9
Cosmetic Industry in Figures
2016 - £9,379,264
“Whilst the stark statistics show 2016 as a rather
2015 - £9,373,156
unspectacular year for the cosmetics industry,
we started to see the uncertain economic future
and consequently shopping behaviour starting to
0.1%
Increase
change and maybe point to future trends.
In Great Britain, the value of the market rose year
on year 0.1% to £9.38 billion whilst the actual
number of packs purchased dropped 1.2% to 2.6 billion.
“This broadly indicated that shoppers, whilst seeking out bargains, didn’t use this as an excuse to buy more volume, rather they
used their money more wisely and shopped around – including moving between a wider range of shops and the internet.
Particularly within toiletries, we saw deflation as the grocers took on the discounters (and clawed back some business but at a
price). By the end of 2016 we were just starting to see inflation creep in, mainly driven by increased costs due to the fall in the
value of the pound.”
Tim Nancholas
Strategic Insight Director – Home, Health & Beauty, Kantar Worldpanel, April 2017
CTPA GB Market Report 2016
“The report covers a wide range of products
and each one tells a slightly different story.
“Fragrance, for example, whilst seeing a
decline in the number of buyers, also saw
a value growth of 1% as shoppers
purchased more expensive perfumes
(we saw volume decline 3.1% year on year).
Reviving fragrance as a Christmas gift would
further help this market.
“Colour cosmetics, sometimes seen as an
indicator of consumer confidence (which
is seeing signs of falling) was the best
performing category delivering over £1.64
billion to the British economy, as only the
lips sector saw decline whilst the nail
products (generally a cheaper treat) saw the
best growth.
“Skincare saw a 0.8% value decline but this
was an improvement from the previous year
on year trend. Lip products (with new
products being launched) and the men’s
market picking up were bright spots but
body (general purpose) skincare struggled
in the face of price deflation. Baby skincare
also struggled.
Fragrance *
£000s Dec-16
% Change
1,788,760
1,807,506
1.0
Fine Female Fragrance
973,338
999,725
2.7
Fine Male Fragrance
538,491
543,823
1.0
Mass Female Fragrance
133,812
130,482
-2.5
Mass Male Fragrance
106,681
91,428
-14.3
Fine Unisex Fragrance
32,749
38,894
18.8
Mass Unisex Fragrance
3,689
3,154
-14.5
1,580,373
1,643,041
4.0
642,494
669,771
4.2
* includes gift packs/coffrets
Colour Cosmetics *
Face
Lips
265,430
258,876
-2.5
Eyes
465,037
490,377
5.4
Nails
207,412
224,017
8.0
* includes gift packs/coffrets
2,177,889
2,160,320
-0.8
Prestige Skincare Total inc Gift Packs
Skincare
587,421
556,635
-5.2
Face Care Non-medicated
889,262
901,943
1.4
Face Care Medicated
91,684
90,381
-1.4
Face Care Male
72,992
74,968
2.7
Hand Care
53,271
52,546
-1.4
177,791
171,139
-3.7
16,698
15,513
-7.1
Body Creams & Lotions
Baby Care Products
Lipsalves
Sun Preparations
28
£000s Dec-15
51,200
56,285
9.9
237,570
240,910
1.4
CTPA Annual Report 2016
Haircare
“Shower/bodywash was hit hardest as the
market lost nearly 7% of its value and
volume as we made products last longer and
didn’t stock up on multi-buys as in the past.
“Toothpaste showed how mature markets
can grow by offering consumers premium
solutions to problems such as teeth
whitening and sensitive teeth.
£000s Dec-16
% Change
1,620,695
1,601,386
-1.2
Shampoo
446,814
442,304
-1.0
Hair Colorants Inc Lightening
298,093
296,083
-0.7
Conditioners
283,150
278,394
-1.7
Hair Sprays & Setting Sprays
119,487
113,306
-5.2
Hair Creams/Waxes and Gels
51,602
50,486
-2.2
Settings Lotions and Mousses
15,845
15,250
-3.8
Home Perms
“The more ‘mass’ market sectors like
haircare and deodorants continue to be
victims of the price war, i.e. grocers have
started to match discounter pricing and
withdraw multi-buy promotions for example,
so the shoppers pay lower prices but are
not encouraged to buy more volume.
Shampoo saw a 0.8% volume decline and a
1% value fall to use as an example.
£000s Dec-15
Salons (Industry estimate)
Toiletries
Toothpaste
Depilatories
1,090
949
-12.9
404,614
404,614
0.0
2,205,439
2,167,011
-1.7
476,558
490,016
2.8
47,239
45,268
-4.2
Foot Preparations
136,674
137,120
0.3
Deodorants
588,746
574,469
-2.4
Shaving Soaps
74,906
71,002
-5.2
Mouthwashes
188,202
190,261
1.1
Talcum Powder
16,270
15,924
-2.1
Bath Additives
76,994
73,312
-4.8
Shower and Body Wash
342,581
320,048
-6.6
Liquid Soap
172,896
169,665
-1.9
Toilet Soap
84,373
79,926
-5.3
“Whilst in 2016 the discounters and bargain stores gained
share, grocery fought back with pricing as its chief weapon.
The High Street probably did better than expected as shoppers
still want a large range of cosmetic products and are prepared
to look for the item that best fits their needs and budget.
Internet purchasing reached an all-time high but growth
was a little less than previous years. Black Friday, for example,
saw internet sales in beauty fall compared to 2015 as
shoppers become less impressed with ‘special offers’ and
sense they can find them throughout the year.
In the past, some beauty markets such as colour cosmetics,
have been quite resilient to the economic woes of the
nation but we are seeing signs that consumers in general
are keener to spend their money on ‘experiences’ rather than
possessions .e.g. a short break holiday rather than a new coat.
Therefore, the cosmetics industry needs to continue to
innovate to offer products that are not just a commodity but
offer an ‘experience’ to the user.
“2017 will see a difficult time for the cosmetics industry as
there will be two main pressure points to overcome – inflation,
particularly in the mass market toiletry area, whilst welcome
for some manufacturers this will leave the dilemma of passing
on increased costs to shoppers, reducing margins for retailers
or reducing their own margins – I suspect a combination of all
three will actually occur.
“Brexit and consumer confidence is the other issue – we have
seen households spending more income on utility bills and
housing, this leaves less to spend on ‘non- essential’ items.
“2017 could be roller coaster of a year so hold on tight and
you might come out of it with an experience to remember!”
29
9 Cosmetic Industry in Figures
Sector Share (%) of Category Dec ’16 vs Dec ’15 by Value (rsp)
Sector Share (%)
Dec ‘16
£9,379,264
23.1%(23.5%)
Toiletries
17.1%(17.3%)
Haircare
23.0%(23.2%)
Skincare
17.5%(16.9%)
Colour Cosmetics
19.3%(19.1%)
Fragrances
Methodology & Data Sources
IRI market tracking data:
Census EPoS data from Asda, Boots, Iceland,
Morrisons, Sainsburys, Superdrug, Tesco,
Waitrose, Wilkinson, The Cooperative Group.
Sample EPoS data from Symbol Grocers,
other Coops, independents and chemists.
Other data representation (audit and
estimation methodology) from convenience
stores, petrol forecourts, chemists and other
impulse outlets.
Sector Share (%) of Category Dec ’16 vs Dec ’15 by Units
(53.2) 52.7
(16.9) 17.1 (17.5) 17.5
(9.3)
9.7
Kantar Worldpanel Purchasing data
(Worldpanel)
Individual purchasing data from a panel of
30,000 households which for this report will
cover other GB outlets not mentioned in IRI
tracking plus Aldi, Costco, Holland & Barrett,
Lidl, Marks & Spencer, Savers, Bodyshop,
bargain stores (such as Poundland, B&M
Bargains, Home Bargains, 99p Stores) and
other smaller outlets.
3.0
(3.1)
Fragrances
Colour
Cosmetics
Skincare
Haircare
Sector Share (%) Dec ‘16 2,601,404 Units
Sector Year on Year % change by Value
1.0 Fragrances
4.0 Colour Cosmetics
-0.8 Skincare
-1.2 Haircare
-1.7 Toiletries
Sector Year on Year % change by Units
-3.1 Fragrances
2.7 Colour Cosmetics
0 Skincare
-1.4 Haircare
-2.1 Toiletries
30
Toiletries
Kantar Beauty Panel
A panel of 15,000 individuals who record their
purchasing of fragrances, colour cosmetics
and skincare products across all relevant
outlets (including department stores, Boots,
Bodyshop, Internet, mail order and direct
sales) via online data entry.
Report Definitions
Measures:
Value Sales = £ sold (in 000s)
% Chg = % change versus same time a year ago
Further Details
IRI
www.iriworldwide.co.uk
Kantar Worldpanel
www.kantarworldpanel.com
CTPA Annual Report 2016
UK Trade in Global Markets*
Balance of Trade - EU Vs Non EU
The UK is a vibrant and innovative cosmetics
producer growing the value of both export
and import markets in 2016 by 13% and
13.1% respectively over 2015. However, this
left the UK as a net importer for both EU and
non-EU markets.
EU
Non EU
300
250
By worldwide region, the EU is the UK’s largest
trading partner in cosmetic products with 66.2%
of the worldwide market in exports and 67.1%
of imports. However, the US is the most important
non-EU partner market being the second largest
import market and the third largest export
market for UK cosmetic products. Within the EU,
consistent top export markets for British goods
remain the Irish Republic (first) and Germany
(second) with France and Germany the first and
third importers into the UK.
£ Balance UK Trade (Millions)
200
*All data sourced from www.uktradeinfo.com SITC codes 553 (exc air freshners/candles) and
554 (toilet soap and liquid soap only)
150
100
50
0
-50
-100
-150
2012
2013
2014
2015
2016
2016 UK Imports and Exports Worldwide
Key: Value year on year
Imports £3699.5m
Imports up & down
Exports £3539.6m
% share worldwide market
Exports up & down
European Union 28
2482.4 / 67.1% | 2342.2 / 66.2%
Western Europe (exc EU 28)
133.3 / 3.6% | 140.2 / 4.0%
Eastern Europe (exc EU 28)
2.7 / 0.1% | 34.5 / 1.0%
North America
587.3 / 15.9% | 399.6 / 11.3%
Middle East & North Africa
32.1 / 0.9% | 206.2 / 5.8%
Other America
3.7 / 0.1% | 33.6 / 0.9%
Asia & Oceania
437.9 / 11.8% | 333.8 / 9.4%
Sub-Saharan Africa
20.2/ 0.5% | 49.6 /1.4%
31
9 Cosmetic Industry in Figures
UK’s Largest Worldwide Export Markets
2016
2015
Figures in £m
599.3
455.0
339.5
309.7
205.8
529.0
202.9
419.6
103.5
262.4
161.3
Germany
USA
102.9
79.8
167.1
91.8
Irish Republic
103.3
267.7
Belgium
Netherlands
France
Spain
81.0
UAE
UK’s Largest Worldwide Import Markets
88.1
64.2
Poland
Italy
2016
2015
Figures in £m
744.6
539.2
520.2
712.6
256.7
494.8
255.0
235.7
178.3
483.7
169.7
151.3
112.6
185.7
210.6
203.0
127.2
France
32
USA
Germany
Poland
China
Italy
Netherlands
125.0
126.3
Spain
Belgium
105.8
Irish Republic
CTPA Annual Report 2016
Import Comparison of Non-EU 2016-2012
Export Comparison of Non-EU 2016-2012
£ Value UK Trade (m)
£ Value UK Trade (m)
400
700
North America
North America
600
Asia/Oceanic
300
500
Asia/Oceanic
Middle East
& N Africa
400
200
300
Western Europe
(exc EU 28)
200
Western Europe (exc EU 28)
100
100
Sub-Saharan
Africa
Eastern Europe
Other Amercia
Other Non-EU Markets
0
0
2012
2013
2014
2015
EU 28
Non-EU
2,500
2014
2015
2016
£ Value UK Trade (m)
EU 28
Non-EU
2,500
2,000
2,000
1,500
1,500
1,000
1,000
500
500
0
2013
EU 28 Vs. Non-EU Export 2016-2012
EU 28 Vs. Non-EU Import 2016-2012
£ Value UK Trade (m)
2012
2016
0
2012
2013
2014
2015
2012
2016
2013
2014
2015
2016
2016 World Import and Export Data by Category
Category share
Import
Perfumes
756.3
609.8
1657.6
1406.1
Haircare
492.7
384.4
Oralcare
195.7
253.4
33.6
108.4
Deodorants & Antiperspirants 142.8
307.9
Beauty (skincare/decorative)
Import
Export
mm
Men’s shaving
Bath preparations
85.1
Depilatories & other toiletries
61.0
93.5
110.4
173.0
164.3
146.6
Toilet soap
Liquid soap
Total
Export
56.4
£3699.5£3539.6
33