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Industry: Email Alert RSS FeedSkin care grooms men's segment
Drug Store News, March 5, 2007 by Antoinette Alexander
While the media buzz around the "metrosexual" may not be as pronounced as it was a few years ago, the grooming habits remain and manufacturers are continuing to look for innovative ways to meet his beauty needs.
According to research by Mintel International Group, the men's toiletries market (which includes deodorant, hair care, shaving cream and skin care) at food, drug and mass totaled $977 million in 2005. By 2008, that number is expected to rise 2 percent to $998 million (at current prices, excluding Wal-Mart). The segment that has seen and continues to see the most significant growth: skin care as more men's-specific skin care products become available and awareness rises.
"Men's skin care products are expected to continue to be the strongest segment in sales over the forecast period," the Mintel report stated. "Men are embracing products that will protect their skin and prevent premature aging."
Mintel estimates that U.S. sales of men's skin care products at food, drug and mass (excluding Wal-Mart) will grow to $34 million by 2008, up from $22 million in 2005 (at current prices).
However, the report notes that the expansion of men's grooming is still limited and the use of such products--namely hair care, skin care and shaving products--tends to decrease as men age. "Grooming outside of shaving and cleansing is, for now, the realm of mostly younger males, who like to keep up with fashion trends and are more likely to be single and looking for potential dates," the report stated.
Future growth depends on several factors: more manufacturers entering the men's skin care segment, the development of products for entirely new segments not seen on the women's side of grooming (i.e. products for men who shave their head) and innovative packaging methods (i.e. trial-size containers of a new styling product inside packages of a more staple item).
Manufacturers continue to look to meet his needs by developing products just for him that have masculine scents, macho packaging and cool, non-feminine names like Nivea's new Energizing Hydro Gel.
In April, Nivea, a Beiersdorf brand, is launching the new Nivea for Men Energizing Hydro Gel, which is a light moisturizing formula that "refreshes the skin while delivering a cool burst of energy." The product is infused with mint extracts to cool and refresh the skin, magnesium and taurine to help maintain moisture balance for healthy looking skin. The suggested retail price is $6.99.
Dial Corp, a Henkel company, has developed a new bodyspray from Right Guard called RGX. The product is geared toward a more mature consumer than some of its competitors. Using a brushed aluminum casing, the packaging has clean, contemporary lines. Last year, the company launched Dial for Men geared toward "the Dial dad."
"Bringing an entirely new take to the men's body spray category, The Dial Corp. believes we can bring material growth to the category. We plan on having a similar success in the body spray as we did with Dial For Men in the body wash category," said Stephen Koven, a brand manager working on RGX.
A close shave
Men's increased focus on their appearance has certainly been a key driver in the shaving products and accessories market. However, manufacturers should be careful not to rest on their laurels, as product innovation remains important going forward. That being said, industry observers warn that some technological advancements in the razor segment could push the price beyond the comfort zone of many consumers at mass.
Mintel estimates that U.S. sales of shaving products and accessories at food, drug and mass (excluding Wal-Mart) will hit $1.52 billion by 2010 compared with $1.33 billion in 2005 (at current prices)--marking an increase of nearly 15 percent.
In its most recent quarterly results, P&G reported that net sales in blades and razors increased 11 percent to $1.28 billion. Globally, Gillette blades and razors consumption increased 7 percent behind strong results on Fusion in developed regions and on Mach 3 in developing regions.
"We believe Fusion is somewhat of a later bloomer in North America and we are impressed with market share gains in recent months," stated SunTrust Robinson Humphrey analyst William Chappell in a recent research note. "The company will continue to put pressure on competitors through Fusion launches in 11 Western Europe countries along with Australia, Korea and Singapore, the Phantom extension for Fusion in North America, and the launch of Venus Breeze--all of which will occur in the next quarter."
Meanwhile, Energizer Holdings stated in its most recent quarterly results that razor and blade sales for the quarter were $235.5 million, an increase of $19.4 million compared with the year-ago period, with currencies accounting for $6 million of the increase. On a constant currency basis, sales rose 6 percent primarily driven by higher sales of Quattro for Women, disposables, Intuition and Quattro for Men, partially offset by lower sales in older technology shaving systems.
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