Fresh hope on the horizon for lip products, by Euromonitor International
Western fashion trends have stripped the colour out of the lipstick business in high value markets but make-up firms have cause to smile as the bee-stung pout helps buoy sales of lip products.
Lipstick sales declined in two of the three largest colour cosmetics markets (North America and Western Europe) over 2001-2006 as dramatic, smoky eyes and nude lips, the "mod look", continue to dominate make-up trends in Western countries. This drop off in demand also dragged down sales of lip liners and pencils. This is bad news in a US$9.9 billion lip products market in which more than three-quarters of value comes from lipstick and liners. Yet lip products achieved healthy 20% gains over the same period, according to Euromonitor International.
Behind this growth are the emerging markets. Far from saturated, and with large populations and dynamic economies, Eastern Europe and Latin America are propelling sales across the lip products market. Importantly, the mod look, which is turning Western consumers off lipstick, is having less of an impact in these regions. Lipstick grew by a massive 105% in Eastern Europe between 2001 and 2006 and lip liners/pencils by 81%.
Lip gloss is also helping to sustain lip products; its global growth rate in 2001-2006 was more than treble that of lipstick and contributed an extra US$607 million to the market total, according to Euromonitor International. Even consumers favouring nude lips often seek to enhance their look and add moisture with a sheer gloss. However, growth is projected to slow as the sector reaches maturity in developed markets. Sales in Western Europe rose by less than 1% in 2006 and declined by over 2% in North America.
Scope for growth in mature markets
In developed regions, there is one lip products sector that is proving dynamic, offering opportunities for future growth - “other” lip products. This includes multi-function colour sticks that can be used not just for the lips, but the cheeks and eyes as well. Primarily, however, sales are being driven by lip plumpers, such as Du Wop Lip Venom and LipFusion Lip Plump. Full lips are essential to pulling off the “mod look” and consumers are increasingly looking to emulate the youthful, sexy image of Hollywood stars such as Angelina Jolie and Scarlett Johansson. Lip plumpers caused sales of “other” lip products to surge by almost 287% in North America alone between 2001 and 2006. Now such brands are extending their lines into colour products too, offering lip plumping glosses and lipsticks.
There could be more good news on the horizon for lip products too. Although the “mod” trend persists in the West, its latest incarnation calls for brighter, bolder lip colours, including cherry and grape. Some make-up firms are poised to tap into this new demand. PPR's YSL Beauté, for example, launched Lip Twins, a new lipstick/gloss duo in early 2007. With new such opportunities on the horizon, lip products are set to keep pace with growth in the total colour cosmetics market between 2006 and 2011.
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