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Spray September 2015

September 2015 Spray 39 Market Beat Small sizes, flexible packaging poised to continue hair care takeover Global volume sales of hair care packaging will grow at a compound annual growth rate (CAGR) of 3% from 2014– 2019, according to Euromonitor International. Economical HDPE bottles are favored by consumers in China and Brazil, while those in India, Indonesia and the Philippines opt for smaller sizes, offering immediate affordability in singleuse flexible plastic. Overall, HDPE and flexible packaging will account for 74% of global hair care packaging growth to 2019, as opposed to PET or other pack types. U.S. consumers remain skeptical of “organic” labeling New research from Mintel finds that 51% of Americans agree that labeling a product “organic” is merely an excuse to charge more for it. Generation X and the “Swing” Generation (those aged 70 and older) are the most likely to regard an organic label as a premium price tag. Only 39% of Generation X consumers trust that organic-labeled products are actually organic (35% for the Swing Generation). Among Millennials, the generation found to be the most supportive of organics, only 40% recognize that organic products are highly regulated. More than a third of all consumers (38%) regard organic as a marketing term with no real value or definition. In the Middle East, young, tech-savvy consumers begin embracing global personal care Thanks to technology like social media, the young, dynamic populations of Turkey and the Middle East are becoming more aware of global beauty and personal care brands than they were in the past, making the internet an important tool for learning about and purchasing products. Eurominotor International found that online retailing recorded a 27% compound annual growth rate (CAGR) from 2014–2019 in the Middle East and Africa, and a 32% CAGR in Turkey. Many multinational companies have established pan-Arab company websites and brand-specific Facebook and Twitter pages. The United Arab Emirates is witnessing a “premiumization” trend, with consumers seeking products with clearlydefined benefits, designed to address specific issues. Similarly, in Saudi Arabia, consumers are focusing more on style and personal well-being when purchasing beauty and personal care products. In countries with large low-income populations, such as Egypt and Turkey, companies are finding that while consumers may gravitate toward lower-priced products, the quantity they consumer does not decrease. Despite not being traditionally associated with high cosmetic usage, the young female population of Iran has found cosmetics as a source of beautification due to hijab laws that mandate the covering of the hair and body in public. SPRAY


Spray September 2015
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