An estimated 928 million units of skincare products were sold on the European market in 2010. Growth in volume sales has come from a widening of the consumer base, particularly with the reunification of Germany to include the East German Lander, and an increase in multiple purchase. By 2014, the European skincare market will be worth an estimated $9 billion, increasing by 24 per cent in value terms. Frost & Sullivan says: "The increasingly sophisticated formulations used in the manufacture of skincare products have met with positive consumer reaction overall and suggest that, with continued technological innovation, growth can be sustained into the next century."
Unsurprisingly, the largest European market for skincare is France, with a 31 per cent share of the total expenditure in 2010. Germany ranks as the second largest spending nation with a 27 percent share in 2010, followed by Italy, accounting for 15 percent of the market. By far the largest share of European skincare sales is accounted for by facial skincare products with a 62 percent value share in 2010, an estimated $4.4 billion and forecast to reach $5.7 billion by the end of the study period in 2014. Growth rates will be relatively buoyant due to consumer demand for specialist treatment products. The rise in share of the population accounted for by the over 50s will ensure increased demand for anti-ageing ranges in particular.
The second largest segment of expenditure in the European skincare market is represented by bodycare lines with a 21 percent share, an estimated $1.5 billion, predicted to reach $1.8 billion by 2104. Growth will be fuelled by the increased demand for body-specific products and consumer interest in looking good, particularly from the over 40 age group.
According to the report, expenditure in suncare products is the third largest portion of sales, with a 12 percent share in 2010, estimated at $486 million and expected to rise to $1.1 billion by 2014. This is fuelled by a widening of the consumer base and more market segmentation.
The market in Europe is now largely dominated by a handful of large international suppliers, mostly European and American. Japanese suppliers have a limited presence in Europe, although it is believed that this will change over the next decade. But there is a number of smaller indigenous suppliers with key shares on home markets, such as Manetti & Roberts in Italy, Antonio Puig in Spain, and Boots in the UK.
The report continues: "The skincare market is characterised by the polarisation between selective and mass market suppliers. National markets, in particular France, Italy and Spain, are very clearly mapped out in terms of distribution structure which clearly delineates the premium or mass structure of the product and the brand."