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Mixed Fortunes for Body Care

By: Carrie Lennard
Posted: April 28, 2010, from the May 2010 issue of Skin Inc. magazine.

The recession has seen mixed fortunes for body care products. Body skin care has proven to be one of the more susceptible beauty and personal care categories to consumer trade-down during the recession, and suffered a drop in value growth to 5% in 2008 from 7% the previous year.

Body care products with multiple functions or those that were naturally positioned did experience growth during 2007 and 2008, primarily driven by some of the emerging markets. Euromonitor International examines the reasons behind the different growth patterns in these categories, identifies which countries are contributing the most to growth and predicts where opportunities exist for future success in body care. These trends can be directly translated into the skin care products and services offered at your spa, and may provide guidance on how to budget for body care in the coming months.

Body care threatened

The introduction of ultra budget skin care products has been a distinct trend in body skin care during the recession. Many consumers who previously purchased premium-priced brands are now trading down to cheaper and private label products as a means of compensating for more limited budgets brought about by widespread job losses and low consumer confidence. This trend is most prevalent in general purpose body skin care and hand creams, categories in which consumers are likely to compromise on price.

The same consumer tendency is reflected in spa-goers’ service preferences, which are leaning toward more health-focused treatments and less luxurious, pampering options. To address this trend, many spas are offering shorter, lower priced services or those that offer multiple benefits in one sitting, eliminating some of the cost burden on the consumer.

The main threat to the growth of body skin care during 2008–2013 will be the continuing precarious state of the global economy. However, solid product innovation will remain paramount in driving demand.