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Sales of Personal Care Slowing
Posted: May 21, 2008
The sales of personal care product has slowed from 3.2% in 2006 to 2.7% in 2007 in the United States, according to Euromonitor's Cosmetics and Toiletries in the US report released in May 2008. This slowing of sales is due to the housing downturn and rising energy and food prices.
Unsurprisingly, the report finds that the US consumer is becoming more environmentally conscious and, therefore, buying natural, organic and eco-friendly products. The report states that larger personal care companies are beginning to formulate with natural, organic and botanical ingredients while smaller natural and organic companies are expanding.
The report finds that mergers and acquisitions have been a popular means of growth for personal care companies. It references Procter & Gambles entry into the dermatological market through the purchase of DDF and L'Oreal's expansion into the prestige and salon markets with the purchase of YSL Beaute and Pureology respectively.
It also is reported that drugstores and perfumeries have seen a rise in business. A rising consumer desire for self-service in personal care purchasing reportedly is driving this rise. In addition, consumers are increasingly using social media instead of mainstream media, and the report suggests that companies should explore these media avenues.
The report suggests that the industry will see a further increase in natural and organic products. For more information, visit www.euromonitor.com/Cosmetics_And_Toiletries_in_the_US?DCMP=AFC-USCTGCI.