Love the skin you're in: Changing the outlook of melanoma incidence
Skin care outlook across the globe & asia Pacific
Transcript of Skin care outlook across the globe & asia Pacific
SKIN CARE OUTLOOK ACROSS THE GLOBE & ASIA PACIFIC
IN-COSMETICS KOREA, JULY 2016
JOANNA CHAN ANALYST, BEAUTY & FASHION
ABOUT EUROMONITOR INTERNATIONAL
INDUSTRY SNAPSHOT
DEMANDS OF THE EVOLVING CONSUMER
CONCLUSION: FUTURE OF SKINCARE
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Research coverage
ABOUT EUROMONITOR INTERNATIONAL
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Research expertise ABOUT EUROMONITOR INTERNATIONAL
Alcoholic Drinks
Apparel
Automotive
Beauty and Personal Care
Consumer Appliances
Consumer Electronics
Eyewear
Fresh Food
Health and Wellness
Home and Garden
Home Care
Hot Drinks
Consumer Health
Luxury Goods
Nutrition
Packaged Food
Personal Accessories
Pet Care
Soft Drinks
Tobacco
Toys and Games
Tissue and Hygiene
Consumer Products
Services
Consumer Foodservice
Institutional Channels
Consumer Finance
Retailing
Travel
Supply
Ingredients
Packaging
Economies
Business Dynamics
Cities
Economy, Finance and Trade
Industrial
Consumers
Lifestyles
Income and Expenditure
Households
Population Ethical Labels
Digital Consumer
ABOUT EUROMONITOR
INDUSTRY SNAPSHOT
DEMANDS OF THE EVOLVING CONSUMER
CONCLUSION: FUTURE OF SKINCARE
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3.0
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2010 2011 2012 2013 2014 2015
% V
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Global vs. Premium vs. Mass Skincare Value Sales Growth
Total Skincare Mass Skincare Premium Skincare
US$110bn Global skin care value sales in 2015
31% of sales derived from Premium brands
69% of sales derived from Mass brands
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Skincare by category
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Skincare Categories Value Sales
2015 Value Sales
2016-2020 CAGR
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INDUSTRY SNAPSHOT
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Indonesia 10.5%
India 8.5%
China 7.7%
Morocco 8.6%
Saudi Arabia 7.4%
Vietnam 8.3%
Cameroon 6.6% Pakistan
7.2%
Skincare by country
Countries by Forecast CAGR (2015-2020)
INDUSTRY SNAPSHOT
South Korea 2.6%
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INDUSTRY SNAPSHOT
DEMANDS OF THE EVOLVING CONSUMER
CONCLUSION: FUTURE OF SKINCARE
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Demands of the
Evolving Consumer
Key Finding 1: Customisation
Key Finding 2: Well-Being
Key Finding 3: Digital
Key Finding 4: Ethical
EVOLVING CONSUMER
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Key Finding 1: Customisation Consumers want skin care products tailored to their skin properties
When you last purchased a skin care product, which of the product features listed below most influenced your choice?
n=20,530
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Key Finding 1: Customisation EVOLVING CONSUMER
Degree of Customisation
For all skin types For sensitive skin For active lifestyle Daily personalised solution
Clarins Extra-Firming Day Neutrogena Sensitive Skin Sunscreen
Arrow Colour Enhancing Lip Balm
Figure by Romy Paris
Image source (from left to right): Ulta (Clarins & Neutrogena), Birchbox, Romy Paris
Age Moisture Balance
Ethnicity Gender Lifestyle
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Key Finding 1: Customisation EVOLVING CONSUMER
Figure by Romy Paris
Source: Romy Paris
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Multicultural Beauty Extending beauty solutions to consumers of all ethnicities, tailoring products to meet needs of ethnic groups.
Regional Markets
Ethnic Consumers in Western
Markets
Growth driven by
Key Finding 1: Customisation EVOLVING CONSUMER
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Ethnicity Solutions catering to unique physiological traits
Culture Solutions on the basis of religion, culture & tradition
Climate Solutions based on geographical environment
Multicultural Beauty
Key Finding 1: Customisation
EVOLVING CONSUMER
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Ethnicity
Culture Environment & Climate
EVOLVING CONSUMER
Key Finding 1: Customisation
Image source s(clock:wise from Herborist), Herborist, Paulaschoice, SoftSheen Carson, Mary Kay, Clarins, Forbes, Wardah
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Case Study: Success of Halal beauty among Muslim consumers Multicultural Beauty
Halal is an Arabic word for ‘that which
is lawful or permitted.’
Halal cosmetics are ethical beauty
products rooted in the science of ‘Halal’
and free of impurities such as pig fat,
gelatin, keratin and other animal-
derived ingredients, (ethyl)
alcohol and harsh chemicals such as
sulfates and parabens.
- Mauli Teli, CEO of Iba Halal Care
“
”
Key Finding 1: Customisation EVOLVING CONSUMER
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Multicultural Beauty Case Study: Success of Halal beauty among Muslim consumers
Key Finding 1: Customisation EVOLVING CONSUMER
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2011 2012 2013 2014 2015
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Wardah Sales in Indonesia
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Key Finding 1: Customisation
EVOLVING CONSUMER
Source: Martha Tilaar Source: Pakmediablog
Multicultural Beauty Case Study: Success of Halal beauty among Muslim consumers
Source: easyliving.ae
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Demands of the
Evolving Consumer
Key Finding 1: Customisation
Key Finding 2: Well-Being
Key Finding 3: Digital
Key Finding 4: Ethical
EVOLVING CONSUMER
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Key Finding 2: Well-being EVOLVING CONSUMER
Health and well-being has transformed consumer lifestyle and habits
• Mental & Physical Health • Fitness Holistic
• Appearance • Consumption choices Lifestyle
Millennial Wellness
Identity • Attractive, successful,
aspirational
• Broadcast on social media
Source: thisisangie on Instagram
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Key Finding 2: Well-being EVOLVING CONSUMER
Source: keliamoniz on Instagram
Active lifestyle 1 Natural Ingredients 2
Bobbi Brown Long Wear
Source: Jurlique
Jurlique
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Company Brand % Growth 2010-2015
Natura Cosméticos S.A Natura 38
AmorePacific Corp Innisfree 818
L'Occitane International SA L’Occitane 64
L'Oréal Groupe The Body Shop 19
Shanghai Inoherb Cosmetics Co Ltd
Inoherb 188
Yves Rocher SA Yves Rocher 13
Shanghai Jahwa United Co Ltd Herborist 198
Key Finding 2: Well-being EVOLVING CONSUMER
Natural Brands and % Growth in sales
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Demands of the
Evolving Consumer
Key Finding 1: Customisation
Key Finding 2: Well-Being
Key Finding 3: Digital
Key Finding 4: Ethical
EVOLVING CONSUMER
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Key Finding 3: Digital EVOLVING CONSUMER
26% CAGR 2010-2015
17% CAGR 2010-2015
Global Asia Pacific
Consumers embrace online retailing, social media advertising and technological
innovation
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Key Finding 3: Digital EVOLVING CONSUMER
APAC consumers drive
M-Commerce
Trigger impulse but informed
decisions
Challenge: Consumers tend
to browse limited apps
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Key Finding 3: Digital
EVOLVING CONSUMER
Source: JD.com Source: Aliexpress
Source: taobao.com
Source: vip.com
China
Indonesia
Source: Jarkata Hari Ini
Yu Ni Fang
Source: dcs-korea.sg
Source: ageless-online.net
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Key Finding 3: Digital EVOLVING CONSUMER
Smart Skin Care
Source: La Roche-Posay
Source: OKU
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Demands of the
Evolving Consumer
Key Finding 1: Customisation
Key Finding 2: Well-Being
Key Finding 3: Digital
Key Finding 4: Ethical
EVOLVING CONSUMER
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Key Finding 4: Ethical EVOLVING CONSUMER
How much more would you be willing to pay for a product which is environmentally/ethically conscious?
Consumers grow increasingly ethically conscious especially among the younger
age group
15-29
30-44
45-59
60+ More than double(100% more)
A lot more
Somewhat more(50% more)
A little more
No extra (0%)
n=7377 Global Consumer Trends Survey
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Key Finding 4: Ethical EVOLVING CONSUMER
Source: Health Aim
Source: Dr Bronner’s
Source: Dailymail
US bans plastic microbeads Water efficient beauty products
Ethical labels cross over from food to beauty and personal care products
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INDUSTRY SNAPSHOT
DEMANDS OF THE EVOLVING CONSUMER
CONCLUSION: FUTURE OF SKINCARE
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Skincare Outlook CONCLUSION: FUTURE OF SKIN CARE
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Global Retail Value Sales, Real US$bn, 2013-2020 2015 Constant Prices, 2015 Fixed Year Exchange Rate
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Growth strategies for the future CONCLUSION: FUTURE OF SKINCARE
Personalised skin care
Multicultural beauty
Convergence of beauty and health
Active lifestyle & natural ingredients
Digital marketing & retailing
Technological innovation
Environmental sustainability
Ethical labels
Customisation
Well-being
Digital
Ethical
THANK YOU FOR LISTENING Joanna Chan
Research Analyst
@Euromonitor
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