Cosmetics & Fragrances Market Report Plus 2008
Key Note Publications Ltd, March 2008, Pages: 138
This report covers the UK market for cosmetics and fragrances. The two sectors are split into several sub-sectors: fragrances include perfume, eau de parfum, eau de toilette and eau de cologne; and cosmetics include facial make-up, eye make-up, lip products and nail products. In 2007, the total market rose by 6.3% in value. The report excludes more functional items of personal care, such as soap and shower gels, which are covered in the Market Report Plus on Toiletries.
According to BMRB International Ltd's 2007 Target Group Index (TGI) survey, penetration of cosmetic products and fragrances is high, with 89.7% of women using fragrances in the 12 months prior to the survey and 80.1% using lipsticks. However, expenditure on beauty products and treatments is discretionary and tied in with disposable income. Consequently, any decline in consumer confidence could considerably affect the market, particularly the premium sector.
However, despite predictions of a frugal Christmas on the high street in 2007, fortunes seemed varied with, for example, John Lewis recording an 8% growth in total sales for the week including Christmas and the early New Year sales period. Superdrug, meanwhile, said its Christmas sales of fragrances were boosted by the popularity of celebrity perfumes, which made up around 40% of all fine fragrances sold at its high-street chains that Christmas.
According to the online fragrance encyclopaedia, Fragrances of the World 2007 — created by FiFi award winner Michael Edwards — 10 years ago there were only 205 new men's and women's fragrance launches worldwide. Since 2000, there have been more than 3,300 and in 2006 alone there were 693.
The decorative cosmetics market has been characterised by an interest in premium and anti-ageing facial make-up. The main reason for this has been increasing demand from the baby-boom generation, many of whom are now reaching their 60s, but who are now under pressure in modern society to maintain their looks and, who tend to, have the disposable income to invest in decorative cosmetics. Another driving factor has been an increased interest in natural and organic products. Although The Body Shop and Neal's Yard have been well established for many years, there has been a recent influx of new businesses, and even the supermarket chain Tesco introduced its own organic cosmetic collection in February 2007.
The EU and Western European retail market for cosmetics and toiletries is certainly one of some maturity but, according to the European Cosmetic, Toiletry and Perfumery Association (COLIPA), still achieved growth of 4.2% in 2006 to reach more than _67bn. The UK had retail sales (including sales of toiletries) accounting for 15.9% of the total, and was the third-largest market in Western Europe behind Germany and France. The UK has a trade deficit in fragrances and cosmetic products but one that, in 2006, for the second consecutive year, decreased as the value of exported goods increased at a faster rate than that of imported goods.
Executive Summary
1. Market Definition
Report Coverage
MARKET SECTORS
Cosmetics
Fragrances
MARKET TRENDS
Fragrances
`Celebrity' Fragrances
Exclusivity
Cosmetics
Demographics
Organic Cosmetics
Cosmeceuticals
Self-Tanning Foundations
Cosmetic Surgical and Non-Surgical Procedures
Economic Trends
Population
Table 1: UK Resident Population Estimates by Sex (000), Mid-Years 2002-2006
Gross Domestic Product
Table 2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2002-2006
Inflation
Table 3: UK Rate of Inflation (%), 2002-2006
Unemployment
Table 4: Actual Number of Unemployed Persons in the UK (million), 2002-2006
Household Disposable Income
Table 5: UK Household Disposable Income Per Capita (£), 2002-2006
MARKET POSITION
The UK
Table 6: Consumer Expenditure on Personal Care Miscellaneous Goods and Services (£m), 2002-2006
Europe
2. Market Size
The total Market
Table 7: Total UK Market for Cosmetics and Fragrances by Sector by Value at Current Prices (£m at rsp), 2003-2007
Figure 1: Total UK Market for Cosmetics and Fragrances by Sector by Value at Current Prices (£m at rsp), 2003-2007
By MARKET SECTOR
Cosmetics
Table 8: The Cosmetics Sector by Subsector by Value at Current Prices (£m at rsp and %), 2007
Facial Make-Up
Eye Make-Up
Lip Products
Nail Products
Fragrances
Table 9: Fragrances Sector by Subsector by Value at Current Prices (£m at rsp and %), 2007
Overseas trade
Table 10: UK Imports and Exports of Beauty or Make-Up Preparations for the Skin, Perfumes and Toilet Waters by Value (£000), 2005 and 2006
Imports
Table 11: UK Imports of Beauty or Make-Up Preparations for the Skin, Perfumes and Toilet Waters by Value (£000), 2006
Exports
Table 12: UK Exports of Beauty or Make-Up Preparations for the Skin, Perfumes and Toilet Waters (£000), 2006
3. Industry Background
RECENT HISTORY
Number of Companies
Manufacturers
Table 13: Number of UK VAT-Based Enterprises Involved in the Manufacture of Perfumes and Toilet Preparations by Turnover Sizeband (number and £000), 2007
Retailers
Table 14: Number of UK VAT-Based Enterprises Involved in the Retail of Perfumes and Toilet Preparations by Turnover Sizeband (number and £000), 2007
Employment
Manufacturers
Table 15: Number of UK VAT-Based Enterprises Involved in the Manufacture of Cosmetics and Toilet Articles by Employment Sizeband (number), 2007
Retailers
Table 16: Number of UK VAT-Based Enterprises Involved in the Retail of Cosmetics and Toilet Articles by Employment Sizeband (number), 2007
Regional Variations in the Marketplace
Distribution
Selective Distribution
Specialist Retailers
High-Street Stores
Department Stores
Supermarkets
Direct Selling
How Robust is the Market?
Legislation
The European Cosmetics Directive
REACH
Key TRADE ASSOCIATIONS
Cosmetic, Toiletry and Perfumery Association
COLIPA
4. Competitor Analysis
THE MARKETPLACE
Market Leaders
Manufacturers
Avon Cosmetics Ltd
Company Structure
Current and Future Developments
Financial Results
Estée Lauder Cosmetics Ltd
Company Structure
Current and Future Developments
Financial Results
L'Oréal (UK) Ltd
Company Structure
Current and Future Developments
Financial Results
Procter & Gamble Ltd
Company Structure
Current and Future Developments
Financial Results
Unilever PLC
Company Structure
Current and Future Developments
Financial Results
Table 17: Global Financial Results for Unilever PLC (£m), Years Ending 31st December 2005 and 2006
Retailers
Alliance Boots Ltd
Company Structure
Current and Future Developments
Financial Results
Table 18: UK and International Financial Results for Alliance Boots PLC Retail Division (£m), Year Ending 31st March 2007
Superdrug Stores PLC
Company Structure
Current and Future Developments
Financial Results
The Body Shop International PLC
Company Structure
Current and Future Developments
Financial Results
The Perfume Shop Ltd
Company Structure
Current and Future Developments
Financial Results
Outside Suppliers
Research and Development
Essential Oils, Chemical Ingredients, etc.
Processing Machinery, Packaging and Components
Outsourcing
MARKETING ACTIVITY
Main Media Advertising Expenditure
Table 19: Main Media Advertising by Companies Involved in the Cosmetics and Fragrances Market (£000), 2005 and 2006
Table 20: Main Media Advertising Expenditure on Cosmetics and Fragrances (£000), Years Ending 30th September 2006 and 2007
Cosmetics
Mass-Market Cosmetics
Cosmetics Ranges
Table 21: Main Media Advertising Expenditure on Mass-Market Cosmetic Ranges (£000), Year Ending 30th September 2007
Eye Make-Up
Table 22: Main Media Advertising Expenditure on Mass-Market Eye Make-Up (£000), Year Ending 30th September 2007
Facial Make-Up
Table 23: Main Media Advertising Expenditure on Mass-Market Facial Make-Up (£000), Year Ending 30th September 2007
Lip Products
Table 24: Main Media Advertising Expenditure on Mass-Market Lip Products (£000), Year Ending 30th September 2007
Nail Products
Table 25: Main Media Advertising Expenditure on Mass-Market Nail Products (£000), Year Ending 30th September 2007
Premium Cosmetics
Cosmetics Ranges
Table 26: Main Media Advertising Expenditure on Premium Beauty and Cosmetic Ranges (£000), Year Ending 30th September 2007
Eye Make-Up
Table 27: Main Media Advertising Expenditure on Premium Eye Make-Up (£000), Year Ending 30th September 2007
Facial Make-Up
Table 28: Main Media Advertising Expenditure on Premium Facial Make-Up (£000), Year Ending 30th September 2007
Lip Products
Table 29: Main Media Advertising Expenditure on Premium Lip Products (£000), Year Ending 30th September 2007
Fragrances
Mass-Market Fragrances
Table 30: Main Media Advertising Expenditure on Mass-Market Fragrances (£000), Year Ending 30th September 2007
Men's Fragrances and Toiletries
Table 31: Main Media Advertising Expenditure on Mass-Market Men's Fragrances and Toiletries (£000), Year Ending 30th September 2007
Men's/Women's and Unisex Fragrances
Table 32: Main Media Advertising Expenditure on Mass-Market Men's/Women's and Unisex Fragrances (£000), Year Ending 30th September 2007
Women's Fragrances
Table 33: Main Media Advertising Expenditure on Mass-Market Women's Fragrances (£000), Year Ending 30th September 2007
Premium Fragrances
Table 34: Main Media Advertising Expenditure on Premium Perfumes, Fragrances and Fragrance Ranges (£000), Year Ending 30th September 2007
Men's Fragrances and Toiletries
Table 35: Main Media Advertising Expenditure on Premium Men's Fragrances and Toiletries (£000), Year Ending 30th September 2007
Men's and Women's Fragrance Ranges
Table 36: Main Media Advertising Expenditure on Premium Men's and Women's Fragrance Ranges (£000), Year Ending 30th September 2007
Unisex Fragrances
Table 37: Main Media Advertising Expenditure on Premium Unisex Fragrances (£000), Year Ending 30th September 2007
Women's Perfumes and Fragrances
Table 38: Main Media Advertising Expenditure on Premium Women's Perfumes and Fragrances (£000), Year Ending 30th September 2007
Recent Promotions
Avon
The Advertising Standards Authority
Other Marketing Activities
`Stop HIV: Spray to Change Attitudes'
Exhibitions
Beautyworld
Beyond Beauty Paris
Cosmobelleza & Wellness
Cosmoprof
in-cosmetics
Luxe Pack
Perfumes, Cosmetics & Design
World Perfumery Congress
5. Brand Strategy
Introduction
The World's Most Valuable Brands
Table 39: Leading Global Brands of Cosmetics and Toiletries by Value ($m), 2007
FiFi Awards 2007
Accademia de Profumo
BRANDS BY COMPANY
Avon
Boots
Estée Lauder Inc
L'Oréal
LVMH Group
The Perfume Shop
Procter & Gamble
Research Findings
Consumer Survey
Table 40: Usage of Fragrance Brands in the Last 6 Months by Sex (% of respondents), 2007
6. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
7. Buying Behaviour
Household Expenditure
Table 41: Average Weekly Household Expenditure on Cosmetics and Toiletries, etc. by Gross Income Decile Group (£), 2005/2006
Consumer Penetration
Table 42: Usage of Cosmetics and Fragrances in the Last 12 Months (% of women/men using), 2006 and 2007
Perfume and Eau de Toilette
Table 43: Usage of Perfume and Eau de Toilette in the Last 12 Months by Age and Social Grade (% of women), 2007
After-Shave
Table 44: Usage of After-Shave in the Past 12 Months by Age and Social Grade (% of men), 2007
Lipstick
Table 45: Usage of Lipstick in the Past 12 Months by Age and Social Grade (% of women), 2007
Eye Make-Up
Table 46: Usage of Eye Make-Up in Past 12 Months by Age and Social Grade (% of women), 2007
Foundation
Table 47: Usage of Foundation in the Past 12 Months by Age and Social Grade (% of women), 2007
Face Powder
Table 48: Usage of Face Powder in the Past 12 Months by Age and Social Grade (% of women), 2007
Blushers and Highlighters
Table 49: Usage of Blushers and Highlighters in the Last 12 Months by Age and Social Grade (% of women), 2007
Nail Varnish
Table 50: Usage of Nail Varnish in the Past 12 Months by Age and Social Grade (% of women), 2007
Choice of Fragrance by Age and Socio-Economic Group
Table 51: Usage of Leading Fragrance Brands in the Last 6 Months by Age (% of respondents), December 2007
Table 52: Usage of Leading Fragrance Brands in the Past 6 Months by Social Grade (% of respondents), December 2007
8. Current Issues
CLOSURES, MERGERS AND ACQUISITIONS
Alliance Boots
L'Oréal
Lornamead Group
BOARD AND SENIOR MANAGEMENT CHANGES
Alliance Boots Ltd
The Body Shop International
Chanel
Lornamead Group
LVMH Moët Hennessy Louis Vuitton
NEW PRODUCTS
L'Artisan Parfumeur
Narcisco, Tubereuse and Violette
Christian Lacroix Rouge
Prince 3121
KissKiss Or & Diamants Lipstick
9. The Global Market
Introduction
Western European Market
Principal Global Competitors
AS Watson Group
Avon Products Inc
Table 53: Net Sales of Avon Products Inc by Product Category by Value (%), Years Ending 31st December 2005 and 2006
Coty Inc
Estée Lauder Inc
L'Oréal SA
Table 54: Turnover for L'Oréal SA by Business Division (_m), Year Ending 31st December 2006
Table 55: Turnover for L'Oréal SA Cosmetics Division by Product Sector (_m), Year Ending 31st December 2006
Procter & Gamble
Shiseido Co Ltd
Unilever PLC
10. Forecasts
Economic Forecasts
UK Economic Climate
Table 56: Economic Forecasts (000, % and million), 2007-2011
Forecasts 2008 to 2012
Table 57: The Forecast UK Cosmetics and Fragrances Market by Sector by Value at Current Prices (£m at rsp), 2008-2012
Market Growth
Figure 2: Growth in the Forecast UK Cosmetics and Fragrances Market by Value at Current Prices (£m at rsp), 2003-2012
Future Trends
General Trends
Population Projections
Table 58: Resident Population of the UK by Sex (000), Mid-Years 2003-2006 and 2011
An Ageing Population
Toxic Chemicals
Ethnic Cosmetics
Counterfeiting and Infringement of Patents
11. Company Profiles
Alliance Boots Ltd
Avon Cosmetics Ltd
Estée Lauder Cosmetics Ltd
L'oréal (uk) Ltd
Superdrug Stores Plc
The Body Shop International Plc
12. Company Financials
13. Further Sources
Associations
Publications
General Sources
Government Publications
Other Sources
Bisnode Sources
Alliance Boots Ltd
Avon Cosmetics Ltd
Estée Lauder Cosmetics Ltd
L'oréal (uk) Ltd
Superdrug Stores Plc
The Body Shop International Plc
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