The Rise in the Canadian Beauty Industry
By Kalleigh Sharp | January 23rd, 2020
NAE operates in the beauty industry. Canada ranks number 1 globally with a $1.4 billion dollar beauty market (Berencsi 2014). “Being a global leader in the sales of makeup shows the industry is capitalizing on the evolving and diverse needs of the beauty consumer, which bodes well for sustained category growth.” (Berencsi 2014).
Economic Growth
The Canadian beauty industry grew by +9.4 per cent in 2017(Berencsi 2014). Leading growth drivers included the makeup (+8.1 % to $485 Million), skincare a (+12% to $409 Million) and fragrance at (+7.6% to $239 Million) (Berencsi 2014). The value of the cosmetics market in Canada is expected to reach around 15.8 billion U.S. dollars in 2021, an increase of almost three billion U.S. dollars from five years previously (Bedford 2018).
Forbes on the Beauty Industry
According to Forbes, there is at least 40 prominent beauty start ups today founded by women, making the $445 billion industry one of the most prevalent places for women to self-start their way to big-time success (Kestenbaum 2018). “It's never been a better time to be a beauty entrepreneur” (Kestenbaum 2018). The three driving factors in the beauty industry include:
- Consumers: enjoy trying new instagrammable products and brands.
- Young independent brands and entrepreneurship: providing unique services and brand new ideas.
- Acquisitions by the major beauty companies of smaller companies are drawing in more founders and driving creativity.
Jennifer Hessel at L'Oreal
Jennifer Hessel, an industry consultant and L’Oreal describes four of the fastest growing trends:
- The instant fix: instant gratification received after a beauty service.
- The doll look: using heavy makeup or surgery to create a look is more porcelain look.
- Natural skin care products: the skin category continues to expand with more natural, clean products.
- Customization and personalization: using data and customer input to create individualised products as a form of luxury.
In Canada, there were more than 3,100 cosmetics, beauty supplies and perfume stores in 2016 (Bedford 2018). In the past, the focus of a beauty salon was on hair styling or nail salons. As new services develop, beauty salons expand in services. For example, there is an increase in eyelash extension and eyebrow bars. NAE predicts that as new services arrive, there will be an increase in beauty salons as a “one stop beauty shop”.
NAE looks forward to being an industry leader providing education across the beauty industry.
References
Bedford, Emma. “Topic: Cosmetics in Canada.” Www.statista.com, Statista, 12 Sept. 2018, https://www.statista.com/topics/2896/cosmetics-in-canada/.
Berencsi, Kylee. “Canadian Consumers Spending $1.4 Billion on Beauty.” The NPD Group, The NPD Group, 12 Nov. 2014, https://www.npdgroup.ca/wps/portal/npd/ca/news/press-releases/canadian-consumers-spending-big-on-beauty/.
Kestenbaum, Richard. “The Biggest Trends In The Beauty Industry.” Forbes, Forbes Magazine, 12 Sept. 2018, https://www.forbes.com/sites/richardkestenbaum/2018/09/09/beauty-industry-biggest-trends-skin-care-loreal-shiseido-lauder/#775616cd6982.