Cosmetics & toiletries maker kline declares high five year growth
30 Aug '06
3 min read
Last year the US cosmetics and toiletries industry experienced the highest level of growth in five years, indicating renewed vigor in an industry that had been lagging since 2001.
Consumers are gravitating toward premium products, especially those with anti-aging properties. These trends likely signal a reversal of fortune for the industry's biggest players, according to a recently published market study by Kline & Company.
“Innovation has captured increased interest in categories that had been flat or declining for almost a decade,” says Carrie Mellage, industry manager for the Consumer Products practice of Kline's Research division. “Products with a new twist, like Jergens Natural Glow, show how innovation can turn a category around. It appears the industry has reached the tipping point and is back to business as usual.”
Mellage points to a focus on mega-brands as another strategy that has generated interest and excitement as some marketers have extended the equity of their most successful brands into new product categories. In 2005, Dove launched a line of hair styling products, while Axe successfully added shower gel to its product portfolio.
The line between premium and mass-market brands continues to blur. The addition of anti-aging properties has increased the appeal of many products to baby boomers, and mass-market brands are offering added value and upscale packaging, moving those products into a premium-pricing category and pushing sales numbers upward.