This has been a very good year for color cosmetics—sales are expected to reach $10.8 billion, up nearly 5% over 2015! Increasing competition among established and emerging beauty brands has created a marketplace ripe with innovation and creativity. As consumers shift spending away from luxury goods and apparel, they are splurging on makeup and experimenting with the latest trends. Analysts are encouraged by this high level of consumer engagement, projecting that sales will continue to rise 29% through 2021. Women’s Marketing looked closely at the cosmetics consumer to uncover emerging opportunities for makeup brands.
Demographic Shifts Bring New Opportunity
In the U.S., the number of women 18+ is expected to increase nearly 5% by the year 2021, this steady population growth offers an increased sales opportunity across the face, eye, and lip categories. Research shows that women 25-34 are among the most engaged users of cosmetics, 36% use nine or more make up products each day! But don’t forget about older women—more than half of all women between 35 and 64 wear between one and eight different cosmetics every day. Even seniors want to look their best, 36% wear at least one type of makeup daily. Although growth may come from the younger market, it’s important for brands to focus on retaining older customers through product innovation and adding skincare benefits.
Hispanic Consumers are Beauty Enthusiasts
The female Hispanic population in the U.S. is growing at a rate five times that of non-Hispanics. Currently, Hispanic women account for more than 17% of the total female population and is expected to reach 19% by 2021. Hispanic women are heavy users of makeup products and tend to spend more time on their beauty routines—40% regularly use nine or more types of makeup. Brands aiming to connect with this market may want to focus on younger consumers who account for a larger share of the population and tend to be more influential with their peers.
Affluent Women Prioritize Beauty
More than 84% of women with household incomes at or above $75K are cosmetics users, with most using at least five separate products in their regular makeup routine. Whether they’re building their careers and simply want to look their best, or are keeping up with fashion trends, these consumers are more likely to invest in prestige brands and replace product more frequently. She’s also interested in innovative products that feature added benefits such as skin care, sun protection, and brands with natural/organic claims.
In a trend-driven, saturated marketplace uncovering untapped audiences for your product is one way to drive sales. Women’s Marketing offers a multi-faceted approach to the consumer: who she is, how she discovers product, what influences her, where she shops, and ultimately, how she buys. Contact us today to learn how we can help your brand take an omnichannel approach to connecting with female consumers.
Source: Mintel, Color Cosmetics U.S., August 2016