Bracknell, UK – 13 December 2018 - as we head into 2019, IRI provides some insight into what the Health & Beauty category has in store for us. Publishing 5 top trends, expect to see growth in naturality, veganism, bolder hair colours, male grooming and increased competition from alternative sales channels.
1.) Inspired by nature – growth in naturality
Natural Health and Beauty grew by 24% (yoy value change) over the last year and is expected to continue to grow around 10% each year for the next 3 years. Shoppers have more choice than ever before and want visibility of ingredients being used in products. As a result, we are also seeing growth in organic. Environmental pressures, such as use of plastics, which has become ‘the new sugar’, is also driving the shift in attitudes towards naturality.
Natural trends are also growing in other areas, such as medicine and OTC, where there is a shift to more natural ingredients, such as manuka honey and tea tree oils. We’re also seeing growth in herbal teas, with ingredients, such as turmeric, lemon, and lavender. Natural trends are also appearing in the baby market, mainly led by women aged 34-49 who are adopting a healthier lifestyle. We are seeing more natural skin care brands using natural ingredients such as water wipes.
The use of natural ingredients is led by changes in consumer behaviour, so the rise in veganism and the pressure on us to be healthier means that we will see more natural ingredients being used in innovation and new product development. Natural products tend to be premium priced because we are led to believe that if it’s natural it comes at a cost. However, consumers are willing to pay more if they believe that what they buy is good for them in the long run.
2.) Vegan tips into health and beauty
Seven out of 10 consumers are now looking to buy healthier options, with Millennials driving the growth demand in vegan products and increasingly adopting a vegan lifestyle. This is mainly being driven by women aged 25-45, but we are also seeing young men tapping into this trend.
The vegan trend, which started in food, is now tipping into Health and Beauty where make-up brands are moving away from animal testing to cruelty free products, and established brands innovating with ranges that are totally vegan and free from chemicals, but this is also supported by the rise in ethical consumerism. Retailers are adapting very quickly, promoting these types of products. As the rise in veganism and naturality increases and the pressure on health and wellness continues, H&B will benefit from growth as consumers believe this is a good way to stay healthy.
3.) Hair colours – the more extreme the better!
From gemlights to midlights, stained glass hair to oil slick hair, we have been spoiled for choice when it comes to hair colour trends for all hair types and textures this year. Thanks to advances in semi-permanent and permanent hair dyes, not to mention aftercare, the hair colour craze shows no sign of slowing down.
But we expect to see more ‘braver’ colours in 2019, such as Hot Pink and Metallic, while at the same time, we will see baked yellow and natural looks towards the summer of 2019. The natural trends in health and beauty will also spill into the hair sector, where we expect to see the top five most popular ingredients in 2018 continue to do well: Green tea, coconut, argon oil, avocado and honey.
4.) A well-groomed man
IRI’s review of the male grooming market this year showed that sales of beard care products, such as beard oils, have risen by 226% in the last three years and are now worth almost £5 million to UK stores. The rise in sales has seen over a million pounds per year added to the bottom line over the three years. It’s clear that the beardy trend is not going anywhere, but what’s interesting is that beards are becoming much neater, well kept and worn with pride, which explains the growing demand for products like beard oils and beard care. Brands (and retailers) are also embracing new opportunities within the male grooming category, such as innovating with natural ingredients, like jojoba and coconut oil, and focusing on the benefits around improving texture, appearance and moisture.
The impact of shave clubs, which have been stealing sales from the traditional supermarket and pharmacy channels, is also interesting. The competition among them is hotting up and we will see brands that set them up for men originally moving into designing products for women.
5.) Non-traditional channels will continue to grow
With the growth and expansion of the discounters, online specialist shops and high-end high street specialists, who are focusing more on Health and Beauty, the grocers and traditional pharmacy channels will face increasing competition in this market. The discounters are doing a good job within key categories, such as baby, where mothers are increasingly switching to them in the belief they will get quality products at an affordable price.
This is an interesting one to watch, and what we are likely to see in 2019 is increased pressure from the discounters to capture those buyers who already spend money in store on grocery to spend more on non-grocery items.
IRI is a leading provider of big data, predictive analytics and forward-looking insights that help CPG, OTC healthcare, retailers and media companies to grow. With the largest repository of purchase, media, social, causal and loyalty data, all integrated on an on-demand cloud-based technology platform, IRI guides over 5,000 clients globally in their quests to remain relentlessly relevant, capture market share, connect with consumers and deliver growth. www.IRIworldwide.com. Follow IRI on Twitter.