January 12, 2004

By: Jenny Post
Website: http://www.1st-in-cosmetics.com

Trends in cosmetics and toiletries in Western Europe

Difficult economic conditions coupled with the introduction of the euro have had a negative impact on some cosmetics and toiletries markets in Western Europe during 2002. Imogen Matthews, consultant to in-cosmetics, reviews trends in these markets and highlights areas of potential innovation and growth.

Research company Euromonitor valued the total cosmetics and toiletries market in Western Europe at US$51.7bn in 2002, up by 8.7% on the previous year. Growth rates were by no means uniform by region, with France overtaking Germany as the biggest market overall, due in part to the introduction of increasingly sophisticated products. Sales of cosmetics and toiletries grew by 5.1% in France, compared to an almost static performance of 0.3% for Germany. Sales in the Italian market were sluggish and were also up by just 0.3% between 2001 and 2002. Fastest-growing markets were Ireland, up 10.7%, Portugal, up 8.0% and the Netherlands, up 6.3%.

Euromonitor maintains that the trend towards innovation-led growth permeated a wide range of sectors throughout Western Europe in 2002. Even mature sectors, such as skincare and bath products witnessed growth, as new product developments led to their continued segmentation. Novel product categories, such as facial wipes and body wash/shower gel fueled growth, particularly in the mature UK bath and shower products sector, as consumers traded up from bar soap, attracted by added moisturising benefits and a vast array of fragrances.

Sophistication of consumer demand

In markets such as France and Italy, there has been a growing sophistication of consumer demand which has impacted on categories such as haircare, suncare and anti-ageing products, with sales of cosmeceuticals proving especially important in facial skincare. In particular, demand for products offering technological advances helped expand skincare sales through pharmacies in Italy. By contrast, facial products suffered from the effects of maturity, despite some good performances in nourishers/anti-ageing products and wipes, which continued to increase their penetration. Handcare and bodycare enjoyed buoyant sales in 2002, benefiting from still low penetration and intensive product innovation and marketing activities.

Mature haircare sector puts on growth

According to Euromonitor, haircare was the largest sector in terms of value sales in a number of Western European markets in 2002, including the significant German and UK markets. Shampoo is widely perceived as an essential toiletry and has reached saturation point in several markets, yet has continued to register positive growth due to the increasing sophistication of consumer demand and manufacturers' strategies of product innovation.

The maturity of the haircare sector has led manufacturers to generate value through new product development. In the UK, innovation was particularly notable amongst premium designer haircare brands, with new ranges launched by Toni & Guy, Trevor Sorbie and John Frieda in 2002. Premium haircare brands focused on meeting specific needs rather than offering catch-all ranges for all hair types. For example, John Frieda launched Brand New Blonde and Gleam Creme, both specifically for blonde hair, in addition to extending its Beach Blond range. Trevor Sorbie, meanwhile, launched Long Hair, which, as indicated by the name, targets long-haired consumers. Similarly, Toni & Guy segmented its target consumer group by offering products for dry, coloured, dull and limp hair with its Insights range.

Sunny future

Increasing consumer health awareness is expected to be the main driver of growth in the suncare sector, which Euromonitor predicts to be fastest-growing in Norway, Portugal and Switzerland between 2002 and 2007. Norway has a highly educated population with considerable awareness of environmental issues connected to the decreasing ozone layer and its harmful effects. Similarly, while negative publicity about the possible harmful effects of ingredients in suncare products dampened sales in Switzerland in 2002, ongoing public discussion about UV radiation and the detrimental effects of unprotected sunbathing are likely to give considerable support to the sector in the forecast period. At the same time, Portuguese consumers are expected to become increasingly aware of the risks of overexposure to the sun, due to government campaigns and increased access to information.

Manufacturers are likely to fuel demand for suncare through the introduction of new products which borrow features from the latest developments in skincare. For example, L¹Oreal¹s new suncare line Solar Expertise contains a patented ingredient called Activa-Cell which stimulates the different cellular processes to reinforce the skin¹s natural self-repair and defence mechanisms. As with many facial moisturisers, the Solar Expertise products protect against premature skin ageing. Furthermore, increased consumer awareness of skincare should boost sales of smaller product categories, such as aftersun.

Overall, product innovation within the cosmetics and toiletries markets has gone hand-in-hand with increasing sophistication in consumer demand, generated by manufacturers' marketing strategies, media attention and growing consumer health awareness.

About The Author:

Jenny Post is a successful author and regular contributor to http://www.1st-in-cosmetics.com.  Tips on skin care, hair care and beauty products to bring out natural beauty.