Male Grooming Habits Key Driver Of Growth In Personal Care Products.

An increased interest in appearance, hygiene and grooming on the part of today’s males has contributed to the growth in Personal Care categories around the world, according to a study released by ACNielsen.

The study — What’s Hot Around the Globe: Insights on Growth in Personal Care — analyzed retail purchases in 56 countries across nearly 60 categories and found many examples of this trend. For instance, the sales value of Shower Gels, one of the fastest growing personal care categories worldwide, grew by 7% in 2003, primarily on the strength of sales in male-oriented products.

“Women aren’t the only ones focused on personal grooming,” said Jane Perrin, ACNielsen Managing Director of Global Services and sponsor of the study. “In many of the countries we studied, the growth in Personal Care categories was impacted by the introduction of new male-oriented products. In the UK, for example, the Shower Gel category grew by only 4% last year, but the male segment grew by 18%.”

Two other categories — Deodorants and Razors & Blades — are also benefiting from men?s newfound attention to appearance, Perrin pointed out.

The Deodorants category grew by 5% overall, with 35 of the 50 countries studied by ACNielsen reporting increases. Sales of male-oriented products grew twice as fast as those of female-oriented products (See Table 1).

A number of manufacturers are trying to capitalize on the growing interest in personal grooming among males. Procter & Gamble, for example, announced in March an exclusive licensing agreement with OT OverTime to market a line of Personal Care products developed for tweens and teenage boys. Unilever’s male-focused brand Axe, now available in more than 58 countries, saw its product line expand from a body spray to a roll-on deodorant, a shower gel, a pre-shave and post-shave product and a hair gel, outperforming Unilever?s own sales targets within a year of its 2002 launch in North America. Gillette’s recent introduction of the M3 Power system is another example of a new product targeted to the fast-growing male grooming market, leveraging technological innovations in the Razors & Blades category.

Aging Consumers Try to Turn Back the Clock

The ACNielsen study also found the trend toward older populations is affecting purchases in the Personal Care arena.

“With the Baby Boomer segment getting older and continuing to influence the consumer marketplace, sales of anti-aging products are growing. Face & Eye Moisturizers grew by 10% with the introduction of creams that do everything from reducing wrinkles and minimizing dark circles to lightening age-spots,” Perrin said. “We also saw 48% growth in products that remove stains from your teeth and whiten your smile.”

Another age-related category that experienced growth was Adult Incontinence Pads/Pants, which was up 4% globally. Latin America saw the fastest growth ? 6% ? in this category, reflecting the region’s rapidly aging population. Although the proportion of Latin America’s population over the age of 65 is still smaller than in North America and Europe, the 65-plus age group grew faster there than in any other region of the world.

Need for Convenience Drives Growth in Personal Care

Perrin said that consumers’ desire for convenience, a key global trend found in other ACNielsen studies, was also seen across a number of categories within Personal Care. For example, new Baby Care products that emphasize convenience performed well. “Disposable Diaper Pants are being used as an easier way to change a baby on the go, not just as a training tool,” Perrin said. Consumer demand for that product drove a 5% increase in global sales value, with Europe leading the way with 11% growth in 2003. Also easing the diaper-changing process were Disposable Changing Mats (currently only reported in three countries ? UK, USA and Ireland). This new category saw a sales value growth of 23% in the last year.

Regional Variations Were Apparent

The ACNielsen study found a wide variation in the growth of Personal Care products across major regions of the world. Developing economies in Latin America, parts of Asia, Eastern Europe, the Middle East and Africa experienced the fastest growth, with a number of categories expanding by double-digits, while the more developed economies reported slower growth.

“When looking at global trends it is important to consider what is new in one country may well have been available for years in another,” Perrin said. “Disposable Diapers, for example, grew by 24% in Indonesia as the dimensions of the category expanded with the introduction of lower-priced products.”

Another factor driving growth in the less-developed markets was the increased presence of international grocery chains and the greater availability of international brands and private label brands. “As new varieties and brands are constantly added to the Personal Care arena, the growth across these categories has accelerated,” Perrin said.

In the more developed markets, growth was not as strong. In North America, for instance, six of the nine Personal Care product areas reviewed showed declines. The three that grew were Dental Care, Hair Care and Face Cleansing and Moisturizers. Increased sales of premium products — once sold only in specialty stores, salons and department stores and now available in traditional drug and grocery outlets — drove growth in the Hair and Face Care categories.

For certain categories (i.e. commodity categories such as Toilet Tissue and Disposable Diapers), value growth was negatively affected by the wider availability of more economical products in warehouse clubs, hard discounters and dollar stores as well as the increased share of less expensive private label brands.

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