In a market shift, Kline & Co. is pointing out that multicultural populations are collectively growing at two to three times the rate of the Caucasian population in the United States, a development that is having an impact on the beauty care business. The market research firm points out that projections from the United States Census Bureau point to minority populations, as they have been defined, becoming a collective majority within the next 30 years.
As a result, competition in ethnic beauty care is growing more heated, Kline asserted.
Some marketers, such as Carol’s Daughter, have focused on ethnic demographics but with the population becoming more diverse, even they are positioning away from group exclusivity to target a broader audience, Kline maintained. At the same time, mainstream brands continue developing tactics to capture a growing percentage of the ethnic personal care market, the firm noted. The ethnic beauty market is fragmented with the top 10 companies like Jane Iredale accounting for a little over 40% of the total market in 2014, Kline related. Several mainstream beauty care brands now offer makeup shades that cater to the needs of people with darker complexions to build on market growth. So, ethnic brands have expanded their own offerings as they seek to extend gains.
The multicultural beauty products sector has slightly outpaced growth of the overall market for cosmetics and toiletries recently, posting a 3.7% increase in 2014, according to Kline. African Americans drive more than 70% of multicultural beauty sales currently, followed distantly by Hispanics. At the same time, many ethnic consumers, particularly Hispanics and Asians, use general cosmetics and toiletries, a tendency that provides new opportunities for beauty care producers generally, Kline stated.