Color Cosmetics - US - August 2016

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Color cosmetics market experiences growth in light of current trends
Figure 1: Total US sales and fan chart forecast of color cosmetics, at current prices, 2011-21
Aging population presents challenges
Figure 2: Repertoire of make-up products used regularly (ie daily/most days), by age, May 2016
Routine consumer behavior stifles growth
Figure 3: Reasons for purchasing, May 2016
The opportunities
Multifunctional, hybrid, and customizable cosmetics can broaden appeal
Figure 4: Interest in innovation – Have not tried but would be interested in trying, top five, May 2016
Harness impulsivity through enhanced shopping experience
Figure 5: Sources of information and inspiration – Retail sources, May 2016
Appeal to the Hispanic consumer as a beauty enthusiast
Figure 6: Repertoire of make-up products used regularly (ie daily/most days), by Hispanic origin, May 2016
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Strong 2016 growth for color cosmetics
Success in facial cosmetics reflects trends towards hybridization
Hybridization of products, natural approach spur innovation
Aging population challenges market, buoyed by growing Hispanic population
MARKET SIZE AND FORECAST
Historic and projected sales performance of color cosmetics
Figure 7: Total US sales and fan chart forecast of color cosmetics, at current prices, 2011-21
Figure 8: Total US sales and forecast of color cosmetics, at current prices, 2011-21
MARKET BREAKDOWN
Facial make-up commands the largest share of market sales
Figure 9: Share of US retail sales of color cosmetics, by segment, at current prices, 2016
Growth in lip cosmetics outpaces other category segments
Figure 10: Total US retail sales of color cosmetics, by segment, at current prices, 2014 and 2016
Retailer opportunity to grow sales
Figure 11: Total US retail sales of color cosmetics, by channel, at current prices, 2014 and 2016
MARKET PERSPECTIVE
Adults shifting their beauty spend toward color cosmetics
Figure 12: Percent change of US retail sales of beauty and personal care products, by segment, at current prices, 2016*
Hybridization of facial skincare and cosmetics blurs lines
The natural approach
MARKET FACTORS 
Shifts in population by age influence market performance
Figure 13: US female population aged 18 or older, by age, 2011-21
Figure 14: Repertoire of make-up products used regularly (ie daily/most days), by age, May 2016
Hispanic women offer opportunity for category growth
Figure 15: Female US Population, by Hispanic origin, 2011-21
Economy encourages willingness to spend for premium products
Figure 16: Consumer Sentiment Index, January 2007-June 2016
Figure 17: Repertoire of make-up products used regularly (ie daily/most days), by income, May 2016
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Smaller brands continue to gain market share
Value brands reach shoppers, technology creates opportunity
Online shopping isn’t the norm for cosmetics users
Storytelling helps differentiate products, customization is in-demand
MANUFACTURER SALES OF COLOR COSMETICS
Smaller brands continue to gain market share
Acquisitions among market leaders could shape future growth
Manufacturer sales of color cosmetics
Figure 18: MULO sales of color cosmetics, by leading companies, rolling 52-weeks 2015 and 2016
WHAT’S WORKING?
Value brands show growth
Figure 19: MULO sales of private label color cosmetic products, by segment, rolling 52-weeks 2015 and 2016
Figure 20: Share of branded and private label color cosmetic product launches, 2011-16
Figure 21: MULO sales of JA Cosmetics, by segment, rolling 52-weeks 2015 and 2016
Technology enhances shopping experience
WHAT’S STRUGGLING?
Online shopping is low but could provide incremental boost for market
WHAT’S NEXT?
Competitive marketplace creates need for product storytelling
Figure 22: Share of color cosmetic product launches, by sub-category, 2011-16
Multifunction and hybrid cosmetics
Figure 23: Share of color cosmetic product launches, by claim, 2011-16
Customizable make-up is in demand
THE CONSUMER – WHAT YOU NEED TO KNOW 
Most women embrace a repertoire of products in their daily regimen
Replacing a product prompts make-up purchases
Online shopping for cosmetics is not the norm
Family/friends and magazines are sources of information and inspiration
Most women want to try customized make-up
Long-lasting make-up remains a category frustration
USE OF FACIAL COSMETICS
Traditional facial make-up products remain part of regular regime
Figure 24: Use of facial make-up, May 2016
Facial make-up use higher among women aged 25-44
Figure 25: Use of select facial make-up, by age, May 2016
Hispanics report broad use of facial make-up
Figure 26: Use of select facial make-up, by Hispanic origin, May 2016
USE OF EYE COSMETICS
Mascara is staple in the eye cosmetic segment
Figure 27: Use of eye make-up, May 2016
Affluent young women drive use of eye cosmetics
Figure 28: Use of eye make-up, by age and income, May 2016
Hispanics report elevated use of eye cosmetics
Figure 29: Use of eye make-up, by Hispanic origin, May 2016
USE OF LIP COSMETICS
Regular use of lip products is evenly dispersed
Figure 30: Use of lip make-up, May 2016
Use of lip cosmetics is strong among affluent women
Figure 31: Use of lip make-up, by age and income, May 2016
Hispanics demonstrate strong use of all lip cosmetics
Figure 32: Use of lip make-up, by Hispanic origin, May 2016
NUMBER OF MAKE-UP PRODUCTS USED REGULARLY
Most women embrace a repertoire of products in their daily regimen
Figure 33: Repertoire of make-up products used regularly (ie daily/most days), May 2016
Affluent 18-34s emerge as using the largest repertoire of products
Figure 34: Repertoire of make-up products used regularly (ie daily/most days), by age and income, May 2016
Hispanics regularly use large number of cosmetic products
Figure 35: Repertoire of make-up products used regularly (ie daily/most days), by Hispanic origin, May 2016
REASONS FOR PURCHASING
Product replacement is the most common reason to purchase
Figure 36: Reasons for purchasing, May 2016
Young women are influenced by new products, brands, and trends
Figure 37: Reasons for purchasing, by age, May 2016
Hispanics receptive to advertising
Figure 38: Reasons for purchasing, by Hispanic origin, May 2016
ONLINE SHOPPING ATTITUDES
Barriers to online shopping can be overcome
Figure 39: Online shopping attitudes, May 2016
Young women are influenced by new products, brands, and trends
Figure 40: Online shopping attitudes, by age, May 2016
Customization and support could fuel Hispanics’ online shopping
Figure 41: Online shopping attitudes, by Hispanic origin, May 2016
SOURCES OF INFORMATION
Many color cosmetics users don’t seek information or inspiration
Figure 42: Sources of information and inspiration, May 2016
Young women more apt to research information and trends
Figure 43: Sources of information and inspiration, by age, May 2016
Hispanics show strong reliance on a variety of sources
Figure 44: Sources of information and inspiration, by Hispanic origin, May 2016
INTEREST IN INNOVATIONS
Most women want to try customized make-up
Figure 45: Interest in innovation, May 2016
Affluence and age support interest and use of new products
Figure 46: Interest in innovation – Have not tried but would be interested in trying, by age and income, May 2016
Hispanics are early adopters of innovative make-up products
Figure 47: Interest in innovation – Have tried, by age and income and Hispanic origin, May 2016
CATEGORY FRUSTRATIONS
Long-lasting make-up addresses top category frustration
Figure 48: Category frustrations, May 2016
Product application is a point of frustration for young women
Hispanics frustrated with package and product durability
Figure 49: Category frustrations, by age and Hispanic origin, May 2016
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
APPENDIX – MARKET 
Figure 50: Total US sales and forecast of color cosmetics, at inflation-adjusted prices, 2011-21
Figure 51: Total US retail sales and forecast of color cosmetics, by segment, at current prices, 2011-21
Figure 52: Total US retail sales of color cosmetics, by channel, at current prices, 2011-16
APPENDIX – KEY PLAYERS 
Figure 53: MULO sales of eye cosmetics by leading companies and brands, rolling 52-weeks 2015 and 2016
Figure 54: MULO sales of facial cosmetics, by leading companies and brands, rolling 52-weeks 2015 and 2016
Figure 55: MULO sales of lip cosmetics, by leading companies and brands, rolling 52-weeks 2015 and 2016
APPENDIX – CONSUMER 
Figure 56: Types of foundation/concealer used, October 2014-December 2015
Figure 57: Types of blush/bronzer used, October 2014-December 2015
Figure 58: Brands of foundation/concealer used, October 2009-December 2015
Figure 59: Brands of blush/bronzer used, October 2009-December 2015