“South Korean brands, such as The Face Shop, Etude House and Innisfree, fuelled the mass cosmetics boom by fulfilling Asian consumers’ need for self-indulgence and affordability through creative brand storytelling, eye-catching packaging, diverse product ranges and low-price points,” Sunny Um, Beauty & Fashion Analyst at Euromonitor International revealed.
Sales versus CAGR
Dividing the Eastern region into Asia-Pacific and Australasia, we can see from global market intelligence publisher, Euromonitor International’s findings on global retail value sales, that both areas have experienced continued growth from 2015 through to 2016, following a decreased growth rate in 2014.
Analysis on 2016 colour cosmetics sales in APAC by category shows that the foundation/concealer segment achieved considerably more sales and generated more financial revenue than other product items within the colour cosmetics field.
Despite these sales, the foundation/concealer area returned the lowest compound annual growth rate (CAGR) between 2011-2016 when compared with all the other segments monitored. In terms of sales, lipstick came second, followed by mascara, BB/CC creams and powder, to make up the top five selling products within the colour cosmetics sector.
Indicating rapid innovation, it was BB/CC creams that experienced the highest CAGR over the 2011-2016 period, reaching over double the growth rate of all its cosmetics counterpart products.
Over 60s audience
China boasts the largest over 60s population in the world with approximately 250,000 million senior citizens. The nation is followed by India, the US and then Japan. As such, brands need to ensure they are formulating products that appeal to this demographic and are actively marketing them to attract beauty buyers in this age category.
Globally, Euromonitor International found that 59% of over 60s use lipstick at least once a week, 52% use eye make up a minimum of once every 7 days and 50% use foundation at least once a week.
Seemingly throwing shade on the colour cosmetics sales results in APAC, this suggests a contrast between APAC and the rest of the world, or alternatively, a difference between the over 60s and under 60s beauty buyers.
With the colour cosmetics forecast strong for both Asia-Pacific and Australasia, brands are advised to tap into the wellness segment, which is currently being driven by a combination of consumer health and food, the intelligence company outlined.
The research firm found that holistic wellbeing is leveraged in the beauty and personal care industries. In addition, active beauty, mild and safe cosmetics, and functional and efficacy claims are proving formidable in the evolution and growth of the colour cosmetics industry.
Anti-ageing, which has been a prime function and feature of many cosmetics product launches is set to increasingly be joined by hypoallergenic product features, which Euromonitor's beauty survey in 20116 identified as a desired feature in colour cosmetics. Skin care specialist brands such as La Mer and Dr. Hauschka are also now venturing into the colour cosmetics field.