Changing lifestyles, growing consumer incomes to drive global personal care market: Study

The changing lifestyles and the growing consumer incomes are forecasted to drive the global personal care products market, finds a new report by UK-based market researcher Lucintel.

The compound annual growth rate (CAGR) of the industry is likely to be at 3.4% in the next five years, reported cosmeticsdesign.com citing the study and is expected to reach $630bn, driven by the rising demand in Asia Pacific (APAC) and Europe.

Lucintel observed growing GDP, increased product awareness, and a rise in organised retail segment to be the driving forces for industry’s future growth.

According to the research firm, increased awareness will lead to the higher demand for luxury products, esspecially for cosmetics, and is expected to pose a big challenge for the manufacturers to offer quality products at a low cost in return.

Among all the segments, skincare is found to be the largest segment with good growth prospects during the forecast period in view of the increased demand for multi-feature products, such as moisturising cream with sun protection and anti-ageing or anti-wrinkle properties.

The report revealed that hair care segment would stand next in terms of future growth potential.

Lucintel expects that maintaining a balance between price and quality, will be challenged by various factors, such as preserving good quality, increase in packaging expenses, and rise in cost of raw materials.

The industry researcher further pointed that the improvement in global economy helped cosmetic industry show signs of recovery in 2011, after it was plunged by recession in 2009.