The global cosmetics market: The market of men cosmetic is absolutely not the rival of the women market

because it represents only the fortieth of the feminine cosmetology. But, in spite of its modest size, this market is bound to a continuous and fast growth, which is a sizeable advantage. According to the French newspaper le Monde, the trends are not so optimistic for the manufacturers of cosmetics. In fact, in Europe, the market of cosmetics in general is about 59,47 billion euros according to the European Association of the companies of hygiene beautyperfumery (Colipa) and it presents a growth of the sales modestly positive (+ 2% in 2004, against + 3,5% in 2003). Those sales even start to regress in Germany and France, the two biggest European markets. If the women still buy as many hair or skin care products, the purchases of perfumes, and more generally of make-up (nail varnishes, for example) decrease. The main reason seems to be probably the price.

The global cosmetics industry nets about $20 billion in sales annually, and its pull is far-reaching around the world. In the United States the industry is a huge part of the popular culture, funding profitable magazines and popular shows like Project Runway. In Seoul, Korea, cosmetic stores are usually the first to open and last to close, and many subway stations boast a small outlet. French President Nicolas Sarkozy is fighting for his political survival as a scandal involving Liliane Bettencourt, heiress to the L Oral fortune and by most accounts the wealthiest woman in France, keeps making front page news there and abroad. Global Cosmetics Market The global cosmetics and toiletry industries (C&T) had more than $270 billion in sales in 2006. Of this figure more than $140 billion is represented by the cosmetics and personal care sectors.1 These industries are outpacing most others. The largest global segment is skin care and is estimated to have more than $31 billion during this same time period.2 Euromonitor International forecasts annual global growth of 3.7% to reach international sales of more than $300 billion by 2010. The largest domestic market is in the United States, where sales in the cosmetics and personal care sectors are nearly $5 billion. Currently, the positive results for global markets in these sectors will certainly help manufacturers and distributors boost their sales. This is especially true as sales growth in the mature markets of the United States and Western Europe is slowing considerably. The value growth rate in these two markets has slowed to 15%.3 These markets will continue to be marginalized as their customer bases continue to trust big box retailers and other discounters to fill these needs. This slowdown has made for growth in the emerging markets of Eastern Europe and Latin America a huge opportunity. In 2005/2006 the growth rates in these two markets have been 900% greater than in Western Europe and 300% greater than in North America.4
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The cosmetics industry has a more personal influence in our lives, too. Debates about its social consequences rage, and now cosmetics effects on health and even our planet are increasingly drawing consumers attention. The industry is responding in kind; more companies tout the green and

natural virtues of their products, and everything that is supposed to be good for you such as green tea and yuzu purport promises everything from shaving off years to revitalizing (what does that mean?) to obliterating crows feet (what do the crows have to say about that insult?).

One issue with evaluating cosmetics in the US and other countries is that regulators do not focus on their health effects to the degree they zero in on food and pharmaceuticals. In the US, a food processing firm that slaps a dubious organic label on its packages risks a nasty-gram from the from the Food and Drug Administration; such a label on a US$100 ramekin of night crme may raise doubts, but the industry is largely unregulated, enjoying free reign when disclosing manufacturing practices or ingredients. Many ingredients in cosmetics, including sodium lauryl sulfate, parabens, and those from petrochemicals, are at a minimum, nauseating, and at most, could have damaging consequences in the long term. Then there is that ubiquitous ingredient, fragrance, which manufacturers rarely describe, but somehow, comprises a greater proportion of that lotion, body wash, or hair tonic than that natural ingredient such as white tea, almond extract, or grapeseed oil. Of course, there is the time-worn disclosure that the product was not tested on animals, which often means that the company did not have to because someone else already completed that dirty deed.

The chances of a complete transformation in the industry are fairly low cosmetic companies are highly profitable but at the same time, spend a tidy sum on research and development. It is easier to get upset over something that one eats instead of what is dabbed under one s eye. Recent acquisitions such as Clorox s purchase of the iconic natural brand Burt s Bees and Johnson & Johnson s licensing agreement with Korres, a Greek manufacturer of natural beauty products, gives such companies a distribution channel that did not exist before. Greater reach could create more consumer interest and demand for safer products. In the meantime, however, the Environmental Working Group has a safety guide and database of information that the EWG s researchers have vetted. The desire to look good has existed for millennia, is not a bad thing, and will not go away; but increased consumer awareness and more transparency from companies as to what they are slipping into their products could help make the industry more trustworthy and their products, safer.

The 20 Biggest Cosmetic Companies in the World

Beauty Sales (US Billions) 1. Procter & Gamble $26.3

2. LOral - $25.8 3. Unilever - $16 4. Avon - $7.6 5. Beiersdorf - $7.5

6. Estee Lauder - $7.3 7. Shiseido - $6.9 8. Kao - $5.9 9. Johnson & Johnson $5.6 10. Henkel - $4.4 11. LVMH - $3.7 12. Coty - $3.5 13. Chanel - $3.0 14. Limited Brands $2.7 15. Mary Kay $2.6 16. Yves Rocher $2.5 17. Natura - $2.1 18. Alticor - $1.9 19. Kose - $1.8 20. Oriflame - $1.7

A Study of the European Cosmetics Industry Executive Summary

http://www.scribd.com/varunibmt/d/28858083-Cosmetics-research-report-for-MBA http://www.premiumbeautynews.com/en/What-kind-of-growth-for-the-global,1737?checklang=1 http://www.slideshare.net/lovee911/economical-analysis-of-cosmetic-industry http://www.ibisworld.com/industry/global/global-cosmetics-manufacturing.html http://www.slideshare.net/himanisinha13/cosmetic-industry

http://www.cosmeticsinfo.org/resources.php