore sales are on the up
with this channel taking 35.7% value share (from 35.5% in
2014) so the story is not entirely around price and discounting.
“2016 does not look to be a boom year but economic
indicators should help with the more prestige markets and it
remains key that manufacturers continue to cater for needs
of the consumer in all the categories – not just on price but
on quality and availability. Internet shopping, (internet only
e-tailers) has seen flat sales year on year but in some markets,
fragrance for example, total internet (all sites) sales exceed
21% of all sales.”
“ The UK cosmetic and personal care market followed a similar pattern in 2015 to that of 2014 in that we
see an overall decline in value of the market year on year (yr/yr) of 0.2% (0.1% 2014 v 2013) and a fall
in actual packs purchased of 0.3% yr/yr (0.5% 2014 v 2013). Essentially, shoppers have become used
to searching for bargains and price has become the key driver as opposed to multi-buys, for example in
grocers and chemists that drove volumes in the past.”
Tim Nancholas
Strategic Insight Director – Home, Health & Beauty, Kantar Worldpanel, March 2016
Chemist &
Perfume &
Pure Internet
Clothing &
Duty Free
All others
CTPA Categories Channel share % Value / Units
35.7 35.8
2 1.01
0.9 1.8
0.9 1.2
1...,18,19,20,21,22,23,24,25,26,27 29,30,31,32,33,34,35,36,37,38,...52
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