Ethnic HBC market set to grow, despite economic downturn: Report

The health and beauty care (HBC) market targeted at minorities, despite the economic slowdown, is said to be growing at a healthy pace, posting a growth of 13% during 2010, which was followed by reaching $3bn market in 2011, according to the ‘Ethnic Hair, Skin, and Cosmetic Products in the US,’ a report by Packaged Facts.

Marketers catering to the ethnic segment should bolster new products and marketing campaigns sooner than wait, as there would be a rapid expansion of racial and ethnic minorities in the US over the next ten years, the report said.

Packaged Facts said that the population growth of Whites would be overtaken by the Hispanic, African-American and Asian population growth, and by 2042 minorities would collectively make up majority of the US population.

The report said that ethnic hair and beauty care products as against many consumer packaged goods categories continued to fare well during recession.

The African-American and other minority communities’ loyalty to HBC products is claimed to have kept the market on an upward trend, helping resume with an impressive growth when economic conditions began to improve.

The report said that many ethnic HBC products, which are being introduced, are catering to the needs of coloured people, who were previously ignored.

Market drivers for 2012 are said to include more natural products options; increased participation in HBC categories for men and also a surge of innovative, better-quality products.