Magazines Archives - 2009 May

One bright spot in downturn: Cosmetics non-negotiable
Story 9 - News

Make-up appears to be recessionproof in the US, Mintel revealed. A fresh forecast by the company — on the back of its previously-published findings to assess which beauty and personal-care markets are immune to the downturn in the US — has revealed colouring cosmetics among the bright spots in the generally struggling retail sector.

“Many women have a deep emotional tie to their appearances, so cosmetics are non-negotiable. These women may trade down on other purchases or forgo expensive vacations, but they will still treat themselves to small, feel-good luxuries like make-up and other beauty products,” said Joan Holleran, Mintel’s director for research.

Mintel has also projected that antiageing products will do well despite the economic slowdown, with expectations of 20% growth for the anti-ageing skincare market over the next five years. The projection, however, is much lower than Mintel’s five-year growth forecast of 44% a year ago.

In keeping with projections, sun-screen sales are expected to increase 36% from 2008-13. Again, this figure has been revised downward from its original 41%.

“But it still shows people continuing to follow dermatologists’ advice to use sunscreen daily,” Mintel noted.

Products “beyond deodorant, shampoo and razors” are at risk, however, Holleran added.

“Shoppers are trading down to save money on purchases they don’t deem necessary. Personal-care companies need to focus on value, feel -good benefits and new product innovation to keep shoppers interested,” she said.

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