Making up competition: Revenue growth has been limited by strong external competition

Over the five years through 2018-19, industry revenue is expected to increase at a compound annual rate of 4.5% to reach £4.6 billion. Rising household disposable income and consumer confidence has supported demand for premium market goods. The introduction of innovative, niche products has also supported growth. A focus on eco-friendly and organic, anti-ageing, and male-targeted products has developed, providing further opportunities for new revenue streams. Further, despite increased uncertainty and falling household disposable income on the back of the EU referendum, revenue increased sharply in 2016-17 as consumers turned to more affordable luxuries such as branded cosmetics. This is also known as the lipstick effect...read more.

Industry Statistics & Market Size
Revenue
£4.6bn
Annual Growth 14-19
4.5%
Forecast Growth 19-24
Profit
Employment
36,614
Businesses
1,404

Industry Threats & Opportunities

  • Growth has been limited by strong competition from supermarkets and online-only retailers
  • Growing markets have provided opportunities for firms to expand operations
  • Tariffs on trade with the European Union would be expected to increase pressure on margins
  • Industry Report - Industry Key Buyers Chapter

    The Cosmetics and Toiletries Retailers industry has a low level of market share concentration. The four largest players are estimated to account for 30.2% of industry revenue in 2018-19.Although the larger players operate retail outlets across the United Kingdom, none of them have the ability to completely dominate the market. For instance, A S Watson, the biggest firm, has an estimated 15.5% market share through two separate subsidiaries. This demonstrates the difficulty any company has when attempting to establish a foothold in the market. Additionally, the industry is highly fragmented and a significant proportion of retailers are small and only serve their local area. Figures from the Office for National Statistics support this, showing that 76.4% o...purchase to read more.

    Additional Insights for the Cosmetics & Toiletries Retailers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cosmetics & Toiletries Retailers Industry are

  • Having a clear market position
  • Production of goods currently favoured by the market
  • Attractive product presentation
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Demand from department stores in the Cosmetics & Toiletries Retailers industry impact industry performance..

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    What's in this report

    What is the Cosmetics & Toiletries Retailers Industry?

    This industry comprises companies that sell cosmetics, perfumes and toiletries in specialised retail outlets. Online-only retailers and chemists such as Boots are not included (see IBISWorld report G47.730).

    Industry Products
  • Skincare products
  • Cosmetics
  • Toiletries
  • Haircare products
  • Fragrances
  • Industry Activities
  • Toiletries retailing
  • Cosmetics retailing
  • Fragrance retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Demand from department stores
  • Demand from supermarkets
  • Population aged 18 to 64 years

  • Current Performance
  • External competitors
  • Growth strategies
  • Managing microplastic
  • Demographic trends and markets
  • Profit performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Increasing competition
  • Technology and innovative solutions
  • Social media
  • Future trends
  • Table: Cosmetics & Toiletries Retailers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cosmetics & Toiletries Retailers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Perfume & Cosmetics Manufacturing
  • Perfume & Cosmetics Wholesaling
  • Soap & Detergent Manufacturing

  • Products & Services
  • Toiletries
  • Skincare products
  • Fragrances
  • Cosmetics
  • Haircare products
  • Chart: Cosmetics & Toiletries Retailers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged between 19 and 29
  • People aged between 30 and 49
  • People aged between 50 and 64
  • People aged 65 and over
  • People aged under 18
  • Chart: Major Market Segmentation for the Cosmetics & Toiletries Retailers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRentAdvertising and marketingDepreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Cosmetics & Toiletries Retailers

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cosmetics & Toiletries Retailers Industry

  • Industry Globalization
    A S Watson (Health & Beauty UK) Ltd, Lush Cosmetics Ltd,
  • Table: A S Watson (Health & Beauty UK) Ltd - financial performance
  • Table: Lush Cosmetics Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cosmetics & Toiletries Retailers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Cosmetics & Toiletries Retailers Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cosmeceuticals
  • Cosmetics that contain biologically active ingredients that claim to have medical benefits.
  • Cosmetics
  • Substances used to enhance the appearance or odour of the human body.
  • National Non-Domestic Rate
  • A tax paid on occupied non-domestic properties
  • Toiletries
  • Consumer products designed for beautification and personal hygiene. They are sometimes known as personal-care items.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Cosmetics & Toiletries Retailers market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Cosmetics & Toiletries Retailers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Cosmetics & Toiletries Retailers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Cosmetics & Toiletries Retailers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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