A Focus on Added Value Helps the U.S. Cosmetics and Toiletries Market Rebound

PARSIPPANY, N.J., May 3, 2011 /PRNewswire/ -- Rising consumer confidence, aggressive promotional activity, and technological advances have propelled sales of cosmetics and toiletries in the United States by 2.4% to reach $36.5 billion in 2010 at the manufacturers' level, according to recently released data from Cosmetics & Toiletries USA 2010, a study by worldwide consulting and research firm Kline & Company. After experiencing a 0.8% decline in 2009, the current increase has brought sales to above pre-recession levels.

While the industry showed signs of recovery, consumers influenced by economic uncertainties continued to scrutinize their spending, shopped at venues with competitive pricing, and sought out products on sale. The increased willingness to spend was captivated primarily by offers which provided extra value. Skin care kits, priced more favorably than individual products, and multi-functional products were among the core trends of 2010.

All trade classes registered a certain level of growth in 2010. While the specialty trade class, which consists mainly of mall-based stores including Bath & Body Works and The Body Shop, posted the strongest gains, providing a good sign that consumers are back out and shopping again, the professional channel, encompassing salons, spas, and physician offices, registered the lowest overall increase of 1.9%.

As consumers continued to hold back from visits at professional beauty outlets, focus has shifted to achieving the best possible results at home. In the skin care segment, a host of products were introduced during the year that compared their results to those obtained at beauticians or a doctor's office. For example, at-home skin care devices used to treat fine lines and wrinkles, as well as tone and cleanse skin, have seen a significant growth in popularity. Kline is launching a new research study, At-home Skin Care Devices 2011: U.S. Market Analysis and Opportunities, to explore this fast-emerging trend. "This hunt for additional quality has been spearheaded by marketers' extensive innovation efforts," explains Carrie Mellage, director at Kline's Consumer Products Practice. "Advancements in skin care have included bioelectric technology to help stimulate the natural renewal process of the skin and DNA enhancement formulas found in power-serum products."

In 2010, skin care has remained the largest product class, accounting for 25% of total industry sales. Thanks to the emergence of high-tech facial treatment offerings, the product class has also remained one of the fastest growing segments. The industry front-runner was makeup, which registered a 4.4% growth. Lending a strong hand to the success of the makeup category was nail polishes, which was up by 20.4% in 2010 due to new product activity adapted to achieving at-home salon results and easy application.

Cosmetics & Toiletries USA 2010, a comprehensive annual survey, is considered the authoritative source of information on the U.S. consumer products industry. It contains information on market size, sales growth, channel breakdowns, trends, and forecasts for 27 major product categories; as well as detailed profiles of over 25 leading marketers.

About Kline

Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.

For more information, contact:
Vera Sandarova
Marketing Communications
+420-222-316-282
[email protected]

SOURCE Kline & Company

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