Global Wellness Industry Size (2)

Part
01
of nineteen
Part
01

Personal Care and Health and Wellness Market Size US

The personal care industry in the U.S. is worth $22.54 billion and the health and wellness market size is $174.27 billion.

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.:
  • 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

All information was found to be directly available except for the cosmetics market size. This was combined with the personal care market, so we subtracted the personal care industry market size from the combined cosmetics and personal care market size to obtain the cosmetics market size ($89.5 billion$22.54 billion = $66.96 billion). Additionally, the CAGR for the health and wellness market was calculated using a CAGR calculator.
Part
02
of nineteen
Part
02

Personal Care and Health and Wellness Market Size China

The personal care market in China is worth $20.71 billion and the health and wellness market is worth $126.90 billion.

Personal Care Market

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:
  • The male skincare market grew by 18.5% between 2013 and 2017 to reach $1.78 billion.

Research Strategy

All information was found to be directly available except the 2018 and 2019 health and wellness market sizes. These were calculated as follows based on the 8% CAGR predicted through 2020:
Note that a currency converter was used to convert RMB to USD and the exchange rates were used for the appropriate years. The CAGR for the Chinese beauty market was calculated using a CAGR calculator.
Part
03
of nineteen
Part
03

Personal Care and Health and Wellness Market Size Japan

In Japan, the personal care market is estimated to be about $2.08 billion and the health and wellness market is about $57.39 billion.

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

All information was found to be directly available except the 2018 and 2019 health and wellness, beauty, and skincare market sizes. The health and wellness market sizes were calculated as follows based on the 8% CAGR predicted through 2020:
The beauty market sizes were calculated as follows based on the 4.4% CAGR:
  • 2017: $5.00 billion
  • 2018: $5.22 billion ($5.00 billion x 1.044)
  • 2019: $5.45 billion ($5.22 billion x 1.044)
The skincare market sizes were calculated as follows based on the 3.0% CAGR:
  • 2017: $10.55 billion
  • 2018: $10.87 billion ($10.55 billion x 1.03)
  • 2019: $11.19 billion ($10.87 billion x 1.03).
Note that a currency converter was used to convert AUD to USD and the exchange rates were used for the appropriate years.
Part
04
of nineteen
Part
04

Personal Care and Health and Wellness Market Size: France

The French personal care market is estimated to be US$5.75 billion while the health and wellness market is US$23.38 billion. Below is an explanation of the findings.

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

We found all other data points publicly available except the health and wellness market size for 2018 and 2019. In attempting to gather the health and wellness data, your research team employed a number of research methods. We began by analyzing third-party market databases such as IBIS and Statista which normally contain market sizing information. However, the required information was behind paywalls. Next, we reviewed well-established research firms, such as, Deloitte and PwC. Unfortunately, we only found data on the fitness sub-market. We later expanded our scope to include industry publications (for instance, Frenchly) which usually provide news on various markets. Using this method we gained insights on the 2017 and 2013 health and wellness market. We opted to use this information to perform a triangulation of the market size in 2018 and 2019. To do this we assumed that the same annual growth rate that was witnessed during 2013-2017 would apply to 2018-2019. Additionally, we used this online CAGR calculator to find out the CAGR. We provided the initial value of US$20.12 billion (2013), ending value of US$21.89 billion (2017) and number of periods as 4 (that is, 2013-2017). Having provided these inputs the online calculator computed a CAGR of 2.13 percent. Using this CAGR, the 2018 and 2019 market values were calculated as shown below:
  • 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
Part
05
of nineteen
Part
05

Personal Care and Health and Wellness Market Size: UK

The market size for personal care in the United Kingdom is $6.371 billion (5.748 billion euros) in 2019. The market size for health and wellness was 23 billion euros ($25.490 billion) in 2018. Insights about the beauty and skincare sub-segments and the breakdown in the revenue of the market generated by products are given in the findings below.

Market Size For Personal Care Industry

Market Size For Health And Wellness

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.


Part
06
of nineteen
Part
06

Personal Care and Health and Wellness Market Size: Germany

The German personal care market is estimated to be about $6.99 billion, while the health and wellness market is about $40.85 billion.

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

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

All information was found to be directly available except the 2018 and 2019 health and wellness market sizes. We attempted to find current numbers in market research reports from sources like MarketsandMarkets, IBISWorld, Statista and others, but all current data was behind paywalls. So, we switched strategies and began looking in industry publications such as Glamour, PremiumBeautyNews, and others, but the only information we found was the current beauty market size. Therefore, we expanded our time frame and found an estimate for the 2017 German health and wellness market size. Using that data and assuming the CAGR mentioned in that report (3.9%) remained about the same through 2019, we were able to calculate an approximate health and wellness market size for 2019. The 2018 and 2019 sizes were calculated as follows based on the 3.9% CAGR predicted through 2017:
  • 2017: $37.84 billion
  • 2018: $39.32 billion ($37.84 billion x 1.039)
  • 2019: $40.85 billion ($39.32 billion x 1.039)
Note that a currency converter was used to convert euros and pounds to USD and the exchange rates were used for the appropriate years.
Part
07
of nineteen
Part
07

Personal Care Companies in the US

While there was no information on the total number of personal care companies in the U.S. as well as a breakdown by the number of companies based on the type of outlet, the research team, the research team compiled the available information to provide some useful insights.
  • 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

To provide the total number of personal care companies in the U.S. as well as a breakdown by the number of companies based on the type of outlet, the research team began by scouring through the public domain for any readily available information. Our initial research entailed searching through market research resources, statistics resources, media resources, and industry-focused resources, among others. We could only find data on the number of contract manufacturers and the total revenue generated from the personal care segment in the U.S. A report by Mordor Intelligence seems to contain a breakdown of the personal care industry by distribution channels but it is behind a paywall.

Next, the research team decided to search for any data on the number of establishments/companies in the United States hoping that we would be able to segment the data by category/industry. We began by searching through official government portals such as the U.S. Census Bureau, the BLS, the U.S. Small Business Administration, and the U.S. SUSB. The U.S. Census Bureau only provides employment and earnings statistics on the "Health and Personal Care Stores sub sector." The Census Bureau categorizes the sub sector into several segments including "Cosmetics, Beauty Supplies, and Perfume Stores, but it was not possible to get any relevant statistics for these categories. Although, the government databases provide the number of companies in the United States by location and industry, the categories are much wider and would not be helpful in determining the required information.

Third, the research team decided to search for the number of companies based on individual outlets, i.e., retailers, marketplaces, and clinics. For retailers, we could only find information on the top retailers and the revenue generated from retail sales. For marketplaces, we could only find information on the key marketplaces for personal care products. Searching for data on personal care clinics produced information on the number of aesthetic clinics in the United States.

The research attempted to triangulate the required information but the data was too limited. For example, we had the total revenue generated by the segment but we could not find any information on the average earnings by the companies involved. Trying to calculate an average based on the identified companies would not have provided accurate results since the market is considerably consolidated.
Part
08
of nineteen
Part
08

Personal Care Companies in the UK

While there is no publicly available information to fully detail the total number of personal care companies in the UK, helpful findings show that the Personal Care industry has contributed impressively to the UK's GDP, and there are many personal care companies that prosper in the UK. Below is an outline of the research strategies to better understand why the information requested is publicly unavailable. This examination of personal care companies in the UK will focus on three main segments: personal care retailers, marketplaces, and clinics.

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

Marketplaces

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

When trying to search for the literal number of personal care companies, no literal numbers for personal care companies were found. Websites such as EuroMonitor International, Statista, and Mintel, require payment for information contained behind paywall. The research team first searched for how the personal care market was segmented in the UK. However, details of a formal segmentation of the market is contained behind paywall in market industry reports.

Through research of the publicly available market research reports, the related findings presented above were found. However, no direct quantity nor discussion of the number of personal care companies is discussed in the reports. This makes triangulating or calculating the quantity of stores for each of the largest retailers and companies in the industry not possible as the larger industry is segmented. The results of the findings from this strategy are also part of the helpful findings above.



Part
09
of nineteen
Part
09

Personal Care Companies in China

Estimates suggest there are approximately 778 personal care product manufacturers, 12,488 personal care-oriented clinics and service businesses and 8,519 personal care-oriented online businesses in China as of 2019.

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 as a Percentage of the Total Beauty Market
Beauty Market: $51.831 billion
Personal Care Segment: $22.213 billion
22.2/51.8 = ~.45

Personal Care Manufacturers
Beauty manufacturers in China: 1,728
1,728*.45 = ~778

Personal Care Clinics
Beauty clinics in China: 27,751
27,751*.45 = ~12,488

Online Personal Care Shopping in China
Online shopping companies in China: 189,304
Percent of online sales attributed to the beauty industry: 10 percent
189,304*.1 = ~18,930
18,930*.45 = ~8,519
Part
10
of nineteen
Part
10

Personal Care Companies in Japan

Out of the nearly 4,000 personal care companies in Japan, roughly 3,984 are personal care retailers, and 16 are online marketplaces.

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

To determine the number of personal care companies in Japan, the research team searched through market research databases, including Euromonitor International, IBISWorld, Statista, and Export.gov. Although most of these databases provide information on the personal care sector in the country, they leave out statistics regarding the number of firms. However, based on the most recent data available, a study by Export.gov presented us with the approximate number of personal care companies distributed in Japan today.

The next step entailed determining the breakdown of Japan's personal care industry based on the type of outlet (retailers vs online marketplaces). To accomplish this, we sought for reasonable metrics, from industry-related sources and credible media sites such as Digital Commerce, Web Retailer, and Flying Lynx — that the team could use in triangulating the result. The strategy included discovering the number of online marketplaces that sell personal care products in Japan.

Determining the number of online marketplaces selling personal care in Japan

East Asia has only seven (7) online marketplaces targeting China, Japan, and South Korea. These marketplaces market products in all categories (general), including the personal care category. Additionally, some marketplaces (19) such as Amazon; for example, Amazon Japan, eBay, Rakuten, and more, operate globally, with reach in Japan. However, only nine (9) such marketplaces sell personal care products, while others target a specific category; like AbeBooks for only books, Delcampe for collectibles & antiques, and more.

Therefore, approximately 16 online marketplaces sell personal care products in Japan (7+9).

Determining the number of personal care retailers in Japan

Number of personal care companies = 4,000
Number of personal care online marketplaces = 16
Number of personal care retailers = 3,984 (4,000-16)
Part
11
of nineteen
Part
11

Personal Care Companies in France

There are 430 cosmetics companies (including personal care products) in France. The personal care market accounts for 38.8% of the entire beauty and personal care market and is valued at $5.75 billion .

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

Personal care product marketplaces

Personal care product clinics


Research strategy

The research team was unable to determine the total number of personal care companies in France because there was no specific information found, that presented a definite figure and we were unable to triangulate same.
We first consulted industry reports from sources such as EuroMonitor International , Mordor Intelligence, Deloitte, PWC and Gartner to find the total number of personal care companies in France. A 2019 industry report was found which provided hard statistics about personal care product wholesalers, retailers, and innovative facilities in France. However, it referenced some information from 2015, suggesting that that is the most recent information available.

In our next step, we searched for information about the various segments of the personal care market but realized that it was mainly reported as beauty and personal care market or the cosmetic market (inclusive of personal care products). A definite segmentation was behind a paywall. We had hoped that this approach would help us to identify specific numbers as it relates to the number of companies associated with each segment. This would help us to triangulate a response but this was also unsuccessful. However, we found market reports which showed that the cosmetic market is inclusive of personal care products as well as information about the distribution channels including retail stores and online channels but this information are behind a paywall. France’s cosmetic and beauty products manufacturing market report was also behind a paywall.

Our third strategy was to search for graphical illustration of the personal care market, as well as the cosmetic and personal care market in France. This method was to provide us with a breakdown of the distribution channels such as marketplaces, clinics and retailers among others, by percentages or totals. We believed that this type of information would’ve further directed our search so that we could calculate an estimate of the total number of personal care companies. Statistical and graphical data about the various distribution channels were not available to the public as they were behind a paywall. However, we found other information pertaining to the personal care market.

As a final approach, we searched for databases that provide information about personal care retailers in France and other countries. Here, we found Retail Index, which is a database with information behind a paywall. From this source, the research team would’ve been able to ascertain the number of retail outlets, ranking of retailers, department stores, internet retailers as well as mail order companies that sell personal care products in France, if it was publicly available. We also consulted the Export.gov database and were able to find some information about personal care/cosmetics companies. We were unable to find any specific information about the personal care clinics relating to the number of companies. All information found was provided.

Calculation

Personal care market as a percentage of the Beauty & Personal Care market
($5,752 million/$14,838 million) x 100 = 38.8%
Number of personal care companies
430 x 38.8% = 167 companies

Part
12
of nineteen
Part
12

Personal Care Companies in Germany

As per the calculations, there were approximately 24,538 personal care companies in Germany in 2017. Drugstore chains and perfumeries accounted for 46.4% (11,385) and 17.8% (4,368) of the personal care companies in Germany in 2017, respectively. 2017 data has been provided because it was the latest fully available information.
  • 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

Our research through market research reports, media resources, statistics sites, and industry-related resources, among others, did not produce any readily-available data on the total number of personal care companies in France. There was only revenue and overall market review data from sites such as Statista and Mordor Intelligence. We also found some useful and relevant statistics from Retail-Index and U.S.'s Export.gov. Our research also entailed searching through government data resources such as the Federal Statistical Office of Germany in the hope that they had compiled information on the companies in Germany, from which we could determine the ones that serve as outlets for personal care products. However, there was nothing relevant to our quest. Having determined that there is no readily-available information on the subject, the research team then decided to triangulate estimates using the statistics that we had garnered in the course of our research.

According to Retail-Index, 43 of the 597 major retail chains in Germany serve as outlets for personal care products. Being that these are not individual stores but rather chain stores with thousands of stores each in Germany, we could use these figures to calculate a proxy percentage. Therefore, the percentage of personal care outlets in Germany = 43/597 = 0.07202680067

According to Statista, the number of retail businesses in Germany as of end of 2017 was 340,674. Taking the above percentage, the number of personal care retailers in Germany = 0.07202680067 X 340,674 = 24,537.6582915 = about 24,538.

This would be the total number of personal care companies in Germany since Export.gov states that 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%). Kindly note that the data provided by Export.gov is for 2015; however, a 2018 report by Statista shows that the trend is likely to have continued as about 50% and 16.4% of "cosmetics and body care products" in Germany were sold through drugstores and perfumeries, respectively.

Using the above percentages and the calculated number of personal care retailers in Germany (24,538), then the breakdown by type of outlets would be:
Drugstore chains = 46.4% X 24,538 = 11,385
Perfumeries = 17.8% X 24,538 = 4,368
Hypermarkets = 14.0% X 24,538 = 3,435
Pharmacies = 8.9% X 24,538 = 2,184
Discounters = 8.3% X 24,538 = 2,037
Department stores = 3.3% X 24,538 = 810
Food stores = 1.2% X 24,538 = 295
Part
13
of nineteen
Part
13

Personal Care Advertisement in the US

In 2018 the total amount spent by personal care companies on advertising was $5.7 billion in the US. Interestingly this reflected a fall of $1.19 billion from 2014. The company that spent the most was Proctor & Gamble. The brand that spent the most was L'Oreal Paris.

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

We reviewed a range of industry publications and reports that enabled us to determine the total advertising spend of the top companies in this area in the US. The most recent year that data was available for was the 2018 year. Given this data was collated in June 2019, we would not expect the 2019 data to be available until the same time in 2020. The companies included in this list trade across multiple marketplaces, and there was no readily available information as to their spends based on the marketplace. We did locate several industry reports at Statista and Top Report that may contain this additional information. Unfortunately, they are hidden behind paywalls, and we could not access them.

In the course of our research, we found information regarding the years 2008 to 2014. We have included this for completeness as we found in interesting that the total advertising spend had decreased in the years between 2014 and 2018.

We also attempted to locate a break down of the advertising spend concerning clinics offering personal care products and treatments. One of the difficulties we encountered is that the information is not readily available. This is probably because the clinics are predominantly private companies and organizations, meaning there is no requirement to make this information available publicly. There were several reports located at Statista, Market Watch, and Tech Navio, which may contain this information, These reports were hidden behind paywalls, and we could not access them. While their contents suggested, there was a considerable amount of data regarding the US market contained in them; it was unclear if this extended to advertising information.
Part
14
of nineteen
Part
14

Personal Care Advertisement in the UK

The advertising spend of health & beauty brands and health & beauty retailers in the United Kingdom is estimated to be $677 million and $189.7 million, respectively.

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

In order to fulfill this request, we searched research reports by Nielsen, eMarketer, and Socintel360; industry portals such as Retail Insight Network, Cosmetics Europe, Retail Gazette, Marketing Week, and IAB; and media sources such as Nottingham Post, The Guardian, and BBC. However, we did not find any of the required statistics readily available. Most of the reports we found provided advertising data for the CPG segment as a whole and not the personal care segment. The health & beauty brand/ personal care focused reports were dated and limited to digital advertising. Granular level data on health & beauty retailers, marketplaces, and clinics were not found in overviews of the reports we came across. We also specifically looked for reports on e-commerce and cosmetic and dermatology in the UK; however, we did not come by any such reports that contained relevant information. Given the above limitation, we triangulated estimates where it was possible.

Triangulation for Advertising Spend by Brands

The online advertising spend of health & beauty brands in the United Kingdom was $344 million in 2015. The digital advertising spend in 2015 was 50% of the total advertising spend. The total digital advertising spend in the UK grew from £15.58 billion in 2015 to £17.4 billion in 2018. This translates to a rise of 11.68% ((£17.4 billion- £15.58 billion)/£15.58 billion). Assuming that the digital advertising spend of health & beauty brands grew proportionally, the digital advertising spend of health & beauty brands in the UK in 2018 was $373 million ($344 million* 111.68%). In 2018, the digitial advertising spend in the UK was 55.1% of the total advertising spend. Assuming that the share of digital in the total advertising spend of health & beauty brands was similar, health & beauty brands in the UK spent $677 million on advertising in 2018 ($373 million/55.1%).

In 2016, for the first time, digital's share of CPG's total advertising spend exceeded that of traditional advertising. This is also the trend in overall digital spend in the UK. The share of digital in advertising increased from 50% in 2015 to 52.1% in 2016.

Triangulation for Advertising Spend by Retailers

Boots' FY 2014 UK revenue: £6,697 million
Boots' FY 2014 Retail Health revenue: £936 million
Boots' FY 2014 Retail Beauty & Toiletries revenue: £2,253 million
Boots' FY 2014 Beauty & Health revenue: £3,189 million (£2,253 million+£936 million)
Boots' Beauty & Health revenue as a percentage of total revenue in FY 2014: 47.62% (£3,189 million/ £6,697 million)
Boots' 2013 advertising expenditure: £56,129,214
(Note: FY'14 includes the last three quarters from 2013 and the first quarter from 2014)

Boots' revenue for the 12 months ended August 31, 2018, was £6.7 billion. This is comparable to the FY'14 revenue of £6.7 billion. The advertising spend as a percentage of revenue is assumed to have remained unchanged.

Boots had an 18.6% share of the UK's health & beauty market in 2019. Assuming that it has the same share in the health & beauty industry advertising spend, the advertising spend of the retail health & beauty (personal care) segment is £143.7 million (47.62%*£56,129,214/18.6%)

Note:
— "Retail Health comprises sales of non-prescription medicines and other health-related products. "
— "Beauty & Toiletries comprises the cosmetics and fragrances, accessories and toiletries sub-categories."

Converting to USD using a conversion rate of £1 = $1.32
£143.7 million= $189.7 million


Part
15
of nineteen
Part
15

Personal Care Advertisement in France

While the team was unable to locate data that specifically identifies how much personal care companies spend on advertising in France, we did locate some helpful insights concerning the top personal care brands sold in France, general spending trends in advertising for these companies, and, for Revlon, the outlets that the company markets to.

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

The team first searched marketing industry reports, focusing on France and the Personal Care industry. In each case, marketing reports with that specific data (e.g., Mordor or Statista) were behind paywalls.

We next tried to identify the market leaders as well as the sub-segments in the Personal Care industry in France. We hoped that more targeted searching of industry reports on those companies/sub-segments would enable us to triangulate the data. The hypothesis was that reports might explain the total spending of Personal Care companies in France. We then hoped to search the annual reports of the companies as well as press releases concerning its marketing strategies to determine the share of total marketing spending for each company. Unfortunately, we could not locate sources that gave us specific details concerning the total advertising expenditures by Personal Care companies in France.

We then focused primarily on the five top companies leading Personal Care companies, searching its annual reports and marketing reports, to locate sources that identified its advertising spend in France and the specific channels/outlets these companies market to. We could not find any information that was specific to France.

Hence, the team identified some useful insights about the trends in advertising spending of these major Personal Care companies and the outlets they market to when available.
Part
16
of nineteen
Part
16

Personal Care Advertisement in Germany

A deep search in the public domain could reveal that information on the amount that personal care companies spend on advertisement in Germany is non-existent, and media coverage on the specified topic is scarce. The most relevant media mention on the topic is; this year, 2019, the estimated amount spend by health & beauty companies in Germany on online advertisement is US$540.757 million (€488,746,963). Below are the explicit findings and detailed methodology on the request.

Helpful Statistics

Research Strategy

During our search, we could not find any information on the amount that personal care companies spend on advertisement in Germany. We employed the following strategies in search of the missing data.

We began our search by going through industry analysis publications and reports on sources such as Emarketer, Market Research, Euro Monitor, Market Watch, Cosmetics Europe, Retail Gazette, Marketing Week, and IAB, among others. We employed these sources because they usually have pre-compiled information on many industry sectors, including their market size, trends, top players, among others. Therefore, we hoped to find the research on the personal care advertisement analysis based on the type of outlet (players in the form of retailers, clinics, and others) in Germany. On the Market Research website, we could find some relevant information pertaining to the research; this is, the amount spent by Germany's healthy & beauty industry on digital advertising from 2015 to the projected amount in 2020. However, we were unable to find information that answers all the research questions from the above sources.

Next, we scanned through statistical databases such as Statista, Knoema, among others. These sources usually have data on various subjects like industries. Using this strategy, we could find some relevant information relating to the topic, such as the amount spent on advertising in Germany by the two top personal care players, L'Oréal Deutschland and Procter & Gamble. Also, we could find the advertising expenditure for hair care in Germany in 2017. Unfortunately, we could not find the overall ad spend by all companies operating in this industry in Germany.

Finally, we tried using a triangulation approach. Our aim here was to find the amount spend on advertising by the top five companies in Germany, and use it as a proxy. On the Emarketer website, we could find the top 10 personal care and beauty industry advertisers in Germany, ranked by mobile ad spending. Unfortunately, this information is behind the paywall. Further, we could find a source from 2017, Build Export Gov, that shows the top five personal care companies in Germany according to the sells they made in 2016. The companies included L'Oréal Deutschland GmbH, Procter & Gamble Germany GmbH, Beiersdorf AG, Henkel AG, Unilever Deutschland GmbH, and Coty Deutschland GmbH. We assumed that these companies might still be the top in terms of sells this year or last year, 2019 or 2018 (this is because we could not find the recent data on the top personal care companies as per their revenue or sells in Germany). So we searched for the ad spend by these players individually. We went through their websites, reports, third-party websites, such as Statista, Market Watch, among others. However, we could only find the ad spend by L'Oréal Deutschland and Procter & Gamble in Germany. For others, we could find their ad spend worldwide, but no information is available on their ad spend in Germany. We tried finding the percentage each company might have spent in Germany so that we can use it to calculate the amount it used on advertisements in the country; unfortunately, this information is non-existent in the public domain. Therefore, this strategy did not work, as well.

NOTE: Also, we could not find the ad spend based on the type of outlet: retailers (E.g., GNC, Boots), marketplaces (E.g., Goop), and clinics (skin and cosmetic clinics). Here, we tried searching for the top retailers, skin and cosmetic clinics, among others; though we could find some of these outlets operating in Germany, we could not find their ad spend. This could be because the majority of them are privately owned and do not reveal their financial details to the public.

Calculations

In 2016 online ad spend by health & beauty companies in Germany was US$469,000,000.
The growth CAGR from 2016 to 2020 is 5.1%. Therefore, the 2019 online ad spend:
US$[5.1/100*469,000,000] = US$23,919,000 (the estimated amount that will be added on the initial amount of each year till the end of 2020). But 2019 -2016 = 3 years; hence, 2019 online ad spend by health & beauty companies in Germany: US$([23,919,000*3] + 460,000,00)= US$540,757,000.

Part
17
of nineteen
Part
17

Personal Care Advertisement in Japan

The personal care industry spent approximately $2.092 billion on advertising in Japan in 2019. There is not enough information in the public sphere to estimate how much of this was spent by companies in individual outlet spaces (retailers, marketplaces, online, etc.)

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:

We were unable to find granular enough information to list or estimate the percentage of the marketing buys spent by outlet segments (retail vs. marketplace vs. online, etc.) as the publicly available marketing industry sources did not break out the data in such a fashion as to make that possible.

Calculations:

Currency Conversions

Japanese ad expenditures: ¥6,390.7 billion
Japanese traditional ad expenditures: ¥2,663.8 billion
US dollar conversion: .0092
¥6,390.7 * .0092 = ~$58.83 billion
¥2,663.8 * .0092 = ~$24.56 billion

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

Assumed percent of total Japanese ad buy made by beauty industry in 2017: 10.2
$58.83 billion * .102 = ~$6 billion

Updating that number for 2019

Average Growth Rate of the Japanese Advertising Market in Between 2017 and 2019: 2.2
Reverse CAGR calculation to update the above number to 2019 estimate performed by a reverse CAGR calculator found here.
$6 billion with a 2.2 percent CAGR and two intervals = $6.27 billion

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

Total beauty products market in Japan: $26.06 billion
Personal care products market in Japan: $2.083 billion
2.083/26.06 = ~8 percent

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

6.27*.08 = $502 million.

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

Personal care products market: $1.083 trillion
Overal Personal Care Market: $4.5 trillion
1.083/4.5 = ~24 percent

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

502*24/100 = $2.092 billion
Part
18
of nineteen
Part
18

Personal Care Advertisement in China

A deep search in the public domain could reveal that information on the amount that personal care companies spend on advertisements in China is non-existent, and media coverage on the specified topic is scarce. The most relevant media mention on the topic is; this year, 2019, the estimated amount spend by health & beauty companies in China on online advertisement is US$2,296,000,000 (¥16,164,161,688). Below are the explicit findings and detailed methodology on the request.

Helpful Insights


Research Strategy

During our search, we could not find any information on the amount that personal care companies spend on advertisements in China. We employed the following strategies in search of the missing data.
We began our search by going through industry analysis publications and reports on sources such as Emarketer, Market Research, Euro Monitor, Zenith Media, Market Watch, Retail Gazette, Marketing Week, and IAB, among others. We employed these sources because they usually have pre-compiled information on many industry sectors, including their market size, trends, top players, among others. Therefore, we hoped to find the research on the personal care advertisement analysis based on the type of outlet (players in the form of retailers, clinics, and others) in China. On the Market Research website, we could find some relevant information pertaining to the research; this is, the amounts spent by China's healthy & beauty industry on the overall digital advertising and social media advertising from 2015 to the projected amounts in 2020. Also, on the Zenith Media websites, we could find the total ad spend on beauty by China this year, 2019. However, we were unable to find information that answers all the research questions from the above sources.

Next, we scanned through statistical databases, such as Statista, Knoema, among others, and online advertising measuring databases, such as iAdTracker. These sources usually have data on various subjects, including industries. Using this strategy, we could find some relevant information relating to the topic, such as the amount spent on advertising by China's top 10 skincare & cosmetic brands in 2017 and the channels they used to advertise their products. Unfortunately, we could not find the overall ad spend by all companies operating in this industry in China.

Finally, we tried using a triangulation approach. Our aim here was to find the amount spend on advertising by the top five companies in China, and use it as a proxy. On the IBISWorld website, we could find the top five largest cosmetic & personal care product companies in terms of market share in China. The companies are L'Oreal China, Mary Kay (China) Inc., Procter & Gamble (China) Ltd., Shiseido Group (China), and Shanghai Jahwa United Co., Ltd. So we searched for the ad spend by these players individually. We went through their websites, reports, third-party websites, such as Statista, Market Watch, among others. However, we couldn't find the ad spend by these companies in China. For L'Oréal China and Procter & Gamble China, we could find their total ad spend globally, while for other the remaining players, we could not find their ad spend either in China or globally on any source. Therefore, this strategy did not work, as well.

NOTE: Also, we could not find the ad spend based on the type of outlet: retailers (E.g., GNC, Boots), marketplaces (E.g., Goop), and clinics (skin and cosmetic clinics). Here, we tried searching for the top retailers, skin and cosmetic clinics, among others; though we could find some of these outlets operating in China, we could not find their ad spend. This could be because the majority of them are privately owned and do not reveal their financial details to the public.

Calculations

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

In 2016, online ad spend was US$1,120 million, and CAGR till 2020 is 35%.
Therefore, 2019 online ad spend: 2019 -2016 = 3 years
US$[35/100*1,120,000,000] = US$392,000,000
The total 2019 online ad spend by health & beauty brands in China: US$[(392,000,000*3) + 1,120,000,000] =US$2,296,000,000 (¥16,164,161,688)

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

In 2016, social media ad spend was US$217 million, and a CAGR of 46.8% till 2020.
Therefore, 2019 social media ad spend: 2019 -2016 = 3 years
US$[(46.8/100*217,000,000)*3] + 217,000,000 = US$521,668,000 (¥3,673,034,311)


Part
19
of nineteen
Part
19

Top Players in the Global Wellness Market

Five of the top players in the global wellness market are P&G, Unilever, L’Oréal, Estée Lauder Companies, and Amway. The products offered by these companies are available in 100 to 190 countries worldwide.

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

To identify the top companies in the global wellness market, we first examined the 16 major players listed in Market Reports World’s 2019 Global Health and Wellness Market Report. Based on the latest reported or estimated revenues, the top five players are P&G ($67.7 billion), Unilever ($56.4 billion/€51 billion), L’Oréal ($29.8 billion/€26.9 billion), Estée Lauder Companies ($14.9 billion), and Amway ($8.8 billion). The revenues for the remaining 11 companies have been provided below.
Sources
Sources

From Part 08
Quotes
  • "The largest national markets for cosmetics and personal care products within Europe are Germany (€13.8 billion), France (€11.4 billion), the UK (€10,9 billion), Italy (€10.1 billion) and Spain (€7 billion)."
Quotes
  • "... there has been no fixed definition of what the beauty industry actually consists of."
Quotes
  • "One reason for this is that there is no official definition of the beauty sector in national statistics; another is the diverse range of products and services that can be considered part of the industry."
Quotes
  • "Yet to date, there been [sic] no assessment of the total value the industry generates for the UK economy."
Quotes
  • "Of the expenditure on personal care and maintenance products, the largest spend of £3.2 billion was on personal care and hygiene products, including a diverse range of items such as deodorant, soap and wash products (see Fig. 5 overleaf). "
Quotes
  • "Retail of beauty products is responsible for an employment footprint totalling 187,100 jobs, which consists of an indirect effect of 27,400 jobs and a further 36,900 jobs from the induced effect."
Quotes
  • "Of the £8.7 billion of consumer expenditure on personal enhancement products, some 37 percent or £3.2 billion was spent on cosmetics. There was also significant expenditure on accessories and applications, and fragrances and perfume."
Quotes
  • "Beauty service providers made the largest direct contribution to GDP of the different segment of the industry in 2018, totalling £4.7 billion."
Quotes
  • "Hair services made the largest contribution to UK GDP at £3.9 billion or 31 percent of the industry’s total direct impact"
From Part 15
Quotes
  • "The Company uses various marketing techniques depending on the brand, type of product or target customer, among other variables. For its mass retail products, the Company markets its extensive product lines covering a broad range of price points within large volume retailers and e-commerce sites in the U.S. and within large volume retailers and other retailers internationally. The Company uses social media and other digital marketing, television, outdoor and print advertising and public relations and influencer marketing, as well as point-of-sale merchandising, including displays and samples, coupons and other trial incentives. The Company coordinates its marketing and advertising campaigns for new product launches and innovation with an omni-channel approach. The Company develops, jointly with retailers, customized, tailored point-of-purchase and other focused marketing programs."
  • "Advertising within SG&A expenses includes television, print, digital marketing and other advertising production costs that are expensed the first time the advertising takes place. The costs of promotional displays are expensed in the period in which they are shipped to customers. Advertising expenses were $507.0 million and $550.0 million for (except where otherwise noted, all tabular amounts in millions, except share and per share amounts) 2018 and 2017, respectively, and were included in SG&A expenses in the Company’s consolidated statements of operations and comprehensive (loss) income. The Company also has various arrangements with customers pursuant to its trade terms to reimburse them for a portion of their advertising costs, which provide advertising benefits to the Company. Additionally, from time-to-time, the Company may pay fees to customers in order to expand or maintain shelf space for its products. The costs that the Company incurs for ‘‘cooperative’’ advertising programs, end cap placement, shelf placement costs, slotting fees and marketing development funds, if any, are expensed as incurred and are recorded as a reduction within net sales."
Quotes
  • "hair care (more than 20%), skin care (some 10%)"
  • "the Europe, Middle East, and Africa region generates about 30%"
  • "Revlon uses a dedicated sales force in countries where the company maintains operations. It also uses sales representatives and independent distributors to serve certain territories and retailers. The beauty giant's products are sold through large volume retailers, chain drug and food stores, hypermarkets, general merchandise stores, the Internet/e-commerce, television shopping, department stores, one-stop shopping beauty retailers, specialty cosmetics stores, and perfumeries. Revlon also uses social media as well as point-of-sale merchandising, including displays and samples, coupons, and other trial incentives to reach its customers. The company coordinates its marketing and advertising campaigns with in-store promotional and other marketing activities."
Quotes
  • "beauty care products a major segment"
  • ""
From Part 19