Beauty and Personal Care Industry Trends and Future Prospects for The US

INDUSTRY TRENDS AND FUTURE PROSPECTS FOR THE US

IN-COSMETICS PARIS - APRIL 12, 2016

PRESS BRIEFING

http://www.euromonitor.com/

US BEAUTY IN THE GLOBAL CONTEXT

PREMIUMISATION OF US BEAUTY

CATEGORY HIGHLIGHTS

CONCLUSIONS


© Euromonitor International

4

Outstanding Growth in North American Beauty MarketBEAUTY BREAKDOWN: INDUSTRY TRENDS AND FUTURE PROSPECTS FOR THE US

2015 Beauty & Personal Care Value Sales and Growth by Region

Wester

n Euro

pe

Easter

n Eur

ope

North A

merica

Latin

Ameri

ca

Asia Pacif

ic

Austra

lasia

Middle E

ast a

nd A

frica

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

Colour Cosmetics Other Beauty & Personal CareColour Cosmetics Growth Total Beauty & Personal Care Growth

US

$ B

illion

s

2014

-201

5 V

alue

Gro

wth

(Cur

rent

, Fix

ed 2

015

Exc

hang

e)



5

U.S. Outpaces 2015 Global Beauty Growth Across Categories2015 U.S. Beauty & Personal Care Value Sales and Growth by Category

Skin

Care

Colo

ur Cos

metics

Men

's Groo

ming

Frag

rance

s

Deo

doran

ts

Sun

Care

$0

$20

$40

$60

$80

$100

$120

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

US World US Growth World Growth

2015

Sal

es (U

S$

Billi

ons)

2014

-201

5 V

alue

Gro

wth

(Cur

rent

, Fix

ed 2

015

Exc

hang

e)




CATEGORY HIGHLIGHTS

CONCLUSIONS



7

2015 U.S. Premium Beauty Sales Grow Across All CategoriesPREMIUMISATION OF US BEAUTY

2015 U.S. Premium Beauty & Personal Care Select Category Value Sales and Growth

Premium

Colo

ur Cos

metics

Premium

Fragran

ces

Premium

Skin

Care

Premium

Sun

Care

Premium

Deo

doran

ts$0

$1

$2

$3

$4

$5

$6

$7

$8

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Market Size Growth

US$

Billi

ons

2014

-201

5 G

row

th



8

Power to PremiumPREMIUMISATION OF US BEAUTY

2011 2015 2020

Premium Value Sales ($US billion, constant)

$20 $23 $28

Premium Penetration (% Value)

32% 34% 37%

US$5 BillionU.S. premium beauty growth through 2020

Premiumisation of U.S. Beauty and Personal Care Market Forecasted to Continue



9

$2.16

$1.38

$1.15

$0.23

$0.39

Premium Colour Cosmet-icsPremium Skin CarePremium FragrancesPremium Hair CareOther Premium Beauty and Personal Care

The Future Of U.S. Premium Beauty: Growth-Driving CategoriesPREMIUMISATION OF US BEAUTY

Premium Category CAGR

Total Beauty and Personal Care

4.10%

Colour Cosmetics 5.70%

Sun Care 5.60%

Sets/Kits 4.90%

Skin Care 4.70%

Deodorants 4.60%

Bath and Shower 3.80%

Fragrances 3.30%

*Constant Value termsUS$5 Billion

U.S. Premium Beauty Value Growth 2015-2020(US$ Billions, Constant)

U.S. Premium BeautyCAGR* 2015-2020




CATEGORY HIGHLIGHTS

CONCLUSIONS



11CATEGORY HIGHLIGHTS

Top 15 Growth Subcategories for 2015 U.S. Colour Cosmetics

Colour Cosmetics: Growth Subcategories

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

EyeShadow

Mascara

Other EyeMake-Up

EyeLiner

BB & CCCreams

Foundation & Concealer

Other EyeMake-Up

Other LipProducts

Blusher,Highlighter& Bronzer

NailPolish

Lipstick

BB & CCCreams

Powder

Lip Liner

Lipstick

y

2014

-201

5 V

alue

Gro

wth

(Cur

rent

)

Premium Mass






0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

EyeShadow

Mascara

Other EyeMake-Up

EyeLiner

BB & CCCreams


Other EyeMake-Up

Other LipProducts


NailPolish

Lipstick

BB & CCCreams

Powder

Lip Liner

Lipstick

y

2014

-201

5 V

alue

Gro

wth

(Cur

rent

)

Premium Mass



13

Sephora introduces South Korean BB Cream brand Dr. Jart+ to the U.S.

Over 15 BB/CC creams launch in the U.S., from Clinique to Maybelline to Dior

BB/CC Creams grow 61% (constant value)

Packaging innovation: Miracle Cushion by Lancôme and Double Wear Makeup To Go Liquid Compact by Estée Lauder

Facial Cosmetics: Innovation Drives Growth

U.S. Facial Make-Up Sales 2011–2020 2011

2012

2013

2015

US BB/CC Cream constant value CAGR 2011-2015: 133%(Projected) US BB/CC Cream constant value CAGR 2015-2020: 12%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020$0

$1

$2

$3

$4

$5

$6

$7

Foundation/Concealer Powder Blusher/Bronzer/Highlighter BB/CC Creams

Other Facial Make-Up

US

$ B

illion

s (C

onst

ant)






0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

EyeShadow

Mascara

Other EyeMake-Up

EyeLiner

BB & CCCreams


Other EyeMake-Up

Other LipProducts


NailPolish

Lipstick

BB & CCCreams

Powder

Lip Liner

Lipstick

y

2014

-201

5 V

alue

Gro

wth

(Cur

rent

)

Premium Mass



15

Brow Cosmetics: Boldness Drives GrowthCATEGORY HIGHLIGHTS

US Other Eye Make-Up constant value CAGR 2010-2015: 20%(Projected) US Other Eye Make-Up constant value CAGR 2015-2020: 13%

Boldly Bushy Boldly Defined

May

bel

lin

e N

ew Y

ork

Eye

Stu

dio

Bro

w D

efin

e +

Fil

l Du

o—6

/20

15

Clin

iqu

e Ju

st B

row

sin

g B

rush

-On

Sty

lin

g M

ouss

e la

un

—8/

20

15

An

asta

sia

Bro

w D

efin

er—

1/2

01

6

Bu

rber

ry E

yeb

row

Def

iner

lau

nch

ed—

9/20

15






0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

EyeShadow

Mascara

Other EyeMake-Up

EyeLiner

BB & CCCreams


Other EyeMake-Up

Other LipProducts


NailPolish

Lipstick

BB & CCCreams

Powder

Lip Liner

Lipstick

y

2014

-201

5 V

alue

Gro

wth

(Cur

rent

)

Premium Mass



17

Lip Cosmetics: Variety Drives GrowthCATEGORY HIGHLIGHTS

US Lip Make-Up constant value CAGR 2010-2015: 7%(Projected) US Lip Make-Up constant value CAGR 2015-2020: 5%

Glossy, Plump and Natural Vivid Colors in luxurious Finishes

Pix

i Lip

Lift

Max

—3

/20

15

Maybelline Color Sensational Vivid Matte Liquid Lipstick—

1/2016

Burt’s Bees Lipsticks—2/2016Yves Saint Laurent Volupté Tint-in-Oil—1/2015






0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

EyeShadow

Mascara

Other EyeMake-Up

EyeLiner

BB & CCCreams


Other EyeMake-Up

Other LipProducts


NailPolish

Lipstick

BB & CCCreams

Powder

Lip Liner

Lipstick

y

2014

-201

5 V

alue

Gro

wth

(Cur

rent

)

Premium Mass



19

Eye Cosmetics: Lashes Drive GrowthCATEGORY HIGHLIGHTS

US Eye Make-Up constant value CAGR 2011-2015: 4%(Projected) US Eye Make-Up constant value CAGR 2015-2020: 3%

NYX Big & Loud Lash Primer—1/2015

Benefit Roller Lash—2/2015

Dio

r D

iors

how

Mas

cara

—6/

201

5



20

Skin Care: Growth SubcategoriesCATEGORY HIGHLIGHTS

Top 10 Growth Subcategories for 2015 U.S. Skin Care

Premium

Lip C

are

Premium

Skin

Care

Sets

/Kits

Premium

Face M

asks

Premium

Acn

e Trea

tmen

ts

Premium

Facial

Clea

nsing

Wipe

s

Mass F

ace M

asks

Mass F

acial

Clea

nsing

Wipe

s

Premium

Anti

-Age

rs

Premium

Non

-Wipe

Clea

nsers

Premium

Gen

eral P

urpos

e Bod

y Care

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

$22

$1,166

$119$43 $18 $48

$363

$1,939

$498

$144

2015 Sales 2015 % growth

US$

Milli

ons

2014

-201

5 V

alue

Gro

wth

(Con

stan

t)



21

Skin Care: Growth DriversCATEGORY HIGHLIGHTS

Korean Beauty Trends Drive Growth

Successful Skin Care Products Put Focus on Ingredients

Niche Brands Gain Market Share

Source: Sephora Polska

Chourouk Gorrab

title missing in the graph



22

2015 2016 2017 2018 2019 2020-10%

-5%

0%

5%

10%

15%

20%

25%

Premium Men's Fragrances Premium Women's FragrancesPremium Unisex Fragrances Mass Men's FragrancesMass Women's Fragrances Mass Unisex Fragrances

Yea

r on

Yea

r Val

ue G

row

th (C

onst

ant)

Fragrances: Growth SubcategoriesCATEGORY HIGHLIGHTS

U.S. Fragrance Subcategory Value Growth 2015-2020

2015-2020 Premium Fragrance Growth (constant value) = US$1 Billion

Premium Unisex2015-2020 CAGR:

15%



23

2014 2015-10%

-5%

0%

5%

10%

15%

20%

25%

30%

Estée LauderCliniqueDonna Karen New YorkTommy HilfigerJo MaloneTom Ford

2014

-201

5 V

alue

Gro

wth

(Cur

rent

)

Niche Brands Drive Premium Growth

Fragrances: Growth DriversEstee Lauder Company Fragrance Brands

Personalization Through Layering




CATEGORY HIGHLIGHTS

CONCLUSIONS



25

Macroeconomic Factors Evolving Retail Channels Success of Niche Brands

U.S. Beauty: Overall Trends and OpportunitiesCONCLUSIONS

Source: Mike Mozart

• Newly-Flush Consumers Seek Affordable Luxury

• Premium Beauty: Gateway Purchase

• Rise of Masstige

• Well-Informed Consumers

• “Physital” Customer Engagement

• Internet Retailing, the Great Equalizer

• Millenials Usher in Era of Individualism

• Foreign Brands Garner Attention

• Acquisitions: Large Companies Take Note of Niche


THANK YOU FOR LISTENINGIrina BarbalovaHead of Global Beauty and Personal Care

For press inquiries, reach out to [email protected]

mailto:[email protected]


Beauty and Personal Care Industry Trends and Future Prospects for The US

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