Beauty, Cosmetics and Fragrance Stores in Canada Industry Market Research Report from IBISWorld Has Been Updated

The Beauty, Cosmetics and Fragrance Stores industry suffered during the recession as consumer confidence experienced a sharp decline during the period; however, since consumer spending is strongly correlated with industry performance, the rebounding economy will underpin growth for the industry over the five years to 2019. For these reasons, industry research firm IBISWorld has updated a report on the Beauty, Cosmetics and Fragrance Stores industry in its growing industry report collection.

  • Share on TwitterShare on FacebookShare on Google+Share on LinkedInEmail a friend
Despite increasing competition, revenue will fare better as disposable incomes rise

New York, NY (PRWEB) March 31, 2014

The Beauty, Cosmetics and Fragrance Stores industry is largely dependent on consumer spending on discretionary products. During the five years to 2014, consumer confidence suffered due to growing unemployment, the domestic recession and weakened global economic conditions. As a result, consumers tightened their budgets and reduced unnecessary beauty purchases. Customers that did purchase makeup and fragrances opted to buy these items from drug stores or mass merchandisers, which typically carry value-priced versions. Other shoppers bought fewer items from beauty stores and as a result, industry revenue fell through 2010. However, since 2011, the Beauty, Cosmetics and Fragrance Stores industry has been recovering and on average, industry revenue is expected to grow 0.2% per year from 2009 to 2014, to reach an estimated $1.6 billion, despite an anticipated 1.2% decline in 2014.

According to IBISWorld Industry Analyst Vanessa Giraldo, “During this five-year period, profit has also declined as a result of consumers substituting lower-priced products for premium ones.” IBISWorld estimates that margins, or earnings before interest and tax, have decreased to 4.3% in 2013. Moreover, strong internal and external competition has defined the industry during this time as well. Internally, operators have competed on the basis of price, product selection, quality and customer service. Externally, players have faced competitive pressures from value-priced drug stores and mass merchandisers. Consequently, unprofitable participants have exited the industry or consolidated with larger, more successful players. Therefore, industry enterprises have declined at an annualized rate of 1.3%, with 1,160 stores expected by the end of 2014.

“Fortunately for the industry, consumer confidence is on the rise and is projected to continue growing over the five years to 2019,” says Giraldo. As economic activity recovers domestically and internationally, consumers will feel more secure with the economic outlook and personal finances, allowing them to make more discretionary purchases on items such as beauty products. Moreover, with more spending money, shoppers will be better able to afford premium products like cosmeceuticals (i.e. cosmetics with pharmaceutical properties) and naturally derived cosmetics. As such, industry revenue is forecast to increase 4.6% per year on average over the next five-year period, reaching $2.0 billion.

For more information, visit IBISWorld’s Beauty, Cosmetics and Fragrance Stores in Canada industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

The Beauty, Cosmetics and Fragrance Stores industry prepares, blends, compounds and packages beauty products and cosmetics. Products included in this industry are perfumes, make-up items, hair preparations, face creams, lotions and other toiletries. Toothpastes, toothbrushes, soaps and body washes are not included in this industry.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


Contact

  • Gavin Smith
    IBISWorld
    +1 310-866-5042
    Email