Emerging markets drive five year high in cosmetics and toiletries market
discuss how the global cosmetics and toiletries industry reached a
five year high in 2006 - with the fragrance industry making a
Cosmetics and toiletries account manager at Euromonitor, Briony Davies will be explaining how, according to Euromonitor research, developing regions such as Latin America and Eastern Europe are leading the pack in terms of sales growth. A worldwide increase in consumer spending power and growing concerns for health and appearance is said to be behind the 5.5 per cent sales growth at a world level in 2006. However, it is the emerging market's increased prominence in the cosmetics and toiletries market that has provided the 'bedrock' for the global growth. Sales increased by 10.7 per cent in both Latin America and Eastern Europe, a huge growth when pitted against the 3.2 per cent growth experienced in Western Europe and just 3 per cent in North America. Markets in Asia Pacific also contributed hugely to the increase, with growth in China, a fast emerging market, reaching a massive 10.8 per cent. Davies stated that these industries are growing in size due to the modernisation of retail and distribution networks, which combined with the growing consumer awareness of these outlets to boost the sales even further. "Euromonitor International forecasts that by 2011 the Asia Pacific cosmetics and toiletries market will all but equal that of Western Europe in value sales, thanks in large part to the phenomenal growth of the Chinese market" Davies stated. Indeed, the revival of the fragrance industry has been accredited for a large part of the increased sales figures. Coming in third, behind baby care and sun care, fragrance sales showed an increase of 7 per cent to reach $30.7bn in 2006. This is due to rapid growth in emerging markets, thanks in part to the return of direct sellers in China, where they were previously banned. Fragrance sales also increased in the flagging North American and Western European markets. Davies continued,"It has become clear that the fragrances sector presents greater promise than perceived back in 2005. Looking ahead, at Euromonitor we believe bespoke fragrances to cater for local consumers will hold the key to unlocking the latent growth in Asia Pacific, especially in China".