Abstract About this report Since 2008, women have been maintaining a more natural look for makeup, which may translate into fewer product purchases in the cosmetics category overall, as women use less makeup overall, shying away from heavy eye shadows and lipsticks while also gravitating towards neutral tones. Even the decision to move towards neutral tones speaks to less purchasing, since much of cosmetics usage and purchase is predicated on the plethora of colors available, for any occasion.
The U.S. continues to struggle with the recession, which is affecting even stalwart categories such as personal care, and the color cosmetics market has been feeling its effects, with increased sales only in the eye makeup segment. Economic pressures are likely to continue to depress category growth, at least in the short term, as women trade down to less pricey makeup options and choose to go with a simpler look.
This report examines the following market topics:
How and why the economic downturn has affected even sales within personal care, a category previously resistant to economic downturns The negative impact on sales of women¡¯s desire to sustain a more ¡°natural¡± look, particularly with regard to color cosmetics An assessment of new product activity across all segments of the category, which includes eye, face and lip makeup How and why drug stores continue to dominate sales
Table of Contents Scope and Themes What you need to know Definition Data sources and methodology Sales data Consumer survey data Advertising clips Abbreviations Terms Executive Summary Market at a glance Category sales concentrated among three players Drug stores dominate retail FDMx channels Potential opportunities still exist Changing demographics Celebrity influence changing Advertising and promotional efforts Manufacturers still striving for innovation One brand controls color cosmetics segment Usage, attitudes and motivations Market Size and Forecast Key points Challenges will remain, as consumers strive to save money Figure 1: U.S. FDMx sales of color cosmetics, at current prices, 2003-13 Figure 2: U.S. FDMx sales of color cosmetics, at inflation-adjusted prices, 2003-13 Walmart sales Competitive Context Mineral makeup still influencing the market A focus on science The impact of the demise of Max Factor Changing work habits leading to changes in makeup habits Two-in-one products decrease the need for certain items Segment Performance Key points Eye makeup leads the category Figure 3: FDMx sales of color cosmetics, by segment, 2006 and 2008 Segment Performance--Eye Makeup Key points Eye makeup a bright spot in color cosmetics category Other trends in eye makeup Figure 4: U.S. FDMx sales and forecast of eye makeup, at current prices, 2003-13 Segment Performance--Face Makeup Key points Women unwilling to forego the basics Mineral makeup still sparking interest Increasing emphasis on an ethnic audience Figure 5: U.S. FDMx sales and forecast of face makeup, at current prices, 2003-13 Segment Performance--Lip Makeup Key points Lower prices, natural look both affecting growth Figure 6: U.S. FDMx sales and forecast of lip makeup, at current prices, 2003-13 Retail Channels Key points Drug stores stay on top, while other channels make little headway Figure 7: U.S. FDMx sales of color cosmetics, by retail channel, 2006 and 2008 Retail Channels--Drug Stores Key points Drug stores focus on element of "masstige" Drug stores also use a number of other methods to stay relevant Figure 8: Drug store sales of color cosmetics, 2003-08 Retail Channels--All Other Key points No great gains seen in other channels Figure 9: "Other"* sales of color cosmetics, 2003-08 Market Drivers Changing demographics of female population Figure 10: Female population, by age, 2004-14 Teen population will have a negative impact Figure 11: U.S. teen population aged 12-17, projected growth trends in five-year intervals from 2000-30 Flagging economy leads to personal care trade-downs Celebrity influence in the cosmetics world waning? Leading Companies Key points L¡¯ Or¨¦al solidifies its hold on the color cosmetics category Figure 12: FDMx sales of color cosmetics, by leading manufacturers, 2008 and 2009 Brand Share--Eye Makeup Key points Consumers still drawn to classics Other newcomers also having an impact P&G still in the battle Figure 13: FDMx brand sales of eye makeup in the U.S., 2008 and 2009 Brand Share--Face Makeup Key points Foundation sales driving the face makeup segment Figure 14: FDMx brand sales of face makeup in the U.S., 2008 and 2009 Brand Share--Lip Makeup Key points Is the "Lipstick Index" valid? Figure 15: FDMx brand sales of lip makeup in the U.S., 2008 and 2009 Brand Qualities Smashbox Cosmetics, an innovative brand Cargo Cosmetics meets consumers¡¯ needs Recent innovative launches: Innovation and Innovators Key points Makeup artists, cartoon collections, and entertainment Makeup artists¡¯ mass appeal So cute...iconic cartoon collections and entertainment About face Mineral makeup forges ahead Skin matching foundations Ethnic audience, Indian influence Prime time Matte finish High definition Skincare meets makeup Eyelash craze Pump up the volume Battery-operated Special ingredients and color Eyelash conditioners Lip Service--finishing touches Plump lips Vibrant color High gloss shine Long-lasting technology Clever and innovative packaging Controlled release Double-ended applicators Compacts Charms and entertainment Green, natural, and eco-friendly Ingredients and eco-friendly packaging Consumer awareness Advertising and Promotion Common advertising themes In-use product focus, technology-driven Figure 16: Television ad L¡¯ Or¨¦al Double Extend Beauty Tubes Mascara, 2009 Figure 17: Television ad Almay Smart Shade, 2009 Technology and fashion collide Figure 18: Television ad Maybelline Lash Stiletto Ultimate Length Mascara, 2009 Figure 19: Television ad Rimmel London Sexy Curves Mascara, 2009 Celebrity-endorsed Figure 20: Television ad Cover Girl & Olay Simply Ageless, 2009 Figure 21: Television ad Revlon Creme Gloss, 2009 Usage of Color Cosmetics Key points Overall makeup usage Figure 22: Use of makeup among adult women, July 2007-September 2008 Figure 23: Use of makeup among adult women, by age, July 2007-September 2008 Usage of eye makeup Figure 24: Use of eye makeup among adult women, by age, July 2007-September 2008 Figure 25: Use of mascara among adult women, by age, July 2007-September 2008 Usage of lip makeup Figure 26: Use of lip makeup among adult women, by age, July 2007-September 2008 Usage of face makeup Figure 27: Use of face makeup among adult women, by age, July 2007-September 2008 Figure 28: Use of blusher among adult women, by age, July 2007-September 2008 Choice of FDM retail channel Figure 29: Preferred retail outlet for makeup purcase, by age, February 2009 Attitudes and Motivations Key points Figure 30: Attitudes towards makeup among adult women, by age, February 2009 Figure 31: Attitudes towards makeup qualities among adult women, by age, February 2009 Figure 32: Attitudes towards makeup purchase among adult women, by age, February 2009 Recessionary factors Figure 33: Attitudes towards economy relative to spending among adult women, by age, February 2009 Figure 34: Attitudes towards economy relative to spending among adult women, by household income, February 2009 Makeup relations and habits Figure 35: General attitudes towards makeup wear and usage among adult women, by age, February 2009 Figure 36: General attitudes towards makeup wear and usage among adult women, by household income, February 2009 Teens Key points Usage and frequency Figure 37: Makeup usage among teens, by age, April 2007-June 2008 Figure 38: Blusher usage among teens, type and frequency, by age, April 2007-June 2008 Figure 39: Mascara usage among teens, type and frequency, by age, April 2007-June 2008 Figure 40: Eye shadow/eyeliner usage among teens, type and frequency, by age, April 2007-June 2008 Brand preferences Figure 41: Preferred brands for eye shadow/liner/pencil, by age, April 2007-June 2008 Figure 42: Lipstick/gloss usage among teens, type and frequency, by age, April 2007-June 2008 Figure 43: Preferred brands for lipstick/gloss, by age, April 2007-June 2008 Race/Hispanic Origin Overall usage Figure 44: Use of makeup among adult women, by race/Hispanic origin, July 2007-September 2008 Figure 45: Attitudes towards makeup among adult women, by race/Hispanic origin, February 2009 Figure 46: Attitudes towards makeup qualities among adult women, by race/Hispanic origin, February 2009 Figure 47: Attitudes towards economy relative to spending among adult women, by race/Hispanic origin, February 2009 Figure 48: Factors that most likely incite product trial, by race/Hispanic origin, February 2009 Figure 49: General attitudes towards makeup wear and usage among adult women, by race/Hispanic origin, February 2009 Appendix: Trade Associations
