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Hair News - May 2004 |
| Author: Karen Shelton |
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Date: May 2004 |
Hair News For May 6, 2004
More Bright Spots Emerge In Lackluster
Year For Cosmetics & Toiletries Industry
LITTLE FALLS, NJ, May 6, 2004
- After another year of disappointing sales, cosmetics and
toiletries marketers are faced with steadily dropping growth
rates. According to data recently released by Kline & Company,
the U.S. C&T market grew by less than 2% in 2003. This
represents the third consecutive year of low single-digit growth
for the market after it averaged roughly 5% annually through the
late 1990s.
“C&T companies have been finding it difficult to generate
excitement in a mature market that is saturated with many
competing lines,” says Carrie Bonner, consumer products industry
manager for Kline. “Even some of the product classes that had
fairly successful new product launches still saw sales declines
or weak growth overall.”
Bonner points to the hair care products class, which featured
three of the largest product launches from last year––the Dove
and Garnier Fructis shampoo and conditioner lines and the
L’Oreal Couleur Experte hair coloring line. Despite the success
of these major launches, the product class managed to grow by
less than 2% overall.
Of the 34 product categories examined in the upcoming edition
of COSMETICS AND TOILETRIES USA, Kline’s annual
market analysis, more than half recorded sales declines from
2002 to 2003. Bonner notes that some of these categories,
including hair coloring and sun care products, experienced a
drop in sales for the first time in decades.
Some categories, however, did benefit overall from new
launches of novel product lines. Sales of eye makeup increased
by more than 10% from 2002 to 2003, mainly on the strength of
advanced formulations of mascaras and unique eye shadows. And
although the skin care product class as a whole only made modest
gains, Kline’s study predicts that skin care will continue to
capitalize on some of the hottest industry trends and offer
excellent prospects for future growth.
As sales of anti-aging products and high-priced clinical
brands continued to rise, the facial treatments category grew at
a rate four times higher than the industry average. Men’s skin
care products offered the largest sales growth rate––reaching
nearly 15% from 2002 to 2003, albeit from a small base––and
Kline is currently undertaking a separate market study, THE U.S. MALE GROOMING MARKET 2003, that focuses on
this largely untapped market.
“Skin care is definitely one of the bright spots in a market
that otherwise has been pretty flat,” says Bonner. “The other
categories will need some more innovative new brands and product
forms to pump some life back into them.”
Established in 1959, Kline & Company (www.klinegroup.com)
is an international business consulting and market research firm
serving clients worldwide in the cosmetics and toiletries, home
fragrances, and consumer products sectors.
COSMETICS & TOILETRIES USA 2003 is the
latest edition of this comprehensive market analysis published
by Kline since 1963. The study examines 34 product categories
and the leading companies that sell cosmetics, toiletries, and
fragrances in the U.S. market. It provides detailed data and
insights on company and brand sales, retail channels, market
share, new product activity, and advertising expenditures,
including five-year sales forecasts.
For more information on how to subscribe to this study, go to
www.klinegroup.com/cia1.htm or contact
Carrie Bonner
at (973) 435-3412. Potential subscribers based in Europe should
contact
Jonathan Duff
at +32 (0) 2 770 4740.
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