Product and Service
Companies included in personal care products sector in personal care industry primarily are manufacturers, marketers, and distributors of consumer packaged personal care products including beauty, grooming, health care, fabric and home care, and baby care categories.
Demand for Product and Service
As indicated by typical sales data, the demand from products of companies in this sector seems to be very strong and growing in the past several years benefited from fast growth in demand from developing market and stable demand from developed markets.
Sector’s Current, Trend, Causes behind trend, and Future
Current and Trend
The demand for personal and home care products has been stable and strong in the past three years as indicated by the increase in both sale volume and price from the typical companies’ data.
The strong demand comes both from developed markets and developing market while consumers are quite price sensitive in developing markets.
Continuing strong US dollar has hurt those US-based companies’ profitability since a large portion of their sales is coming from developing markets.
Unfavourable retail industry climate has been seem to impact smaller brands in the industry but not larger brands, which apparently are on better position in controlling distribution due to large market share and brand awareness.
Among the all categories of products in this industry, we have seen the fastest growth in oral products category.
Causes behind the trend
Demand for products in this sector should have been driven by factors such as the general economic development, especially in developing countries, favourable demographic changes, and growth in household income.
Slowing down store/mall traffic has influenced sales of companies in this sector that traditionally depend on more narrowed distribution and selling channels.
Those larger brands with larger market shares, which can diversify their selling channels, will benefit more from increasingly strong demand for personal and home care products.