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Cosmetic Industry in Figures

15/06/2018

The 2017 collaborative report on the GB market from Kantar Worldpanel and IRI Worldwide shows a small decline in total retail sales price when compared with 2016.  The value fell by 0.1% (£13.2 million) and volumes (in packs) fell 1% as we purchased 29.1 million fewer packs than in 2016.

Commenting on the report, Tim Nancholas, Strategic Insight Director – Health & Beauty at Kantar Worldpanel, says:

“Factors restricting growth are both retail and consumer led. Bargain Stores, such as Poundland and particularly Home Bargains and B&M Stores have started to change the way we shop for toiletries and this sector has seen double digit growth. Add Aldi and Lidl to the mixture and it’s not surprising the more traditional Grocery and High Street stores have struggled to compete, particularly on price, though of course they can offer much greater choice which, in the long run, could become more important as shoppers seek new ideas and experiences from their personal care products.”

 £000s
Dec 16*
£000s
Dec 17
% Change

Fragrances 1,811,020 1,804,190 -0.4
Colour cosmetics 1,682,543 1,603,730 -4.7
Skincare 2,270,046 2,303,410 1.5
Haircare 1,700,503 1,710,086 0.6
Toiletries 2,318,526 2,348,002 1.3
Total 9,782,639 9,769,419 -0.1

* 2016 market statistics restated from previous years as a result of strengthened data capture. 


Sector share graphic

“The way we shop is also changing as over 29% of prestige beauty sales are made online; with an ever increasing number of E-tailers to choose from. Amazon has recently made moves into the grocery market.

“2018 will be another challenging year as  shoppers may become more concerned with how Brexit is shaping up; as we have seen with car sales for example, big ticket items might suffer so this leaves the cosmetics industry with an opportunity, even a duty, to provide the products consumers want for a changing world that deliver what they say, enhance their everyday lives and provide, perhaps, a little fun and glamour in uncertain times.

“We can expect to see the grocers fight back and even the High Street resist the rather mundane bargain/discount area. Natural, multifunctional, eco-friendly and fun products could prosper and manufacturers should grasp the challenge, get make-up invigorated and gifting, such as fragrance, back on people’s agenda.

“Finally, inflation should start to creep into cosmetic pricing helping to lift market values.”

Further information on each category can be found in the CTPA Annual Report of 2017.  The report also contains information on the UK import and export markets for 2017.