According to research company Kline, American beauty is on track for the first time in its history to experience the sharpest decline.
The pandemic COVID-19 in the market of cosmetics and personal care products U.S. sales will fall to the lowest level in the last 60 years. So far, the decay dynamics of the sales of 0.8% in 2009 during the last recession is the largest market drop ever recorded Kline. Up to this point of falling of the market of 0.3% was recorded only in 1991 amid another recession.
To COVID-19 projected average annual growth of the U.S. market averaged 3.8 percent by 2023, but recently, analysts Kline revised, reducing the previously announced performance on $ 75 billion due to the unfolding crisis. The new projections, published last week, suggest a decline of 2.5% in 2020 as the most likely outcome, the scenario for the best possible development of the market reflects an increase of 1.5%, and the scenario for the worst drop in sales of 8.1%. Given recent events related to the pandemic and the extension of the quarantine, the second option is most likely.
“Given the unprecedented situation that is unfolding around the world as the crisis in health and the financial crisis, it is not surprising that the beauty market is now experiencing the worst results, said Carrie Meller, Vice President Kline”s Consumer Products Practice. – The cosmetics market, no doubt affected in 2020 and in subsequent years, but we expect that he will recover within five years, as it was in all previous recessions. In comparison with other industries, the beauty market is quite resistant to decay, and its products are still sought after by consumers.”
Kline, experts have identified four groups of cosmetic products and personal depending on changes in sales rates:
– dynamics of the sales of disinfectants for hands and liquid soap for hands will be uneven and spasmodic;
– the goods of daily use such as shampoos and deodorants, practically will not change the rate of distribution;
– care for skin and nail polishes in the near future will not be so much in demand by the buyers, however, this situation will not last long, because these products consumers consider as part of their established way of life that they still can control;
sales of perfumes and cosmetics, is expected to fall sharply during the social distance and health crisis, and also won’t be able to recover its position during the economic recessions in the coming years.