Essay about U.s. Personal Care And Cosmetics Market

1056 Words Feb 1st, 2015 null Page
The U.S. personal care and cosmetics market represents enormous opportunity. According to industry marketing consulting firm, The Beauty Company (2012), the industry surpassed pre-recession sales levels to grow to over $38 billion in 2011. Some additional facts the firm notes about the market:
• The average U.S. consumer spent $616 on personal care in 2008
• Women aged 16-65 shop for beauty products 5 times per year on average, spending an average of $43 each time.
• Households earning $75K+ per year increased their spending on personal care products between 2008 and 2010
• 20% of U.S. households earn $100K+ per year, but this represents 70% of U.S. consumer wealth
• “Prestige” beauty products (vs. “mass” products) sales grew by 11% in 2011
The personal care/beauty industry is broken down by market segment as follows:
• Hair Care: 20%
• Facial Skin Care: 27%
• Fragrance: 10%
• Make-up: 20%
• Personal Care: 23%
This translates to nearly $8 billion per year spent on personal care items including soaps, lotions, body creams, etc.
According to another industry report, 93% of all women would be willing to try a beauty brand if it earned the USDA Organic seal, noting that they felt it would be better for their skin and they would rather use products that did not contain harsh chemicals (Falk, 2008).
The Uncommon Ground product line will be made of primarily organic ingredients, and will attract customers who would most likely fall into the “LOHAS” and “Naturalite” categories, as…

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