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:
There are, however, some factors restraining the market. These include:
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:
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