The Personal Care Industry

The personal care industry had an excellent growth rate in all the major markets of the world in 2005-2006. Since the past few years, people have become more conscious about their appearance and look, leading to a huge demand for these products in the whole world. New products are launched by the leading brands to attract consumers. The trends in all the leading personal care markets show that this industry is showing a massive potential for growth. The women’s beauty industry is growing at rate of approximately USD 202. 254 billion every year where as the global market for cosmetics alone USD 30.

33 billion. The global personal care products industry is growing at a very rapid pace; some of the factors responsible are: •Rise in consumer spending power, •Increased demand due to people consciousness, •Key demographic factors, •Entry of herbal and organic products, •Lifestyle and climactic changes, and •Massive advertising and promotiom strategy France The personal care product market in France is becoming more diversified and fragmented. In the year 2006 the personal care industry in France grew at the rate of 2. 7%, earning a revenue of USD 1,151.

34 m according to the Federation des Industries de la Parfumerie. The largest share among all the personal care products was of body moisturizers, with sales of USD 361 m, which was 2. 4% more than the previous year. Germany The German personal care market has shown a rising trend in the year 2006 with a total sale of USD 983 m as reported in IRI Germany at the rate of 3. 7%. In Germany the most popular personal care products are Gels, Lotions, moisturizers and creams. Italy According to the ECM calculations by Unipro, the Italian market figures for

total sales of personal care products were USD 1,186. 15 m in 2006, which was above 6. 3% than the previous year. Spain Due to increasing awareness about personal care and beauty, a large number of Spanish people are demanding good quality personal care products, which has led to a growth in the development of this industry in Spain. Body lotion and body oil accounted for the largest share among other body care products. United Kingdom According to a study by TNS Worldpanel, the personal care industry in UK had the total sales of $312.

77m in 2006, which was 9% higher than the previous year. United States of America Anti-aging creams and lotions have a huge demand in USA, and these products are pushing the rate of growth of this industry in this country. In USA, the personal care products market is almost USD$40 billion and according to estimates it will grow at the rate of 3. 4% annually. Russia The Russian personal care market continues to grow and in several aspects, according to some marketing specialists, doesn’t conform to the European models. Brazil

The personal care industry in Brazil is the sixth largest in the world, and had the sales of US$9. 19bn in 2006, which is up 13. 6% from $8. 09bn in 2005. Figure 2: Growth in Personal Care Industry in 2006 Body care products claiming to firm, tone and lift offer consumers a quick-fix solution for body woes. The industry turns over $100 billion every year & the cosmetics market alone is worth more than $15 billion worldwide. The UK market is worth $6. 2 billion with a +5. 3% growth rate. People in the UK spend on average $2,000 a year on beauty treatments & cosmetics.

The cosmetics market is expected to be worth $351 million by 2009. Total expenditure on male grooming products in the is expected to reach $1. 5 billion by 2008. Spending on own-label personal care products rose to $7. 4 billion last year. The global personal care products industry is growing at a very rapid pace; some of the factors responsible are: •Rise in consumer spending power, •Increased demand due to people consciousness, •key demographic factors, •Entry of herbal and organic products, •Lifestyle and climactic changes, and

•Massive advertising and promotiom strategies. Degree of products differenciation The major demand is for the products that are of basic need for the consumers like soap, shampoo, hair oil etc. The personal care products industry consists of four major sub-sectors manufacturing a range of products. These sub-sectors and their products are highlighted below: •Face Care Products- Face is the reflection of an individual’s physical appearance. Generally, the beauty of a person is described by the look of one’s face.

Thus, to enhance the beauty of the face people use face care products whose market is growing at double digits. The industry manufactures products like astringent, face cream, face scrub, face toner, moisturizer, cleanser, etc. Some of these products are used for clarification and purification of the facial skin from dust and harmful rays of the sun while others are used for toning. •Hand and Foot Care Products- As the name suggest these products are used to enhance the beauty of hands and feet. The hand and foot care product market segment, grew 5.

9% in 2005 to a total of 338. 2 million dollars, and included many successful product introductions. These included herbal and organic products, as well as products for youthful skin. Men are also starting to take better care of themselves, resulting in growth in the men’s foot care products market segment. Hand and foot care products can be broadly categorised into cuticle care products, foot scrub, hand and foot cream, nail care products etc. The diagram below shows the various market segments.