On the occasion of In-Cosmetics 2012, Euromonitor International presented the latest research on global trends in the beauty and personal care (BPC) industry. The market research company highlighted four elements re-shaping the beauty landscape and gave their predictions for the beauty industry over the next five years.

According to Irina Barbalova, Euromonitor’s global head of beauty and personal care research, the cosmetics industry, which saw 5 percent overall global growth, is continuing its upward mainly due to the strong performance of premium market products. Indeed, premium cosmetics outperformed mass cosmetics across Western Europe, North America and Asia Pacific in 2011, with 4.7 percent growth, despite some exceptions in big mature markets, in particular in Japan.

The resilience of the BPC industry and the rise of premium products over mass products illustrate one of these global shifts we witnessed last year,” said Ms Barbalova.

4 ways the face of the beauty industry is changing

In the context of lower consumer budgets, cosmetics brands explore new ways to attract consumers.

Actually, Euromonitor’s latest research shows that leading BPC companies are seeing growth in emerging markets, but the recession in western markets is challenging their business model, leading them to re-consider their approach to retail, mergers and acquisition, innovation and new products positioning in order to remain successful and relevant.

We see more leading BPC companies engaging in, for example, streamlined commitment to sustainability, as they see themselves taking on a broader role of improving consumer lives” added Oru Mohiuddin, Euromonitor’s senior personal care company analyst.

According to Euromonitor, the four key elements that successful BPC companies are rethinking to succeed in a contrasted global market include driving sales with mergers and acquisitions, looking at an holistic product positioning to cater the needs of consumers (BB creams being the epitome of this holistic and multifunctional approach), capitalizing on high-tech claims and exploring new retail concepts to combat an increasingly competitive retail environment, including the increasing importance of the internet retail channel.

Companies will continue to build a flexible product portfolio to respond to differing consumer needs. One objective will be to introduce products from emerging markets to western markets while driving growth in western markets through high-tech innovations and more sophisticated product offerings,” said Oru Mohiuddin.

Eventually, according to Euromonitor, during the next years, sales in emerging markets should overcome those in mature markets, the year 2012 marking the transition.