Personal Care Industry

• The personal care industry is expected to reach a market size of $22.54 billion in 2019.
• Through 2023, this market is expected to grow at a CAGR of 3.4% to reach $25.78 billion.
• This market includes body care and cosmetics, washing and cleaning products, over-the-counter (OTC) and prescription drugs, pharmaceutical products, medical products for private use (bandages, disinfectants, blood pressure monitors), and dietary supplements.

Health and Wellness Market

• The health and wellness market size is expected to reach a market size of $174.27 billion in 2019.
• In 2020, the market size is expected to grow to $179.05 billion, which is a growth rate of 2.74% 
• This market includes "preventive and personalized health, fitness equipment, beauty, and personal care products, wellness tourism, and health and wellness food."

Beauty Sub-Segment

• As of 2018, the cosmetics and personal care industry is worth $89.5 billion in the U.S. Subtracting the personal care share of $22.54 billion, this would mean the cosmetics market is worth approximately $66.96 billion.
• The cosmetics market in the U.S. is growing at a CAGR of 3% between 2019 and 2024.
• Ulta is a leading beauty retailer in the U.S., with an annual revenue of $5.88 billion in 2017. Sephora, another U.S. beauty leader, earned $5.87 billion in 2017.
• Foundation is the most profitable segment of the cosmetics market, earning $985 million. This is followed by the mascara segment at $914.26 million and the lipstick segment at $667.2 million.

Skincare Sub-Segment

• The U.S. skincare market reached $5.6 billion in 2018, having grown by 13% over 2017. However, the cosmetics market only grew 1% between 2017 and 2018, marking the first time in many years that the skincare market grew faster than the makeup market.
• Social media and the growing interest of men in skincare are fueling the skincare market growth.
• In 2018, the following skincare segments made up the skin care market sales in the U.S.:
• Facial Cleansers: $1.51 billion 
• Facial Anti-Aging: $1.03 billion 
• Acne Treatments: $573.60 million 
• Facial Moisturizers: $558.30 million 
• Depilatories: $148.60 million 
• Fade/Bleach: $65 million 
• Body Anti-Aging: $15.4 million 
• Natural skincare is a growing trend, having reached $1.6 billion in U.S. sales in 2018, a growth of 23% over 2017 numbers.

Research Strategy

Personal Care Market

• In 2019, the personal care market is expected to reach $20.71 billion in China.
• This market is expected to grow at a CAGR of 8.8% through 2023 to reach $43.07 billion.
• China is the largest market in the world for personal care.

Health and Wellness Market

• In 2017, the health and wellness market size in China was $108.8 billion.
• It was expected to grow at a CAGR of 8% through 2020.
• This would mean that in 2018, the Chinese health and wellness market size would have been $117.50 billion and in 2019, it would be $126.90 billion.

Beauty Sub-Segment

• In 2018, the beauty market size in China was 407.8 billion RMB (about $59.29 billion).
• The market is expected to grow to 60 trillion RMB by 2025 (about $8.53 trillion with today's exchange rate). This represents a CAGR of 103.37%.
• Currently, the Chinese beauty market is second to the U.S., but it will become the largest market in the world over the next five years.
• The online beauty market in China represents 27.7% of the market.
• The Chinese cosmetics market was worth 261.9 billion RMB in 2018 (about $38.08 billion) and is growing at a CAGR of 4.2%.
• Additionally, 40% of the Chinese cosmetics portion of the beauty market is sold through online channels.

Skincare Sub-Segment

• China's skincare market was worth $22 billion in 2018.
• More than 90% of people in China who buy skincare products increased their spend on skincare between 2017 and 2018.
• The market is driven by the growing middle class and the fact that more people are buying premium brands. A survey found that 58% of women switched to more expensive skincare brands and 36% switched to premium brands in 2018.
• The skincare market in China makes up about 50% of the overall cosmetic market.
• The following brands have the largest shares of the Chinese skincare market:
• Pechoin — 4.5% 
• L’Oreal Paris — 3.3% 
• Chando — 3.1% 
• Olay — 2.8 % 
• Kans — 2.7 % 
• One Leaf — 2.0 % 
• The male skincare market grew by 18.5% between 2013 and 2017 to reach $1.78 billion.

Research Strategy

• 2017: $108.8 billion 
• 2018: $117.5 billion ($108.8 billion x 1.08)
• 2019: $126.9 billion ($117.5 billion x 1.08).

Personal Care Market

• The personal care market in Japan is worth $2.08 billion in 2019.
• It is expected to grow at a CAGR of 5.1% to reach $2.54 billion in 2023.
• This market comprises body care and cosmetics, washing and cleaning products, pharmaceutical products, over-the-counter and prescription drugs, medical products for private use (bandages, blood pressure monitors, disinfectants), and dietary supplements.

Health and Wellness Market

• The health and wellness market in Japan was worth $49.2 billion in 2017.
• The market was expected to grow at a CAGR of 8% through 2020.
• Therefore, the 2018 health and wellness market size in Japan was worth $53.14 billion and the 2019 market size has reached $57.39 billion.

Beauty Sub-Segment

• In 2017, the cosmetics market size in Japan was approximately AUD29 billion or $22.66 billion.
• Growing at a CAGR of 2.9%, this would put the 2018 market size at $23.32 billion and the 2019 market size at $23.99 billion.
• The makeup market size in Japan reached AUD 6.4 billion in 2017 ($5.00 billion).
• At a CAGR of 4.4%, this would put the 2018 makeup market size at $5.22 billion and the 2019 market size at $5.45 billion.

Skincare Sub-Segment

• The 2017 skincare market for Japan was AUD $13.5 billion ($10.55 billion).
• At a CAGR of 3.0%, this would put the 2018 market size at $10.87 billion and the 2019 market size at $11.19 billion.

Research Strategy

• 2017: $49.2 billion 
• 2018: $53.14 billion ($49.2 billion x 1.08)
• 2019: $57.39 billion ($53.14 billion x 1.08)

• 2017: $5.00 billion
• 2018: $5.22 billion ($5.00 billion x 1.044)
• 2019: $5.45 billion ($5.22 billion x 1.044)

• 2017: $10.55 billion
• 2018: $10.87 billion ($10.55 billion x 1.03)
• 2019: $11.19 billion ($10.87 billion x 1.03).

Personal Care Market

• The personal care market in France is worth US$5.75 billion in 2019.
• This market is forecast to grow at a CAGR of 0.7 percent from 2019 to 2023.
• This market includes all products that are used for personal cleansing like deodorants, shaving products, shampoo, oral care, shower gels and bathing products. However, skin care cosmetics like facial cleansing products, lotions and body care services are excluded from this market.

Personal Care Market Sub-Markets

• Personal Care Market sub-markets in France include shaving, oral care, hair care, deodorants, and shower and bath market.
• The shaving sub-market is worth US$599.4 million in 2019 and is expected to decline at a CAGR of minus one percent from 2019 to 2023.
• France's oral care sub-market is worth US$1.31 billion in 2019 and is forecast to grow at a CAGR of 2 percent between 2019 and 2023.
• The shower and bath sub-market in France amounts to US$1.14 billion in 2019 and is anticipated to grow at a CAGR of 1.2 percent from 2019 to 2023.
• The hair care sub-market is worth US$1.96 billion in 2019 and is expected to decline at a CAGR of minus one percent from 2019 to 2023.
• The deodorants sub-market amounts to US$744.1 million in 2019 and is forecast to grow at a CAGR of 1.4 percent between 2019 and 2023.

Health and Wellness Market

• In 2017, the health and wellness market in France was valued at €19.8 billion (US$21.89 billion) having grown from €18.2 billion (US$20.12 billion) in 2013.
• Using the calculations provided in the research strategy section, the health and wellness market is estimated at US$22.36 billion in 2018 and US$23.38 billion in 2019.

Health and Wellness Market Sub-Market

• France's health and fitness market was worth €2.6 billion or US$2.87 billion in 2018. Additionally, there were 6 million people enrolled in various fitness clubs in 2018.
• According to findings by the Global Wellness Institute, France's spa industry was valued at US$3.6 billion in 2017.

Research Strategy

• 2018 health and wellness market size = 2017 market size €19.8 billion or US$21.89 billion * 1.0213 = US$22.36 billion
• 2019 health and wellness market size = US$22.36 billion * 1.0213 = US$23.38 billion

Market Size For Personal Care Industry

• In 2019, the market size of the personal care market in the United Kingdom amounts to approximately $6.371 billion (5.748 billion euros), according to Statista.
• The market is projected to reach $6.465 billion (5.833 billion euros) by the year 2020.
• Between 2019 and 2023, the market is anticipated to grow at a CAGR of 1.5%.

Market Size For Health And Wellness

• The market size for health and wellness in the United Kingdom was 20.5 billion euros ($22.719 billion) in the year 2015 and rose to 23 billion euros ($25.490 billion) in 2018.

BEAUTY SUB-SEGMENT

• The beauty and personal care market in the United Kingdom in 2019 is worth $15.579 billion. Since the personal care market is valued at $6.371 billion, the overall beauty segment in the country is worth $9.208 billion ($15.579 billion - $6.371 billion).
• The cosmetics segment accounted for $2.986 billion in 2019. Meanwhile, the cosmetics market is projected to grow by 2.34% between 2019 and 2020.
• Between 2019-2023, the beauty and personal care market is anticipated to grow at a CAGR of 2.4%.

SKINCARE SUB-SEGMENT

• In 2019, the skincare sub-segment in the United Kingdom is worth $3.934 billion. This particular market is forecasted to grow at a CAGR of 2.7% between 2019-2023.
• The revenue breakdown for the skincare segment goes as follows: face ($2.773 billion), body ($702.44 million), sun protection ($416.50 million), and baby and child ($41.69 million).
• The non-luxury segment of the skincare market accounts for 69.8% of the revenue generated in 2019, while luxury accounts for 30.2%.

Insights About The Beauty And Skincare Sub-segments

• The skincare sub-sector of the health and beauty market is the fastest growing and its expected growth by the year 2022 is 27.9%. The growth is attributed to product innovation in both the premium and the mass markets. Skin preparation products such as masks, primers, and masks are expected to outperform.
• Some key players in the beauty and skincare include Boots, Asda, Waitrose, Amazon, Tesco, and Debenhams just to mention a few. Boot had a market share of 20.5% in the year 2017 making it the market leader.
• 93.5% of the shoppers buy in-store with stores as the primary channel of purchase but the spending continues to shift online and is expected to reach 11.6% of the market by 2022. Investments made by Amazon, pureplay specialists and market leaders are expected to drive up the online spend.
• The growing awareness of animal rights issues by consumers made it necessary for the manufacturing of ethical brands, and the market for cruelty-free products is expected to grow by about 6.1% by 2023.

Revenue Breakdown

• For the personal care market in the United Kingdom in 2019, the revenue breakdown goes as follows: hair care ($1.940 billion), shower and bath ($1.331 billion), oral care ($1.591 billion), deodorants ($923 million), and shaving ($586 million).
• The per person revenue generated for the personal care market in the United Kingdom is $94.34 in 2019.
• Around $230.70 is the average revenue person in the market for beauty and personal care as per 2019.

Personal Care Market

• The personal care market in Germany is $6.99 billion in 2019.
• It is expected to grow at a CAGR of 12.4% through 2023, reaching a market size of $11.15 billion.
• This market includes body care and cosmetics, washing and cleaning products, over-the-counter (OTC) and prescription drugs, pharmaceutical products, medical products for private use (bandages, disinfectants, blood pressure monitors), and dietary supplements.

Health and Wellness Market

• In 2017, the health and wellness market in Germany was estimated to be worth about $37.84 billion.
• Having grown at a CAGR of 3.9% from 2013 through 2017, if this rate was maintained, the 2018 market size would be approximately $39.32 billion and the 2019 market size would be about $40.85 billion.

Beauty Sub-Segment

• In Germany, the beauty market is worth £15 billion ($19.71 billion).
• The prestige beauty market in Germany reached €3.1 billion ($3.43 billion) in 2019.
• The cosmetics market size in Germany is worth $2.49 billion in 2019.
• This market is expected to grow at a CAGR of 3.8% through 2023.
• The cosmetics market includes facial make-up, lipsticks, eye make up, nail care and color, and natural cosmetics.

Skincare Sub-Segment

• The skincare market in Germany is worth $4.53 billion in 2019.
• This market is expected to grow at a CAGR of 2.2% through 2023.
•  Included in this market are creams and lotions, sunscreen, eye and hand cream, and baby and child skin care.

Research Strategy

• 2017: $37.84 billion
• 2018: $39.32 billion ($37.84 billion x 1.039)
• 2019: $40.85 billion ($39.32 billion x 1.039)

• In the U.S., there are about 2,538 "contract manufacturers of personal care products."
• Revenue generated by the personal care segment in the United States amounts to about $22.5 billion in 2019.
• About 28% of people in the U.S. purchased personal care products from Walmart or its subsidiaries. Retail sales of beauty and personal care products in the U.S. in 2018 amounted to $89.4 billion.
• Fruugo, Etsy, eBay, and Amazon are among the key personal care marketplaces in the United States.
• There are about 7,955 aesthetic clinics generating about $18 billion and employing about 52,305 people in the United States.

RESEARCH STRATEGY

Broad industry

• According to Cosmetics Europe's overview of the industry in 2018, the cosmetic and personal care industry in the UK alone is valued at €10.9 billion.
• However, it is intriguing to find that, according to the Oxford Economics report published this year, there has been no fixed definition of the beauty industry and its segments.
• One reason for this is due to the diversity of services and products in the industry.
• Another is that there has not been any previous attempt to study the personal care industry and its impact on the UK economy.

Personal Care Retailers

• Although there is no set number that determines the total number of personal care retailers in the UK, there are 10 popular retailers throughout the UK that include Boots and Superdrug.
• According to Oxford Economics, the greatest percentage of £3.2 billion was spent on personal care and hygiene products. This includes products such as deodorant, soap and wash products.
• Personal care retailers in the UK are responsible for an employing people in a total of 187,100 jobs.

Marketplaces

• Out of £8.7 billion spent on personal enhancement products, 37% or £3.2 billion was spent on cosmetics. Furthermore, many consumers have spent significantly on accessories, applications, as well as fragrances and perfume.
• Marketplaces that involve wholesalers and manufacturers, as well as more specialized positions that involve advertising and marketing involve employing people in 97,200, 66,700 and 23,600 jobs respectively.

Clinics

•  Clinics offer services such as massages, acupuncture, hair removal, as well as hair salons services such as haircuts, coloring, and other hair styling services.
• According to Oxford Economics' 2019 report, £8.0 billion were spent on beauty services. (p. 17)
• Hair services rank as the most popular of beauty services offered in the UK, with consumers spending a total of £6.3 billion.
•  Other customers have spent £1.4 billion on a wide range of other personal care and beauty services in the UK.
• In 2018, beauty service providers made the largest direct contribution to the UK's GDP with up to £4.7 billion.
• More specifically, providers of hair services contributed £3.9 billion or 31% of the personal care industry’s total direct impact.

Research Strategy

Personal care as a percentage of the larger Chinese cosmetics/beauty/skincare industry

• In 2019, the beauty and care industry in China was estimated to be worth $51.8 billion in US dollars.
• Of that larger market, $23.3 billion was attributed to personal care (as opposed to cosmetics, perfume, and other market segments.)
• Thus, the personal care segment makes up approximately 45 percent of the larger cosmetics and beauty market.

Personal Care Product Manufacturers in China

• There are 1,728 cosmetics, beauty, and personal care product manufacturers in China.
• Assuming the percentage established above remains true, we can estimate that 45 percent of them will be personal care product manufacturers.
• Thus, there are around 778 personal care product manufacturers in china.

Personal Care Services Businesses (Clinics, etc.) in China

• There are 27,751 cosmetics, beauty, and hairdressing businesses in China.
• Assuming the percentage established above remains true, we can estimate that 45 percent of them will be personal care product clinics.
• Thus, there are around 12,488 personal care clinics in China.

Online Platforms for Personal Care

• China has 189,304 companies in its online shopping industry (that is for all markets, not just beauty/personal care.)
• It has been estimated that about 10 percent of all online sales in China are in the cosmetics/beauty/personal care category.
• If we assume that this is reflected in the number of online retailers dedicated to that market, that gives us approximately 18,930 online platforms dedicated to cosmetics/beauty/personal care.
• Assuming the percentage established above remains true, we can estimate that 45 percent of them will be personal care online marketplaces.
• Thus, there are around 8,519 personal care-oriented online businesses in China.

Calculations

Personal Care Companies in Japan

• There are about 4,000 personal care companies with over 130,000 brand items being distributed in Japan.
• Approximately 16 online marketplaces sell personal care products in Japan.
• Therefore, there are roughly 3,984 personal care retailers in the country.

RESEARCH STRATEGY

Determining the number of online marketplaces selling personal care in Japan

Determining the number of personal care retailers in Japan

Personal care market

• In 2019, France’s Beauty & Personal Care market had total revenue of $14.84 billion, of which the Personal Care market accounted for $5.75 billion.
• The personal care market accounts for approximately 38.8% of the beauty and personal care market and is predicted to see a CAGR growth of 0.7% between 2019 and 2023.
• France exports the most cosmetic products worldwide and is an active revenue generator for the French economy.
• The categories responsible for the growth in sales for 2018 were: mass and premium categories; with L’Oréal as the leading brand.

Personal care product companies

• France currently has 430 cosmetics companies.
• Assuming that the 38.8% mentioned above is representative of the personal care products market, an estimate of the number of personal care companies in France would be 167.

Personal care product manufacturers

•  Over 5,800 Small and mid-size enterprises (SMEs) are responsible for manufacturing personal care, beauty and cosmetic products in Europe.
• In France, over 80% of the SMEs are cosmetic and personal care product manufacturers.
• In 2018, there were 872 SMEs manufacturing cosmetics in France.

Personal care product retailers

• In 2018, there was a decline in value of sales for beauty specialist retailers due to online retailing.
• Online retailing has been positively influencing the sales of personal care products and has resulted in double-digit growth.
• According to Deloitte, France’s Chanel, L’Oreal, Garnier, and Clarins are mentioned among the top 500 most valuable brands globally.
• According to EuroStat, France had 2,410 enterprises that were catering to wholesale of cosmetic and personal care products in 2015.
• There were also 4,010 enterprises that were involved in retail sale of the products.

Personal care product innovation facilities

• France had 14 innovation facilities which focus on research and development of cosmetic and personal care products in 2018.
• The country had 8,350 scientists employed in the industry in 2018.

Personal care product marketplaces

• According to Postnord, 28% of France’s shoppers bought their cosmetic and personal care products on an online platform in 2016.
•  Trailblazing marketplaces in France that sell personal care products and other products are 3 Suisses, CDiscount, Ventee-privee.com, Fnac and Price Minister.
• Amazon and EBay are the most popular marketplaces in e-commerce in France.

Personal care product clinics

• The demand for France’s spa product segment has been increasing since 2017.

Research strategy

Calculation

• According to Retail-Index, 43 of the 597 major retail chains in Germany serve as outlets for personal care products.
• According to Export.gov about 99% of personal care products are sold through retail distribution chains, i.e. drugstore chains (46.4%), perfumeries (17.8%), hypermarkets (14.0%), pharmacies (8.9%), discounters (8.3%), department stores (3.3%), and food stores (1.2%).
• According to Statista, the number of retail businesses in Germany as of end of 2017 was 340,674.
• As of 2017, the total number of personal care companies in Germany would be about 24,538. (calculated)
• As of 2017, 11,385 drugstore chains, 4,368 perfumeries, 3,435 hypermarkets, 2,184 pharmacies, 2,037 discounters, 810 department stores, and 295 food stores sold personal care products in Germany. (calculated)

RESEARCH STRATEGY

Personal Care Company Advertising

• In 2018 Proctor & Gamble spent the most on personal care advertising in the US. The $1.3 billion spend accounted for 22.3% of the total personal care advertising spend for the year.
• L'Oreal accounted for 20.8% of the total, spending $1.2 billion in personal care advertising in the US in 2018.
• The third biggest spend on personal care advertising was Unilever, which spent $464 million, 8.1% of the total market advertising spend.
• Johnson & Johnson spent $421 million for a 7.4% share of the total spend.
• Coty accounted for 4% of the total spend, spending $226 million on personal care advertising.
•  3.5% of the total spend was attributed to Kimberley Clark Corp with its $200 million spend.
• GlaxoSmithKline spent $196 million, 3.4% of the total spend.
• LVMH Moët Hennessy Louis Vuitton accounted for 2.2% of the total spend, spending $128 million on personal care advertising.
• Colgate Palmolive Co and Genomma Lab both spent $125 million, accounting for 2.2% of the total spend each.
• Other companies accounted for 24% or $1 billion of the personal care advertising spend in the US in 2018.
• The total personal care advertising spend in the US in 2018 was $5.7 billion.

Personal Care Brand Advertising — Top Brands

• L'Oreal owns the L'Oreal Paris, Maybelline New York, and Garnier brands, which are three of the top-selling personal care brands in the US. The L'Oreal Paris brand spent $546 million on advertising in the US in 2018, while the Maybelline New York brand spent $241 million, and the Garnier brand $215 million.
• Proctor & Gamble owns the Olay, Always, Gillette, and Crest brands, some of the top-selling personal care brands in the US. In 2018, the Olay brand spent $255 million on advertising in the US, while the Always brand spent $213 million, the Crest brand spent $138 million, and the Gillette brand spent $133 million.
• Johnson & Johnson owns the Neutrogena brand. The Neutrogena brand spent $218 million on advertising in the US in 2018.
• Unilever owns the Dove brand. The Dove brand spent $187 million on advertising in the US in 2018.
• GlaxoSmithKline owns the Sensodyne brand. The Sensodyne brand spent $125 million on advertising in the US in 2018.

Personal Care Advertising in the US — Historical Data

• There is limited data available on the total advertising spend of the personal care industry. The historical data for the period 2008 to 2014 in the US shows that the total annual advertising spend, while having some slight fluctuations, remained relatively stable in the $6 to $7 billion range.
• Based on the 2018 figures it appears that there has been a reduction in the total annual personal care advertising spend between 2014 and 2018 of $1.19 billion.

Research Strategy

Personal Care Advertising Spend: UK

• Health & beauty brands (personal care) spent an estimated $677 million in the United Kingdom in 2018.
• Health & beauty retailers (both online and offline) in the United Kingdom spent $189.7 million on advertising in 2018.
•  Boots, the United Kingdom's top health & beauty retailer, is losing market share to online players.
• Digital advertising's share of the total advertising spend in the United Kingdom was 55.1% in 2018.
• In 2019, CPG brands are expected to spend over three-quarters (78.2%) of their digital ad budgets on mobile.

Research Strategy

Triangulation for Advertising Spend by Brands

Triangulation for Advertising Spend by Retailers

Helpful Insights

• The Personal Care segment in France consists of the following sub-segments: hair care, skincare, bath and shower, oral care, men's grooming, and deodorant/antiperspirants.
• The distribution channels for these products include retail stores, e-commerce, pharmacies, supermarkets, and convenience stores.
• The major companies in this sector are Revlon, Unilever, L'Oreal, The Estee Lauder Companies, and Shiseido.
• L'Oreal, the largest personal care company, spent 43% of its media advertising budget on digital platforms. 75% of digital advertising spending was directed at existing customers through precision marketing.
• L'Oreal is adopting a new marketing strategy in Europe, including France, to increase sales of its men's grooming projects. They will focus on omnichannel advertising.
• Revlon spent $507.0 million globally on television, print and television. 30% of sales are generated in Europe (including France), the Middle East and Africa region. Revlon markets its products to all the distribution channels in France--retail stores, supermarkets, retail stores, e-commerce, convenience stores, and pharmacies.
• Unilever's overall advertising spending was down in 2018 (including in France).
• Unilever spends 35% of its total media advertising budget on digital media channels. Dove, one of its personal care brands, will benefit from a total of $300 million increase in advertising over the next two years, refocusing its efforts on point-of-sale and working media.
• Estee Lauder Companies announced that it is investing 75% of its advertising budget in digital media, focusing on social influencers (this is the total advertising budget, including France).
• Shiseido is increasing its marketing spending in 2019 on skin care brands by investing in social influencer strategies worldwide, including France.

Research Strategy

Helpful Statistics

• In 2015, online advertising spend by health & beauty companies was US$441 million (€398,553,202); this accounted for 3.5% of total online advertising in the country. [1 USD = 0.903820 EUR]
• However, in 2016, the estimated amount that was spent by these companies on online advertising was US$469 million (€423,858,168), and it was projected to grow at a CAGR of 5.1% to hit US$573 million (€517,888,829) in 2020. Therefore, the estimated amount to be spend this year, 2019, is US$540.757 million (€488,746,963) (calculated).
• In 2017, the advertising expenditure for hair care in Germany was about €428.9 million.
• In 2016, the top personal care companies in terms of sells in Germany were L'Oréal Deutschland GmbH, Procter & Gamble Germany GmbH, Beiersdorf AG, Henkel AG, Unilever Deutschland GmbH, and Coty Deutschland GmbH.
• According to Statista, the leading advertisers ranked by advertising expenditure in Germany from January to September 2019 include some personal care companies, such as Procter & Gamble Germany GmbH (its total ad spend in Germany from Jan to Sep 2019, was €710.76 million) and L'Oréal Deutschland GmbH (€270.99 million).
• In 2018, L'Oréal spent €8.14 billion on advertising and promotions worldwide, while Unilever spent €7.16 billion, Henkel spent over €4.5 billion, and Beiersdorf spent €1.53 billion.

Research Strategy

Calculations

Finding Overall Cosmetics/Toiletries/Personal Care Products Marketing Buy in Japan for 2017

• In 2017, Japan saw $58.83 billion (¥6,390.7 billion) in advertising expenditures.
• Of that, $24.56 billion (¥2,663.8 billion) was spent on traditional media advertising.
• Of the traditional media advertising expenditure, 10.2 percent was spent to advertise cosmetics, toiletries, and wellness products.
• Assuming that non-traditional advertising expenditures (internet as well as promotional media such as transit posters and direct mail, etc.) occurred in roughly the same ratio as traditional media advertising expenditures, 10.2 percent of the nationwide marketing buy can also be attributed to the cosmetics, toiletries, and wellness category.
• This comes to 10.2 percent of $58.83 billion, or very nearly $6 billion spent on advertising by the cosmetics, toiletries and personal wellness segment.

Updating 2017 Values to 2019 Values

• Japan's overall expenditure on advertising has grown by approximately 2.2 percent CAGR between 2017 and 2019.
• Assuming the general trend applies to the marketing expenditure of the cosmetics, toiletries and personal wellness segment one can apply that 2.2 CAGR growth to the $6 billion spent on marketing in 2017 to get a 2019 estimate of $6.26 billion.

Isolating the Personal Care Products Marketing Buy in Japan in 2019

• Japan's total cosmetics, toiletries, and personal care market was reported to be worth $26.06 billion in 2019
• Japan's total personal care products market is reported to be worth $2.083 billion in 2019.
•  $2.083 billion is approximately 8 percent of $26.06 billion.
• Assuming that the 8 percent ratio of the size of the overall industries can be applied to the size of the industries' marketing expenditures, one can apply the 8 percent to $6.27 billion spent on advertising for all cosmetics, toiletries and wellness products, resulting in the figure of about $502 million spent on advertising personal care products in Japan.

Extrapolating the Full Personal Care Industry Marketing Buy

• Personal care products are not the whole of the personal care market.
• The global personal market was worth around $4,500 billion in 2017 but only $1,083 billion of that was for personal care products.
• Assuming that the general ratios of the industry sub-segments will remain about the same, even as the industry has grown over the last 2 years, $1,083 billion is about 24 percent of $4,500 billion.
• Assuming the Japanese wellness market reflects the global wellness market, that means that the total Japanese wellness market's marketing buy for 2019 is 502million * 100/24 or $2.092 billion.
• Thus, the personal care industry spent approximately $2.092 billion on advertising in 2019.

Research Notes:

Calculations:

Currency Conversions

Finding the Percent of Overall Ad Buy Made by the Beauty Products Industry

Updating that number for 2019

Personal Care Products as a percentage of the beauty products market in Japan

That percentage Applied to the Beauty Industry Products Marketing Buy in Japan

Finding the Size of the Personal Care Products Market in as a Percentage of the Overall Personal Care Market in Japan

Applying that Percentage to the Extrapolated Personal Care Products Marketing Expenditure in Japan in 2019

Helpful Insights

• In 2015, online advertising spend by health & beauty brands in China was US$838 million (¥5,898,950,052); this accounted for 2.7% of total online advertising in the country. The expected spend in 2016 was US$1,120 million (¥7,884,181,742), an increase of 35% from the previous year. [1 USD = 7.03945 CNY]
• However, the projected CAGR from 2016 to 2020 is 21.3%; therefore, the online ad spend by health & beauty companies in China will hit US$2,425 million (¥17,070,661,362) in 2020.
• By the end of this year, 2019, these companies would have spent an estimate of US$2,296,000,000 (¥16,164,161,688) on online advertising. [calculated]
• In 2015, social media advertising spend by health & beauty players in China was US$143 million (¥1,006,618,104); this accounted for 4.0% of total social media advertising in the country. However, this ad spend was estimated to hit US$217 million (¥1,527,525,375) in 2016, and reach US$1,010 million (¥7,109,577,823) in 2020. It has a projected CAGR of 46.8% from 2016 to 2020.
• Therefore, the estimated social media ad expenditure by these companies is expected to be US$521,668,000 (¥3,673,034,311) this year, 2019. [calculated]
• According to Zenith's research report, this year, 2019, China is leading in beauty total ad spend around the globe. The country has spent US$6.2 billion (¥43,643,377,790), and it's estimated to spend US$6.9 billion (¥48,570,855,928) in 2021 on beauty ads.
• As per iResearch China statistics, China's top five skincare & cosmetic brands by online spending in 2017 included BIORE (¥13.14 million), Return (¥10.68 million), OLAY (¥8.05 million), Estee Lauder (¥5.02 million), and Lancome (¥3.99 million).
• The top online platforms used in 2017 by the above brands to advertise their products in China include video websites, fashion websites, portal websites, microblogs, and maternal websites.
• This year, 2019, the companies/players/brands with the largest market share in the personal care industry in China include L'Oreal China, Mary Kay (China) Inc., Procter & Gamble (China) Ltd., Shiseido Group (China), and Shanghai Jahwa United Co., Ltd.
• In 2018, L'Oréal spent some €8.14 billion (¥63,401,155,364) on advertising and promotions worldwide; also, Procter & Gamble has spent about US$6.8 billion (¥47,867,384,088) on advertising globally, this year, 2019. [1 EUR = 7.78884 CNY]

Research Strategy

Calculations

1. Online Ad Spend by Health & Beauty Brands in China, 2019

2. Social Media Ad Expenditure by Health & Beauty Brands in China, 2019

1. P&G

• P&G’s revenue for FY 2019 was $67.7 billion.
• The company’s market share in the global wellness industry was around 1.5% ($67.7 billion/$4.5 trillion) in 2018.
• P&G’s products are sold in 180 countries worldwide.
• They include the United States, Mexico, Singapore, Turkey, Switzerland, and others.

2. Unilever

• Unilever’s revenue for FY 2018 was $56.4 billion (€51 billion).
• The company’s market share in the global wellness industry was around 1.25% ($56.4 billion/$4.5 trillion) in 2018.
• Unilever’s products are sold in 190 countries worldwide.
• They include the Netherlands, the United States, Pakistan, Argentina, South Africa, and others.

3. L’Oréal

• L’Oréal’s revenue for FY 2018 was $29.8 billion (€26.9 billion).
• The company’s market share in the global wellness industry was around 0.66% ($29.8 billion/$4.5 trillion) in 2018.
• L’Oréal’s products are sold in 150 countries worldwide.
• They include France, China, Brazil, Egypt, the United States, and others.

4. Estée Lauder Companies

• Estée Lauder Companies’ revenue for FY 2019 was $14.9 billion.
• The company’s market share in the global wellness industry was around 0.33% ($14.9 billion/$4.5 trillion) in 2018.
• Estée Lauder Companies’ products are sold in 150 countries worldwide.
• They include the United States, the United Kingdom, Turkey, South Korea, Colombia, and others.

5. Amway

• Amway’s revenue for FY 2018 was $8.8 billion.
• The company’s market share in the global wellness industry was around 0.2% ($8.8 billion/$4.5 trillion) in 2018.
• Amway’s products are sold in 100 countries worldwide.
• They include the United States, China, Italy, Venezuela, South Africa, and others.

Research Strategy

• Beiersdorf: $8 billion/€7.2 billion 
• Avon: $5.5 billion  
• Herbalife: $4.9 billion  
• Henkel Group’s beauty care segment: $4.4 billion/€4 billion  
• LA Fitness: $2.1 billion  
• Holland & Barrett: $922.2 million/£702.4 million  
• Virgin Active: $790 million  
• David Lloyd Leisure: $534.1 million/€483 million  
• Fitness First: $155.5 million  
• Vitabiotics: $74.1 million  
• Seven Seas: $6.9 million