Retailers should be gearing up now to continue to meet the increasing market demand for health and beauty products targeting people of color, according to the recent “Ethnic Hair, Skin, and Cosmetic Products in the U.S.” report from Packaged Facts, a division of MarketResearch.com that publishes consumer market intelligence.
The rapid expansion of racial and ethnic minorities in the United States over the next 10 years is expected to give marketers a fast-growing target market, according to Packaged Facts. Minorities are expected to collectively be the majority of the U.S. population as soon as 2042.
In response, marketers should be ramping up in new products and marketing campaigns now rather than later, says Packaged Facts publisher David Sprinkle. During 2010, the market posted growth of nearly 13%, and the market continued to advance at a healthy pace in 2011 to approach $3 billion.
Compared to many consumer packaged goods categories, ethnic hair- and beauty-care products did remarkably well during the recession, continuing to chart steady growth even as U.S. minorities were hit especially hard by the economic downturn. The product loyalty within the category kept the market on track to resume impressive growth as soon as economic conditions began to improve.
As the growth in health- and beauty-care products for the ethnic market catches up with consumer demand, its market drivers are increasingly the natural and men’s products categories as well as an overall demand for higher-quality products.
In the meantime, multicultural consumers continue to spend vastly more on general market health- and beauty-care products than on products specifically targeting people of color. This reality highlights the continued opportunity for specialized marketers to grow within the category as well as for general-market marketers to sharpen their focus, say Packaged Facts representatives.
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