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Jane
Perrin
Managing Director
ACNielsen Global Services
Clare Nishikawa
Senior Business Manager
ACNielsen Global Services
In ACNielsen’s latest Executive News Report, What’s
Hot Around the Globe—Insights on Growth in Personal
Care, consumer purchasing information on nearly 60 categories
across 56 countries was analyzed to identify the latest growth
trends in the global Personal Care market.
Today’s “New”
Male Interest in Personal Image Positively Impacts Growth
One of the fastest growing phenomenons identified in the study
was the interest of today’s male in improving his personal
image. Trends in male grooming spurred growth in categories
from Body Cleansing to Deodorants, as manufacturers tuned
in to this new male interest. Unilever has been very much
in the core of this trend. Their male-focused brand Axe has
taken on worldwide proportions and is now available in over
58 countries. Initially a Deodorant in spray form, Axe is
now also available as a roll-on, Shower Gel, Pre-Shave, Aftershave
and as a Hair Styling product. One other example is from the
CPG giant Procter & Gamble, with their announcement in
March of this year of an exclusive licensing agreement with
OT OverTime to market a line of Personal Care products developed
specifically for tweens and teenage boys.
But men are not the only demographic segment impacting the
growth of Personal Care worldwide. The baby boomer generation
has been impacting the consumer marketplace since their beginnings
in the 1940s and 1950s, and now these consumers are growing
“old.” With an increased desire to remain youthful,
consumer interest in anti-aging products has spurred growth
and innovation. Creams and moisturizers to reduce wrinkles,
minimize dark circles and lighten dark patches on the skin
have been introduced and are driving growth. Globally, for
example, we saw a 10% growth in Face & Eye Moisturizers.
Tooth Stain Removers and Whiteners, actually the fastest growing
personal category in 2003, grew by 48% worldwide.
But aging impacts more than just physical appearance, and
the growth of Adult Incontinence Pads/Pants (up 4% globally)
was just one more example of the changing demographic landscape
directly impacting growth. In Latin America, although the
proportion of population over 65 is still smaller than in
North America and Europe, the population growth of the 65-plus
age group was faster than in any other region of the world.
As a reflection of this strong growth, Adult Incontinence
Pads/Pants in Latin America grew the fastest of all the regions,
by 6%.
Innovation, Convenience and Concern
for Health and Safety Drive Growth
Although we found that the growth rates in the Personal Care
categories overall were smaller than those found in the What’s
Hot in Food and Beverages study in 2002, many of the same
consumer themes were apparent in both studies. Innovation,
convenience and a concern for health and safety all continued
to influence the products consumers buy worldwide.
- In Dental Care products, for example, innovation was
seen with the new “strip” form of Breath Fresheners.
This innovative new product spurred interest in the whole
category; the category grew by 9% from 2002 to 2003.
- The continuing need for more convenience contributed
to the growth of the new Diaper Pants market in North America
and Europe. A similar need for convenience caused consumers
in the Emerging Markets to trade up to Shower Gels from
bar Toilet Soap.
- The concern for health and safety was found to be worldwide
and caused Toilet Soap, for example, to grow significantly
in the SARS-affected countries in Asia Pacific. Similar
concerns regarding exposure to the sun caused Sun Protection
products to grow significantly in Latin America.
But not only new
products spurred growth. Channel “blurring” continued
with the expansion of premium Personal Care products (once
only found in salons or department stores) into more traditional
retail outlets. In addition, the introduction of new premium
brands, particularly in face care, expanded the breadth of
the Personal Care categories to positively impact sales growth.
Overall Growth in 2003 for the
Personal Care Categories Was 3%
Within the 56 countries included in the study, the aggregated
sales value of the 58 Personal Care categories selected for
this study was up by 3% vs. year ago.
The fastest value growth (7%) was in the area of Face Cleansing
& Moisturizing. Coming in second, based on growth rate,
were the product areas of Body Cleansing & Moisturizing
and Sun Care, each with growth of 5% [See chart 1].
Smaller
Developing Markets Outpace Growth of Developed Countries
The smaller regions of Latin America and the Emerging Markets
experienced the fastest growth—each experiencing double-digit
growth in the last year—whereas the more developed region
of Europe saw a far more modest growth of 4%; North America
actually experienced a decline (-1%) in 2003 [See chart 2].
When looking at
global trends, it is important to consider that what is new
in one country may well have been available for years in another.
Disposable Diapers, for example, grew by 24% in Indonesia
as the dimensions of the category expanded with the introduction
of lower-priced products. Although less developed countries
have for years relied upon the sanitary protection of Towels
and Pads, with the introduction of more affordable Tampons
and Pant-Liners, we are now seeing movement among consumers
toward these types of products in the developing countries.
Hungary, for example, saw 10% growth in Sanitary Protection
driven by the Tampon and Pant-Liner segments. Such increased
penetration has also been used to explain growth in other
categories, including Hair Styling in Taiwan and Toothbrushes
in Sri-Lanka.
Another factor reported to be driving growth in the less developed
markets was the increased presence of international grocery
chains, and correspondingly, the increased availability of
international brands and private label (as discussed in ACNielsen’s
The Power of Private Label—2003).
But in the private label study we also saw that private label
brands had the greatest market share in the more developed
regions of Europe and North America. In the areas of Personal
Paper and Baby Care, for example, private label products were
seen as the more “economical” option for consumers.
This is important to note since the strength of private label
sales in these product areas is one contributing factor to
the lack of value growth that we saw in the study in Europe
and North America in Personal Paper and Baby Care.
Another retailer influence in the regions of Europe and North
America has been the growing share of warehouse clubs, hard
discounters and dollar stores. Such stores as Aldi, Lidl,
Costco and Sam’s Clubs have been most effective in providing
the consumer with low-priced, high-volume alternatives. The
strength of private label brands and the growth of these retail
formats have both negatively impacted the value sales growth
in commodity categories such as Toilet Tissue and Disposable
Baby Diapers.
In Summary
The complexities of growth within the Personal Care market
are certainly many. Geography, demographics and consumer economics
are all working together to drive, or in some cases inhibit,
growth. But opportunities do exist. There are opportunities,
for example, for manufacturers and retailers as the more developed
regions begin to require the products of an aging population.
There are also opportunities in the developing countries as
retailer infrastructure grows and disposable income increases.
Products once not available in these growing regions are becoming
a reality of everyday life.
It is our challenge as manufacturers, retailers and researchers
to better understand these complexities that are impacting
the Personal Care industry and take the appropriate steps
to more effectively address the diverse needs of our consumers
worldwide.
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