Product Diversity spurs cosmetics label growth
Demand for cosmetics and personal care products in general is flourishing, producing great opportunities for suppliers of all labelling products.
One of the driving forces behind this growth is the continual dynamism in the diversity of products in the end-user market, reports a new study by Frost £ Sullivan, the international marketing consulting company.
‘The cosmetics and personal care packaging market still displays significant potential for growth, ‘ says Dr Angela Gunning, research manager at Frost & Sullivan.
Overall, the market for cosmetics and personal care packaging is a mature one, though by no means stagnant, and revenue growth is expected to rise from US$1.74 billion in 1998 to US$2.10 billion by the end of the study period in 2005, mainly fuelled by the progressive diversity of products. Frost & Sullivan’s research comprises all those containers that are used for the primary packaging of products within the area of cosmetics and personal care.
Dr Gunning continues: ‘The increasing variety of products is tied to the rising diversity of the product’ packaging. This triggers the growing need for more flexible production. Due to technological advancements, demands for enhanced flexibility are gradually being met. With a wider range of product designs, it is necessary for machinery to be capable of a larger number of shorter production runs.’
Further factors stimulating growth in the European cosmetics and personal care packaging market include the buoyancy of the age range of the target end-user market and the improvement of the recycling potential of all packaging types.
In its review of product markets, Frost & Sullivan’s study confirms the dominance of the plastic bottles sector, accounting for the largest share of all the container types in the cosmetics and personal care packaging market in terms of both volume and revenues. Boosted by the general shift in the market away from glass, the anticipated growth of the male grooming sector and the growing recyclability of plastic bottles, this market is predicted to retain its leading position up to the end of the forecast period.
The growing preference for plastic over glass, recyclability of plastic and the overall rise in the diversity of end-user products have catapulted the plastic jars market into second place. This market has been showing positive growth in recent years and this trend is expected to continue. Meanwhile, awareness of environmental issues, coupled with the development of new market segments for tubes, coupled with the growth experienced in the market for laminate tubes, are expected to contribute to the continued successful performance of the cosmetics and personal care tubes product sector.
The largest producers of containers for the cosmetics and personal care market in terms of national markets are France and Germany, followed by Italy and the United Kingdom. Containers in the cosmetics and personal care market are increasingly customised and ‘made-to-order’, and there is a real desire for ‘uniqueness’ in the packaging of cosmetics and personal care products, Frost & Sullivan’s study concludes.