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Global Beauty Industry Trends 2011

Carrie Lennard August 2011 issue of Skin Inc. magazine
skin care professional holding globe

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With a return to pre-recession levels of spending and 5% value growth globally, 2010 marked a strong recovery for the beauty and personal care industry. Consumers flocked back to premium beauty, and most luxury brands found themselves in solid positive growth territory after poor performances in 2009. Following are the five key trends driving the growth of the global beauty industry in 2011.

1. Price points and brand positioning

Cosmetic companies are generally focusing on the mass market, thanks primarily to the increasing importance of Latin America, particularly in the area of fragrance, a category that is dominated by mass brands in the region. However, mass and masstige portfolios are also being developed in more mature and traditionally premium-dominated markets, such as Japan. It is important for skin care professionals to understand that this is a result of the growing perception among consumers that mass or the upper end of mass across categories, such as color cosmetics and skin care, may be able to deliver similar quality as their luxury counterparts. Be aware of this trend and be prepared to explain to clients and consumers alike what sets professional skin care products apart from the competition.

Although value growth is being driven by mass beauty, innovation is still most definitely being led by premium brands, including new mascara packaging formats in color cosmetics, as well as skin care ingredients. In 2010 and 2011, there have also been a number of high-profile acquisitions involving premium and professional lines. Super-premium brands retained their exclusivity and high pricing, with some putting in a consistently positive performance throughout the downturn as the spending levels of wealthy consumers remained largely resilient.

2. Time-saving and long-lasting

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