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Ethnic Hair, Skin, and Cosmetics Products in the U.S., 8th Edition

There is good reason to be optimistic about ethnic hair, skin, and cosmetics products in the United States, and for marketers to be ramping up in new products and marketing campaigns now rather than later. With the rapid expansion of racial and ethnic minorities in the U.S. over the next ten years, ethnic health and beauty care product (EHBC) marketers have a fast growing target market. Hispanic, African-American, and Asian population growth is far outpacing that of whites, with minorities expected to collectively be the majority of the U.S. population as soon as 2042.

Compared to many consumer packaged goods categories, EHBC did remarkably well during the recession, continuing to chart steady growth even though U.S. minorities were especially hard hit by the economic downturn, including in terms of high unemployment rates. The loyalty of the minority populations to their HBC products kept the market on track to resume impressive growth as soon as economic conditions began to improve.

During 2010, the EHBC market posted growth of nearly 13%, and during 2011 the market continued to advance at a healthy pace to reach almost $3 billion.

As more and more EHBC products are introduced, they are meeting the needs of people of color that had previously been either ignored or mis-marketed to. As of 2012, market drivers include a desire for more natural products; greater participation in HBC categories on the part of men overall, but especially men of color; and the surge of innovative, better quality products entering the market. At the same time, ethnic consumers still spend vastly more on general market HBC products than they do on targeted ones, a discrepancy that highlights the opportunity for EHBC marketers to dramatically expand their reach.

This completely updated Packaged Facts report examines the market for EHBC products within the context of broader HBC trends in new product development and marketing, segmenting EHBC into three categories: hair care, skin care, and color cosmetics. Fully exposing the driving forces behind this market, the report analyzes market size and drivers, new product introductions, and competitive strategies, as well as the social and lifestyle patterns shaping the fortunes of ethnic health and beauty care products. Marketer and brand profiles specific to each of the three categories help to define the relationship between consumer attitudes and new product development and marketing strategy.

Table of Contents :


Chapter 1: Executive Summary

Scope of Report

The African-American Tilt


Three Product Categories: Hair Care, Color Cosmetics, and Skin Care

Overlap of EHBC and General-Market HBC Use

A Note on Sales Data

Report Methodology

Ethnic HBC Sales Near $3 Billion in 2011

Hair Care Category Leads at Retail

Table 1-1: U.S. Retail Sales of Ethnic HBC Products by Category, 2010 vs. 2011 (in millions of dollars)

B&Bs, Mass Retailers Account for 75% of Sales

Figure 1-1: Share of U.S. Retail Sales of Ethnic HBC Products by Retail Channel, 2011 (percent)

Ethnic Population Boom = Opportunity for EHBC Marketers

Table 1-2: Projection of U.S. Population by Race and Hispanic Origin, 2010 vs. 2020 (in millions)

Varied Groups a Challenge to EHBC Marketing

Ethnic Hair Care Marketers

Ethnic Color Cosmetics Marketers

Ethnic Skin Care Marketers

Hispanic, African-American Populations Retain Youthful Vigor

Tech Usage High Among Ethnic Minorities

Natural and Organic Hold Promise

Environmental Concerns a Top Priority

EHBC Products in the “Mansome” Era

Minorities Hopeful About Financial Conditions

Table 1-3: Selected Economy-Related Psychographics: U.S.

Minority Consumers, 2011 (index)

Market Projection: Sales to Near $4 Billion in 2016

Table 1-4: Projected U.S. Retail Sales of Ethnic HBC Products, 2011-2016 (in millions of dollars)

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