Cosmetic market us

US COSMETIC INDUSTRY OVERVIEW:

Cosmetics Market (makeup or beauty products) are mixture of chemical generally used for enhancing or altering the fragrance or appearance of the body to be applied externally. The Food and Drug Administration of the U.S. defines cosmetics as an intended application to cleanse, beautify, promote attractiveness, or alter the appearance without impacting the body’s function or structure. They are basically mixtures of chemical compounds, some of them being synthetics and other derived from natural sources. The cosmetics companies manufacture personal care products using natural, herbal and chemical materials .These raw materials are tested in plants and laboratories to develop formulas for the substances. The predominant cosmetics are Sun care, skin care, hair care, deodorants, makeup and color cosmetics, and fragrances .Common cosmetics comprise cologne, perfume, hair spray, gel, hairstyling products, shampoo, skin lotions, skin cleaners, rouge, foundation, eye shadow, mascara, nail paint, and lipstick.. The formulas of all the products are generally patented, are used in the mass production.

The cosmetics industry in the world is one of the sectors which remains impervious to the ups and downs of the markets those last years. Global sales are affected by the overall economic downturn, but sales of cosmetics managed to maintain a certain volume. This is because of continuing  usage of products by women, and more and more nowadays, by men, across the world.

Since the early twentieth century, the production of cosmetics and beauty products has been controlled by some multi-national corporations like L’Oreal, Unilever, , The Estee Lauder Companies, and Shiseido Company. Led by the U.S., North America made up 24.7 percent of the global cosmetic market. The US cosmetics market was estimated to worth US$ 80 bn in 2015, that year the US market was considered the most valuable beauty and personal care market in the world

The main product categories of the cosmetic market in the USA are skincare, hair care which represents nearly half of all cosmectic industry sales in 2015, followed by makeup, perfumes, toiletries deodorants, and oral cosmetics.

The US  market is characterized by a relatively high purchasing power, a high level of penetration of almost all global brands and a strict regulation . Even though the market registered a decrease in revenues and sales after the 2008-2009 recession, sales have regained value

Etats-Unis, des ventes de plus de 15 milliards $ ont été réalisées en produits de soins, 14 milliards $ en maquillage et quasiment 10 milliards $ pour les soins hommes.

Distribution channels

The major distribution channels are retail stores including supermarkets, exclusive brand outlets, pharmacies, salons, spas, specialty stores, door to door selling, adding to that the online channels are gaining popularity among consumers.

Industry trends

The lifestyles are changing and improving for individuals. People are more aware about the substances used in their cosmetics. The most important trend nowadays worldwide in the cosmetic market is a rising demand for natural, herbal and organic beauty products which creates potential opportunities for manufacturers to innovate and develop new products in accordance to the new consumer preferences.

Also we can notice a growing attraction for cosmetics for men. Men are improving their daily cosmetic routine, they are giving more and more importance to their appearance and by that contributing to the growing of the cosmetic market.

We can also notice on the market a certain volatity in the consumption of cosmetic products, people are confronted to many choices on the market and are willing to try new products.

In this internet era, Beauty tutorials on YouTube and Blogs have a lot of influence on some consumer choices, the videos and articles posted by some broadcasters are platforms to promote cosmetic production in addition to some tips on how, why, and when to use them.

One other popular trend is the blending of multiple actions and benefits in one beauty products like the BB, CC creams  which have at the same time color correction , spf benefits..., the shampoos and conditioner in the same bottle..  

In the US particularly we can observe a growing demand for ethnic products, products adapted to the characteristic of all the different ethnicities represented in the American population.

Size, growth and attractiveness

The global cosmetic market is expected to gain  $429.8 billion by 2022

The GDP in the a lot of countries is growing this last years which influence positively the cosmetic market by improving the spending capacities of people. Also the shift towards natural and organic cosmetics is helping to boost the industry.

The North American cosmetic market is expected to grow by 4.0%

The North America cosmetics market is expected to grow at a CAGR of during the 2016-2022.

We can see on the following graph that the north American market has the most important growth in total beauty and personal care cosmetics particularly in color cosmetics .

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The Beauty industry in the Us has grown by 3% in 2016 a good performance globally. The Us market was the second best growth after Canada and the UK.

People consumptions habits in the Us are shifting we can justify this growth by a preference nowadays of the consumers who rather invest their money on small luxury cosmetic products then for example larger purchases in expensive clothing for example.

Target market and segmentation

Cosmetic market is segmented in various ways first of all by category:

• Skin and sun care ( most technically advanced)                            

• Hair care products
• Deodorant and perfumes
• Makeup and color cosmetics
• Oral cosmetics

By regions:

The industry is highly concentrated in the West and Mid-Atlantic regions of the United States, which account for an estimated 29.3% and 20.9% of industry revenue, respectively. California has the highest concentration of industry establishments at 23.5%

With its high population and fashion-forward metropolises, California represents an extremely large market for industry products. Companies that locate their manufacturing facilities in close proximity to their downstream markets are able to save on transportation costs; therefore, the West is an attractive location for industry operators looking to boost their profit margins.

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