Introduction
Attitudes and behaviors to personal care are evolving as a number of mega-trends impact upon consumers' routines. Although consumers are not expanding their repertoire of personal care occasions, there is significant room to encourage consumers to trade up their regimes to higher value occasions as the dynamics between different consumer groups change and emerging need states develop.

Scope
Personal care markets quantified by occasion and spending: fragrances, make-up, haircare, oral hygiene, personal hygiene and skincare
A unique survey of personal care behaviors was conducted with 6,000 consumers across the US and Europe during June 2006
In-depth analysis and consumer segmentation of all personal care occasions and spending revealing unmet needs and key consumer insights
Detailed action points offering practical strategies based on the trends and insights analyzed in the report
Highlights
Personal care spending is growing faster than usage. Many personal care occasions are part of the daily routine already with little room for additional growth. Consumers are not necessarily increasing their volume of purchases but are open to trading up, seeking convenience, multifunctionality, indulgence and natural efficacy, purity and safety.

'Proactive remedy seekers' are those who are concerned about many personal care concerns beyond basic hygiene and are doing something about it. Spain has a high proportion of consumers who fit into this segment (36%). Such consumers are more likely to be female, Young Adults, and educated to a higher level than the average consumer.

The haircare category is well placed to benefit from the natural and cosmeceutical trends. Haircare is both a necessity and a luxury, unlike make-up or fragrances. This gives it an opportunity to leverage the everyday market in a premiumized direction where little room exists for increasing sales through consumer penetration.

Reasons to Purchase
Obtain comprehensive data mapping personal care occasions and their value, consumer groups and product markets
Uncover the personal care issues consumers are most concerned about and where the marketing 'sweet spot' in targeting these concerns lies
Improve your marketing strategy by targeting the most profitable occasions and their accompanying need state

TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY 3
Hot topic 3
The future decoded 3
Action points 5
CHAPTER 2 THE FUTURE DECODED 15
Introduction 15
Defining personal care occasions 15
TREND: Consumer spend on personal care is growing 15
The US market is gaining pace compared to Europe 16
Make-up and haircare are growing the fastest 19
TREND: Personal care spending is growing faster than usage 22
Everyday occasions dominate spending 23
Total personal care occasions are experiencing limited growth 25
Consumers are trading up and becoming more specific rather than increasing purchase volume 27
TREND: Aging populations and ‘fast-aging’ kids are having a profound affect on personal care usage and occasions 29
Older consumers account for a growing proportion of personal care usage and occasions 31
Growth of kids personal care spend and usage exceeds that of most adults 34
INSIGHT: Personal care consumers can be grouped into three distinct attitudinal/behavioral groups 37
A high proportion of consumers fall into the ‘carefree’ segment 37
Personal care consumers vary by their willingness to act on concerns 39
INSIGHT: The intensity of personal care concern varies by the nature of the problem 42
Personal appearance is increasingly important to todays’ consumers 42
Body odor and body shape are what consumers are most concerned about 45
Skin dryness is the most important problem facing skincare consumers 46
Consumers are generally dissatisfied and/or lacking confidence in their appearance 47
INSIGHT: Wellness is becoming an important aspect of personal care consumption 50
Wellness concerns are fueling the growth of natural personal care 50
Consumers are increasingly pampering with personal care products to reduce stress and boost wellbeing 52
INSIGHT: Male grooming is less important than hyped 58
Females still account for a higher proportion of personal care occasions 61
Male spend is less than half that of females in Europe and the US 63
Conclusions 66
CHAPTER 3 ACTION POINTS 68
ACTION: Target the three types of personal care consumers 68
Encourage trading up of occasions by offering more convenient, multi-functional or better performing products 69
Target the ‘concerned skeptics' with trust orientated marketing approaches especially focused on product efficacy 71
Target the 'proactive remedy seekers' with premium, high-value personal care solutions 73
Target the 'carefree avoiders' with image-free infomercials 75
ACTION: Target men and women with separate marketing strategies 77
Continue targeting women as the primary personal care consumer 77
Recognize gender differences in personal care needs 78
Support the empowerment of women with societal marketing 79
Target female friendly media 79
Target the contrasting male consumer with a segmented approach 81
ACTION: Place more emphasis on attracting mature consumers 83
Develop cosmetics and toiletries specifically for mature consumers 83
Use ageless marketing to make older consumers inclusive of targeting efforts 85
ACTION: Develop the link between personal care and health & wellness 86
Channel wellness product development in categories with the greatest relevance 86
Develop products with therapeutic, mood-enhancing credentials 87
Develop new natural/organic brands and link them to wellness 88
CHAPTER 4 APPENDIX 90
Supplementary data 90
Definitions 96
Research methodology 97
How to contact experts in your industry 98

LIST OF TABLES
Table 1: Overall personal care spending by country (US$ m), 2000-2010 17
Table 2: Personal care spending per head by country (US$ per head), 2000-2010 18
Table 3: Personal care spending by category (US$ m), 2000-2010 21
Table 4: Personal care spending per head by category (US$ per head) 22
Table 5: Personal care spending by occasion type (US$ m), 2000-2010 24
Table 6: Overall number of personal care occasions by type of occasion, Europe & US, 2000-2010 (billions) 26
Table 7: Overall number of personal care occasions by product market, Europe & US, 2000-2010 (billions) 29
Table 8: Europe & US share of personal care spending (%), by age group, 2000-2010 33
Table 9: Europe & US share of personal care occasions (%), by age group, 2000-2010 34
Table 10: Value of personal care consumption by age group (US$ m), Europe and the US 2000-2010 35
Table 11: Europe & US share of personal care market by product market (% value) by age group, 2005 36
Table 12: Consumer survey: the percentage of consumers who think that it is important to spend time on personal appearance, by country, age and gender, 2004 43
Table 13: Consumer survey: the percentage of consumers who reported that they spent more time on their personal appearance in 2004 than 2003, by country, age and gender 44
Table 14: Consumer survey: the percentage of consumers who reported that they spent more time on their personal appearance in 2006 than 2005, by country, age and gender 45
Table 15: Consumer survey: the percentage of consumers who reported that they were concerned about and are actively tackling personal care issues, US & Europe, 2006 46
Table 16: Consumer survey: the percentage of consumers who reported that they were concerned about and are actively tackling skin dryness, US & Europe, 2006 47
Table 17: Analysis shows that older consumers aged 45-plus possess similar values and attitudes towards beauty as younger cohorts 49
Table 18: Ranked importance of attributes in making a woman beautiful 49
Table 19: Proportion of consumers who have deliberately avoided certain cosmetics and toiletries because of fears over certain ingredients over the last year, US & Europe, 2006 50
Table 20: Proportion of consumers who have sought cosmetic and toiletry products that have natural ingredients or properties over the last year, US & Europe, 2006 51
Table 21: Motivators for the use of natural personal care products (% survey respondents citing) 52
Table 22: Proportion of consumers who have deliberately sought out cosmetics with calming or therapeutic ingredients or properties US & Europe, 2006 53
Table 23: Motivation for pampering sessions, by gender, Europe (% respondents) 2005 53
Table 24: Consumer survey: the extent to which consumers use personal care products to relax and unwind (% respondents) Europe & US, 2006 56
Table 25: Number of female personal care occasions (billions), US & Europe, 2006 62
Table 26: Number of male personal care occasions (billions), US & Europe, 2006 62
Table 27: Number of overall personal care occasions (billions), US & Europe, 2006 63
Table 28: Personal care value of consumption by gender (US$m), US & Europe, 2000-2010 64
Table 29: Share of personal care market value by gender (% value), US & Europe, 2006 64
Table 30: Male personal care sales by country (US$m), Europe, 2000-2010 65
Table 31: Female personal care sales by country (US$m), Europe, 2000-2010 65
Table 32: Value of consumption by gender and country (US$ m) 2000-10 90
Table 33: Value of consumption by category and country (US$ m) 2000-10 91
Table 34: Value of consumption by occasion type and country (US$ m) 2000-10 93
Table 35: Value of consumption by age and country (US$ m) 2000-10 95
Table 32: Definitions of terms 97


LIST OF FIGURES
Figure 1: Growth in personal care is strongest in the smaller Western markets 16
Figure 2: Personal appearance concerns and specific individual needs drive the haircare, make-up and skincare markets 20
Figure 3: Skincare has been a focal point for trading up to high value cosmeceuticals 28
Figure 4: Personal care occasions are growing strongest amongst Children and Seniors in the US and Europe 30
Figure 5: Seniors and late Mid-lifers dominate personal care spending in Europe in 2005 32
Figure 6: The US mirrors the European trend for an aging population influencing the majority of personal care spend in 2005 32
Figure 7: Proportion of consumers who are unconcerned by personal care beyond basic hygiene concerns, US & Europe, 2006 38
Figure 8: Proportion of consumers who are concerned by personal care problems beyond basic hygiene concerns and are taking action, US & Europe, 2006 40
Figure 9: Proportion of consumers who are concerned by personal care problems beyond basic hygiene concerns but are taking no action, US & Europe, 2006 41
Figure 10: Change in reported time spent on personal care, US & Europe, 2004 & 2006 44
Figure 11: The bathroom is a zone consumers increasingly associate with wellness – the actions consumers are taking in the bathroom reflect their increased focus on wellness and as a result so must manufacturers. 55
Figure 12: Consumers consider personal and oral hygiene products to be the most relevant in helping to achieve a sense of wellness 58
Figure 13: It is important to recognize men as complex, diverse individuals with varying needs and attitudes towards grooming 59
Figure 14: The three types of personal care consumers: how to target their specific needs 69
Figure 15: Convenience, Performance and Wellness are the overlapping themes underpinning consumers’ personal care needs 70
Figure 16: Leverage the product attributes and communication cues that consumers perceive as trustworthy 72
Figure 17: Promoting authentic images of beauty enhances consumer trust: Dove’s successful Campaign for Real Beauty 73
Figure 18: Two phases characterize successful viral and word of mouth campaigns 75
Figure 19: Example of convenience and multifunctionality with appeal to ‘carefree avoiders’ – Rude Man Hair Soap Bar 76
Figure 20: Themes of sociability/connectedness are important in targeting women 78
Figure 21: Women more frequently tell others about the products they consume 80
Figure 22: Marketing focus can be manipulated to appeal to both specific male subgroups and crossover consumers 82
Figure 23: Take opportunities to develop anti-aging products for mature consumers specifically 84
Figure 24: Wellness product examples in personal care 87
Figure 25: Stress relief has potential as an NPD area across personal care 88