"Premium beauty growth reached historic highs—6%—in 2015, supported by a growing shift toward higher-quality and more personalized solutions," noted a recent Euromonitor analysis published by Global Cosmetic Industry. "Consumers are reassessing their values and priorities and are increasingly focusing on experience over ownership."
Now, Euromonitor's 2016 Beauty Survey adds new details about the emerging premium beauty consumer.
1. What "Premium" Means
Generation X and Y make up the largest portion of the premium segment, which features more extensive beauty routines, greater digital engagement, higher demand for results, and an interest in natural ingredients and ethical hair, skin and cosmetics brands.
The new report notes, "For instance, in China and South Korea over 50% of premium buyers have ‘extensive’ beauty routines, while in countries such as France, Germany and the United Kingdom, premium buyers tend to be ‘moderate’ users; products should be tailored to their respective routines."
2. Green Drives Purchases
Green features (natural, plant-derived and free-from claims) trump brand names in terms of purchase motivators, according to Euromonitor. Premium segment consumers are more likely to be associated with green beauty, with 60% of green buyers willing to pay a premium for green brands.
Euromonitor notes, "'all natural' product claims matter to 50% or more of green-minded buyers in all markets, while other green features, like water efficiency, 100% organic, or botanically-derived ingredients, exhibit regional appeal even to buyers who prioritize green product features.'"
3. Evolving Needs
Unsurprisingly, consumers' needs change throughout their lives. While most consumers are seeking scalp care from hair care products, younger consumers focus on anti-dandruff and damage control products. Consumers of all ages are interested in products that prevent hair loss, Euromonitor concluded.