BLURRING THE LINES IN BEAUTY:

GLOBAL MARKET AND CONSUMER DEMANDS FOR MULTIFUNCTIONAL PRODUCTS IN SUN CARE AND SKINCARE

IN-COSMETICS 2015 ONLINE CONFERENCE

ORU MOHIUDDIN, SENIOR BEAUTY AND PERSONAL CARE ANALYST
NICOLE TYRIMOU, BEAUTY AND PERSONAL CARE ANALYST

BLURRING THE LINES IN BEAUTY

Euromonitor International: Strategic Global Market Research

Euromonitor International

THE STATE OF THE SUN CARE MARKET

OPPORTUNITY ZONES AND KEY
CHALLENGES
FUTURE PROSPECTS

THE STATE OF THE SUN CARE MARKET

Substitutes Cause Mature Market Stagnation in Sun Care

Developed vs. Emerging Markets in Sun Care 2008-2018
12000

12
10

10000
8
6

6000

% Growth

US$ million

8000

2
4000
0
2000
-2
0

-4

2008
Developed
Euromonitor International

2009

2010

Emerging

2011

2012

2013

2014

% Growth Developed markets

2015

2016

2017

2018

% Growth Emerging Markets

THE STATE OF THE SUN CARE MARKET

Sun Cares Growth Among the Sharpest Slow Downs of 2014

120,000

12

100,000

10

80,000

60,000

40,000

20,000

Euromonitor International

2014 US$mn

2012-13 % growth

2013-14% growth

% Value Growth

US$ million

Beauty and Personal Care in 2014

THE STATE OF THE SUN CARE MARKET

Sun Cares Growth Potential in the Hands of a Few

Sun Cares revenues,
2014-2018, US$ million
100%
90%

% Share of value

80%
70%
60%
50%
40%
30%
20%
10%
0%

2014 2015 2016 2017 2018

Brazil

US

Euromonitor International

China

Others

Challenges and Opportunities

Many unexplored markets

Governments raise awareness
Incorporating extra features

Additional step in routine

Low consumer awareness
High dependence on
economically volatile markets

THE STATE OF THE SUN CARE MARKET

Sun Protections Domination in Sun Care Dictates Growth

Sun Care Breakdown
by Category

US$1.8bn
Sun Protections global absolute
growth contribution to sun care by
2018

US$1bn

Aftersun

Self-Tanning

Sun Protection

Note: Inner circle 2008, middle 2013, outer 2018

Euromonitor International

Latin Americas contribution to Sun

Protections global absolute growth
contribution by 2018

THE STATE OF THE SUN CARE MARKET

OPPORTUNITY ZONES AND KEY
CHALLENGES
FUTURE PROSPECTS

OPPORTUNITY ZONES AND KEY CHALLENGES

Sun Cares Key Challenges Hold Back Growth

Affordability
Availability

Awareness

Legislation

Euromonitor International

Category
Cross-Over

10

OPPORTUNITY ZONES AND KEY CHALLENGES

Blurring the Lines as Sun Protection Features in Other Categories

Hydration

Miracle Cushion Fluid

Foundation SPF23/PA++

Sun
Protection

Coverage

Anti-Agers
NIVEA Daily Essentials
Sensitive Day Cream SPF 15

Euromonitor International

11

OPPORTUNITY ZONES AND KEY CHALLENGES

Skin Care Offerings Remain The Most Desired Globally

Absolute per capita growth between 2013-2014 by region
Asia Pacific
4
3
2

Western Europe

Australasia

0
-1
-2
-3

North America

Eastern Europe

Middle East & Africa

Latin America

Euromonitor International

Skin Care

Colour Cosmetics

Sun Care

12

OPPORTUNITY ZONES AND KEY CHALLENGES

Facial Skin Care Dominates Consumption Levels

Facial Moisturisers vs. Anti-Agers vs. Sun Care in
absolute volume per capita, 2013-2018 by region

Absolute volume per capita - ml

12
10

8
6
4
2
0
-2

Asia Pacific

Australasia

Eastern
Europe

Facial Moisturisers
Euromonitor International

Latin
America

Middle East
& Africa

Anti-Agers

Sun Care

North
America

Western
Europe

13

OPPORTUNITY ZONES AND KEY CHALLENGES

Consumers to Continue to Look for Value

Volume vs. Unit Price, CAGR 2013-2018 by Region
Selected Categories
7
MEA

6
5
4

Unit Price %

North America

2
1Latin

America
MEA

NA

-1

MEA Australasia
Latin America

Australasia

Western Europe
Eastern Europe

EE

WE

Asia Pacific
Asia Pacific

Australasia

-2

Asia Pacific

North America

-3
0

Sun protection
Euromonitor International

10

15
Volume %

Anti-Agers

20

Other Facial Make-Up

25

30

14

OPPORTUNITY ZONES AND KEY CHALLENGES

Future Growth Remains in the Hands of BB Creams and Anti-agers

Absolute value growth vs. CAGR 20132018 selected categories
8000
7000

Value
for
money

12
10

5000
4000
3000

8
6

% CAGR

US$ Million

6000
Novel
concept

BB/CC
Creams

2000
1000
0

Absolute Value Growth 2013-2018

Euromonitor International

2
0

% Growth CAGR 2013-2018

Conveni
ence

Korean
wave

15

OPPORTUNITY ZONES AND KEY CHALLENGES

Sun Protection Gives Colour Cosmetics an Edge

BB/CC Creams

Multifunctional
for convenience

BB Cream
CC Cream

Coverage, hydration and sun

protection

Anti-ageing foundations
Coverage, dark spots, lift and firm
skin, sun protection

Cannibalisation Effect?
Targeted for
enhanced
benefit

Euromonitor International

Anti-ageing
foundations

Regular foundations
Anti-ageing foundations
BB/CC Creams
Anti-ageing moisturisers
Sun care

16

OPPORTUNITY ZONES AND KEY CHALLENGES

Foundations Take a Slight Dip at the Expense of BB/CC

Selected Category Growth, 2009-13

% Year-on-Year Growth

35%
30%
25%
20%
15%
10%
5%
0%
2009

Foundation/Concealer

2010

2011

Other Facial Make-up

2012

Anti-Agers

2013

Sun Care

Note: EM includes BB & CC cream in Other Facial Make-up, but most of Other Facial Make-up are BB and CC cream

Euromonitor International

17

OPPORTUNITY ZONES AND KEY CHALLENGES

But Remain in the Lead in Terms of Overall Size

Market Sizes Anti-agers, Foundation, Sun Care and
Other Facial Make-Up in 2018
40,000
35,000

US$ million

30,000
25,000
20,000
15,000
10,000

5,000
0
Anti-agers

Euromonitor International

Foundations

Sun Care

Other Facial Make-up

18

OPPORTUNITY ZONES AND KEY CHALLENGES

Hair Care with SPF Strong Potential in New Markets

20

18
Global Hair
Care Forecast
CAGR at 2.4%
2013-2018

16
14
12

8
7
6
5

10

6
4

Per Capita Spending Hair Care Absolute Growth

Euromonitor International

% CAGR Hair Care 2013-2018

% CAGR Hair Care 2013-2018

Absolute Growth in Per Capita Spending Hair Care US$

(fixed exchange rate)

Top 15 Markets Forecast Growth Hair Care vs

Per Capita Spending Absolute Growth 2013-18

THE STATE OF THE SUN CARE MARKET

OPPORTUNITY ZONES AND KEY
CHALLENGES
FUTURE PROSPECTS

20

FUTURE PROSPECTS

Winning Strategies in Sun Care and Beyond

Hair Care

With

Colour Cosmetics

SPF

Skin care

Sun Care Exports

Euromonitor International

Hydration
Whitening

Skin Care

Lifting
Firming

Skin Care

Coverage

Anti-Ageing

Sun Care Imports

Colour Cosmetics

Deodorants?

Skin types

21

FUTURE PROSPECTS

New Markets Offer Varied Scope for Hybrid Sun Care Ranges

LA
AP
MEA

Brazil
Mexico
Argentina

Indonesia
Thailand
Vietnam

Saudi Arabia

Euromonitor International

Sun care +
Coverage +
Anti-agers

Sun Care +
Anti-agers

Sun care +
Coverage +
Anti-agers

THANK YOU FOR LISTENING

Oru Mohiuddin, Senior Beauty and Personal Care Analyst
Oru.mohiuddin@euromonitor.com
Nicole Tyrimou, Beauty and Personal Care Analyst
Nicole.tyrimou@euromonitor.com
For Press Enquiries, please contact:
Chourouk Gorrab, Communications Executive
Chourouk.gorrab@euromonitor.com