What's in store for the UK toiletries market?
If your firm operates in the toiletries sector, it’s a good idea to stay aware of trends within the market and the outlook for the industry over the next few years to help your business can adapt accordingly. So, what’s the market currently like and what can you expect to happen in the future?
Toiletries sales strong despite downturn
The economic downturn and the resulting UK recession did not have as much of a negative impact on toiletries sales as might have been expected. According to figures from research firm Key Note, the market was worth £4.5 billion in 2010 compared with a value of £4.27 billion in 2007, just before the financial crisis struck.
However, key shifts in buying trends have occurred as consumers look to make their money go further during these difficult times. An increasing number of people are downshifting to cheaper brands, although others are buying more upmarket products as they call a halt to costly salon appointments - which can only be good news for toiletries businesses operating in this segment!
Interestingly, around a fifth of 2010’s toiletries sales were accounted for by the men’s market - more than in previous years, suggesting personal care is becoming more and more important to males in the UK.
Growth expected until 2015
The good news is that the toiletries sector’s current resilience to the financial climate looks set to continue over the next couple of years. Key Note says overall UK sales will rise to £5 billion by 2015, with skincare products leading the way. Men’s toiletries are also expected to increase in sales value to £1.1 billion.
While the toiletries industry has so far been dominated by big brands like Unilever and Procter & Gamble, smaller firms could see success by targeting niches like eco-friendly and cosmeceutical products. However, whether your business is a large or small one, you should put plans in place to capitalise on the projected growth in sales if you have so far withstood the economic crisis.
Things you might want to think about for your firm include:
• Product range - Do you have the right products in your range to cater for consumers with less money to spend? Are there environmentally-friendly or organic options for ethically-minded buyers (if this, indeed, fits with your brand)?
• Manufacturing - If you expect sales of your own goods to rise, do you have the capabilities in place to cope with this when it comes to production and packaging? Consider, for example, whether you need to invest in more or improved cream filling machinery.
• Marketing - If you have launched or intend to release new products aimed at a different audience to your usual clientele, can you adapt your marketing strategy to target these consumers? If not, will you need to create an entirely new campaign?
• Distribution - Do you need to review your existing distribution strategy to ensure any new (and current) products reach the right buyers as the toiletries market continues to change?
• Staff - Will you need to make new hires to cope with higher demand? If so, how will you manage your recruitment processes to ensure you’re able to quickly get in the people you need when they’re required?
As you can see, there is much to bear in mind if you want your business to be in a position to take advantage of changing trends in the toiletries market. It’s a good idea to start your planning early so you don’t miss out on the chance to boost sales in the future.
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