Table of Contents
Executive Summary
-
- The issues
- Adults want short personal care routines
-
- Figure 1: Time spent on personal care routines, January 2017
- Consumers experiment, which could limit loyalty
-
- Figure 2: Experimentation habits with personal care products, January 2017
- Majority of shoppers are sensitive to price
-
- Figure 3: Price sensitivity to personal care products, January 2017
- The opportunities
- Cater to desire for safety, quality through ingredients
-
- Figure 4: Awareness of select ingredients, January 2017
- Lower financial barriers in order to gain trial
-
- Figure 5: Select trade up opportunities, January 2017
- Embrace sustainable, environmentally friendly practices
-
- Figure 6: Select attitudes toward personal care, January 2017
- What it means
The Market - What You Need to Know
-
- Consumers are comprised of Enthusiasts, Loyalists, and Deal-Seekers
- Ingredient concerns and men’s interest in appearance change landscape
- Population trends could impact category
Personal Care Segments
-
- Three consumer segments: Enthusiasts, Loyalists, and Deal-Seekers
-
- Figure 7: Share of personal care consumer segments, January 2017
- Enthusiasts
- Loyalists
- Deal-Seekers
- Enthusiasts are easier to capture, but less likely to stay
- Loyalists will live up to their name…if they can be captured
- Deal-Seekers
Market Perspective
-
- Ingredient safety concerns fuel legislation, NOPC purchases
- Men’s interest in appearance brings opportunity
Market Factors
-
- High consumer confidence bodes well for discretionary and prestige items
-
- Figure 8: Consumer Sentiment Index, January 2007-January 2017
- Aging population could negatively impact sales
-
- Figure 9: Population by age, 2017-22
- Hispanic population could foster environment for growth
-
- Figure 10: Population by race and Hispanic origin, 2012-22
Key Players – What You Need to Know
-
- NOPC, no-rinse, and personalized products see growth
- Select mass brands, anti-aging products see declines
- Hybrid, personalized, and waterless products could be the future
What’s Working?
-
- NOPC grows as consumers seek safety, quality
- No-rinse formats perceived as convenient, gentle
- Personalized products maintain momentum
What’s Struggling?
-
- Select mass brands struggle to maintain sales
- Anti-aging products struggle as claims are integrated elsewhere
What’s Next?
-
- Hybrid products provide options to consumers
- Tailored formulations, technology add to personalization
- Minimizing water usage appeals to need for conservation, convenience
The Consumer – What You Need to Know
-
- Mass brands are most purchased due to availability, familiarity
- More than half of consumers report moderate category engagement
- Factors relating to functionality, familiarity most influence purchases
- Majority of consumers ambivalent toward ingredients
- While a minority, some consumers research before purchase
- Value is the best way to incentivize trade up
Products Purchased
-
- Basic hygiene products have highest penetration
- Mass brands most common due to availability, familiarity
-
- Figure 11: Correspondence analysis – Personal care consumer product usage, January 2017
- Methodology
- Skincare, HBL products have highest prestige brand penetration
-
- Figure 12: Personal care products purchased, by brand type, January 2017
- Personal care segments drive product usage
-
- Figure 13: Select personal care products purchased, any purchase (net), by personal care segment, January 2017
- Consumers purchase less personal care as they age
-
- Figure 14: Advertisement for Walgreens beauty, Feb. 27, 2017
-
- Figure 15: Select personal care products purchased, any purchase (net), by age, January 2017
Time Spent, Price Sensitivity, and Experimentation
-
- Despite limited time and money, consumers like to experiment
-
- Figure 16: Time spent on routines, importance of price, and experimentation in personal care, January 2017
- Time spent, experimentation shape segments
-
- Figure 17: Time spent, price sensitivity, and experimentation habits with personal care, by personal care segments, January 2017
- Younger age groups show more engagement
-
- Figure 18: Time spent on personal care routine, price sensitivity towards personal care, experimentation, by age, January 2017
- Hispanics show similar engagement to younger consumers
-
- Figure 19: Time spent on personal care routine, price sensitivity towards personal care, and experimentation, by Hispanic origin, January 2017
Purchase Influencers
-
- Functionality reigns supreme in influencing purchases
- Familiarity factors also impact purchase decisions
- External sources matter when making new purchases
-
- Figure 20: Purchase Influencers, January 2017
- Enthusiasts impacted by variety of purchase influencers
-
- Figure 21: Purchase influencers, by personal care segment, January 2017
- Younger consumers influenced by reviews, recommendations
-
- Figure 22: Select purchase influencers, by age, January 2017
- Hispanics align with young adults
-
- Figure 23: Purchase influencers, by Hispanic origin, January 2017
Ingredient Awareness
-
- Consumers unaware, ambivalent toward many ingredients
- Ingredient perceptions reflect NOPC’s shift to mainstream
-
- Figure 24: Ingredient awareness, January 2017
-
- Figure 25: Correspondence Analysis – Personal care consumer ingredient awareness, January 2017
- Methodology
- Enthusiasts most aware, interested in variety of ingredients
-
- Figure 26: Ingredient awareness, by have heard of and look for, by personal care segment, January 2017
- Hispanics category engagement reflects interest in ingredients
-
- Figure 27: Ingredient awareness, by have heard of and look for, by Hispanic origin, January 2017
Attitudes towards Personal Care Products
-
- One in five research before purchasing
- Environment, sustainability are secondary considerations
-
- Figure 28: Attitudes towards personal care, January 2017
- Younger adults more open to trying something new
-
- Figure 29: Attitudes towards personal care, by age, January 2017
- Hispanics are less likely to be brand loyal amid price focus
-
- Figure 30: Attitudes toward personal care, by Hispanic origin, January 2017
Trade up Opportunities
-
- Value incentivizes trade up
- Product attributes can also sway consumers
-
- Figure 31: Trade up opportunities, January 2017
- While Loyalists are harder to capture, payoff can be higher
-
- Figure 32: Trade up opportunities, by personal care segment, January 2017
- Younger consumers motivated by product incentives
-
- Figure 33: Trade up opportunities, by age, January 2017
- Hispanics incentivized by unique scent, third party endorsements
-
- Figure 34: Trade up opportunities, by Hispanic origin, January 2017
Appendix – Data Sources and Abbreviations
-
- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Consumer
-
-
- Figure 35: Median household income, by race and Hispanic origin of householder, 2015
-
- Figure 36: Median household income, by age of householder, 2015
-
- Figure 37: Distribution of population, by age and race/Hispanic origin, 2016
-
Back to top