The cosmetics and toiletries industry is predicted to decline by 10% in 2020, as consumers continue to socialise outside of their homes less.
This is according to data and analytics company, GlobalData, which reports that the industry is losing out in the COVID-19-driven decision between what is essential and what is dispensable.
Says GlobalData consumer analyst, Lia Neophytou: "With fewer out-of-home occasions for consumers to attend, as well as the transition to working at home, cosmetics have taken a backseat. Even when consumers do venture outdoors, the wearing of masks is further diminishing the need for cosmetics. While all sectors in the cosmetics and toiletries industry are expected to return to growth in 2021, they will not recuperate their pre-COVID-19 value.”
Economic and financial uncertainty will further contribute toward this, as many consumers who are earning less due to COVID-19 will purchase beauty and grooming products at the lower end of the price range in future.
According to GlobalData, sectors such as fragrances and make-up that are most suited to out-of-home occasions will see a greater decline than skincare.
Neophytou adds: “Brands operating in the skincare and personal hygiene categories are in a better position than most – though a degree of innovation is still required to mitigate the extent of sector decline and speed up recovery. Investing in marketing campaigns and re-positioning products typically used out-of-home to align with the at-home occasion would be wise.”
As an example, Global Data cites consumer brand Vaseline’s recent launch of a new range of products that both kills germs and moisturises skin, offering relief to those increasing their use of hand sanitisers, which may contain drying ingredients.
For more information visit www.globaldata.com.