The individual care business provides products used for beautification and private sanitation. The subsectors of individual care include cosmetics and personal health. Some of the goods involved in personal care toothpaste, tissue paper, wet wipes, moisturizers, talcum powder, shaving cream, blades, fragrances, balms, and cleansing pods.
The international demand for personal care is extraordinarily diversified and can be divided into individual care goods and personal care devices. Personal care devices have become prevalent across the globe in the last few years because of the insertion of original and innovative tools in the market each year. These instruments include trimmers, electric toothbrushes, curlers, massagers, and more. The division of individual care goods includes hair care, skin care, and oral hygiene.
Many of the products within the personal care market might still be discretionary, but U.S. consumers are willing to spend money. For those in the industry, it means one thing: investing in the right technology to compete, innovate, and lead.
Personal Care Soars High
The personal care industry in the United States can grow up to 9.2% annually from 2018 to 2022, according to Statista. Grand View Research, meanwhile, forecasts a compound annual growth rate of 4.5% up to 2025. Within the same period, it can be worth over $134 billion.
This market enjoys a wide target audience. The Y generation (those born from 1981 to 1996) has a stable purchasing power to the tune of $200 billion. They are also shopping through different channels, not only in brick-and-mortar stores. This gives businesses more ways to market their goods.
Many of these millennials are also married. Their personal care needs also extend to their children and spouses. The Z generation, the cohort that comes after the millennials, is a much younger group, but they already account for up to over $140 billion in direct spending, according to Millennial Market.
How to Stay Competitive
Indeed, the personal care product industry is lucrative, mainly due to its vast consumer market. For businesses to take advantage of it, they need to learn how to innovate and compete.
One of the options is to introduce or improve automation. Machines such as filling equipment can increase a production line’s efficiency. They can also be flexible enough to work with different types of products and their containers, as well as existing systems. These can lower production, labor, and infrastructure costs.
Companies might also need to focus on creating natural or organic personal care products. Research and Markets foresees this segment to grow 10% up to 2024. By this time, it can have a market value of $177 billion, beating the entire personal care industry.
In the end, these innovations can also reduce the likelihood of acquisitions, which is also a growing trend in the industry. In the process, new or fledgeling businesses can get the chance to grow and build a legacy. If you feel uncertain about how to proceed, feel free to ask for the help of professionals or experts. Doing so might help alleviate your worries or concerns.