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Research and Markets: Value of Cosmetics and Fragrances Market Anticipated to Grow Modestly Over Next Five Years
 

(report from Research and Markets)

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DUBLIN, Ireland, June 7 -- Research and Markets (www.researchandmarkets.com/reports/c18606 ) has announced the addition of Cosmetics and Fragrances Market Report Plus 2005 to their offering.

This Market Report Plus covers women's colour cosmetics that are primarily used for adornment, and male and female fragrances. Between 2003 and 2004, retail sales of cosmetics and fragrances, as covered by this report, increased by an estimated 3.2% to £1.6bn at retail selling prices (rsp). Growth in expenditure on most consumer goods, particularly on luxury goods, slowed significantly over this period as five interest rate rises had the desired effect of curbing personal spending in 2004.

BMRB International Ltd's Target Group Index (TGI) survey found that usage of perfumes and/or eau de toilette is high, with 88.5% of women using these products in 2004. At 77.1%, lipstick was the most widely used cosmetic item. However, figures from National Statistics confirm that expenditure on beauty products and treatments is discretionary and tied in with disposable income. In 2002/2003, households in the lowest 10% by gross income decile group spent a weekly average of just £2.60 on toiletries and soap, cosmetics and hair products, and hairdressing and beauty treatments, compared with an average of £14.70 among those in the highest gross income decile group.

The leading manufacturers in the cosmetics and fragrances industry are the global consumer goods groups Procter & Gamble and Unilever, as well as more specialist companies such as L'Oréal and Estée Lauder. All of these companies require substantial resources to maintain a product's market position, let alone launch a new one in such a competitive marketplace, and large amounts are spent on main media advertising. For example, in the year ending September 2004, main media advertising expenditure on women's premium fragrances alone was £38.8m. Perfume is much more commonly worn now than previously and over 100 new variants are launched each year. Many of these are endorsed by famous names, including Jennifer Lopez, Britney Spears and US businessman Donald Trump.

Although Western Europe and the US remain the main marketplaces for cosmetics and fragrances, those in Eastern Europe and China are growing rapidly. The UK has a trade deficit in beauty or make-up preparations for the skin, toilet waters and perfumes, and this increases year-on-year as the value of imported goods rises at a faster rate than those that are exported. In addition, the UK industry faces strict legislation and increasing controls, with the safety and efficacy of its products constantly under question. Even so, the UK has yet to follow the example of the Canadian city of Halifax, where the wearing of all fragrances in most indoor public places — including municipal offices, libraries, hospitals, courts, classrooms and buses — is prohibited. This is because synthetic fragrances are blamed for Multiple Chemical Sensitivities (MCS) syndrome (although this is not a recognised condition). Commenting on the growth of alarmist stories in the UK, the Chairman of the Cosmetic, Toiletry and Perfumery Association (CTPA) said that it is crucial that risks are viewed in perspective and warns that `the rising tide of unnecessary regulation [is] draining the resources of the industry in the UK, reducing competitiveness and diverting resources away from innovation'.

Over the next 5 years (to 2009), the value of the cosmetics and fragrances market is anticipated to grow modestly.


For more information visit:
www.researchandmarkets.com/reports/c18606

     Laura Wood
     Senior Manager
     Research and Markets
     press@researchandmarkets.com
     Fax: +353 1 4100 980
 


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