Reportlinker Adds Still Pampering? Opportunities and Challenges Facing the Global Spa and Beauty Industry

Oct 26, 2010, 09:20 ET from Reportlinker

NEW YORK, Oct. 26 /PRNewswire/ -- announces that a new market research report is available in its catalogue:

Still Pampering? Opportunities and Challenges Facing the Global Spa and Beauty Industry

Future bright for skin care

Retail sales of beauty and pampering products for home use will continue to perform well overall, as consumers look to replicate the salon experience at home, either to supplement use of salons and spas, or as an alternative to costly treatments.

Overall, sales of skin care are expected to rise by 15% in real value terms between 2009 and 2014, with growth fuelled in particular by nourishers/anti-agers. The focus in many markets, including the major markets within Europe and Asia, will continue to be on premium and masstige skin care. This segment has proved relatively recession-proof, as women are reluctant to give up their favourite products, even in times of hardship, and will benefit from any improvement in the economy. Manufacturers will continue to be innovative in the fast-growing areas of anti-ageing and anti-cellulite/slimming products, and will continue to support new products with effective marketing, responding to consumers' desire to look and feel good.

Natural products will prevail

As in the salon sector, the trend towards natural ingredients and fewer chemicals in skin and hair care products will become more pronounced over the forecast period, and companies launching natural and organic products are expected to enjoy a healthy performance. Manufacturers will need to provide a more holistic approach to new product development, featuring key ingredients such as botanical and herbal extracts and avoiding artificial chemicals, such as parabens and sulphates. Europe is expected to see the introduction of organic product regulations in skin care. Legislation regarding organic claims on cosmetics products could be applied from 2010 or 2011, according to trade sources.

Combining convenience with efficacy

The mature hair care sector is forecast to see gradual growth over the forecast period, with sales set to increase by 10% overall in real value terms. Consumers will be looking for convenience as well as effectiveness. Therefore, colourants which offer both attributes, such as L'Oreal's Excell 10/Excellence to Go and Nice 'n' Easy Perfect 10, are likely to be successful, while new product development will focus on the achievement of ever quicker results. Also in line with trends towards convenience, in many sectors products with multifunctional features, such as moisturising, anti-ageing and sun protection in one product, should continue to gain prominence as the technology improves and becomes more affordable.

Salon hair care to face further threat from diverted brands

The salon hair care sector is expected to recover somewhat as the economy improves and consumers increase their frequency of salon visits. However, salon hair care will continue to face ever increasing competition from the mass retail sector, and could see an overall rise of less than 3% in real value over the forecast period. In the US, value-oriented "professional" brands, like TRESemme and Alberto-Culver's Nexxus, will continue to take share away from salon products.

The recent trend of promoting mass brands through offering "more for less" is a direct threat to the rebound in salon hair care products, as manufacturers convince consumers that mass products can offer similar benefits at a fraction of the price. A company like Alberto-Culver, which has minimal exposure to the salon channel, can freely promote its brands as a cost effective alternative to salon hair care. However, Procter & Gamble (which owns Wella), and L'Oreal (which sells a high proportion of its products though salons) should tread carefully to avoid devaluing their professional brands.

Mixed future for self-tanning

Self-tanning products will perform well in many European markets, as people become more aware of the dangers of sun exposure and indoor tanning. However, at the same time, self-tanners will continue to face strong competition from daily moisturisers with gradual self-tanning properties. Furthermore, self-tanners are not expected to achieve growth in the US market, where they continue to be unpopular, or in Asia, where the trend continues towards whiter skin tones. Overall, sales of self-tanners are forecast to see growth of less than 3% over the forecast period, while GST products will perform better.

A future in pills?

The market for beauty products and services may in the longer term be impacted by the development of products that can be taken orally to achieve similar results, although this defeats the purpose of the self-pampering aspect of treatments.

Both the hair colourants and self-tanning segments could see the future development of drugs that restore colour to hair, or produce skin pigmentation akin to the result of tanning. In October 2009, L'Oreal announced that it was in the process of developing a new oral pill and hair care range that is designed to turn grey hair back to its original colour. Although the treatment is still some way off (L'Oreal hopes to develop it within 10 years), this type of "cosmeceutical" could revolutionise both the hairdressing and hair care products industry.

Appliances to be driven by new product development

Both hair care appliances and other personal care appliances are set to see steady growth in real value terms over the forecast period, of 21% in both sectors. Sales will be driven by new product innovation, with salon-style products designed to mimic professional appliances and incorporating greener features.

Euromonitor International's Still Pampering? Opportunities and Challenges Facing the Global Spa and Beauty Industry Strategy Briefings is a series of reports that alert you to global trends predicted to influence consumer markets. They offer insight to changing market conditions and the opportunities and challenges companies need to consider to maintain a competitive advantage.

List of Contents and Tables

Executive Summary ... 1

Demand Factors 1

Chart 1 Consumer Expenditure on Personal Care by Country 2009 . 1

Beauty Industry Trends 2

Consumer Market Trends.. 4

Chart 2 Global Sales of Selected At-home Beauty Products 2009 .... 5

Outlook .... 6

Summary 1 Opportunities and Challenges for the Beauty Services Industry to 2014 . 6

Definitions .... 7

Consumer Expenditure. 7

Retail Sales ... 7

Spas 8

Demand Factors 8

Affordable Indulgence.. 8

The State of the Economy 10

Table 1 Real GDP Growth in Selected Countries 2007-2010 .... 10

The Importance of Leisure ... 11

Cocooning ... 12

Celebrity Culture .. 12

The Metrosexual Movement . 13

Consumer Expenditure on Personal Care 14

Table 2 Consumer Expenditure on Personal Care by Country 2004/2009 15

Table 3 Personal Care as a % Total Consumer Expenditure by Country 2004 2009 15

Chart 3 Per Capita Expenditure on Personal Care by Country 2009 .... 16

Beauty Services .... 17

Overview 17

Hairdressing Salon Trends .. 18

Summary 2 Leading Hairdressing and Beauty Chains 2009 ... 18

Chart 4 Global Retail versus Salon Hair Care Sales 2004/2009 . 22

Beauty Salons... 22

Table 4 Professional Treatment Trends by Major European Market 2008 23

Spas ... 24

Table 5 Number of Spa-Goers by Leading Market 2007 .. 25

Table 6 Rates of Spa-going by Major European Market 2008 ... 25

Chart 5 Spa Revenues by World Region 2007 .. 26

Table 7 Spa-goers by Gender in Major Markets 2007 . 27

Table 8 Comparative Importance of Reasons for Visiting a Spa in the US 2009 27

Chart 6 Average Expenditure on Spa Retail Products by Major Market 2008 .... 32

Tanning Salons 32

Nail Salons .. 36

Chart 7 Nail Salon Services Market Size in the US 2005-2009 . 36

Chart 8 Leading Services Offered in US Nail Salons 2009 ... 37

Beauty-at-home ... 39

Home Hair Care ... 39

Table 9 Sales of Hair Appliances and Hair Care Products 2004/2009 . 40

Strategy Briefings: Pampering World

Home Tanning . 41

Chart 9 Sales of Self-tanning Products 2004-2009 41

Table 10 Self-tanning Trends in Europe 2008 42

Table 11 Self-tanning Trends in Europe by Gender 2008 .. 43

Home Nail Care .... 43

Table 12 Sales of Nail Products by Subsector 2004/2009 .. 44

Home Beauty and Relaxation.... 44

Table 13 Sales of Depilatories, Skin Care Products and Appliances 2004/2009 ... 45

Market Snapshots 45

China 45

Table 14 China: Spa Revenues 2004/2009 47

Table 15 China: Retail Sales in Selected Sectors 2004/2009 .. 48

France .... 49

Table 16 France: Spa Revenues 2004/2009 ... 50

Table 17 France: Retail Sales in Selected Sectors 2004/2009 . 51

Germany 51

Table 18 Germany: Spa Revenues 2004/2009 52

Table 19 Germany: Retail Sales in Selected Sectors 2004/2009 .. 53

Italy ... 53

Table 20 Italy: Sales of Cosmetics and Toiletries Through Salons 2007-2008 53

Table 21 Italy: Spa Revenues 2004/2009 .. 54

Table 22 Italy: Retail Sales in Selected Sectors 2004/2009 .... 55

Japan 56

Table 23 Japan: Spa Revenues 2004/2009 57

Table 24 Japan: Retail Sales in Selected Sectors 2004/2009 ... 58

UK 59

Chart 10 UK: Hairdressing and Beauty Establishment Revenues 2002-2006 .. 59

Chart 11 UK: Number of Hairdressing and Beauty Establishments by Type 2008 .... 60

Table 25 UK: Spa Revenues 2004/2009.... 61

Table 26 UK: Retail Sales in Selected Sectors 2004/2009 . 62

US 62

Table 27 US Salon Statistics 2008-2009 ... 64

Chart 12 Nail Salon Services Market Size in the US 2005-2009 . 64

Table 28 US: Spa Revenues 2004/2009 .... 65

Chart 13 Most Booked Spa Treatments in the US 2009 65

Chart 14 Spa Purchases in the US 2009 .... 66

Table 29 US: Retail Sales in Selected Sectors 2004/2009 .. 68

Future Outlook .... 68

Trends to Watch .... 68

Table 30 Forecast GDP Growth by Country 2010-2014 .... 68

Chart 15 Forecast Global Spa Revenues 2009-2014 72

Forecasts 73

Table 31 Forecast Global Sales of Selected Beauty Products 2009/2014 ... 74

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Beauty and Wellness Services Industry: Still Pampering? Opportunities and Challenges Facing the Global Spa and Beauty Industry

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Nicolas Bombourg



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