UK Health & Beauty 2011

The health & beauty market is set to grow by 3.4% in 2011, taking its value to £18.5bn. This will see it outpace total retail spending, which is expected to grow by 1.9% in 2011. Though consumers’ real incomes are being squeezed, hitting spending overall, the need for small luxuries in every day life and the low purchase price of many items means they are continuing to spend on health & beauty.

Health & beauty expenditure 2001-2011e, category and channel performance 2006-2010 with forecasts for 2011

Market shares 2006-2011e, sales, space, operating profits and margins and sales densities of Top 14 retailers in the sector

Outlook for the market including changing consumer shopping habits, emerging trends and growth strategies for health & beauty retailersThe resilient spending patterns in health & beauty are tempting non-specialists to target the sector. Budget variety retailers including B&M Bargains, Poundland, 99p Stores and Wilkinson are opening more stores as high street property becomes vacant. They are also upgrading their shop environments to attract midmarket shoppers who are trading down.

Department stores are reinforcing their health & beauty role as pampering zones by offering wider choices of services. House of Fraser is adding to its variety of treatments and services with brands like DestinationSkin and Clarins Spas, while John Lewis is adding beauty spas to stores in Reading and Cheadle this summer.

Demographic trends dictate that over 45s will increase rapidly while the under 45 population will stagnate in the next decade. In particular 55-64s will grow in number and still have high incomes pre-retirement. They appreciate deep ranges, good customer service and high quality products.

What are the threats facing the market and how can I take full advantage of its potential?

How have consumers and retailers reacted to recent economic turbulence?

What are the business models and key performance indicators of my competitors and how can I outperform them?