Intercos * (360) | Buy | At the helm of the beauty market

Research evidence excerpt

Intercos * (360) | Buy | At the helm of the beauty market

Intercos Buy | EUR16.50

Value, not pricing, is Consumers are increasingly focused on the true value proposition of beauty products,

now the key growth placing greater emphasis on efficacy, quality, and tangible benefits rather than purely

aspirational marketing. This shift is driving more selective purchasing behaviour and driver prompting consumers to reassess mass-market labels that successfully deliver on these

attributes. At the same time, the growing global middle class is expected to support volume

growth, as it represents the largest addressable consumer base for beauty products.

Combined with rising purchasing power in developing markets, these dynamics should

continue to sustain the industry's mid-single-digit growth trajectory over the coming years.

Higher prices do not necessarily mean higher value

The beauty market is segmented into five distinct price tiers, each defined by different

levels of premiumisation, product positioning, and ingredient sophistication. These

categories reflect varying consumer purchasing behaviours and value propositions,

resulting in different growth dynamics, profitability profiles, and competitive landscapes

across the industry.

Table 1:Market breakdown by price segment

Skincare Haircare Colour cosmetics Fragrance

Price point (USD) Brands Price point (USD) Brands Price point (USD) Brands Price point (USD) Brands

Luxury 200-3000+ Sisley Paris 100-500+ n.a. 100-1000+ Tom Ford 250-5000+ Creed

Prestige 80-200 SK-II 50-100 Kérastase 60-100 Chanel Beauté 100-250 Diptyque

Entry Prestige 40-80 Clarins 30-50 Olaplex 45-60 Nars 70-100 Versace

Masstige 20-40 Kiehl’s 15-30 Wella 25-45 Fenty Beauty 45-70 Sol de Janeiro

Mass 20 Neutrogena <15 Pantene <25 Essence <45 Zara