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The Midwest chapter of the Society of Cosmetic Chemists (MWSCC) presented market intelligence and honored lifetime service at its April educational dinner meeting. Gillian Morris, director of Kline Management Consulting Market Research, presented the status of the hair, skin and naturals markets, after which two cosmetic industry veterans were presented with the prestigious Stanley Allured Lifetime Service Award, named after the founding father of Cosmetics & Toiletries magazine.
Morris opened the evening with the observation that, of the many industries she studies, personal care was one of the only ones that survived the global recession. She noted that Europe continues to have the largest share in personal care but that it is losing its strength. Personal care markets exhibiting high growth rates, according to Morris, are Brazil, China, India, Russia and Argentina. Medium growth was noted in Canada, Mexico, Poland and South Korea, while low growth was found in the markets of France Germany, Italy, Japan and the United States. Morris suggested this low growth could be attributed to certain markets already being mature.
The segment of personal care showing the most growth was skin care. Specifically, the mass market continues to dominate personal care product sales at 50%, with luxury at 15%, direct sales at 9%, specialty at 3%, salons at 2%, pharmacies at 2% and others at 19%. Morris added that luxury took a hit in 2008–2009, propelling companies to establish lower-priced mass market lines for their luxury products.
Within the skin care market, facial treatments accounted for 20% of sales; however, she added that sun care is increasing in strength. Asia-Pacific reportedly accounts for 40% of the skin care market, with China becoming a key country for skin care; also growing is Latin America, while Europe’s growth has decreased.
Sales in hair care were notably driven by (in order of predominance): hair conditioners, hair colors and shampoos, followed by hair stylers, ethnic hair products and perms. The growth in conditioners, according to Morris, is being led by Brazil. Although the Latin American hair care market has seen big growth in the last few years, the majority of the market’s sales is in Europe (33%), with Asia (25%), North America (20%), Latin America (18%) and others (4%) following.