kline market research highlights: innovations in beauty
DESCRIPTION
Carrie Mellage, our Vice President for Consumer Products had the privilege of participating in a panel discussion with Pam Busiek, President and CEO of Independent Cosmetics Manufacturers and Distributors (ICMAD), and the legendary Dr. Robb Akridge, founder of Clarisonic, at the 2014 Global Beauty & Wellness Exchange. The event offers suppliers of beauty and spa products the opportunity to network with buyers from high-end spas in a series of “exchange sessions,” peppered with informative sessions such as this panel presentation.TRANSCRIPT
Amelia Island, FL February 18, 2014
A presentation at:
Kline Market Research Highlights: Innovations in Beauty
5.1% CAGR
2.1% CAGR
$ Billion Mfr. Global
U.S.
2007 2012
189 242
36 40
The global beauty market is nearly $250 billion; the U.S. accounts for 20%
Source: Kline.
The U.S. personal care market is estimated to reach about $42 billion in sales in 2013
$ Billion mfr.
Source: Kline.
U.S. market growth has been generally quite positive, even during the recession
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Kline.
Key innovations in personal care history
• Glass packaging
• Clinique launch
1960s 1970s 1980s
• Plastic/cardboard packaging
• Liquid soaps
• Anti-aging
• Demographic targeting
Source: Kline.
Key innovations in personal care history (Continued)
• AHAs
• Body washes
• 2 in 1 shampoos
• Pore strips
1990s 2000s Today
• Naturals
• Professional results
• Value added
• High SPF
• Nail art
• Gel manicures
• BB creams
Source: Kline.
Innovation and technology continue to propel the industry
Anti-aging remains strong
Tablets and smart phones make shopping
easier
Social media creating buzz
Natural personal care
At-home beauty devices
Body contouring/cellulite (U.S. Professional)
Professional nail care
All of the fastest growing market segments are technology driven
Innovative delivery systems and technologies backed by claims help grow the personal care industry globally
Clinique Even Better Eyes Dark Circle Corrector
Perricone MD Blue Plasma Orbital
Lancôme Renergie Lift Multi-Action Lifting and
Firming Cream
Kiehl’s Super Multi-Corrective Cream
Facial treatments Hand/body lotions Sun care Baby Men's
Anti aging Other
Anti-aging skin care is the main growth engine Global Personal Care Share
by Product Class Skin Care
by Category Facial Treatments
by Type
Source: Kline.
Anti-aging is more than just facial treatments
`
New technologies offer consumers alternative products to replace in-salon or in-office services
Laser hair removal Anti-aging
Cleansing Acne
Beauty devices strong globally
• Strong double-digit growth in most regions
• Consumers are savvy and open to alternative products
• LightStim International is the first company with FDA clearance for treating fine lines and wrinkles
• Marketers enter organically (Proactiv, Olay), via acquisition (L’Oréal), or via strategic alliance (Unilever, Strivectin)
Silk’n FaceFX
Clarisonic Pedi Sonic Source: Kline.
Technology most responsible for altering beauty retail landscape
24/7 shopping anywhere
Price comparisons, product reviews, discount searching
Social media = better engagement
Retailers to go omni-channel
Diagnostic tools help determine appropriate products for consumers
Luminato Festival 2013 by Vichy
Sephora Skincare IQ
Pixelle tool for use in store, O Boticario in Brazil
Beauty brands and retailers connect with customers via social media and digital marketing
Sephora TV tutorials
Bath & Body Works App
Clinique Insider’s Club
Old Spice on YouTube
Lancome Try-on Platform
Many beauty retailers and marketers increase digital exposure
Walgreens Dermatological Skincare kiosk
Sephora Beauty Talk
Bath & Body Works Fragrance Finder
Macy’s Beauty Spot
$ M
illio
n m
fr.
Driven by technology and innovation, the U.S. market is projected to reach $50 billion by 2018
Source: Kline.
Americas
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Asia ___________
Europe ___________
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Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.
Kline & Company, Inc. 35 Waterview Blvd. Suite 305 Parsippany, NJ 07054 Phone: +1-973-435-6262 Fax: +1-973-435-6291 www.KlineGroup.com
Carrie Mellage Vice President, Consumer Products Tel: +1 973-435-3412 [email protected]