personal care opportunities in emerging markets
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Personal Care Opportunities in Emerging Markets Comparing and contrasting BRIC markets and frontier economies
Reference Code: CM00234-028
Publication Date: December 2013
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Deepika Bansal
Deepika Bansal has over 10 years of experience in technology and consumer research as a strategy
consultant and market analyst. She has extensive experience in conducting industry and company analysis,
helping clients ranging from blue chips to start-ups in developing their emerging market strategy. She has
worked with leading consulting and research firms such as A.T. Kearney, The Corporate Executive Board,
and Ovum.
Disclaimer
Copyright © 2013 Datamonitor
This report is published by Datamonitor (the Publisher). This report contains information from reputable
sources and although reasonable efforts have been made to publish accurate information, you assume sole
responsibility for the selection, suitability and use of this report and acknowledge that the Publisher makes no
warranties (either express or implied) as to, nor accepts liability for, the accuracy or fitness for a particular
purpose of the information or advice contained herein. The Publisher wishes to make it clear that any views
or opinions expressed in this report by individual authors or contributors are their personal views and
opinions and do not necessarily reflect the views/opinions of the Publisher.
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Table of contents
Deepika Bansal 2
Disclaimer 2
Executive summary 15
Country attractiveness index 15
Category analysis 15
Country profile – Argentina 16
Country profile – Mexico 17
Country profile – Colombia 17
Country profile – Indonesia 18
Country profile – Turkey 18
Country profile – Nigeria 19
Chapter 1 Introduction 20
About this report 20
Report structure 20
Countries covered 21
Definitions and methodology 21
Details of specific metrics 22
Methodology for the scoring system 23
Category review/overview 23
Chapter 2 Country attractiveness index 24
Summary 24
Introduction 24
Final country rankings 24
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High attractiveness countries 28
Country attractiveness on the basis of market size, per capita spend, and growth 29
Personal care market size, market growth, and per capita consumption 31
Market size and consumption (population, household final consumption expenditure, and population
growth) 33
Market size and intensity (GDP, GDP growth, and inflation) 33
Market growth and infrastructure (Internet and mobile penetration) 33
Population, per capita spend, and social structure (FDI, employment rate, corruption index) 34
Room for improvement 34
Future opportunities 34
Country groupings 35
Market maturity and attractiveness 35
Market size versus per capita spend on personal care 35
Growth of the personal care market versus per capita spend on personal care 37
Growth of the personal care market versus consumption 38
Per capita spend on personal care versus risk index 40
Chapter 3 Category analysis 42
Summary 42
Introduction 43
Category analysis 43
Fragrances 43
Market size, growth forecasts, and per capita analysis 43
Fragrances market value and growth 44
Category size by country 45
Haircare 46
Market size, growth forecasts, and per capita analysis 46
Haircare market value and growth 47
Category size by country 49
Make-up products 50
Market size, growth forecasts, and per capita analysis 50
Make-up market value and growth 51
Category size by country 53
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Male toiletries 54
Market size, growth forecasts, and per capita analysis 54
Male toiletries market value and growth 55
Category size by country 56
Personal hygiene 56
Market size, growth forecasts, and per capita analysis 56
Personal hygiene market value and growth 58
Category size by country 59
Oral hygiene 60
Market size, growth forecasts, and per capita analysis 60
Oral hygiene market value and growth 61
Category size by country 62
Skincare 63
Market size, growth forecasts, and per capita analysis 63
Skincare market value and growth 64
Category size by country 65
Chapter 4 BRIC versus frontier markets 67
Introduction 67
Comparative analysis: BRIC countries and other emerging markets 67
Chapter 5 Country profile: Argentina 70
Summary 70
Macroeconomic overview 70
Trends 72
Depreciating currency driving the demand for homegrown cosmetics 72
Direct and online sales driving personal care product reach 72
Greater demand for products with functional benefits 73
Personal care market value and forecasts 73
Fragrances 74
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Market size and growth forecast 74
Haircare 75
Market size and growth forecast 75
Make-up products 76
Market size and growth forecast 76
Male toiletries 77
Market size and growth forecast 77
Oral hygiene 78
Market size and growth forecast 78
Personal hygiene 79
Market size and growth forecast 79
Skincare 80
Market size and growth forecast 80
Chapter 6 Country profile: Mexico 82
Summary 82
Macroeconomic overview 82
Trends 84
Numero uno in cosmetic exports 85
Growing market for male grooming products 85
Growing popularity of the direct selling medium 85
Personal care market value and forecasts 86
Fragrances 87
Market size and growth forecast 87
Haircare 88
Market size and growth forecast 88
Make-up products 89
Market size and growth forecast 89
Male toiletries 90
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Market size and growth forecast 90
Oral hygiene 91
Market size and growth forecast 91
Personal hygiene 92
Market size and growth forecast 92
Skincare 93
Market size and growth forecast 93
Chapter 7 Country profile: Colombia 95
Summary 95
Macroeconomic overview 95
Trends 97
Upcoming destination for personal care product exports 98
Greater demand for 'natural' and organic products 98
Popularity of direct selling eroding instore sales 98
Personal care market value and forecasts 98
Fragrances 99
Market size and growth forecast 99
Haircare 100
Market size and growth forecast 100
Make-up products 101
Market size and growth forecast 101
Male toiletries 102
Market size and growth forecast 102
Oral hygiene 103
Market size and growth forecast 103
Personal hygiene 104
Market size and growth forecast 104
Skincare 105
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Market size and growth forecast 105
Chapter 8 Country profile: Indonesia 107
Summary 107
Macroeconomic overview 107
Trends 109
Rising demand for Halal-certified personal care products 110
High proportion of young Indonesians driving sale of non-essential personal care products 110
Rising middle class population with increased disposable income 110
Personal care market value and forecasts 111
Fragrances 112
Market size and growth forecast 112
Haircare 113
Market size and growth forecast 113
Make-up products 114
Market size and growth forecast 114
Male toiletries 115
Market size and growth forecast 115
Oral hygiene 116
Market size and growth forecast 116
Personal hygiene 117
Market size and growth forecast 117
Skincare 118
Market size and growth forecast 118
Chapter 9 Country profile: Turkey 121
Summary 121
Macroeconomic overview 121
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Trends 123
Cosmetic companies growing presence in the country through inorganic route 123
New channel alternatives 124
Competition raising standards 124
Personal care market value and forecasts 124
Fragrances 125
Market size and growth forecast 125
Haircare 126
Market size and growth forecast 126
Make-up products 127
Market size and growth forecast 127
Male toiletries 128
Market size and growth forecast 128
Oral hygiene 129
Market size and growth forecast 129
Personal hygiene 130
Market size and growth forecast 130
Skincare 131
Market size and growth forecast 131
Chapter 10 Country profile: Nigeria 133
Summary 133
Macroeconomic overview 133
Trends 135
High proportion of young consumers driving personal care growth 135
Major producer of palm oil, a key ingredient in premium personal care products 136
Growing popularity of supermarkets/hypermarkets 136
Personal care market value and forecasts 136
Fragrances 137
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Market size and growth forecast 137
Haircare 138
Market size and growth forecast 138
Make-up products 139
Market size and growth forecast 139
Male toiletries 140
Market size and growth forecast 140
Oral hygiene 141
Market size and growth forecast 141
Personal hygiene 142
Market size and growth forecast 142
Skincare 143
Market size and growth forecast 143
Chapter 11 Conclusions 145
Market opportunities 145
Category specific analysis 145
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Figure 1: Leading emerging personal care markets
• PC market worth $9.7bn
• $53bn in FDI
• High GDP - $2 trillion
Russia
• PC market worth $7.6bn
• Highest no. of internet users
• High per cap spend at $154
South Korea
• PC market worth $7bn
• High GDP; FDI - $20bn
• Wide population base
Mexico• Biggest PC market -
$24.7bn
• Very low per cap spend
China
• Second largest PC
market –$21bn
• One of the highest FDI
Brazil
• Massive population
• Low per capita spend
India• Leading per cap spend
• Leading duty free market
• best infrastructure
UAE
Source: Datamonitor DATAMONITOR
Country attractiveness on the basis of market size, per capita spend, and growth
Out of the 25 countries analyzed, Argentina, Venezuela, South Africa, Brazil, Russia, and Saudi Arabia have
high potential owing to more than $1.5bn in personal care market size and more than $60 in per capita
spend and with at least 5% growth expected over the forecast period. All leading personal care players
already have a strong presence in these countries, with their key focus on product innovation to differentiate
their offerings and to stay profitable in these highly competitive countries.
Countries with a low per capita spend but a high current market size (more than $1.5bn) and high growth
forecast (more than 5%) include China, India, Turkey, Indonesia, and Malaysia. The low penetration of
personal care products in these countries offers several opportunities to companies to extend their reach to
end-users by focusing on their promotion and distribution capabilities.
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Figure 2: Country attractiveness based on market size, per cap spend, and growth
Personal care
markets worth more
than $1.5bn
Countries with
expected growth of at
least 5% during the
forecast period
Countries with more
than $60 as per
capita spend on
personal care
PhiColTha
Nig
Vie
Arg
Hun
Ven
UAE
Sin
Cze
Mal
Ind
Tur
Indo
Chi Tai
Pol
Mex
Kor
Rom
RSA
Bra Rus
Sau
Source: Datamonitor DATAMONITOR
Personal care market size, market growth, and per capita consumption
Valued at $24.7bn, China is the leading emerging market in the personal care sector, and a growth rate of
over 10% over the next five years suggests that this dominance will continue. Brazil follows with $21bn in
market size and 7.2% growth forecast over the next five years. These countries are experiencing a
significant transformation in their consumption of personal care products owing to rapid economic
development and the increasing purchasing power of the middle classes wanting a better lifestyle and
thereby demanding high quality products.
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with the challenge of catering to two parallel worlds – the developed markets and the emerging ones – and
are targeting the emerging countries by acquiring either local brands or launching adapted or customized
products according to a particular market. Companies are also adopting more innovative marketing
strategies to reach end-consumers such as e-commerce or advertising on social networks. The rising
economic empowerment of the middle class in these emerging markets – coupled with greater emphasis on
appearance, similar to their Western counterparts – is resulting in greater demand for cosmetic products,
driving growth for the leading international cosmetic brands.
Figure 14: Make-up market value ($m), growth, and per capita spend ($) by country
Arg
Br
Chi
Col
Cze
Hun
IndIndoMal
Mex
NigPhi
Pol
Kor
Rom
Rus
Sau
Sin
RSA
Tai
ThaTur
UAE
Ven
Vie
-2
3
8
13
18
23
28
33
0% 2% 4% 6% 8% 10%
Pe
r ca
pita
sp
en
d o
n m
ake
up
($
)
Growth forecast (2013-17)
Source: Datamonitor, Market Data Analytics DATAMONITOR
Make-up market value and growth
Out of all make-up categories, lip make-up accounts for the highest value, valued at $4.8bn in 2012, followed
by face make-up and eye make-up. Nail make-up is set to see the highest growth over the next five years, at
7.7%, whereas lip, face, and eye make-up are expected to grow at 5.7%, 5.6%, and 6.2%, respectively. The
Bubble size represents market size