Should Beauty Companies Focus More On Men’s Personal Care?
While beauty companies generally focus more on women for business, is it the right time to focus on men, too? A recent report by Allied Market Research forecast that the global personal care market size for men would reach around $166 billion with a CAGR of 5.4% between 2016 to 2022. Men’s personal care industry is seeing a growth with the rise in disposable income and a change in lifestyle. Also, with the increasing awareness of the gender fluidity concepts, beauty products are no longer solely a woman’s domain. Along with this the boost of the online retail channels, more awareness about personal grooming, and health consciousness has all given rise to this segment. According to the report, the biggest market for men’s products is currently North America with 2015 revenues of $36 billion. However, Asia Pacific accounted for the highest growth rate for the overall market with the primary contributors being India and China. Also, among the various categories in men’s personal care such skincare, haircare, oral care, shaving products, personal cleanliness etc, the biggest market share was occupied by skincare in 2015, and the market is expected to grow at a CAGR of 4.5% from 2016 to 2022. However, the highest growing segment was the oral care segment.
Currently L’Oreal and Estee Lauder occupy close to 18% of the skincare market as per our estimate. It is forecast to reach around 21% by the end of our forecast period.
The report suggests that acquisitions are a key way to grow in the men’s personal care market by the existing players. Both L’Oreal and Estee Lauder have been active in the acquisitions area over the recent past. In fact, just last week Estee Lauder agreed to acquire Becca Cosmetics. We can expect more acquisitions by these large companies in companies which deal with men’s care products in the future.
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