Most Popular in:
Euromonitor International Report: A Shift in Focus
By: Carrie Lennard, Euromonitor International
Posted: April 6, 2010, from the April 2010 issue of GCI Magazine.
page 4 of 4
The market for halal beauty products is currently in its infancy, but the development of a global standard for halal cosmetics is currently underway. International Halal Integrity Alliance (IHI Alliance) is currently working on the standard, which is set for publication in summer 2010 and should help to drive sales of cosmetics in devout Muslim countries. In 2008, female per capita spend on color cosmetics was just $21 per year in Saudi Arabia, compared with $57 in the U.S., despite the two countries having similar disposable income levels. A globally recognized standard should help to instill more consumer confidence when buying halal products, and develop the currently very low penetration of color cosmetics in the Middle East and Africa.
Shift in Long-term Global Beauty Growth Drivers
The new interest in budget makeup brands in developed markets means that the current change in focus from premium to masstige and mass cosmetics could be a long-term trend if private label products are deemed by women to perform well.
As luxury cosmetics players have to adjust to the new mind-set of lower spending in the West, emerging regions—the BRIC nations, in particular—will be an increasingly attractive focus for brand owners. Rising disposable income levels and resultant growing interest in color cosmetics in these markets will be key growth drivers for the industry through 2013. Brands that should perform best in the long-term will be those with the ability to connect with untapped consumer segments and countries.
Carrie Lennard is a research analyst at Euromonitor International.