Consumers across the globe are spending more of their hard-earned income than ever before on image and health enhancing products, according to a new report from Euromonitor International. Consumer goods industries are currently enjoying buoyant sales as consumers pay out a greater share of their free cash on products that will improve their image. The premium cosmetics and toiletries industry in particular is benefiting from this trend, with Euromonitor International reporting an increase in value sales of more than 45% over the last 6 years, as consumers develop ever-more sophisticated tastes.
Consumers are now choosing to spend their extra income on products with health-enhancing qualities, largely at the expense of items previously considered to be essential. Euromonitor International predicts that the global spend on discretionary products will reach $3.1 trillion by 2020. The average American consumer will have approximately $280 to spend on these items per week, compared to $200 in 2002, an increase of 40%.
Increased consumer spending on discretionary items, particularly those related to beauty, health and wellness, is the result of economic factors and rising health consciousness. Primarily, an increase in credit levels has led to the development of a consumer with less-cautious spending behavior; benefiting economies, retailers, manufacturers and service providers alike. This in turn, has led to a rise in disposable incomes, enabling more consumers to acquire the purchasing-power to decide what they spend their money on.