Cosmetics trends, demographic divergences fuel US personal care market: Report

The US personal care market in 2011 witnessed sales of over $38bn at manufacturer’s level, exceeding pre-recession levels and boosting growth by 4.2%, owing to the new trends in nail, eye looks and limited edition fragrances market, according to ‘Cosmetics &Toiletries USA’ report by American research firm Kline.

Emergence of new trends in nail polish category is said to have attracted women of all demographics and bolstered growth by 30% in the nail polishes subcategory, helping 2011 makeup sales exceed the industry average growth rate.

According to the report, the eye makeup category, which was supported by the season’s ‘smokey-eye’ look, contributed to the increased eye makeup sales that further helped growth of all trade classes.

After witnessing declining sales for several years, fragrances for women experienced high growth in 2011 as consumers picked fragrances as an affordable indulgence.

The 2011 new trend of niche fragrances, under the luxury trade class, saw an above average growth of over 10%, while limited edition fragrances from brands such as Bond No. 9, Creed, and By Kilian experienced high visibility.

Looking the demographic groups’ category, 52% of Hispanics regularly used perfume or cologne, as against 32% of the non-Hispanic population; while nearly half of African Americans used perfumes or colognes regularly, as compared to one-third of Caucasians and Asians in the US.

Kline added that the skin care product class, dominated by facial treatments, remains the largest product class with men’s skin care line seeing increased growth and expanded product lines.

Cosmetics and toiletries market continued to witness strong performance across all trade classes, and more so in the luxury class that saw nearly double-digit growth.

Kline consumer practice industry manager Nancy Mills said that the comparatively low growth in the professional class correlates with the greater trend that the firm is observing with consumers’ relatively moderate expenditure on professional services.

"And yet, driven by ‘frugal-fatigue’ and a rising financial confidence, consumers are compensating by purchasing premium products as affordable luxuries driving sales in the luxury and mass trade classes," added Mills.