In Brief: NPD On Cosmetic Shoppers; African Beauty Market; Avon’s FY 2014

The NPD Group says 4% fewer U.S. women, or 6 million less, shopped for beauty products in 2014, based on data captured in the market research firm’s Annual Beauty Consumer Economic Indicator. Global Beauty Industry Analyst Karen Grant attributes the decline to competing commodities – “and even experiences, such as vacations, entertainment and dining” – outside of beauty, which have become “just as important.” NPD notes “an important dichotomy” in that 50% of women say beauty products are the first thing they’d cut out of their budgets if necessary, while an equal proportion would continue to buy beauty items in tight economic times because they make them feel better about themselves. Similarly, nearly half of women surveyed shop for beauty products on sale, while price is not the key factor for the other half of respondents. According to the firm’s March 3 release, spending cuts in makeup and fragrance, seen as niceties for “special occasions,” occur 1.5 times as often as in skin care and hair care, but with an extra $100 in disposable income, most women would purchase makeup or fragrance products. Such findings “keep us, as an industry, on our toes,” Grant suggests, forecasting growth in 2015 for firms that can answer effectively.

Research and Markets forecasts that the beauty and personal-care market in Africa will grow at a compound annual growth rate of 8.24% from 2014 to 2019. In a Feb. 16 release, the market research firm cites demand in the region “for high-quality products at reasonable prices.” Africa’s middle class is driving the market’s growth, but consumers are very price-sensitive, which has led international firms to introduce cheaper lines of their existing products, Research and Markets says