Global hair styling market to reach US$28 billion; over 10 per cent of Australian women use Buy Now, Pay Later services; South Korea's top 5 duty-free companies reach record sales of US$8.25 billion in first half; and natural fragrance trend to push floral extracts market to US$2.3 billion.
Global hair styling market to reach US$28 billion
Shampoo and conditioner account for the lion's share of the global haircare market. But hair styling products, including hair spray, styling creams and waxes, represent 13 per cent of worldwide sales. Trend-conscious younger generations and explosive online sales have produced a major surge in the global hair styling market, reports Future Market Insights, which are on track to reach estimated sales of US$ 28 billion by 2027.
Europe has the largest regional market share in the sector, accounting for 20 per cent of global sales, says the US data tracker, but China and emerging markets in Asia have also become hot spots. Gen Zers and Millennials are the most important demographic for hair styling products, following increased demand for hair colouring, strengthening and perming. Organic products will also continue to gain traction as technologies improve.
Over 10 per cent of Australian women use Buy Now, Pay Later services
The beauty industry has benefited hugely from the introduction of Buy Now, Pay Later (BNPL) services, especially in prestige sales. According to the latest report from Roy Morgan Research, over one-in-10 Australian women (11.6%) have used the major BNPL services – Afterpay, Zip Pay and Zip Money – over the past 12 months. By contrast, only 5.5 per cent of Aussie men have done so.
Afterpay is far and away the market leader in the BNPL category and is valued at AUD$8 billion. A quick look at Afterpay's social media platform of choice, Instagram, shows a heavy emphasis on female-focused content and products aimed at young women aged 14 to 34, notably fashion and beauty. According to Michele Levine, CEO, Roy Morgan, the researcher's analysis of time spent on social media platforms confirms that the heaviest users of Instagram are young women.
South Korea's top 5 duty-free companies reach record sales of US$8.25 billion in first half
The big two of the South Korean duty-free industry – Lotte and Shilla – are also ranked number two and three in the world. Lotte acquired JR/Duty Free in Australia and New Zealand last year, the first major Asian player to enter the Oceania market, with the ambition to be the leading operator in the region by 2023.
Lotte is targeting sales of AUD$200 million in its first year of operation in Australia and New Zealand. But its home market is booming, thanks to new outlets and the continuing high spending habits of Chinese shoppers. South Korea's top five duty-free shoppers, led by Lotte, Shilla and third-ranked Shinsegae, posted record sales of US$8.25 billion in the first half of the year.
Lotte pulled in sales of US$3.75 billion, followed by Shilla at US$2.51 billion and Shinsegae at US$1.77 billion. Beauty continues to be a major driver of growth with overall sales of duty-free cosmetics surging 45 per cent in the first quarter to US$2.97 billion. Analysts predict that the South Korean duty-free industry will reach record-breaking sales of US$16.95 billion by the end of this calendar year.
Natural fragrance trend to push floral extracts market to US$2.3 billion
The giants of the fragrance and flavouring industry have been strengthening their chops in the natural fragrance, essential oils and medical categories. Givaudan, the world's largest company in the sector, has been on a recent spending spree, acquiring the UK's Fragrance Oils and France's Albert Vieille and Expressions Parfumees. IFF, another major player, owns LMR Naturals, who now produce over 90 vegan-certified extracts, including geranium heart oil and rose essential.
Floral extracts are on a roll, reports Future Market Insights, as more and more consumers embrace clean, green and organic fragrances and beauty products. According to the market researcher, the global floral extracts market is expected to reach US$2.3 billion by the end of this year.
Floral essential oils are the hero for their appeal in premium and prestige fragrances. Floral extracts are also in demand in medicines and as colourants. But skincare and well-being products are also fuelling revenues. In the UK, for example, sales of premium lavender-based products increased by 552 per cent in the first quarter of the year. Rose-based beauty products increased revenues by 6 per cent and lemongrass-infused SKUs rose 5 per cent, reports the NPD Group.
Snippets from the Wires
- Markwins Beauty Brands, the US owner of Physicians Formula, Bonne Bell and Lip Smacker, bought the LORAC makeup brand last year. Founded by Carol Shaw in 1995, it was one of many professional makeup artists brands that hit the market in the 80s and 90s, including M.A.C and Bobbi Brown. The emphasis had shifted from being a pro brand, but with the success of new generation professional brands such as NYX Cosmetics, Markwins is taking LORAC global. First stops – Canada and China.
- The launch of a new CBD (cannabidiol) infused skincare range has almost become a weekly event in the US and Europe. According to Grand View Research, the global market for CBD skincare is expected to reach US$1.7 billion over the next five years.
- Puig has been expanding rapidly in South America. Earlier this year, the Spanish fragrance and fashion heavyweight, bought a minority share in Loto del Sur, the prestige Colombian beauty retails. Emerging markets account for 41 per cent of Puig's global sales and the company has partnered with Argentinian fashion house, Rapsodia, to launch the label's first fragrance – a woody/floral called Indie.
- Shiseido-owned NARS has been enjoying spectacular growth over the past year, particularly in travel retail. To celebrate its 25th anniversary, the brand has launched its first fragrance – Audacious. The key notes of the smoky floral include frangipani, tiare flower, incense, ylang-ylang and white musk.
