The hand and body care market has shown fluctuation in recent years, struggling to show stability. In 2015, the market is predicted to grow by just 1%, with growth hampered by the hand care segment which showed a decline in value by 3% in the year ending March 2015 as consumers made the switch to own-label versions.
The market is predicted to increase in the best-case by 9% from an estimated £392 million in 2015 to £426 million in 2020, or in the worst-case to decline by 1% to £338 million. Mintel estimates the market to grow by 4% to £407 million, however, with growth driven by product innovation. The rising population of over-65s, as well as increasing interest from men in their health and appearance, presents innovation opportunities.
Those aged 25-34 are most likely to have body or hand concerns, which, in addition to reaching an age where signs of ageing may be starting to emerge, may also be driven by living and working conditions. Some 24% of 25-34s live in urban locations, compared with 16% who live in suburban locations, and this age group is most likely to be in full-time employment (29%). This suggests this group may be exposed to environmental pollutants from living in urban areas, as well as exposure to air conditioning from working in office environments. As such, body and hand concerns are higher in this group, with 22% having five or more skin concerns (see the Databook for more details).
Although irritation, whether from environmental factors, beauty products or from air conditioning/indoor heating, is a low concern overall, this age group shows the highest concern with these factors. 20% of 25-34s are concerned about irritation when it comes to their hands, compared with 14% of 16-24s, and 26% are concerned about irritation when it comes to their body compared with 19% of 16-24s.
In terms of distribution, grocery multiples and Boots have maintained their sales, this is driven by the availability of own-label products at these outlets, as well as the availability of promotional offers on branded goods.
Other channels, which include discount retailers, have also shown a rise in value sales. The decline in value sales of brands such as Dove and Vaseline suggests that consumers may be increasingly buying these brands from discount stores.
Chemists and department stores have seen a decline in sales as savvy shopping behaviours benefit grocery stores and discount retailers.