Added value and high-tech push US C&T sales up 2.4%

Published: 4-May-2011

Market hits pre-recession levels


US C&T sales rose by 2.4% to hit $36.5bn in 2010 at manufacturer level, according to Kline & Company in its new Cosmetics & Toiletries USA 2010 report. Following a 0.8% decline in 2009, rising consumer confidence, aggressive promotional activity and technological advances have propelled sales above pre-recession levels.

“While the industry showed signs of recovery, consumers influenced by economic uncertainties continued to scrutinise their spending, shopped at venues with competitive pricing and sought out products on sale,” says Kline. Offers giving extra value proved particularly popular, with attractively priced skin care kits and multifunctional products among the core trends of last year.

Kline notes that all trade classes registered a certain level of growth but speciality outlets, comprising mainly mall-based stores such as Bath & Body Works and The Body Shop, posted the strongest gains.

The professional channel however, encompassing salons, spas and physicians’ offices, registered the lowest overall increase of 1.9%. Instead consumers are looking to achieve the best possible results at home and there has been significant growth in the popularity of at-home devices to treat fine lines and wrinkles as well as tone and cleanse skin.

“Advancements in skin care have included bioelectric technology to help stimulate the natural renewal process of the skin and DNA enhancement formulas found in power-serum products,” explains Carrie Mellage, director at Kline's Consumer Products Practice.

Skin care remains the largest sector of the US C&T products market, accounting for 25% sales, and high-tech developments have also helped it remain one of the fastest growing. But Kline says make-up provided the best growth at 4.4%, with nail polish up a massive 20.4% thanks to new product activity adapted to achieving at-home salon results and easy application.

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