All made up: Rising per capita disposable income will spur demand for industry products

The Beauty, Cosmetics and Fragrance Stores industry in Canada has expanded rapidly over the five years to 2019 as consumers have increasingly opted for specialized beauty stores. Furthermore, a growing economy has increased consumer confidence and bolstered per capita disposable income, which consumers have increasingly used to purchase industry products. In addition, major international beauty chains such as Sephora and Bath & Body Works LLC have aggressively expanded into Canada, winning back industry revenue from external competition such as department stores and mass merchandisers. As per capita disposable income continues to rise over the coming years, industry revenue is forecast to similarly trend upward...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
3.5%
Forecast Growth 19-24
Profit
Employment
9,472
Businesses
3,503

Industry Threats & Opportunities

  • Improving economic activity will increase demand for industry products
  • External competition from alternative retailers has strengthened
  • As consumer confidence increases, industry revenue will grow strongly
  • Industry Report - Industry Products Chapter

    Beauty stores sell a wide array of products, from makeup to sun care, at a variety of price points. A single retailer can sell any combination of products, depending on its clientele and upstream supply contracts.Skin-care productsSkin care is the largest product segment in this industry and accounts for 37.1% of total demand. Many of the items in this product segment are considered less discretionary than cosmetics and fragrances, which has enabled this market segment to perform well even during times of weak consumer spending. Ove...purchase to read more.

    Additional Insights for the Beauty, Cosmetics & Fragrance Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Beauty, Cosmetics & Fragrance Stores Industry are

  • Having a wide and expanding product range
  • Production of goods currently favoured by the market
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Number of fixed broadband connections in the Beauty, Cosmetics & Fragrance Stores industry impact industry performance..

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    What's in this report

    What is the Beauty, Cosmetics & Fragrance Stores Industry?

    Operators in this industry sell a variety of personal-care products, including cosmetics, perfume, hair care, skin care and related items. This industry’s target market includes household and professional users of industry products, including hair stylists and makeup artists.

    Industry Products
  • Cosmetics
  • Skin care
  • Fragrances
  • Hair care
  • Industry Activities
  • Retailing skin-care products
  • Retailing cosmetics
  • Retailing hair-care products
  • Retailing fragrances
  • Retailing sun-care products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • Number of fixed broadband connections
  • Number of adults aged 20 to 64
  • Canadian effective exchange rate index

  • Current Performance
  • Strong demand conditions power performance
  • Increasing competition
  • Emerging demographic opportunities and trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Shifting competition
  • Expansion opportunities
  • Table: Beauty, Cosmetics & Fragrance Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Beauty, Cosmetics & Fragrance Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Hair & Nail Salons in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Cosmetic & Beauty Product Manufacturing in Canada
  • Pharmaceuticals & Pharmacy Supplies Wholesaling in Canada
  • Soap & Cleaning Compound Manufacturing in Canada

  • Products & Services
  • Skin care
  • Hair care
  • Cosmetics
  • Fragrances
  • Other
  • Chart: Beauty, Cosmetics & Fragrance Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest income quintile
  • Fourth income quintile
  • Second income quintile
  • Third income quintile
  • Lowest income quintile
  • Chart: Major Market Segmentation for the Beauty, Cosmetics & Fragrance Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    PurchasesProfitWagesDepreciationRent and utilities
  • Chart: Cost Structure Benchmarking – Sector vs Beauty, Cosmetics & Fragrance Stores

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Beauty, Cosmetics & Fragrance Stores Industry

  • Industry Globalization
    Sephora, L Brands Inc., Sally Beauty Holdings Inc.,
  • Table: Sephora - financial performance
  • Table: L Brands Inc. - financial performance
  • Table: Sally Beauty Holdings Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Beauty, Cosmetics & Fragrance Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Beauty, Cosmetics & Fragrance Stores Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Per capita disposable income (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Baby Boomer
  • Born to parents returning from World War II, this generation is composed of people born between 1946 and 1965. This is currently the largest generation in Canada.
  • Cosmeceutical
  • A cosmetic product that has pharmaceutical properties.
  • Generation X
  • Also known as the baby bust generation because it followed the baby boom generation, this demographic is composed of people born between 1966 and 1971.
  • Generation Y
  • Also known as echo boomers, people in this demographic are typically children of the baby boomer generation and are born between 1972 and 1992.
  • Paraben
  • A chemical used to preserve cosmetics. It has recently been linked to health issues, including cancer.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Beauty, Cosmetics & Fragrance Stores market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Beauty, Cosmetics & Fragrance Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Beauty, Cosmetics & Fragrance Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Beauty, Cosmetics & Fragrance Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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