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New Insights Into Under-Targeted Age Groups In Health And Beauty

The Individualism consumer trend influences a greater value share of Early Young Adults' Health and Beauty consumption than for any other adult age group. Targeting this desire for self-expression doesn't mean appealing to the most image-driven cultural groups; the majority of Early Young Adults simply want a product that is a little bit different from the norm. Early Young Adults live in a marketing-saturated environment; therefore, products with some unique aspect to them, such as limited editions, will appeal to them.

Many Older Consumers feel ignored by advertising, which is often targeted at young adults, and new products that fail to recognize their complex need states. Most marketing directed at Older Consumers is ineffectual and this age group is undervalued overall. However, Older Consumers' already substantial effect on Health and Beauty markets is only going to increase, both in the Non-BRIC region and in China and Russia. Brands such as MAC Cosmetics have launched campaigns featuring older women, yet this remains a youth-focused brand responding to the significant numbers of Older Consumers who also happen to use MAC products, rather than a concerted effort to target mature consumers on a par with the resources used to reach the 18-34 demographic.

Targeting age-related needs is vital among the youngest and oldest consumers in Brazilian Health and Beauty markets. Trust is also an important issue for Mid-Lifers and Older Consumers; amid Brazil's rapid industrialization, these consumers need to be assured that the products they use have been made using trustworthy production processes.

Table of Contents

1 Executive Summary2 Industry Dynamics2.1 Definitions2.1.1 Market coverage definitions2.1.2 Age Group Definitions2.1.3 Defining consumer trends2.1.4 Volume units and aggregation2.2 Key Growth Markets of the Future2.2.1 Skincare and Make-up offer the greatest absolute growth in the future2.2.2 The next five years will see average consumer spending increase2.2.3 Brazil is a key opportunity, as is Skincare in Europe2.2.4 Young consumers are key in BRIC, but Older Consumers shouldn't be forgotten about either2.2.5 Non-BRIC Older Consumers are being under-served in Make-up3 Key Issues: Aging, Demographics and Recession3.1 Fear of Aging drives Health and Beauty consumption3.1.1 Introduction3.1.2 In Skincare, offering prevention is better than cure3.1.3 Opportunities still exist to extend the anti-aging concept to other markets3.1.4 Mid-Lifers and Older Consumers aren't looking for Anti-aging Haircare, but do have age-related needs3.2 The importance of demographics as a driver of BRIC markets should not be under-estimated3.2.1 Population time bombs exist in China and Russia3.2.2 Targeting under-consuming Older Consumers is a fundamental long term strategy in China3.2.3 Declining population size will limit future growth in Russia3.3 Marketers must provide Better Value for Money in the Non-BRIC Region3.3.1 The recession meant women moved the salon into the house3.3.2 Consumers in the Non-BRIC region will still pay premium prices for quality products3.3.3 Small affordable treats allow consumers to indulge4 Improving the Effective Targeting of Age Groups4.1 Kids and Babies, and Tweens and Early Teens4.1.1 Brazil and India are the key youth markets to target4.1.2 Young consumers want products designed to meet age-specific needs4.1.3 Sophisticated Tweens and Early Teens want "mature" products, but parents must be convinced first4.1.4 Tweens and Early Teens have limited spending power4.2 Early Young Adults4.2.1 China and India are the key Early Young Adults markets to target4.2.2 Early Young Adults want products made for their gender at a good price4.2.3 Products must meet Early Young Adults' individual needs4.2.4 Fun and novelty is appealing to Early Young Adults4.3 Older Young Adults4.3.1 China and India are the key Older Young Adult markets to target4.3.2 Unique products, at the right price, are important for Older Young Adults4.3.3 Older Young Adults have an evolving notion of value for money4.3.4 Older Young Adult Men want their own Skincare products4.4 Pre-Mid-Lifers4.4.1 China is the key Pre-Mid-Lifer market to target4.4.2 Consumer Trends are relatively weak among Pre-Mid-Lifers4.4.3 Private Labels offer Better Value for Money to Pre-Mid-Lifers in the Non-BRIC region4.5 Mid-Lifers4.5.1 Russia is the key Mid-Lifer market to target4.5.2 Beauty is still a pressing concern among Mid-Lifers4.5.3 Mid-lifers fear aging4.5.4 Mid-life men want to look good for their age too4.6 Older Consumers4.6.1 Older Consumers are a key, and often overlooked, market in Europe4.6.2 Products targeting Older Consumers must meet age-specific needs, without alienating this group4.6.3 Older Consumers are the forgotten consumers5 Country Profiles5.1 Key Features of Health and Beauty Markets by Country5.2 Brazil5.3 China5.4 France5.5 Germany5.6 India5.7 Italy5.8 Russia5.9 Spain5.1 UK5.11 US6 Appendix6.1 Supplementary Data for Figure 4: The lower the per capita consumption, the faster the market will grow6.2 Supplementary Data for Figure 5: Fragrances, Make-up, Skincare and Suncare in BRIC are youth-oriented markets6.3 Supplementary Data for Figure 6: Over 45s use almost half of the volume of Make-up and Oral Hygiene products in the Non-BRIC region6.4 Survey Methodology6.5 Definitions6.5.1 Consumer Trends Framework6.5.2 Country Coverage and Region Definition6.5.3 Volume Units and Aggregations6.6 About Canadean6.7 Disclaimer

List of Tables

Table 1: Age Group Definitions 11Table 2: Growth by Market (%), 2006-2016, and Market Value (US$ Million), 2011 13Table 3: Growth (%) by Country: Market Value and Population, 2011-2016 15Table 4: Volume Share Influenced by the Changing Age Structures Consumer Trend in the Shampoo and Conditioner Categories (%), 2011 23Table 5: Rank (Out of 20) of Selected Consumer Trends Among Mid-Lifers and Older Consumers in the Shampoo and Conditioner Categories, 2011 23Table 6: Top Three Consumer Trends (out of 20) among Older Consumers in China by Value Share Influenced (%), 2011 27Table 7: Top Three Consumer Trends (out of 20) among Older Consumers in Russia 28Table 8: Volume Share Influenced by the Personal Space and Time Consumer Trend in Hair Colorants (%), 2011 29Table 9: Volume Share Driven by the Indulgence Consumer Trend among Females in Selected Markets (%) and Rank (out of 20), 2011 31Table 10: Health and Beauty Marketers 2011-2016 Value CAGR (%) and Kids and Babies' Value Share (%) and Population (million) 34Table 11: Health and Beauty Markets' 2011-2016 Value CAGR (%) and Tweens and Early Teens Value Share (%) and Population (million) 35Table 12: Health and Beauty Markets' 2011-2016 Value CAGR (%) and Early Young Adults' Value Share (%) and Population (million) 40Table 13: Value Share Influenced by the Individualism Consumer Trend (%), 2011 41Table 14: Health and Beauty Markets' 2011-2016 Value CAGR (%) and Older Young Adults' Value Share (%) and Population (million) 44Table 15: Median Weekly Earnings in the US by Age Group (US$), Q2 2012 46Table 16: Top Three Consumer Trends in the Male Older Young Adults Skincare Market by Volume Influenced (%), 2011 47Table 17: Health and Beauty Markets' 2011-2016 Value CAGR (%) and Pre-Mid-Lifers' Value Share (%) and Population (million) 49Table 18: Categories with the Ten Highest and Lowest Private Label Volume Shares for Pre-Mid-Lifers in the Non-BRIC region (%), 2011 51Table 19: Health and Beauty Markets' 2011-2016 Value CAGR (%) and Mid-Lifers' Value Share (%) and Population (million) 53Table 20: Rank of Selected Trends in Skincare for Mid-Lifers, Men vs. Women 57Table 21: Health and Beauty Marketers 2011-2016 Value CAGR (%) and Older Consumers' Value Share (%) and Population (million) 58Table 22: Volume Share of Make-up Categories accounted for by Older Consumers in the Non-BRIC Region (%), 2011 60Table 23: Leading Two Consumer Trends (out of 20) among Older Consumers in Make-up Categories by Volume Influenced, 2011 60Table 24: Health and Beauty Market Value Growth (%), 2011-2016, and 2011 Per Capita Consumption (US$) 72Table 25: Market Value Share by Age Group in the BRIC Region (%), 2011 75Table 26: Market Value Share by Age Group in the Non-BRIC Region (%), 2011 75Table 27: Consumer Trends Framework 77Table 28: Country Coverage and Region Definition 78Table 29: Health and Beauty Volume Units 79

List of Figures

Figure 1: Extending anti-aging beyond Skincare increases the market value this concept can target 9Figure 2: Skincare and Make-up to record the largest absolute growth during 2011-2016 13Figure 3: China and Russia's Health and Beauty markets will record rapid value growth despite limited population growth 14Figure 4: The lower the per capita consumption, the faster the market will grow 16Figure 5: Fragrances, Make-up, Skincare, and Suncare in BRIC are youth-oriented markets 17Figure 6: Over 45s use almost half of the volume of Make-up and Oral Hygiene products in the Non-BRIC region 18Figure 7: Strong potential exists for preventative anti-aging Skincare products among Young Adults 20Figure 8: Skincare brands such as Estée Lauder are targeting demand for "preventative" anti-aging products 21Figure 9: Extending anti-aging beyond Skincare increases the market value this concept can target 22Figure 10: Targeting solutions, not ages, in Haircare 24Figure 11: Marketers must take into account population time bombs in China and Russia 25Figure 12: The value shares of China's Health and Beauty markets accounted for by Older Consumers are lower than their share of the population, especially for Beauty products 26Figure 13: Russian Older Consumers are key users of Oral Hygiene products and Fragrances 28Figure 14: Salon-style hair-dye for Mid-Lifers 30Figure 15: Online commerce sites such as Etsy provide a platform for niche and craft manufacturers to find a large audience in Health and Beauty 31Figure 16: The Body Shop's indulgent positioning meant growth in sales during 2010 and 2011 as consumers fatigued by austerity looked to treat themselves 32Figure 17: Despite economic problems in the countries in which it operates, the Body Shop recognizes that consumers still want to pamper themselves 32Figure 18: Brazil and India are the key Kids and Babies markets to target 33Figure 19: Brazil and India are the key Tweens and Early Teens markets to target 35Figure 20: Meeting age-related needs with quality products is vital for Kids and Babies 36Figure 21: Tweens and Early Teens look for products which meet age and gender needs 37Figure 22: GeoGirl targets the sophisticated Tween and Early Teen Market, but much of its focus is on convincing parents that their cosmetics are age-appropriate 38Figure 23: China and India are the key Early Young Adult markets to target 39Figure 24: Gender-specific products at good value key to targeting Early Young Adults 41Figure 25: Limited edition Dry Shampoo 42Figure 26: Ranging from off-beat to risqué, Benefit cosmetics advertising emphasizes the fun of the brand 42Figure 27: China and India are the key Older Young Adult markets to target 43Figure 28: Older Young Adults will trade up, if the quality is right 45Figure 29: Increased income means Older Young Adults begin to look more for quality, not quantity 46Figure 30: Older Young Adult men do not use Skincare products as often as women 47Figure 31: Bulldog uses shaving as a starting point to get men to diversify the Skincare products they use 48Figure 32: China the key Pre-Mid-Lifer market to target 48Figure 33: Pre-Mid-Lifers want value for money in functional Health and Beauty markets 50Figure 34: Private label consumption increases with age in the Non-BRIC region 51Figure 35: Russia the key Mid-Lifer market to target 52Figure 36: Mid-Lifers want to look good for their age, but at the right price 54Figure 37: Revlon extends the anti-aging concept to Make-up and includes SPF protection to combat a known cause of premature aging 55Figure 38: Mid-Life males use the fewest Health and Beauty products by volume (Liters categories only) 56Figure 39: L'Oréal use unusual spokesmen such as Hugh Laurie and Eric Cantona to assure Mid-Life men that Skincare products are for them 57Figure 40: Older Consumers will drive Health and Beauty markets in Europe, yet they're often under-valued 58Figure 41: Value-driven Older Consumers want products to "cure" the effects of aging 59Figure 42: MAC's Beauty Icons Campaigns have featured increasingly older women 60Figure 43: Key Features of Health and Beauty Markets in Brazil by Age Group 62Figure 44: Key Features of Health and Beauty Markets in China by Age Group 63Figure 45: Key Features of Health and Beauty Markets in France by Age Group 64Figure 46: Key Features of Health and Beauty Markets in Germany by Age Group 65Figure 47: Key Features of Health and Beauty Markets in India by Age Group 66Figure 48: Key Features of Health and Beauty Markets in Italy by Age Group 67Figure 49: Key Features of Health and Beauty Markets in Russia by Age Group 68Figure 50: Key Features of Health and Beauty Markets in Spain by Age Group 69Figure 51: Key Features of Health and Beauty Markets in the UK by Age Group 70Figure 52: Key Features of Health and Beauty Markets in the US by Age Group 71

Figure 53: Issue Report Methodology 76

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