The Beauty and Personal Care Market in North America is expected to grow at a CAGR of 3.10 percent during the period 2013-2018.
In 2013, the market was dominated by the US, followed by Mexico and Canada. With increased beauty consciousness among consumers and increased availability of advanced products, there is huge potential for the market to grow during the forecast period.
One major development in the market is the overwhelming demand for new and innovative beauty and personal care products.
TechNavio analysts have identified three key consumer trends which are leading to a shift in product development:
Demand for Organic Products
North American people, especially women, are shifting to safe skin and hair care products because of increased concern about the side effects caused by unhealthy synthetic products. Therefore, they refrain from using products that contain traces of pesticides, growth hormones, preservatives, additives, and artificial colors.
This risk can be avoided by using products made from organic and natural ingredients. In addition, increased consumer spending in countries such as Mexico allows consumers to choose organic products even though they are more expensive than chemical products.
Thus, vendors are launching organic-certified personal care products under brands such as Kiehl’s, The Body Shop, Burt’s Bees, Estée Lauder, and Aveda to tap this growing demand. Organic and natural personal care products accounted for 6-8 percent of the Beauty and Personal Care Market in North America in 2013, which signifies the increased influence of these products on the growth of the market.
Rise of Ethnic-Focused Brands
The demographics of North America, particularly the US, is set to change with the immigration. Asians, Hispanics, African Americans, and Caucasians are the major ethnic groups in the region. Therefore, vendors are increasingly manufacturing products specially made for different ethnic groups.
For instance, there are facial cleansers for the delicate skin of Asians and creams to fight white patches in Africans and Asians. Products with skin whitening properties are in great demand among the immigrant population from South Asia.
Prominent retailers such as T and T Supermarket have started stocking imported products to satisfy this demand. Thus, focusing on inventing new products for different ethnic groups will lead to growth in the Beauty and Personal Care Market in North America.
Popularity of BB Creams
BB creams are all-purpose creams that act as a moisturizer, serum, foundation, and sunblock to give consumers a youthful, bright, and even skin tone. These creams were initially developed for the Asian population, but they are now increasingly available in the US, Canada, and Mexico, with new shades being launched by vendors.
Because these are all-in-one creams, they are very popular among consumers. The demand for such creams is increasing across all countries as vendors launch new products. For instance, in 2012 L’Oréal launched the first BB cream in Mexico, after which its popularity led to the launch of these creams by other vendors such as Oriflame and Avon.
However, the demand for BB creams is expected to eat into the sales of moisturizers. Hence, the increased popularity of BB creams could affect the market both positively and negatively during the forecast period.
