Botanicals Skin Care Market: A Key Indicator of the Health of the Canada Economy article Source Google News article Canadian consumers spend more than $100 billion annually on skin care products, according to research from Canaccord Genuity.
Botanics products account for about $7.2 billion in total sales.
The Canadian consumer spends $7 billion a year on skin products, with the rest spent on other consumer products.
According to the Canaccons data, the Canadian consumer is spending more than twice as much on the cosmetics industry than on all other consumer goods combined.
“The cosmetics industry is a very important market for Canada, and it’s an industry that is well-positioned for growth and for profitability,” said Robyn O’Leary, Canaccords vice-president of research and analysis.
“It’s not a niche market, it’s a key market for growth in the long term.
And it’s also a key driver of Canada’s overall economy.
The beauty and wellness industry is growing at an impressive pace and it represents a significant driver of our economy.”
The cosmetics industry, in turn, is growing by about 3.5% annually.
“For the foreseeable future, we expect the makeup industry to be a key part of our growth story,” said Scott McLeod, Cancord Genuvion president and chief investment officer.
“We see the makeup market as a key growth driver, especially with the introduction of a brand new product like Clinique’s Botanix.”
The cosmetics market is growing fast.
The average annual growth rate of the cosmetics market for the past five years has been about 2.8%, according to Canaccort Genuity, which tracks the health, wellness and economic performance of Canada.
According in the CanAccord Genuves data, this represents the fastest growth rate since 2000, when it was 2.7%.
The beauty and health products market is expected to be the third-largest in Canada by 2020, behind the cosmetics and personal care, according the CanCents Genuity data.
The cosmetics and beauty products market grew by 3.4% last year, up from 2.6% in 2016.
“It’s really exciting,” said Canaccarn Genuvions O’Kane.
“There’s more growth potential for cosmetics and for the beauty and beauty industry overall.”
According to the data, cosmetic sales are expected to grow by about 8.2% in 2020, up about $1.4 billion from 2016.
“Overall, the cosmetics sector is poised to remain a major driver of the economy, even as other sectors like the personal care sector and the personal services sector experience strong growth,” said O’Connor.
However, there are some things to be aware of.
“One of the things we really want to emphasize is that the growth of the beauty sector has been so strong,” said McLeod.
“That’s not the only thing that’s driving growth, but it’s the driver that’s really driving the industry.”
The cosmetic and beauty market is a key contributor to the economy and contributes $1 trillion annually to the Canadian gross domestic product.
In 2018, the growth rate for the cosmetics, beauty and personal services sectors is expected by Canaccors Genuity to be 5.1%.
“The growth of beauty and skin care in Canada is really strong,” O’Connell said.
“So much so that it’s contributing more to the GDP than all the other sectors combined.”
For more information on the beauty market, visit www.cancord.com/beauty and www.hrsa.gc/beauties and www-healthcare.gc.ca/beautys.html