Is customisation the future of personal care industry?

The global market for personal care products is rapidly expanding. According to market researcher Lucintel, it is poised to reach $ 630 billion by 2017, with a CAGR of 3.4 per cent over the next five years. 

Skin care continues to be the largest revenue generator, dominating the key beauty markets. The facial care market in Asia-Pacific is expected to reach $ 39.75 billion by 2019, growing at a CAGR of 6.9 percent from 2013 to 2019. China facial care market is in a commanding position owing to the huge population size that directly affects the consumption demand. Rising technological developments and product innovations are projected to be introduced in the next five years in countries such as China, India, Japan and South Korea. Nail products, lip products, facial make-up, and hair colour products are the major applications. 

Consumers' behavior is changing as their needs are changing. They want to create their own ideal products, tailored to their personal needs. Much of that is the result of product innovations and the subsequent changes in the way consumers perceive their skin care needs and products to address those needs. The rise of ‘medicalised’ skin care products and devices are some of the main developments.

The professionalisation of do-it-yourself (DIY) skin care regimes is gaining speed. Tools that had been only available to qualified professionals working in clinics are now readily available for at-home use. High-tech devices to apply products, analyse and treat skin care conditions and monitor improvements are becoming widely used at home. High price is generally accepted by affluent consumers who spend on premium and innovative products. But, consumers are also aware that price is not necessarily synonymous for quality.

Lifestyles have been transformed and time available has shrunk, forcing the vast majority of skin care consumers to make pragmatic product choices. Consumers have adapted by choosing convenience and efficacy. Solutions to the current and pressing problems have become the priorities. Product effectiveness has become non-negotiable with the expectations that results must be measured, products must deliver, improvements must be visible and diagnoses must be accurate. The evolving trend of customisation remains important in global beauty, constantly raising the bar for marketers. 

Large personal care product manufacturers are catching on, introducing hundreds of new products every year. The most recent product customisation innovations include new product formats, textures and functions. Hair care is also benefiting from personalised treatment. Some companies personalise through creation, or ‘assemblies’ several products together into a unique whole, allowing consumers to pick and choose cosmetic staples. Others provide more ‘tweaking’ and ‘missing’ than full customisation. 

There is a growing number of Asia-inspired products and innovation in international markets. This so-called ‘Asianification’ trend is expected to grow stronger and deliver more product concepts from the region. They are driving innovation in the field, from BB creams to serums, brightening creams, dark spot correctors, face masks and anti-aging products. Asian customers buy skin care products as series for a better result. Beauty products such as lipstick and eye shadow have often moved from the West to Asia, but cosmetics brands now expect Asia’s growing middle class and its disposable income to drive homegrown innovations, especially in skin care. And those ideas will be ripe for export.

Rising health concerns associated with the use of synthetic personal care products due to the presence of chemicals such as phthalates, petroleum based chemicals, parabens and aluminum salts among others, have led consumers to look for safer alternatives. This is combined with an increasing ‘go green’ consciousness, fueling the demand for ‘organics’ personal care products. Organics is the fastest growing segment of the global personal care industry throughout the world.

Makers of personal care products are setting shop in emerging markets of Asia because that is where the growth is. But, Africa and the Middle East have maintained double-digit growth despite the political instability in the region. The region’s footprint might be small in the big picture, but the speed at which Latin America and emerging Asia has grown over the past decade is a measure of how fast global market dynamics can change. Mexico, which is expected to overtake Brazil as Latin America’s biggest economy, also represents an opportunity for personal care manufacturers. One country not often associated with high cosmetic usage is Iran. It has a very young female population and the per capita consumption among its female inhabitants is fairly high. 
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Email: mosongo@mosongomoukwa.com

Opinions expressed here by the author are his own and do not represent the views of the company