About this report
 
About the market…
 
Fragrance and cosmetic use are well-entrenched habits in the 21st century, generating a lucrative international business. Although growth in consumer spending is lagging, 69.3% of survey respondents said they look after their appearance and 69.5% said it was worth spending more money for a finer product. This prevailing attitude explains the 21% increase in fragrance and cosmetic sales from 2000 to 2004. Indeed, further growth is estimated at 5% for 2005.
 

 
Despite the thriving market, the industry is difficult to penetrate. Launching a new fragrance, for example, is expensive and risky due to consumers’ fierce brand loyalty. In contrast, female consumers are significantly influenced by advertising and frequently experiment with new brands of cosmetics. Research analysis in sales and consumer preference is the strongest way to push forward in such a competitive market.
 

 
About Mintel’s research…
 
Pooling together the latest consumer research, most sort after trend data and market analysis, Mintel's new report offers you all the insight and inspiration you need for designing clever, creative and profitable marketing strategies. Use Mintel's research to:
 

 
Track market sizes, driving forces and segmentation of specific products
 
Gain a new insight into recent product launches and the activities of the major fragrance manufacturers
 
Discover detailed consumer preferences and habits
 
Develop a fragrance image that matches consumer preferences
 
Forecast future trends through precise sales tracking
 
Pin point market potential before your competitors
 
Determine key target audiences
 
Find out how to best reach key audiences with the most effective marketing communications.
 
Intriguing findings include…
 
In 2004, fine fragrance accounts for 75% and 70% of value sales of women’s and men’s fragrance
 

 
Lip make-up has been the fastest-growing colour cosmetics segment since 2002.
 

 
Face make-up accounted for 35% of total make-up sales in 2004
 

 

Contents
 

 
Introduction
 

 
Definitions
 
Abbreviations
 
Executive Summary
 
Dynamic growth
 
Boots is key distributor
 
L’Oréal and Unilever the leading suppliers
 
Active new product development
 
High take-up of colour cosmetics
 
Further growth in sight
 
Market Drivers
 
Increasing female employment supports sales
 
Figure 1: UK workforce, by gender and employment status, 2000-10
 
Focus on the young
 
Figure 2: UK adult female population, by age group, 2000-10
 
Growing prosperity helps premiumisation
 
Figure 3: UK adult population, by socio-economic group, 2000-10
 
Figure 4: UK PDI and consumer expenditure, at current and constant prices, 2000-10
 
New EU guidelines for product safety
 
Market Size and Trends
 
Healthy growth
 
Figure 5: UK retail value sales of fragrances and colour cosmetics, at current and constant prices, 2000-05
 
Figure 6: Per capita expenditure on fragrances and colour cosmetics, by adults (15+), by country, 2000-05
 
Colour cosmetics particularly dynamic
 
Figure 7: UK retail value sales of fragrances and colour cosmetics, by type, 2000-05
 
Figure 8: Indexed UK retail value sales of fragrances and colour cosmetics*, by type, 2000-05
 
Market Segmentation
 
Fragrances
 
Figure 9: UK retail value sales of fragrances, at current and constant prices, 2000-05
 
Figure 10: UK retail value sales of fragrances, by type, 2002-04
 
The blurring of prestige and mass
 
Tastes vary according to age
 
Unisex and youth fragrances
 
The importance of innovation
 
Teenagers targeted with celebrities
 
Blockbusters and flankers
 
Fine fragrances generate the bulk of market value
 
Figure 11: UK retail value sales of women’s fragrances**, by type, 2002-04
 
Figure 12: UK retail value sales of men’s fragrances, by sector, 2002-04
 
Colour cosmetics
 
Figure 13: UK retail value sales of colour cosmetics, at current and constant prices, 2000-05
 
Steady growth, with the exception of nail make-up
 
Figure 14: UK retail value sales of colour cosmetics, by type, 2002-04
 
Figure 15: UK retail value sales of colour cosmetics, % share by sector, 2004
 
“Hi-tech” foundations
 
Skincare features in face make-up
 
Longer lashes, defined eyes
 
Nail varnish – to use or not to use
 
Distribution
 
Boots and department stores are main distributors of fragrances
 
Figure 16: UK retail value sales of women’s fragrances, by outlet type, 2002-04
 
Figure 17: UK retail value sales of men’s fragrances, by outlet type, 2002-04
 
Expanding distribution
 
Boots leads also in colour cosmetics
 
Figure 18: UK retail value sales of colour cosmetics, by outlet type, 2002-04
 
The Supply Structure
 
Manufacturers’ shares
 
L’Oréal is the leading supplier of women’s fragrances
 
Figure 19: Manufacturers’ retail value shares of women’s fragrances, 2002-04
 
Figure 20: Brands’ retail value shares of women’s fine fragrances, 2002-04
 
Figure 21: Brands’ retail value shares of women’s mass fragrances, 2002-04
 
Unilever’s portfolio is the strongest in men’s fragrances
 
Figure 22: Manufacturers’ retail value shares of men’s fragrances, 2002-04
 
Figure 23: Brands’ retail value shares of men’s fine fragrances, 2002-04
 
Figure 24: Brands’ retail value shares of men’s mass fragrances, 2002-04
 
Mass brands lead in colour cosmetics
 
Figure 25: Brands’ retail value shares of colour cosmetics, 2002-04
 
Companies and brands
 
Avon
 
Boots
 
Chanel
 
Coty
 
Estée Lauder
 
KGA
 
L’Oréal
 
LVMH
 
Procter & Gamble
 
Revlon
 
Unilever
 
New Product Development
 
Blockbusters and flankers
 
Inner peace in a bottle
 
Looks matter – the importance of packaging
 
“Masstige” colour cosmetics
 
New product launches 2004-05
 
Fragrances
 
Colour cosmetics
 
The Consumer
 

 
European comparison of product use
 
Figure 26: Penetration of fragrances and colour cosmetics, by country, 2004
 
Figure 27: Penetration of aftershave/male fragrance, by men, by country, 2004
 
Trends in product use by type
 
Figure 28: Trends in penetration of fragrances and colour cosmetics, by type, 2001-04
 
Figure 29: Trends in penetration of aftershave/male fragrance, 2001-04
 
Penetration and frequency of using fragrances and colour cosmetics
 
Market maturity
 
Figure 30: Maturity of the GB retail market for fragrances, 2004
 
Figure 31: Maturity of the GB retail market for colour cosmetics, by sector, 2004
 
Perfume and eau de toilette
 
Aftershave/male fragrance
 
Foundation
 
Blusher/highlighter
 
Lipstick
 
Eye make-up
 
Nail varnish
 
Attitudes towards use of fragrances and cosmetics
 
Figure 32: Attitudes towards quality and brands, by women, 2004
 
Figure 33: Attitudes towards personal care, by women, 2004
 
Figure 34: Attitudes towards shopping and budgeting, by women, 2004
 
Figure 35: Attitudes towards media and advertising, by women, 2004
 
Figure 36: Attitudes towards ethics, by women, 2004
 
The Consumer – Detailed Demographics
 
Fragrances and colour cosmetics
 
Figure 37: Penetration of fragrances and colour cosmetics, by women, by age, 2004
 
Figure 38: Penetration of fragrances and colour cosmetics, by women, by income and working status, 2004
 
Figure 39: Penetration of fragrances and colour cosmetics, by women, by region, 2004
 
Figure 40: Penetration of fragrances and colour cosmetics, by women, by presence of children and household size, 2004
 
Perfume and eau de toilette
 
Figure 41: Penetration and frequency of using perfume and eau de toilette, by women, by demographic sub-group, 2004
 
Aftershave/male fragrance
 
Figure 42: Penetration and frequency of using aftershave/male fragrance, by men, by demographic sub-group, 2004
 
Foundation
 
Figure 43: Penetration and frequency of using foundation, by women, by demographic sub-group, 2004
 
Blusher and highlighter
 
Figure 44: Penetration and frequency of using blusher and highlighter, by women, by demographic sub-group, 2004
 
Lipstick
 
Figure 45: Penetration and frequency of using lipstick, by women, by demographic sub-group, 2004
 
Eye make-up
 
Figure 46: Penetration and frequency of using eye make-up, by women, by demographic sub-group, 2004
 
Nail varnish
 
Figure 47: Penetration and frequency of using nail varnish, by women, by demographic sub-group, 2004
 
Prospects
 
Favourable economic setting
 
Looking promising for colour cosmetics
 
Added value and improved technology in colour cosmetics
 
Forecast
 
Steady application of sales
 
Figure 48: Forecast for UK retail value sales of fragrances and colour cosmetics, at current prices, in Sterling terms, 2005-10
 
Good news for both markets
 
Men have more fragrant potential
 
Eyes and lips stay on top
 
Nails scratch their way up
 
Figure 49: Forecast for UK retail value sales of fragrances and colour cosmetics, at current prices, in Euro terms, 2005-10
 
Passing €3 billion
 
Small price rises anticipated
 
Figure 50: Forecast for UK retail value sales of fragrances and colour cosmetics, at 2005 prices, in Sterling terms, 2005-10
 
Real growth all round
 
Figure 51: Forecast for UK retail value sales of fragrances and colour cosmetics, at 2005 prices, in Euro terms, 2005-10
 
Affluence does have a role