Personal Care Market

British Lifestyles 2009 - Consumer Choices in a Fear-led Economy - UK - April 2009
previous section next section ContentsIssues in the MarketFuture OpportunitiesBritain Today – DemographicsBritain Today – Economic factorsExpenditure OverviewIn-home FoodNon-alcoholic BeveragesAlcoholic Drinks* Beauty and Personal CareClothing and AdornmentEating OutTechnology and CommunicationsEntertainmentNews, Print and TobaccoHome and GardenPersonal TransportHousingHolidays and TravelPersonal FinanceA Miscellany – The Remaining SpendThe Consumer Angle – What Worries Us?The Consumer Angle – Economic Confidence LostThe Consumer Angle – The Impact of the CrunchThe Consumer Angle – News Push or Fact PullMarket Sizes AppendixAppendix – The Consumer Angle: What Worries Us?Appendix – The Consumer Angle: Economic Confidence LostAppendix – The Consumer Angle: The Impact of the CrunchThe Appendix – The Consumer Angle: News Push or Fact Pull
Beauty and Personal CareOTC Pharmaceuticals


bookmark | export Market size and trends

The typical adult in the UK spends £59 per year on OTC medicines, with the total market valued at an estimated £3.0 billion in 2008.

The market has seen sustained annual value growth over the past ten years, based on the growing interest among consumers to self-medicate.

Figure 62: OTC pharmaceutical product sales value, by sub-sector, 2008

Source: Mintel Market Size Database


Figure 63: Trends in sales of OTC pharmaceutical products, at current prices, 1998-2008

Source: Mintel Market Size Database


In an increasingly individualistic society, consumers have been eager to self-treat and self-control the symptoms and causes of their minor illnesses and ailments. A sign of this growing self-help is the explosion of websites aiding with diagnosis, health and wellbeing.

In this environment, medicines are increasingly being purchased under the supervision of the pharmacist rather than the doctor, a trend encouraged by pressure on doctor’s time and Government liberalisation of the OTC medicines market, including the end of retail price maintenance.

On the plus side, liberalisation has lowered the cost of many OTC medicines as own-label and generic products have come onto the market.

On the downside, the growth of the internet means that consumers can increasingly source medicines from around the world without the checks and balances of product authenticity and purity guaranteed if purchased in a UK retail outlet.

The sectors most influenced by the above trends have been the minor ailment remedies sector and the analgesics sector.



See Also
Cold and Flu Remedies - UK
Analgesics - UKbookmark | export From the pharmacists to the grocer

The major supermarkets are playing a growing role in this market, both as retailers of standard products like vitamins and cough and cold remedies, but also as pharmacists. Many of the larger outlets feature their own in-store pharmacies.

This has made the purchase of OTC pharmaceuticals increasingly part of the normal weekly shop and has also forced prices down through bulk buying and the introduction of own-label products.



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Minor Ailment Remedies - UKbookmark | export Can’t wait, wont wait

Reflecting increasingly busy and pressured lives, one of the key drivers of the growth in OTC products is the consumer’s impatience with waiting for an appointment to see a doctor or having to wait in a doctor’s surgery. Many would rather self-diagnose, self-treat and leave a visit to the doctor as a last resort.

At the same time, this attitude is driving the growth of premium and fast-acting medicines: analgesics, for example, have seen the introduction of fast-acting, long-lasting relief and maximum-strength options.



bookmark | export Health not medication

Many adults are looking at their overall health rather than at their illnesses or ailments. This has opened up new areas of the OTC market, including alternative medicines, vitamins and dietary supplements and anti-smoking aids. The focus is shifting towards prevention rather than cure.



bookmark | export Looking for alternatives

Many people rely on mainstream OTC medicine when they want to treat or diagnose a common illness, while turning to alternatives for what they believe to be health-enhancing measures. The focus is on general health as well as treatment for a specific problem. For growing numbers of adults, alternatives are used in conjunction with conventional medicines, rather than as alternatives.

Adults using alternative medicine tend to be better educated and affluent than other adults or are in poor health. Many choose alternatives not because they feel they are better than conventional medicine, but out of lifestyle choices and their own beliefs.

Alternative medicines have grown rapidly in the last five years, driven by wider availability of products, the emergence of major brands and a broadening of the distribution base.



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Complementary Medicines - UKbookmark | export Giving up the weed

Reflecting the health concerns of adults and growing anti-smoking campaigns of the Government, smoking cessation aids have been the fastest-growing sector of the market for the past ten years. Again, consumers are seeking to adjust their lifestyle to improve their general health through preventing the illnesses that smoking brings with it.



bookmark | export Getting the diet right

Vitamins and dietary supplements are an important sector of the OTC market, although sales have been relatively flat for the past ten years. There has been some undermining of their position by increasing sales of enriched and functional foods and some adverse media coverage. In addition, specialist stores like Holland and Barrett and the movement of the large supermarkets into the market have kept prices in check.



bookmark | export From self treatment to self-diagnosis

The desire of consumers to self-treat has resulted in the development of a small but relatively fast-growing sector of self-diagnostics. This includes tests, and kits that confirm ailments or conditions such as pregnancy and fertility tests account for the largest share, but other external factors are also accelerating growth.

The growth of this sector confirms both the consumer’s desire to go it alone and also the focus on general health and wellbeing. Rising concerns with conditions such as obesity and diabetes are also promoting a greater sense of health awareness. As a result, a slew of products are now available which were once the preserve of the doctor’s surgery. Blood glucose, blood pressure and body fat can all be monitored at home, while products such as pedometers, which measure activity levels, are coming to market.



See Also
Self-Diagnostics - UKPersonal care


bookmark | export Market size and trends

The market for personal care and toiletries was worth £7.8 billion in 2008, with sales having grown by 51% over the past ten years.

The typical adult in the UK spends £153 on personal care products per year, or in the region of £3 per week.

Figure 64: Personal care sales value, by sub-sector, 2008

Source: Mintel Market Size Database


This category consists of a wide range of sub-markets which can be split into two broad areas: individual use (or ‘for me only’) products such as skincare, cosmetics and fragrances and household use products, such as mainstream toiletries like oral care and hair care.

As consumers take more interest in their personal appearance, especially with regards to looking younger, so ‘for me only’ products have tended to grow strongly in recent years. Increasingly, leading-edge products in this sector are seeking to position themselves as surrogate cosmetic intervention products.



bookmark | export
Figure 65: Trends in sales of personal care products, at current prices, 1998, 2003 and 2008

Source: Mintel Market Size Database


Like in many other consumer markets, consumers are looking for products that are “natural” or wholesome in some respects, leading to growing demand for organic and biologically pure products.

At the same time, products that are overtly non-natural but which espouse scientific claims are also growing in demand.

While premiumisation is a feature of this market, as in others, consumers are increasingly judging products on efficacy rather than brand name or price point. This is being helped by TV shows which provide comparisons of products and often show that mass-market products are as good as, if not sometimes better, than their premium-priced counterparts.



bookmark | export Keeping up appearances

Products designed to improve an individual’s appearance are the prime growth sectors of the personal care market. Women’s bodycare products, make-up, hair removal products and facial skincare products have been the fastest-growing sectors over the past decade.



bookmark | export Giving nature a little help

In many sectors of the personal care market, it is no longer enough to allow a person to make the best of what physical attributes they have; rather the aim is to give that person a little more to work with.

Anti-ageing products, for example, are a prime growth area of skincare, reflecting the growing cult of youth in the UK and the ageing of the population: mature rather than younger women now have the spending power in this market. Recent innovations include convergent skincare treatments such as cosmeceuticals.

Similarly, traditional cleanse, tone and moisturise products have been supplemented with products for specific skin conditions, different parts of the face and times of the day.

The bodycare market is seeing similar trends, with consumers demanding products that do for the body what is already being done for the face.

The make up market is also influenced by similar development, with most growth coming from new product innovation, which is encouraging women to move upmarket and buy premium formulations that borrow skincare technologies to provide value-added benefits.

The focus on turning back the clock and returning the body to a previous state has even migrated to one of the most stable and mature sectors of the market: oral hygiene. Premium products, including whitening toothpastes and toothbrushes with tongue cleaners, are helping to sustain value growth in a mature market.



See Also
Facial Skincare - UKbookmark | export Haircare: A mature sector, but fashion influenced

Haircare is one of the most mature sectors of the market and the largest. This market is not seeing the product innovation of other sectors yet it is growing relatively strongly, with growth coming from dynamic sub-sectors like hair colourants, which are strongly influenced by changing fashions.

More stable sub-sectors like shampoos and conditioners are generating growth mainly by encouraging consumers to trade up. The bulk of these markets are highly competitive, which is keeping value sales growth down.



See Also
Shampoos and Conditioners - UKbookmark | export Where women lead, men follow slowly

Men are becoming increasingly focused on their appearance, with sales of grooming products growing relatively quickly over the past five years. This is also a market that offers ample potential for growth given that while many, often older, men remain reluctant to groom, the resistance to grooming is weakening.



See Also
Men's Toiletries - UKbookmark | export Fragrances: A greater range of influences

Women’s fragrances have grown slightly slower than the rest of the personal care sector and the current economic situation could be difficult for the premium brands.

However, manufacturer are constantly seeking to enliven the sector with new smells and some are predicting that 2009/2010 will see tones that affect the fashion and home industries trickling down to cosmetics and other beauty items, too.



bookmark | export Forecast

Note that OTC pharmaceutical goods are not included in the column for total personal care sales.

Figure 66: Personal care and otc pharmaceuticals market, at current prices, 2004-14
Toiletries & fragrances (1) Cosmetics(2) Haircare Skincare (3) Other cosmetics(4) Total personal care OTC pharmaceuticals
£m £m £m £m £m £m £m

2004 2,108 1,362 1,185 987 976 6,618 2,608
2005 2,197 1,446 1,191 1,041 1,005 6,880 2,720
2006 2,277 1,527 1,214 1,103 1,038 7,159 2,786
2007 2,353 1,658 1,227 1,171 1,072 7,481 2,900
2008 2,415 1,769 1,249 1,229 1,113 7,775 3,004
2009 2,385 1,806 1,251 1,242 1,134 7,818 3,015
2010 2,419 1,841 1,271 1,271 1,135 7,936 3,079
2011 2,479 1,915 1,302 1,325 1,145 8,166 3,187
2012 2,551 2,006 1,333 1,390 1,160 8,440 3,318
2013 2,615 2,091 1,364 1,452 1,175 8,697 3,441
2014 2,684 2,177 1,387 1,515 1,192 8,955 3,570

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Source: Mintel Market Size Database


Figure 67: Personal care and otc pharmaceuticals market, at 2009 prices, 2004-14
Toiletries & fragrances (1) Cosmetics (2) Haircare Skincare (3) Other cosmetics (4) Total personal care OTC pharmaceuticals
£m £m £m £m £m £m £m

2004 2,261 1,461 1,271 1,058 1,047 7,098 2,797
2005 2,342 1,542 1,269 1,110 1,072 7,334 2,900
2006 2,396 1,607 1,278 1,161 1,092 7,534 2,931
2007 2,444 1,722 1,275 1,217 1,114 7,772 3,013
2008 2,458 1,801 1,271 1,251 1,133 7,914 3,058
2009 2,385 1,806 1,251 1,242 1,134 7,818 3,015
2010 2,383 1,814 1,253 1,252 1,118 7,819 3,033
2011 2,419 1,868 1,270 1,292 1,117 7,966 3,109
2012 2,439 1,919 1,275 1,329 1,109 8,072 3,173
2013 2,471 1,976 1,289 1,372 1,111 8,219 3,252
2014 2,499 2,027 1,291 1,410 1,110 8,337 3,324

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Source: Mintel Market Size Database


The value of the personal care market is expected to continue to rise, growing by 7% in the next five years in real terms.

This is less than the rate experienced in the previous five years (10%).

With consumer incomes squeezed and fewer people likely to be both working and/or going out for entertainment in the evening, sales of most products associated with appearance will see slower growth in the next few years.



bookmark | export A bright future for OTC medicine prospects

In contrast, sales of OTC pharmaceuticals will increase in real terms in the next five years compared to the previous five as consumer continue the trend towards self-medication.

Moreover, in a recession, fewer people will be willing to take time off work due to sickness, which may increase demand for flu remedies etc.

Changing consumer lifestyles and the ageing of the population look set to ensure long-term growth in this market.

As the pharmacist, under the influence of Government policy and because of consumer demands, takes a growing role in healthcare, sales of OTC products should continue to grow.

Moreover, traditionally demand is driven by the incidence of ailments and so less influenced by economic trends.

Of course, the growing focus on prevention rather than treatment means that the market is more vulnerable today to economic recession than it was in the past. However, over the longer run, this will see the market widen, ensuring a constant cycle of product innovation as consumers look for convenience, efficacy and added value. Convenience, premiumisation and maximum-strength formulae continue to provide the innovation platform for market growth.



bookmark | export Personal care: Age the driver

As the population of the UK ages, it can be expected that sales of products designed to turn back the clock will grow strongly.

No doubt in today’s economic environment, many would-be cosmetic surgery patients might opt for a cheaper, non-surgical alternative to the knife in order to look younger, potentially boosting sales of personal care products.

Products sold on the basis of their naturalness or purity will become more important, although as consumers become more discerning, greater focus will be paid to exactly what the label “natural” means. Like health foods, manufacturers may increasingly have to justify their claims.



bookmark | export Factors used in forecast

Toiletries & fragrances: ABC1s, consumer expenditure

Haircare: ABC1s, 15-44s

Cosmetics: Women aged 20-44, PDI

Skincare: Women aged 20-44, PDI

Other cosmetics: PDI

OTC Pharmaceuticals: PDI, ABC1s



Consumer insight


bookmark | export Skincare, sex and age

Common themes in much of the OTC pharmaceuticals and the personal care markets are the impact of age and gender on usage. This is borne out in research into the skincare market.

Mintel research shows that as people age, they accumulate more skincare concerns, such as fine lines, wrinkles, poor skin tone and texture, etc. This is especially true of the ABC1 third age group, who can probably afford to invest in more expensive skincare items, hence the growing role for anti-ageing products.

Confirming the female bias in the personal care market, men have fewer skincare concerns then women. Three in four men have no facial skincare concerns at all, according to research conducted for Mintel’s report Facial Skincare – UK, June 2008. The same research showed that the average male user of facial skincare has 1.5 concerns when it comes to facial skincare.



bookmark | export Skincare typologies

Skincare typologies show clearly the impact of age and sex on attitudes in the personal care market. Skincare users can be segmented into four buying groups:

Skin Carers (33% of facial skincare users aged 16+): Their main consideration when buying facial skincare is that it won’t irritate skin. Skin Carers tend to be under-25s who have yet to experience anti-ageing concerns. They are most likely to be C1 socio-economic group and tend to have annual incomes of less than £15,500.

Science Seekers (9% of facial skincare users aged 16+): These are mainly interested in product claims and tackling specific problems. Four fifths of these buy skincare with ingredients that address specific issues. These adults are mainly aged 25-34 and 55-64: anti-ageing (both preventative and reactive) is a key concern for these two age groups, and they are typically ABs.

Green and Ethical Explorers (28% of facial skincare users aged 16+): Consumers in this group are most likely to seek out natural ingredients, and make considered decisions when purchasing facial skincare products. They are also the most likely to prefer fragrance-free facial skincare, perhaps believing it to be purer or more natural in formulation. They tend to be older (aged 65+) and retired, and probably take a broad interest in green/ethical issues.

Ingredient Ignorers (30% of facial skincare users aged 16+): These are the least concerned over ingredients and are typically male.