* The global population is becoming older
The longevity revolution of the 20th century has increased lifespans and as a result, the global population is becoming older, especially in developed countries. In Western Europe over 40% of the population was over the age of 40 in 2007. * Increased wealth in emerging markets
Emerging markets such as Brazil, Russia, India & China have shown exceptional economic growth in past years. This growth has led to more people moving from poverty to the middle class. This expanding middle class now has more money to spend. This increase in spending can be noticed in the sector of cosmetics for instance. Here are some figures of the growth of skin care in the emerging market: * Latin America: 102% growth from 2002 to 2007 to reach $5.5bln USD in 2007 * Eastern Europe: 97% growth from 2002 to 2007 to reach $3.9bln USD in 2007 * Russia: 106% growth from 2002 to 2007 to reach $1.6bln USD in 2007 * China: 106% growth from 2002 to 2007 to reach $5.3bln USD in 2007
* Pursuit of agelessness
People are taking better care of themselves and they are feeling younger than what their real age is. They want their appearance to reflect their youthfulness.
* Technological Advances
Today, many consumers are willing to pay much higher for cosmetics claims other benefits such as being organic in addition to skin firming and wrinkle reduction.
* Massive awareness of health and wellness
There is a huge increase in people’s awareness of how to treat their bodies properly.
* Increased interest in environmentally friendly products The interest in natural and organic products is a global phenomenon. Today a cosmetics company that doesn’t at least offer organic products would have to work hard on its image to remain a real competitor on the market.
* New consumers – Men & Teenagers
Cosmetics are no longer restricted to female consumers. We can see today the rise of interest in cosmetic products coming from men and teenagers as well.
Laws and regulation have a significant impact on the industry. The regulations come from consumers...