Statista [1] is forecasting growth in the beauty and personal care market of 3.73% per annum to 2026, which is exciting news for franchises that specialize in these areas as they can look forward to seeing their profits grow. However, this is not a time for complacency. Here's why.
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What Does "Beauty and Personal Care" Encompass?
The research does not include cosmetic treatments that are delivered in person, such as hairdressers and beauty therapists. Instead, it focuses on products designed for consumers to apply themselves, such as perfumes; makeup; beauty creams for the face, lips and skin; hair care products, deodorants and even shaving products.
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Why The Growth Trend?
The trend started in 2020 during the first COVID lockdown, when grocery stores were experiencing shortages of common personal care items such as deodorants, soaps and hair care products. A vast number of Canadians turned to the internet to obtain their personal care necessities, soon discovering a much wider range of cosmetics existed than they originally realized, and the convenience of having products delivered directly to their homes proved powerful enough for many to switch allegiances away from their local stores.
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What Do Consumers Want?
Research by Mordor Intelligence [2] has found that many consumers are happy to spend more money on products that they consider beneficial to health and that sales of natural or organic cruelty-free products that are not tested on animals are preferable to cheaper mass-marketed products that may have been tested on animals.
Furthermore, due to ongoing environmental concerns, consumers are eager to embrace products that are dispatched in eco-friendly packaging.
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What Are The Implications For The Franchise Industry?
Things are looking pretty good for businesses in this sector and will only continue to improve so long as franchisees continue to promote their brand's health benefits, eco-friendliness and cruelty-free credentials to best exploit this growing market.
With an increased dependence on social media platforms such as YouTube, Facebook and Instagram to keep in touch with friends and loved ones, consumers are regularly exposed to ads and influencer opinions that will drive their purchasing decisions, meaning that franchises that are active on these platforms stand a very good chance of generating additional sales.
Both men and women are embracing good skincare regimens, and in a world where parabens and sulfates are becoming less acceptable to consumers, producers and retailers of products made with more natural ingredients are sure to soar. Equally, those who do not move with the times are likely to be left behind.
[1] https://www.statista.com/outlook/cmo/beauty-personal-care/canada
[2] https://www.mordorintelligence.com/industry-reports/canada-cosmetic-products-market-industry
