Beauty and Personal Care in the Philippines

BEAUTY AND PERSONAL CARE IN THE PHILIPPINES Euromonitor International October 2014

BEAUTY AND PERSONAL CARE IN THE PHILIPPINES

LIST OF CONTENTS AND TABLES Executive Summary ................................................................................................................ ..... 1 Beauty and Personal Care Slightly Decelerates in 2013 .................... ...................................... 1 Local Market Welcomes the Entry of Imported Brands ........................................................ ..... 1 Unilever Philippines Inc Maintains Market Leadership......................................................... ..... 1 Sari-sari Distributors Are the Main Distribution Channels for Beauty and Personal Care Products.............................................................. ................................................................. ..... 1 Beauty and Personal Care W ill Experience Moderate Growth in the Medium Term ................. 1 Key Trends and Developments .................................................................................... ................ 2 Beauty and Personal Care Sees Slower Growth in 2013 ........ ................................................. 2 Imported Brands Show More Interest in the Local Market ........................................................ 3 Manufacturers Complement Traditional Marketing Campaigns With Online Efforts ................. 4 Market Data ............................................................ ................................................................. ..... 4 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14

Sales of Beauty and Personal Care by Category: Value 2008-2013 ............ 5 Sales of Beauty and Personal Care by Category: % Value Growth 2008-2013 ............................................................... ..................................... 5 Sales of Premium Beauty and Personal Care by Category: Value 2008-2013 ............................................................... ..................................... 6 Sales of Premium Beauty and Personal Care by Category: % Value Growth 2008-2013 .................................................................................. ..... 6 GBO Company Shares of Beauty and Personal Care: % Value 2009 2013 ............................................................. ................................................ 6 NBO Company Shares of Beauty and Personal Care: % Value 2009 2013 ............................................................. ................................................ 7 LBN Brand Shares of Beauty and Personal Care: % Value 2010-2013 ....... 8 Penetration of Private Label in Beauty and Personal Care by Category: % Value 2008-2013 ..................................................................... 9 Distribution of Beauty and Personal Care by Format: % Value 2008 2013 ............................................................. ................................................ 9 Distribution of Beauty and Personal Care by Format and Category: % Value 2013 ................................................................................................. 10 Forecast Sales of Beauty and Personal Care by Category: Value 2013-2018 ............................................................... ................................... 12 Forecast Sales of Beauty and Personal Care by Category: % Value Growth 2013-2018 .................................................................................. ... 13 Forecast Sales of Premium Beauty and Personal Care by Category: Value 2013-2018 ............................................................... ......................... 13 Forecast Sales of Premium Beauty and Personal Care by Category: % Value Growth 2013 -2018 ......................................................... .............. 14

Sources ....................................................... ................................................................. .............. 14 Summary 1

Research Sources ............................................................. ......................... 14

© Euromonitor International

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BEAUTY AND PERSONAL CARE IN THE PHILIPPINES EXECUTIVE SUMMARY

Beauty and Personal Care Slightly Decelerates in 2013 Following a strong performance in 2012, beau ty and personal care in the Philippines slightly slower retail value growth in current terms in 2013. The economy reported a robust performance, which helped stimulate demand from smaller, fast growing categories such as colour cosmetics, men’s grooming and sun protection. However, the industry is challenged by the growing maturity of the largest categories including hair care, skin care, and bath and shower. Typhoon Yolanda, which devastated Visayas during the fourth quarter, was detrimental to the operations of both direct sellers and store based retailers, and contributed to the slower growth.

Local Market Welcomes the Entry of Imported Brands More imported brands in various categories entered the market in 2013. Improving income levels in urban areas, exposure to foreign brands via the internet, and more affluent consumers’ demand for higher quality products encouraged the entry of more brands. The new entrants include Systema, Misslyn, Za, Shokubutsu Hana, Gosh Cosmetics, and NYX, among others. Older brands including Vidal Sassoon, Camay and Philosophy were reintroduced. These imported brands provided more alternatives to consumers and helped respond to increasing demand for products with added value.

Unilever Philippines Inc Maintains Market Leadership Unilever Philippines remains the undisputed leader in the local beauty and personal care market. The company takes the lion’s share of retail value sales in major categories like skin care, hair care and deodorants. Unilever Philippines Inc continues to improve its foothold in the local market through its commitment to enhancing its product lines with more innovative offerings, using social media to keep up with its customers, and investing in high-profile promotional campaigns to strengthen its brands.

Sari-sari Distributors Are the Main Distribution Channels for Beauty and Personal Care Products Small neighbourhood sari-sari stores (local convenience stores) remain the most important distribution channel for beauty and personal care products. These retailers account for around one quarter of retail value sales, and often carry products in smaller a nd sachet packaging. Aside from the more affordable offerings, sari-sari stores benefit from their proximity to consumers.

Beauty and Personal Care Will Experience Moderate Growth in the Medium Term The growing economy in the Philippines is expected to create a b ackdrop conducive to the expansion of beauty and personal care products. Manufacturers are projected to maintain their zest for bringing more products into the market and pushing their brands through more creative


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promotional campaigns via traditional and online media. On the consumer side, the growing number of young professionals in urban areas will continue to create a pool of more adventurous buyers who are more willing to try new offerings, demanding more product benefits, and spending more to i mprove their looks.

KEY TRENDS AND DEVELOPMENTS

Beauty and Personal Care Sees Slower Growth in 2013 The vibrant economic performance in the Philippines during 2013 contributed to the moderate growth experienced in beauty and personal care. The cou ntry exceeded expectations and surpassed its regional peers in terms of GDP growth. Annual GDP growth expanded by 7%, up on the previous year. The robust economic growth in the country was largely driven by consumer spending. The Bangko Sentral ng Pilipinas estimated that Filipinos’ personal spending improved by 6% during the year. Middle-income consumer spending power benefited from the increasing number of higher-than-average paying jobs from the business process outsourcing industry and remittances abroad. Buyer confidence remained positive throughout the year. These improvements in the macro-economy propelled retail value sales in beauty and personal care. Filipinos continued to spend on beauty and personal care products as a part of their daily hygiene, and i ncreasingly, to improve their appearance. However, the industry is challenged by the increasing maturity of huge categories such as skin care, hair care, and bath and shower. Furthermore, Typhoon Yolanda, which hit the Philippines, affected spending in devastated areas in Visayas. These factors affected the performance of direct sellers and store brands, which have significant customer bases in these areas. The beauty and personal care industry in the Philippines is characterised by a huge, stable market with slowing growth and the presence of emerging categories with vibrant performances. Hair care, which accounted for one quarter of total retail value sales in 2013, witnessed minimal growth. The most vibrant categories were sun care and colour cosmetics. Fragrances registered the most sluggish growth. Outlook The economy in the Philippines is expected to remain among the most promising in Asia. Euromonitor International predicts that real GDP growth will range from 5.3% to 5.7% over the next five years. Though Visayas will focus on rebuilding, the government is expected to assist financially with reconstruction efforts in 2014. The country will is also set to enjoy a better position with its balance of payments due to the surge of international aid. Meanwhile, the Philippines is expected to welcome more foreign investment in the medium term. The beauty and personal care market will benefit from the good economic prospects in the next five years. Filipino consumers will continue to allocate a signifi cant portion of their budget to beauty and personal care products. The industry will continue to be challenged by the maturity of huge categories. In hair care, retail value growth is expected to slow in standard shampoos and 2-in-1 products. Skin care will struggle to expand its customer base to younger buyers. Bath and shower already has deep penetration and is expected to register a minimal retail value CAGR at constant 2013 prices over the forecast period. The popularity of lesser brands’ products among lower and middleincome consumers will contribute to the slower performance of these huge categories. Despite the presence of fast growing categories within these, it is expected that market base expansion will come from the price conscious consumers.


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Colour cosmetics is expected to register the strongest retail value CAGR at constant 2013 prices over the forecast period as more Filipinos are expected to use these products daily. Meanwhile, sun care will benefit from tourism and increasing consumer awareness about the sun’s harmful effects. Depilatories, on the other hand, will also post an above-average CAGR as consumers buy higher priced products such as hair bleaches and wax.

Imported Brands Show More Interest in the Local Market More foreign brands entered the market in 2013, taking advantage of Filipinos’ desire for more alternatives and products with added-value benefits. While most of the brands introduced were new, others had operated in the country before and were returning to the market. It is also interesting to note that while some products are positioned as premium, some have mid-range and economy positioning. The vibrant colour cosmetics category saw the introduction of European cosmetic brands Misslyn, Essence, Deborah Milano, Gosh Cosmetics, and Flormar as well as other brands like NYX and BTS. Oral care saw the entry of Japanese lifestyle oral care brands Zact and Systema. Masstige brand Za by Shiseido Co Ltd was also introduced in 2013. Market leader Unilever Philippines Inc introduced its newest premium hair care brand TONI&GUY. Following the successful reintroduction of beauty soap brand Camay in 2012, Procter & Gamble Philippines Inc resurrected its hair care brand Vidal Sassoon. Philosophy, which has lines in fragrances, skin care, and colour cosmetics, also re-entered in 2013. Imported brands’ interest in the market in the Philippines provided customers with a wider array of choices, allowing them to choose products that provide the b enefits they need. Though none of these new entrants have a significant market share yet, they are beginning to carve out specific consumer niches, especially among more affluent buyers. Brands which have addedvalue benefits might be able to improve market sales in mature categories. Outlook The good economic prospects in the Philippines are expected to encourage the entry of more imported brands. Consumer spending is expected to be the primary driver of growth i n the country, with an increasing base of middle-income consumers in Metro Manila and key cities nationwide. Imported brands are expected to appeal more to affluent consumers who are looking for added-value benefits and better-than-mainstream brands. The success of the mass brands launched in 2013 is dependent on their ability to establish strong brand images and differentiate themselves from the competition. Despite the number of new brands, only Systema, Hana and Vidal Sassoon invested in wide advertising campaigns. Consumer awareness might help propel these brands but they will be challenged by the strong position of industry stalwarts with an established market base. Another challenge for mass brands will be encouraging highly loyal customers to shift to new products. Established players invest heavily in product innovation and aggressive marketing campaigns thus newly introduced foreign mass brands are likely to achieve only limited success. Creation of market niches is possible but gaining mainstream popularity is unlikely given the strong position of incumbents. Premium brands entering the local market might have better opportunities i n gaining clientele among more upscale consumers. The higher levels of income in Metro Manila and increasing consumer awareness of premium brands abroad via travel and online communities create a backdrop conducive to growth. More affluent buyers are increasingly becoming interested in premium products, especially those popular in other countries.


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Manufacturers Complement Traditional Marketing Campaigns With Online Efforts As Filipino consumers become increasingly tech-savvy, manufacturers are augmenting traditional promotional efforts with online strategies. The growing penetration of the internet in the Philippines, which is stimulated by cheap mobile devices with internet connectivity, is shaping the way consumers access information and use it in decision making. Manufacturers have been quick to take advantage of these developments and increasingly integrate online campaigns with traditional methods. The local beauty and p ersonal care industry continues to be among the highest spenders in terms of television advertising. Manufacturers aggressively promote products through traditional media but are noticeably referring to their social media pages in tri-media campaigns. For instance, Palmolive Naturals’ television commercials encourage consumers to visit the brand’s Facebook page for more product information and brand updates. This is the same strategy employed by market leaders Unilever Philippines Inc and Procter & Gamble Philippines Inc, where customers are advised to check details of promotional campaigns on Facebook. Unilever Philippines Inc also opened its new website called Manifesto which will serve as an online community for men and tackles topics such as grooming, money, technology and sports, among others. Another development in 2013 was the increasing use of YouTube videos that features high profile celebrities. Mass general body care brand Jergens raised consumer awareness of its brands through its online romantic comedy, which led to subsequent online contests. Another popular YouTube video series for Head & Shoulders featured famous actor John Lloyd Cruz and internet sensation Ramon Bautista. Beauty bloggers also took a step f orward and started testing well-known brands and sharing their experience through vlogs. Online contests which encourage consumers to share their pictures and experiences with brands are also popular. These not only give buyers more sense of involvement and brand attachment but also serve as a testimony to the efficacy of the brand. Outlook Online and social media strategies are expected to increase in importance in the next five years. While traditional advertising campaigns such as television, radio and print will continue to be the primary means of reaching buyers, online campaigns are expected to become more prevalent and necessary to cater to younger, tech-savvy buyers. The internet will be an important touchpoint that manufacturers will utilise in order to have a holistic marketing approach. Social networking sites such as Facebook and Twitter will remain the most popular spaces for brands to directly connect with buyers. Manufacturers will also increasingly invest in the production of online videos to post relevant brand information, place celebrity endorsements, and give tutorials on how to use their products. Celebrities will continue to become key brand ambassadors but the possibility of having blogger endorsers is also possible. The use of internet campaigns is expected to help manufacturers build their brands a nd gain the awareness and loyalty of young consumers. As most internet users are in their teens and twenties, online campaigns are good opportunities to introduce brands to first-time users, allowing manufacturers to expand their customer bases. The use of online videos for tutorials can educate consumers about product usage and create better opportunities for brands in colour cosmetics, depilatories and men’s grooming.

MARKET DATA


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Table 1

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Sales of Beauty and Personal Care by Category: Value 2008-2013

PHP million

Baby and Child-specific Products Bath and Shower Colour Cosmetics Deodorants Depilatories Fragrances Hair Care Men's Grooming Oral Care Oral Care Excl Power Toothbrushes Skin Care Sun Care Sets/Kits Premium Beauty and Personal Care Mass Beauty and Personal Care Beauty and Personal Care Source: Note 1:

Note 2:

Table 2

2008

2009

2010

2011

2012

2013

5,931.3

6,266.4

6,732.4

6,971.3

7,239.1

7,508.6

24,894.5 4,962.9 5,982.7 118.7 7,115.8 29,176.4 3,055.3 19,169.2 19,080.6

25,262.1 5,399.7 6,267.1 127.2 7,281.6 28,943.7 3,240.8 17,380.5 17,289.5

25,911.6 5,768.4 6,182.9 133.8 7,639.8 30,957.8 3,419.2 18,454.6 18,361.2

26,700.3 6,249.6 6,355.8 140.2 7,554.5 32,752.0 3,561.4 19,455.0 19,359.7

27,358.2 7,062.0 6,536.0 148.2 7,533.9 33,995.1 3,752.4 20,172.6 20,074.9

28,091.3 7,290.4 6,908.9 157.3 7,154.9 34,784.8 3,925.7 20,979.3 20,882.9

23,962.8 252.5 298.6 6,013.0

25,492.3 261.5 279.2 6,277.1

28,324.4 275.0 342.0 6,710.7

29,675.0 310.2 361.8 6,995.3

31,071.6 344.8 398.0 7,198.5

32,207.1 379.1 561.2 7,239.8

96,564.5

99,176.5

105,423.9

109,935.3

114,340.3

117,646.5

123,059.8

124,186.2

131,976.9

137,806.1

143,171.3

147,375.1

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Premium/mass beauty and personal care sales are additionally included within baby and child-specific products, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care. Sum of categories is greater t han market size because the four men’s toiletries categories are included in men’s grooming as well as in bath and shower, deodorants, hair care and skin care.

Sales of Beauty and Personal Care by Category: % Value Growth 2008-2013

% current value growth


2012/13

2008-13 CAGR

2008/13 Total

3.7 2.7 3.2 5.7 6.2 -5.0 2.3 4.6 4.0 4.0 3.7 10.0 41.0 0.6 2.9 2.9

4.8 2.4 8.0 2.9 5.8 0.1 3.6 5.1 1.8 1.8 6.1 8.5 13.5 3.8 4.0 3.7

26.6 12.8 46.9 15.5 32.5 0.5 19.2 28.5 9.4 9.4 34.4 50.1 88.0 20.4 21.8 19.8

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Premium/mass beauty and personal care sales are additionally included within baby and child-specific products, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care.


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Note 2:

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Sum of categories is greater t han market size because the four men’s toiletries categories are included in men’s grooming as well as in bath and shower, deodorants, hair care and skin care.

Table 3

Sales of Premium Beauty and Personal Care by Category: Value 2008-2013

PHP million

Premium Baby and Childspecific Products Premium Bath and Shower Premium Colour Cosmetics Premium Deodorants Premium Fragrances Premium Hair Care Premium Skin Care Premium Sun Care Premium Sets/Kits Premium Beauty and Personal Care Source: Note:

2008

2009

2010

2011

2012

2013

118.6

112.8

117.8

118.5

119.4

120.1

410.8 312.7 71.8 2,454.0 367.6 2,258.8 1.8 17.0 6,013.0

429.5 337.5 72.7 2,555.6 349.5 2,392.3 1.8 25.4 6,277.1

445.7 357.6 69.2 2,665.9 389.1 2,636.0 1.9 27.4 6,710.7

475.3 384.4 69.9 2,726.4 413.4 2,782.9 2.1 22.4 6,995.3

506.1 430.8 70.6 2,799.8 438.0 2,807.5 2.3 23.9 7,198.5

533.7 441.1 73.2 2,738.6 467.1 2,832.5 2.4 31.0 7,239.8


Table 4

Sales of Premium Beauty and Personal Care by Category: % Value Growth 2008-2013

% current value growth

Premium Baby and Child-specific Products Premium Bath and Shower Premium Colour Cosmetics Premium Deodorants Premium Fragrances Premium Hair Care Premium Skin Care Premium Sun Care Premium Sets/Kits Premium Beauty and Personal Care Source: Note:

2012/13

2008-13 CAGR

2008/13 Total

0.6 5.5 2.4 3.7 -2.2 6.6 0.9 6.6 29.7 0.6

0.3 5.4 7.1 0.4 2.2 4.9 4.6 6.5 12.7 3.8

1.3 29.9 41.1 2.0 11.6 27.1 25.4 37.3 82.0 20.4


Table 5

GBO Company Shares of Beauty and Personal Care: % Value 2009-2013

% retail value rsp Company Unilever Group Procter & Gamble Co, The Colgate-Palmolive Co Avon Products Inc


2009

2010

2011

2012

2013

16.2 17.4 12.8 9.1

19.6 16.9 12.9 9.3

20.3 17.0 12.4 8.7

20.5 17.0 12.2 8.6

21.0 17.1 12.2 8.1

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Johnson & Johnson Inc Splash Corp Beiersdorf AG Cosmetique Asia L'Oréal Groupe Ever Bilena Cosmetics Inc Lamoiyan Corp Tupperware Brands Corp Estée Lauder Cos Inc Li & Fung Ltd Green Cross Inc GlaxoSmithKline Plc Rogemson Co Inc, The Sanofi Mary Kay Inc United Laboratories Inc Coty Inc Nu Skin Enterprises Inc Kao Corp Suyen Corp Trinidad Cosmetics Laboratories Inc Amway Corp Elizabeth Arden Inc Energizer Holdings Inc Mandom Corp Dermpharma Inc Private Label Others Total Source:

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5.5 3.4 2.4 1.1 2.4 0.9 1.3 1.0 1.0 0.8 0.5 0.6 0.5 0.5 0.4 0.5 0.1 0.5 0.3 0.4

5.5 3.5 2.6 1.3 2.5 1.0 1.4 0.9 1.1 0.8 0.4 0.6 0.5 0.5 0.4 0.5 0.3 0.5 0.3 0.3

5.3 3.5 2.6 1.8 2.6 1.1 1.4 0.9 1.1 0.7 0.5 0.6 0.5 0.5 0.4 0.4 0.4 0.5 0.3 0.3

4.9 3.6 2.7 1.9 2.3 1.4 1.4 1.2 1.1 0.7 0.5 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.3

4.9 3.7 2.7 2.1 1.8 1.4 1.4 1.2 1.2 0.8 0.7 0.6 0.6 0.6 0.5 0.5 0.4 0.4 0.4 0.4 0.3

0.3 0.2 0.3 0.2 0.2 0.3 18.7 100.0

0.3 0.3 0.2 0.2 0.2 0.4 14.9 100.0

0.3 0.3 0.2 0.2 0.2 0.4 14.5 100.0

0.3 0.3 0.3 0.2 0.2 0.4 14.2 100.0

0.3 0.3 0.3 0.2 0.2 0.4 13.5 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 6

NBO Company Shares of Beauty and Personal Care: % Value 2009-2013

% retail value rsp Company Unilever Philippines Inc Procter & Gamble Philippines Inc Colgate-Palmolive Philippines Inc Avon Cosmetics Inc Johnson & Johnson (Philippines) Inc Splash Corp Beiersdorf AG Cosmetique Asia Oral-B Laboratories Philippines Inc Ever Bilena Cosmetics Inc Lamoiyan Corp Tupperware Brands Philippines Inc L'Oréal Philippines Inc Estée Lauder Cos Inc Green Cross Inc Sanofi-Aventis


2009

2010

2011

2012

2013

16.9 14.7

19.7 14.3

20.2 14.3

20.9 14.3

21.5 14.6

13.0

13.0

12.5

12.3

12.3

9.1 5.5

9.3 5.5

8.7 5.3

8.6 4.9

8.1 4.9

3.4 2.4 1.1 2.1

3.5 2.6 1.3 2.0

3.5 2.6 1.8 2.0

3.6 2.7 1.9 2.0

3.7 2.7 2.1 2.0

0.9 1.3 1.0

1.0 1.4 1.6

1.1 1.4 1.5

1.4 1.4 1.4

1.4 1.4 1.2

1.8 1.0 0.8 0.5

1.8 1.0 0.8 0.5

1.9 1.0 0.7 0.5

1.6 1.0 0.7 0.6

1.2 1.1 0.7 0.6

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Philippines Inc Rogemson Co Inc, The GlaxoSmithKline Philippines Inc Mary Kay Philippines Inc Dermpharma Inc United Laboratories Inc JVS Worldwide Inc Nu Skin Enterprises Philippines Inc Suyen Corp Trinidad Cosmetics Laboratories Inc Kao Brands Co Amway Philippines LLC Elizabeth Arden Inc Energizer Philippines Inc Davidoff Parfums Sara Lee Philippines Inc Fuller Life Direct Selling Philippines, Inc Other Private Label Others Total Source:

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0.6 0.5

0.6 0.4

0.6 0.4

0.5 0.5

0.6 0.5

0.5 0.5 0.4 0.5 0.1

0.5 0.5 0.4 0.5 0.3

0.5 0.5 0.4 0.5 0.4

0.5 0.5 0.4 0.5 0.4

0.5 0.5 0.5 0.5 0.4

0.3 0.4

0.3 0.3

0.3 0.3

0.4 0.3

0.4 0.3

0.4 0.3 0.2 0.2 0.2 2.7 0.6

0.4 0.3 0.3 0.2 0.2 -

0.4 0.3 0.3 0.2 0.2 -

0.3 0.3 0.3 0.2 0.2 -

0.3 0.3 0.3 0.3 0.3 -

0.3 15.8 100.0

0.4 15.4 100.0

0.4 15.2 100.0

0.4 14.9 100.0

0.4 14.7 100.0


Table 7

LBN Brand Shares of Beauty and Personal Care: % Value 2010-2013

% retail value rsp Brand Safeguard Cream Silk Johnson's Baby Pond's Palmolive Naturals Sunsilk Palmolive Pantene Eskinol Silka Colgate Braun Oral-B Head & Shoulders Colgate Fresh Confidence Close-Up SkinWhite Nivea Body Hapee


Company Procter & Gamble Philippines Inc Unilever Philippines Inc Johnson & Johnson (Philippines) Inc Unilever Philippines Inc Colgate-Palmolive Philippines Inc Unilever Philippines Inc Colgate-Palmolive Philippines Inc Procter & Gamble Philippines Inc Unilever Philippines Inc Cosmetique Asia Colgate-Palmolive Philippines Inc Oral-B Laboratories Philippines Inc Procter & Gamble Philippines Inc Colgate-Palmolive Philippines Inc Unilever Philippines Inc Splash Corp Beiersdorf AG Lamoiyan Corp

2010

2011

2012

2013

6.0

6.0

5.9

6.0

3.7 3.7

3.9 3.8

4.2 3.6

4.7 3.6

2.7 2.7

2.7 2.8

2.8 2.8

2.9 2.9

2.8 3.3

2.8 2.7

2.8 2.5

2.7 2.4

2.0

2.0

2.1

2.2

2.0 1.3 1.9

2.0 1.8 1.9

2.1 1.9 1.9

2.2 2.1 2.0

2.0

2.0

2.0

2.0

1.9

1.9

1.9

1.9

1.7

1.6

1.6

1.7

1.6 1.3 1.3 1.3

1.6 1.4 1.3 1.3

1.6 1.4 1.3 1.3

1.6 1.4 1.3 1.3

8


Zest Rejoice Vaseline Olay Rexona Simply Pretty Clear AVON Color Maxi-Peel Dove Finesse Avon Naturals L'Oréal Studio Line Other Private Label Others Total Source:

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Procter & Gamble Philippines Inc Procter & Gamble Philippines Inc Unilever Philippines Inc Procter & Gamble Philippines Inc Unilever Philippines Inc Avon Cosmetics Inc Unilever Philippines Inc Avon Cosmetics Inc Splash Corp Unilever Philippines Inc Unilever Philippines Inc Avon Cosmetics Inc L'Oréal Philippines Inc

1.3

1.2

1.2

1.2

1.1

1.1

1.1

1.2

1.1 1.0

1.1 1.0

1.1 1.0

1.1 1.1

1.1 1.1 1.0 0.8 0.9 0.8 0.8 1.0 0.8 0.4 44.1 100.0

1.0 1.2 1.0 0.9 0.9 0.8 0.8 0.8 0.8 0.4 43.7 100.0

1.0 1.1 1.0 1.0 0.9 0.8 0.8 0.9 0.4 0.4 43.4 100.0

1.1 1.1 1.0 0.9 0.9 0.8 0.8 0.8 0.4 42.8 100.0


Table 8

Penetration of Private Label in Beauty and Personal Care by Category: % Value 2008-2013

% retail value rsp

Beauty and Personal Care Bath and Shower Fragrances Hair Care Men's Grooming Mass Beauty and Personal Care Source:

2008

2009

2010

2011

2012

2013

0.3 0.4 0.9 0.7 1.3 0.4

0.3 0.4 0.8 0.8 1.2 0.4

0.4 0.5 0.8 0.8 1.2 0.4

0.4 0.5 0.8 0.8 1.2 0.4

0.4 0.5 0.9 0.9 1.2 0.4

0.4 0.6 1.0 0.9 1.1 0.5


Table 9

Distribution of Beauty and Personal Care by Format: % Value 2008-2013

% retail value rsp

Store-Based Retailing - Grocery Retailers -- Modern Grocery Retailers --- Convenience Stores --- Discounters --- Forecourt Retailers --- Hypermarkets --- Supermarkets -- Traditional Grocery Retailers --- Food/drink/tobacco specialists --- Independent Small


2008

2009

2010

2011

2012

2013

86.9 55.3 23.1

85.7 54.6 23.1

85.0 54.2 23.3

85.7 54.7 23.4

85.5 54.3 23.5

85.7 54.3 23.8

0.6 0.1 2.6 19.8 32.2

0.7 0.1 2.6 19.7 31.5

0.7 0.1 2.7 19.9 30.9

0.7 0.1 2.7 19.9 31.3

0.7 0.1 2.8 19.9 30.8

0.7 0.1 2.9 20.1 30.5

-

-

-

-

-

-

6.2

6.0

5.8

5.7

5.6

5.6

9


Grocers --- Other Grocery Retailers - Non-Grocery Retailers -- Apparel specialist retailers -- Electronics and Appliance Specialist Retailers -- Health and Beauty Specialist Retailers --- Beauty Specialist Retailers --- Chemists/Pharmacies --- Parapharmacies/ Drugstores --- Other BPC Health and Beauty Specialist Retailers -- Home and Garden Specialist Retailers --- Furniture and Homewares Stores -- Mixed Retailers --- Department Stores --- Mass Merchandisers --- Variety Stores --- Warehouse Clubs -- Other Non-Grocery Retailers --- Outdoor Markets --- Other BPC NonGrocery Retailers Non-Store Retailing - Direct Selling - Homeshopping - Internet Retailing - Vending Non-retail channels - Hair Salons Total Source:

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26.0

25.6

25.2

25.6

25.2

25.0

31.6 -

31.1 -

30.8 -

31.0 -

31.2 -

31.4 -

-

-

-

-

-

-

18.0

18.0

17.9

18.0

18.2

18.4

2.7

2.7

2.6

2.6

2.7

2.7

0.2 15.2

0.2 15.1

0.2 15.1

0.2 15.2

0.2 15.3

0.2 15.5

0.0

0.0

0.0

0.0

0.0

0.0

-

-

-

-

-

-

-

-

-

-

-

-

13.0 13.0 0.6

12.6 12.6 0.6

12.4 12.4 0.6

12.4 12.4 0.5

12.5 12.5 0.5

12.5 12.5 0.5

0.5 0.1

0.5 0.1

0.5 0.1

0.4 0.1

0.4 0.1

0.4 0.1

12.9 12.8 0.1 0.2 0.2 100.0

14.1 14.0 0.1 0.2 0.2 100.0

14.8 14.7 0.1 0.2 0.2 100.0

14.2 14.0 0.1 0.2 0.2 100.0

14.4 14.2 0.1 0.2 0.2 100.0

14.2 14.0 0.1 0.2 0.2 100.0


Table 10

Distribution of Beauty and Personal Care by Format and Category: % Value 2013

% retail value rsp

Store-Based Retailing Grocery Retailers Modern Grocery Retailers Convenience Stores Discounters Forecourt Retailers Hypermarkets Supermarkets Traditional Grocery


BC

BS

CC

D

DP

F

86.8 59.6 34.6 1.6 0.0 0.0 4.5 28.5 25.0

93.3 60.9 22.9 0.7 0.0 0.4 3.2 18.6 38.1

30.7 6.4 5.2 1.0 0.0 0.0 0.6 3.5 1.2

64.9 39.9 28.0 1.6 0.0 0.0 2.8 23.5 11.9

99.1 62.2 28.3 4.3 0.0 0.0 1.5 22.4 33.9

44.9 7.6 7.0 0.7 0.0 0.0 1.5 4.8 0.7

10


Retailers Food/drink/tobacco specialists Independent Small Grocers Other Grocery Retailers Non-Grocery Retailers Apparel specialist retailers Electronics and Appliance Specialist Retailers Health and Beauty Specialist Retailers Beauty Specialist Retailers Chemists/Pharmacies Parapharmacies/Drugstores Other BPC Health and Beauty Specialist Retailers Home and Garden Specialist Retailers Furniture and Homewares Stores Mixed Retailers Department Stores Mass Merchandisers Variety Stores Warehouse Clubs Other Non-Grocery Retailers Outdoor Markets Other BPC Non-Grocery Retailers Non-Store Retailing Direct Selling Homeshopping Internet Retailing Vending Non-retail channels Hair Salons Total

Store-Based Retailing Grocery Retailers Modern Grocery Retailers Convenience Stores Discounters Forecourt Retailers Hypermarkets Supermarkets Traditional Grocery Retailers Food/drink/tobacco specialists Independent Small Grocers Other Grocery Retailers Non-Grocery Retailers Apparel specialist


Passport

0.0

0.0

0.0

0.0

0.0

0.0

10.0 15.0 27.1 0.0

7.3 30.8 32.4 0.0

0.3 0.9 24.3 0.0

4.2 7.7 25.0 0.0

3.5 30.4 36.9 0.0

0.2 0.4 37.3 0.0

0.0

0.0

0.0

0.0

0.0

0.0

13.7

23.9

10.3

12.3

18.6

6.7

3.3

3.1

7.1

5.4

5.0

6.7

0.5 9.9 0.0

0.2 20.6 0.0

0.0 3.2 0.0

0.0 6.8 0.0

2.4 11.2 0.0

0.0 0.0 0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

13.5 13.5 0.0 0.0 0.0 0.0

7.5 7.5 0.0 0.0 0.0 1.0

14.0 14.0 0.0 0.0 0.0 0.0

12.7 12.7 0.0 0.0 0.0 0.1

17.1 17.1 0.0 0.0 0.0 1.2

28.9 28.9 0.0 0.0 0.0 1.7

0.0 0.0

1.0 0.0

0.0 0.0

0.1 0.0

1.2 0.0

0.0 1.7

13.2 13.2 0.0 0.0 0.0 100.0

6.7 6.5 0.0 0.2 0.0 100.0

69.3 69.2 0.0 0.2 0.0 100.0

35.1 35.1 0.0 0.0 0.0 100.0

0.9 0.9 0.0 0.0 0.0 100.0

55.1 54.1 0.0 1.0 0.0 100.0

HC

MG

OC

SC

SU

SK

98.2 68.2 24.9 0.0 0.0 0.0 2.9 22.0 43.3

80.9 49.4 26.3 2.0 0.0 0.0 2.4 21.9 23.1

99.9 70.2 21.9 0.0 0.0 0.0 2.3 19.6 48.3

82.2 46.9 29.1 1.3 0.0 0.0 3.7 24.1 17.8

95.8 47.5 39.0 8.2 0.0 0.0 4.5 26.3 8.5

35.0 15.0 15.0 0.0 0.0 0.0 5.0 10.0 0.0

0.0

0.0

0.0

0.0

0.0

0.0

7.9 35.4 30.0 0.0

4.8 18.3 31.5 0.0

8.2 40.1 29.7 0.0

1.6 16.2 35.3 0.0

2.0 6.5 48.3 0.0

0.0 0.0 20.0 0.0

11


retailers Electronics and Appliance Specialist Retailers Health and Beauty Specialist Retailers Beauty Specialist Retailers Chemists/Pharmacies Parapharmacies/Drugstores Other BPC Health and Beauty Specialist Retailers Home and Garden Specialist Retailers Furniture and Homewares Stores Mixed Retailers Department Stores Mass Merchandisers Variety Stores Warehouse Clubs Other Non-Grocery Retailers Outdoor Markets Other BPC Non-Grocery Retailers Non-Store Retailing Direct Selling Homeshopping Internet Retailing Vending Non-retail channels Hair Salons Total Source: Key:

Passport

0.0

0.0

0.0

0.0

0.0

0.0

20.6

16.7

17.1

18.9

21.0

9.0

1.3

6.5

0.0

2.6

6.8

7.5

0.1 19.1 0.0

0.0 10.1 0.0

0.1 17.0 0.0

0.2 16.1 0.0

1.1 13.1 0.0

0.0 1.5 0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

8.7 8.7 0.0 0.0 0.0 0.7

14.0 14.0 0.0 0.0 0.0 0.8

12.3 12.3 0.0 0.0 0.0 0.3

16.3 16.3 0.0 0.0 0.0 0.1

27.3 27.3 0.0 0.0 0.0 0.0

11.0 11.0 0.0 0.0 0.0 0.0

0.7 0.0

0.8 0.0

0.3 0.0

0.1 0.0

0.0 0.0

0.0 0.0

1.0 1.0 0.0 0.0 0.0 0.7 0.7 100.0

19.1 19.1 0.0 0.0 0.0 100.0

0.1 0.1 0.0 0.0 0.0 100.0

17.8 17.6 0.0 0.2 0.0 100.0

4.3 4.3 0.0 0.0 0.0 100.0

65.0 65.0 0.0 0.0 0.0 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources BC = baby and child-specific products; BS = bath and shower; CC = colour cosmetics; D = deodorants; DP = depilatories; F = fragrances; HC = hair care; MG = men’s grooming; OC = oral care; SC = skin care; SU = sun care; SK = sets/kits

Table 11

Forecast Sales of Beauty and Personal Care by Category: Value 2013-2018

PHP million

Baby and Child-specific Products Bath and Shower Colour Cosmetics Deodorants Depilatories Fragrances Hair Care Men's Grooming Oral Care Oral Care Excl Power Toothbrushes


2013

2014

2015

2016

2017

2018

7,508.6

7,562.4

7,631.2

7,743.0

7,884.8

8,055.0

28,091.3 7,290.4 6,908.9 157.3 7,154.9 34,784.8 3,925.7 20,979.3 20,882.9

27,983.2 7,505.9 7,094.7 162.5 7,010.4 35,372.5 4,042.7 21,123.9 21,027.2

27,851.7 7,797.4 7,201.8 167.6 7,008.5 35,970.3 4,130.7 21,245.7 21,148.7

27,876.8 8,136.6 7,315.3 173.3 7,102.6 36,718.6 4,237.5 21,513.8 21,416.6

28,035.4 8,519.9 7,438.6 179.5 7,265.0 37,564.4 4,364.1 21,918.9 21,821.6

28,331.8 8,943.3 7,573.2 186.4 7,476.3 38,495.6 4,507.8 22,438.9 22,341.5

12


Skin Care Sun Care Sets/Kits Premium Beauty and Personal Care Mass Beauty and Personal Care Beauty and Personal Care Source: Note 1:

Note 2:

Passport

32,207.1 379.1 561.2 7,239.8

32,585.2 402.8 667.6 7,311.3

33,046.3 426.1 697.8 7,327.3

33,726.6 448.8 693.5 7,435.5

34,612.2 470.8 664.1 7,621.4

35,682.6 491.7 618.1 7,831.4

117,646.5

118,873.5

120,303.8

122,326.3

124,833.8

127,836.3

147,375.1

148,830.5

150,410.3

152,828.4

155,952.3

159,715.8

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Premium/mass beauty and personal care sales are additionally included within baby and child-specific products, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care. Sum of categories is greater t han market size because the four men’s toiletries categories are included in men’s grooming as well as in bath and shower, deodorants, hair care and skin care.

Table 12

Forecast Sales of Beauty and Personal Care by Category: % Value Growth 2013-2018

% constant value growth 2013-18 CAGR

2013/18 TOTAL

1.4 0.2 4.2 1.9 3.4 0.9 2.0 2.8 1.4 1.4 2.1 5.3 2.0 1.6 1.7 1.6

7.3 0.9 22.7 9.6 18.5 4.5 10.7 14.8 7.0 7.0 10.8 29.7 10.1 8.2 8.7 8.4


Note 2:

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Premium/mass beauty and personal care sales are additionally included within baby and child-specific products, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care. Sum of categories is greater t han market size because the four men’s toiletries categories are included in men’s grooming as well as in bath a nd shower, deodorants, hair care and skin care.

Table 13

Forecast Sales of Premium Beauty and Personal Care by Category: Value 2013-2018

PHP million

Premium Baby and Childspecific Products Premium Bath and Shower Premium Colour Cosmetics Premium Deodorants Premium Fragrances Premium Hair Care


2013

2014

2015

2016

2017

2018

120.1

117.2

114.5

112.3

114.3

112.8

533.7 441.1 73.2 2,738.6 467.1

559.7 450.4 74.5 2,768.1 489.2

584.9 397.3 74.9 2,801.3 511.2

585.4 406.8 73.2 2,850.8 539.3

616.8 426.0 74.4 2,912.6 565.8

651.6 447.2 75.7 2,981.7 594.1

13


Premium Skin Care Premium Sun Care Premium Sets/Kits Premium Beauty and Personal Care Source: Note:

2,832.5 2.4 31.0 7,239.8

Passport

2,813.1 2.5 36.8 7,311.3

2,802.4 2.5 38.4 7,327.3

2,826.3 2.6 38.8 7,435.5

2,870.9 2.7 37.9 7,621.4

2,929.7 2.8 35.9 7,831.4

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Premium/mass beauty and personal care sales are additionally included within baby and child-specific products, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care.

Table 14

Forecast Sales of Premium Beauty and Personal Care by Category: % Value Growth 2013-2018

% constant value growth 2013-18 CAGR

2013/18 TOTAL

-1.3 4.1 0.3 0.7 1.7 4.9 0.7 2.6 3.0 1.6

-6.1 22.1 1.4 3.4 8.9 27.2 3.4 13.5 15.7 8.2

Premium Baby and Child-specific Products Premium Bath and Shower Premium Colour Cosmetics Premium Deodorants Premium Fragrances Premium Hair Care Premium Skin Care Premium Sun Care Premium Sets/Kits Premium Beauty and Personal Care Source: Note:

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Premium/mass beauty and personal care sales are additionally included within baby and child-specific products, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care.

SOURCES Sources used during the research included the following: Summary 1

Research Sources

Trade Press

Beauty Business News Beauty International Bussiness World Online Cosmetique News European Cosmetic Markets Forbes Happi Magazine Inquirer.net International Cosmetique News Manila Bulletin PR Newswire Soap Perfumery & Cosmetics


14


Passport

SunStar Network Source:

Euromonitor International


15

Beauty and Personal Care in the Philippines

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