Global Beauty Market
The global beauty market is usually divided into five main business segments: skincare, haircare, color (make-up), fragrances and toiletries. These segments are complementary and through their diversity they are able to satisfy all consumers’ needs and expectations with regard to cosmetics. Beauty products can be also subdivided into premium and mass production segments, according to the brand prestige, price and distribution channels used. Companies operating in the global beauty market must compete for shelf space in retail outlets, not only with rival companies offering other well-known brands but also cheaper copycat brands offering similar unbranded products.
Non-western beauty cultures are becoming more influential; consumers beyond North America and Europe are remaking the beauty market in their own image and likeness. As a result of this shift to new regions, beauty cultures which are quite different from the mature European and North American markets will play a much more influential role. Ethnic and cultural diversity shape consumers beauty rituals and product priorities. Likewise, diversity and variety have become the norm within the global cosmetics market.
In recent years, consumers have been spending higher levels of disposable income on cosmetics than they had in the past. Unfortunately, the global financial crisis has put a damper on the market and during those years, more affordably priced merchandise and do it yourself at home products were key in the beauty market. However, in recent years as Generation Y has really entered the job market, they have become a big driver of the cosmetics market; especially in the United States. The United States is the biggest cosmetic market in the world, with an estimated total revenue of about 62.46 billion U.S. dollars and employing about 63,816 people in 2016.