The U.S. Cosmetics market, measured in manufacturers' shipments, grew
by more than one $700 million dollars in 1996, at a rate of 4.8%.
Growth was driven by color cosmetics. Skin care suffered from fewer
alpha hydroxy acid-product launches. There were few cellulite or
slimming body products and the bath market seemed close to
saturation. Fragrances were weak, with men's fragrances exhibiting
dollar loss versus 1995.
I. Channel of Distribution
A. Dollar Volume in Manufacturer's Sales (millions)
The dollar volume increase for Alternative and Prestige
distribution was almost $200 million each in 1995, half of the
increase for the preceding 2 to 3 years. Broad distribution was
steady with its $200 million volume increase.
|
Prestige |
$5,585 |
|
Broad |
6,063 |
|
Alternative |
6,410 |
|
TOTAL |
18,058 |
B. Growth Rate
While all channels of distribution experienced some slowdown, the Alternative market's growth was reduced by half, even though it continued to outpace Prestige and Broad.
|
v 1995 |
|
|
Prestige |
+3.1% |
|
Mass |
+3.5 |
|
Alternative |
+7.5 |
|
TOTAL |
+4.8 |
C. Market Share
Market share for all channels of distribution are unchanged versus 1995.
|
Prestige |
31% |
|
Mass |
34% |
|
Alternative |
35% |
|
TOTAL |
100% |