Table of Contents
Executive Summary
-
- The issues
- Most beauty product shopping still occurs in-store with online lagging behind
-
- Figure 1: Usage of beauty products and location of purchase, any product, November 2015
- Demographic challenges and population growth from immigration
-
- Figure 2: Projected trends in the age structure of the Canada population, 2014-19
- Competitive landscape within beauty retailing and for beauty brands
- The opportunities
- Growing online sales
-
- Figure 3: Products purchased online, November 2015
- More interest in digital technology and social media among younger cohorts
-
- Figure 4: Attitudes towards digital technology and social media in regards to beauty products, by age, November 2015
- Aging consumers and immigration present new opportunities for beauty retailers and brands
-
- Figure 5: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
- What it means
The Market – What You Need to Know
-
- Beauty retailing to see healthy but modest growth
- Facial and suncare to see largest percentage growth
- The future is not so bright for hair styling agents and hair colourants
- Canada’s population is expected to age in the coming years
- The population is growing and ethnically diverse
Market Size and Forecast
-
- Beauty retailing to see healthy but modest growth
-
- Figure 6: Canada value sales of beauty retail, at current prices, 2010-20
- Figure 7: Forecast of Canada value sales of beauty retail, 2010-20
- Facial and suncare to see largest percentage growth
-
- Figure 8: Forecast of value sales of facial care, 2010-20
- Figure 9: Forecast of value sales of suncare, 2010-20
- The future is not so bright for hair styling agents and hair colourants
-
- Figure 10: Forecast of value sales of hair colourants, 2010-20
- Figure 11: Forecast of value sales of hair styling agents, 2010-20
- Forecast methodology
Market Factors
-
- Canada’s population is expected to age in the coming years
-
- Figure 12: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
- Figure 13: Projected trends in the age structure of the Canada population, 2014-19
- The population is growing and ethnically diverse
- Proportion of highly indebted households continues to rise
Key Players – What You Need to Know
-
- Mass merchandisers and drugstores lead the pack
- Online sales could use a boost
- Department stores fight for market share
- Marketing to men
- The Sephora effect
- Competitive environment for beauty retailers and brands
- Department stores are trying to catch up
- Demographic and economic challenges
Retail Environment
-
- Mass merchandisers and drugstores lead the pack
- Online sales could use a boost
- Department stores fight for market share
What’s Working?
-
- Mass merchandisers edge out drugstores to take the lead
-
- Figure 14: Walmart, everyday low prices, online ad, July 2015
- Marketing to men
-
- Figure 15: Dollar Shave Club, online ad, February 2016
- The Sephora effect
What’s Struggling?
-
- Competitive environment for beauty retailers and brands
- Demographic and economic challenges
The Consumer – What You Need to Know
-
- The vast majority of beauty product shopping still occurs in-store
- Growing online sales
- Room to increase usage among men
- Reasonable prices and convenient location top the list
- Women’s buying habits are more impulsive and open to new products
- Younger cohorts display more interest in digital technology and social media
- More free stuff please
Usage of Beauty Products and Location of Purchase
-
- The vast majority of beauty product shopping still occurs in-store
-
- Figure 16: Usage of beauty products and location of purchase, any product, November 2015
- Growing online sales
-
- Figure 17: Products purchased online, November 2015
- Room to increase usage among men
-
- Figure 18: Usage of beauty products and location of purchase (any product), by gender, November 2015
Retailer-specific Reasons for Purchasing Beauty Products
-
- Reasonable prices and convenient location top the list of reasons for shopping at beauty product retailers
-
- Figure 19: Reasons for purchasing beauty products from a particular retailer, November 2015
- Driving growth by expanding beauty product range and diversifying
- Free samples are a bonus in attracting consumers
- Women’s buying habits are more impulsive and open to new products
-
- Figure 20: Reason beauty products have been purchased in the last 12 months, by gender, November 2015
- Higher-income households more likely to use coupons
Attitudes towards Digital Technology and Social Media
-
- Younger cohorts display more interest in digital technology and social media
-
- Figure 21: Attitudes towards digital technology and social media in regards to beauty products, by age, November 2015
- Tech-savvy Chinese Canadians
-
- Figure 22: Attitudes towards digital technology and social media in regards to beauty products (any agree), Chinese Canadians vs overall population, November 2015
- Mothers should not be underestimated
-
- Figure 23: Attitudes towards digital technology and social media in regards to beauty products (any agree), mothers vs overall population, November 2015
Shopping Innovation/Improvements
-
- More free stuff please
-
- Figure 24: Innovations/improvements when shopping for beauty products (any rank), November 2015
- Figure 25: Innovations/improvements when shopping for beauty products (any rank), by gender, November 2015
- Men are keen on gift sets
- Omni-channel retailing offers convenience and can drive sales growth
- Interactive in-store features and expert advice boost retail experience
Appendix – Data Sources and Abbreviations
-
- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
Appendix – Market Size and Forecast
-
- Charts by segment
-
- Figure 26: Forecast of value sales of bodycare, 2010-20
- Figure 27: Forecast of value sales of colour cosmetics, 2010-20
- Figure 28: Forecast of value sales of deodorants, 2010-20
- Figure 29: Forecast of value sales of shampoo and conditioner, 2010-20
- Figure 30: Forecast of value sales of shaving and depilatory products, 2010-20
-
- Figure 31: Forecast of value sales of soap, bath and shower products, 2010-20
Back to top