UK Annual Forecasts: Health & Beauty 2010-2015

Introduction

We expect health & beauty to outperform during the downturn as consumers look for small treats to boost their spirits while real disposable income is under pressure. Retailers need to maximise this feelgood factor, not only in the product ranges they offer, but also in the service and experience offered instore.

Features and benefits

• Understand which categories within health & beauty will perform the best, using our expenditure forecasts to 2015
• Use our market share and channels of distribution to find out which retailers and channels pose the biggest threat
• Discover our comprehensive analysis of the key issues set to impact the health & beauty market over the next five years

Highlights

• 2011 will remain difficult. Though we expect health & beauty to be one of the more resilient sectors, the difficult economic climate will have an impact. Declining disposable incomes, combined with low consumer confidence, have put pressure on consumer spending and we expect this to continue throughout 2011.
• A growing older population means an increasing demand across many products including medicine, vitamins and skincare – for example anti-ageing products. These items should be well targeted at this age group through product design, instore information and marketing activities
• The huge range of products in the market makes it hard for retailers to make items stand out. Overcome this by offering free samples and recommending products to complement others

Your key questions answered

• Which channels have performed the best over the last five years, and which channels have seen their share of the market decline?
• What categories offer opportunities and which are going to be more difficult?

Table Of Contents

OVERVIEW
Summary
Methodology

EXECUTIVE SUMMARY
Introduction
Scope
Methodology
Principle Sources

MARKET SUMMARY
Further turbulence before recovery …
Economy has little impact on H&B;
Concerns over looks and product innovation will drive volumes;
Sales of men’s toiletries will continue to grow solidly;
High competition in every day products will keep prices low …
But inflation will be higher in premium products;
Internet becoming increasingly important as retailers take advantage of new opportunities for growth;
Specialists finding it more difficult.
Volumes will slowly increase as consumer confidence returns;
Growing population will drive volumes;
Ageing population profile will increase sales of vitamins and anti-ageing products;
Consumer concern will increase about chemicals contained in products – providing product development opportunities;
Inflation will be lower, but will remain;
Grocers will continue to take share from specialists;
Specialists will turn to new product areas to drive growth.

APPENDIX
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LIST OF TABLES

Table: Principle sources of data and information

LIST OF FIGURES

Figure: Verdict forecasting methodology