Canada’s cosmetics market was worth USD 11.51 billion in 2015 and is expected to grow to USD 15.79 billion by 2021 at a CAGR of 6.52% over the forecast period. The market exhibits relatively high purchasing power, a high penetration of almost all global brands, a lack of new markets, and a strong regulatory framework. While the market registered a decrease in revenues and sales after the 2008-2009 recession, sales have regained value. An up and coming market in this region is that of ethnic cosmetic products matching skin tones of African, Asian and South Asian skin tones.
Canada Cosmetics Products Market-Market Dynamics
The cosmetics industry remains more or less impervious to market ups and downs. Overall sales are indeed affected in the event of an economic downturn but one can count on sales of cosmetics to maintain a certain volume overall. This is because of the continuing and growing use of products by women, and increasingly by men across the world.
Some of the factors driving the market include:
- High disposable incomes
- An inclination to spend on appearance
- A large section of the world’s teens growing older and younger
- A union of skin-benefiting and beautifying aspects in new makeup products through research into use of natural products
- Continuing breakthrough research on products
There are, however, some factors restraining the market. These include:
- Tight purse strings
- Lack of unpenetrated and potential markets
- Falling value of Canadian dollar
- Insufficient research into the prevalent trend of organic products
- Inadequate regulation
Cosmetics can be subdivided by the areas of application. Cosmetics used on the face (and other parts of the body like foundation, glitter, etc.) include products like primer, foundation, concealer, face powder, bronzer/blusher, face contour creams, highlighter, and setting spray to help makeup stay put longer. Cosmetics used on the lips include lipsticks in matte or non-matte and other varieties, lipstains, colored lip balms, and lip glosses. Furthermore, the eye-area makeup items include kohl, eye liners, eyebrow pencils (and recently, fake eyebrows), fake eye lashes, mascara, and more. Another extension of cosmetics are nail colors. Aside from these products, there are ancillary industries for cosmetics supportive products like makeup brushes, beauty blenders, etc. The most popular trend is the blending of multiple benefits into one beautifying product. The result of this trend, originating in South Korea, is the BB (followed by CC, DD and EE) creams, which have the color correction properties of foundation, SPF benefits of sunscreen, and a multitude of other medical and natural benefits.
The predominant trends for cosmetics include multifunctional products and new colour palettes, increasing market share for ethnic products, and an increased preference for vegan, organic, and natural beauty products to mitigate harmful effects of pollution, sun, dust, and harmful ingredients typically a part of cosmetic products.
High disposable incomes are the reason for a high penetration of luxury brands like Dior, Guerlain, Clarins, Clinique, Lancôme, Estee Lauder, Shiseido, etc. Distribution is pervasive through exclusive stores of luxury products in malls or standalone, while e-commerce is emerging as a competitor to direct sales for all mass and premium brands. Direct sales for Avon continue to hold and grow market value. Customers are increasingly looking for value for money products that are natural and beneficial for the skin and provide benefits of high priced premium products at a lower than premium cost. This product class has been dubbed “masstige”.
Some of the key players mentioned in the report are:
- Avon Products, Inc.
- Beiersdorf AG
- L'Oreal Group
- Procter & Gamble
- The Estée Lauder Companies Inc.
What the Report Offers
- Market definition for Canada’s cosmetics products market along with the identification of key drivers and restraints for the market
- Market analysis for Canada’s cosmetics market with region-specific assessments and competition analysis on a regional scale
- Identification of factors instrumental in changing the market scenario, rising prospective opportunities and identification of key companies that can influence the market on a regional scale
- Extensively researched competitive landscape section with profiles of major companies along with their strategic initiatives and market share
- Identification and analysis of the macro and micro factors that affect Canada’s cosmetics market
- A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information
1.1 Study Deliverables
1.2 Study Assumptions
2. Research Methodology
3. Executive Summary
4. Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat from new entrants
4.3.4 Threat from substitute Products
4.3.5 Competitive rivalry within the industry
4.4 Industry Policies
5. Market Dynamics
5.1.1 Innovation in Packaging and Design
5.1.2 Aging population
5.1.3 Growth of E-Commerce
5.1.4 Increasing access to Middle-bottom segment of pyramid consumers
5.2.1 New medical technologies for beauty enhancements
5.2.2 Volatile Raw Material Prices
5.3.1 Growing Demand for Organic Products
6. Canada Cosmetics Market Segmentation
6.1 By Product Types
6.1.1 Hair care products
6.1.2 Skin care products
6.1.3 Oral care products
6.1.4 Make up & Color Cosmetics products
6.1.5 Fragrances & Deodorants
6.1.6 Soaps and shower gels
6.1.7 Sun care products
6.2 By Distribution Channel
6.2.1 Direct selling
6.2.2 Hypermarkets/ Retail Chains
6.2.4 Specialty stores
7. Vendor Market Share Analysis
8. Company Profiles
8.1 L’Oréal Group
8.2 Procter & Gamble
8.3 Beiersdorf AG
8.4 Avon Products, Inc.
8.6 The Estée Lauder Companies Inc.
8.8 Kao Corp.
8.9 Revlon Inc.
8.10 Mary Kay
8.11 Yves Rocher
8.12 Oriflame Cosmetics S.A
9. Investment Analysis
9.1 Recent Mergers & Acquisitions
9.2 Strategic Alliances
9.3 Investment Scenario
10. Future of Canada Cosmetic Products Market