Beauty Industry Trends
SPA GROWTH Our ageing population has led to growing consciousness towards well-being which has resulted in a boom in the spa industry.
Spas are no longer exclusively limited to the wealthy.
International visitors make up a big part of the market, with the number of international visitors spending time at spas in Australia more than doubling from 2003 to 2006. In 2006, 109,000 international visitors frequented a health spa. This reveals the traditional association of relaxation and leisure with the spa experience, which is now also more accessible for local residents.
From 1997 - 2004 the number of spas each year doubled. There are approximately 650 spas in Australia with around 2 new spas opening each month .
TRENDSMany consumers no longer see the spa as 'pampering' but as a requisite to stay healthy and look good. These consumers want simplicity in their spa experiences and are returning to more traditional spa products. Consumers' limited free time means they have less time available to spend at the spa, and the industry is designing its offerings around this trend - tailoring their treatments to suit a busy society. Some prominent trends include:
The Eastern/Asian influence - this influence has continued to be very strong in the industry, influencing products, services and spa design. There is a strong trend towards "medical" products and services, utilising cosmeceutical products with active ingredients. Thermal treatments are also gaining popularity and spas are responding to the increasing interest by males .
Cosmeceuticals - one of the fastest growing areas of the beauty business, cosmeceuticals are probably best described simply as 'functional ingredients', much like aromatherapy has been described as 'functional fragrance'. These products have an effect on the body and by definition can't be 'cosmetics', but they are neither formulated nor regulated as OTC/drug products. Some cosmeceuticals are naturally derived and some are synthetic. Cosmeceuticals will act as another growth driver in line with the increasing consumer focus on 'wellness'. Originally introduced into prestige skin care products, cosmeceuticals will increasingly cross over into other areas (such as make-up and hair care) as both upstream prestige and mass manufacturers alike develop new multifunctional products containing various functional ingredients (especially anti-ageing ingredients such as hydroxyl acids, retinol and vitamins) in an attempt to cash in on this new growth segment.
Feel-good-only products will become more obsolete, as consumers begin to experience the actual skin-fixing results of makeup such as mineral makeup. Hence, products that deliver results and not only aesthetic enhancement are continuing to gain popularity.
Dermatologists and Plastic Surgeons - salons and spas are beginning to employ a dermatologist or plastic surgeon (sometimes both) to spend a day or more each week on the premises advising clients and offering procedures such as collagen implants and Botox. Doctor's bring medical techniques to the salon or spa and can clarify and promote product lines offered by the establishment .
Injectables - more popular than ever before, injectables are being increasingly used in salons. The standard of product now used is lasting longer and is of better quality than that of before. For the beauty and spa industry this means that savvy consumers will make comparisons and be not only conscious but also choosy about where their dollars are being spent - recognising quality ingredients and seeking out the best.
Anti-ageing products - anti-ageing products with active ingredients can work as a solution and supplement for the generations fighting the signs of aging due to sun damage, smoking, toxins (such as pollution) and day to day stress. The market for anti-ageing products is expected to enjoy particularly strong growth in the foreseeable future with an increasing array of appearance enhancing and health maintenance products. According to research this particular product segment may be worth over $30 billion in 2009, up from $20 billion in 2004 .
Customised/Tailored Treatments - customised treatments are becoming the norm, with consumers expecting the ultimate personal service. The demand for 'personal branding' and customised cosmetic/beauty products has also increased.
Sleeping at the Spa - a trend has developed whereby sleep has been incorporated into spas. Ideal sleep environments have been created through minimal light and sound - with ultra-relaxing treatments to match.
Detox at the Spa - The trend for society to now readily identify 'toxins' has meant that many are turning to spas for a range of detox solutions. This includes a range of purifying and relaxing treatments, as well as use of the steam room or sauna.
Environmental Awareness - There has been a trend for spas to become more 'green' due to growing societal environmental awareness. Consumers are paying more attention to words like 'organic' and 'holistic' and spas are therefore adapting to meet this demand. Many Day Spas, conscious of water restrictions have also adapted traditional treatments to protect this resource.
SPECIFIC PRODUCT TRENDSUltra-niche products
Growth is expected in ultra-niche products, such as products containing botanical extracts, plant acids, enzymes, herbs, vitamins, proteins, and food ingredients including one of the latest trends, which incorporates chocolate.
There has been continued growth in the youth segment (the teen and tween boom), which is thought to account for roughly 20 per cent of the overall cosmetics and toiletries market. It is believed that manufacturers and marketers may develop an increasing array of youth products that mimic their adult counterparts, eg. incorporating aromatherapy properties.
Health warnings, environmental concerns, ethical concerns, therapy awareness and organic attitudes have all contributed to the growth in popularity of natural-based personal care products. Natural/organic skincare, hair care and cosmetics sales will continue to grow strongly in the retail sector.
For further information contact AABTH on 02 9415 4633 or www.aabth.com.au