Beauty and Personal Care in The Philippines

BEAUTY AND PERSONAL CARE
IN THE PHILIPPINES
Euromonitor International
May 2016
BEAUTY AND PERSONAL CARE IN THE PHILIPPINES Passport I
LIST OF CONTENTS AND TABLES

Executive Summary ..................................................................................................................... 1
Healthy Economy and Demographics Favour Beauty and Personal Care ................................ 1
Beauty and Personal Care Increases As It Aligns With Consumer Lifestyle Trends ................ 1
International Brands Still Dominate the Well-fragmented Category .......................................... 1
Added Product Benefits Appeal Greatly in 2015 ....................................................................... 1
Niche Categories Forecasted To Develop Further As Middle-income Consumers Increase in
Number ..................................................................................................................................... 1
Key Trends and Developments .................................................................................................... 2
the Rising Number of Middle-income Families Produced by Ofw, Bpo and It Industries
Encourages the Country’s Resilient Economy .......................................................................... 2
Changing Philippine Consumer Lifestyles Lead To Demand for Products With Health and
Beauty Aspects ......................................................................................................................... 3
Digital Technology in the Everyday Lives of Consumers Benefits the Market .......................... 4
Market Data .................................................................................................................................. 5
Table 1 Sales of Beauty and Personal Care by Category: Value 2010-2015 ............ 5
Table 2 Sales of Beauty and Personal Care by Category: % Value Growth
2010-2015 .................................................................................................... 5
Table 3 Sales of Premium Beauty and Personal Care by Category: Value
2010-2015 .................................................................................................... 6
Table 4 Sales of Premium Beauty and Personal Care by Category: % Value
Growth 2010-2015 ....................................................................................... 6
Table 5 GBO Company Shares of Beauty and Personal Care: % Value 2011-
2015 ............................................................................................................. 7
Table 6 NBO Company Shares of Beauty and Personal Care: % Value 2011-
2015 ............................................................................................................. 7
Table 7 LBN Brand Shares of Beauty and Personal Care: % Value 2012-2015 ....... 8
Table 8 Penetration of Private Label in Beauty and Personal Care by
Category: % Value 2010-2015 ................................................................... 10
Table 9 Distribution of Beauty and Personal Care by Format: % Value 2010-
2015 ........................................................................................................... 10
Table 10 Distribution of Beauty and Personal Care by Format and Category: %
Value 2015 ................................................................................................. 11
Table 11 Forecast Sales of Beauty and Personal Care by Category: Value
2015-2020 .................................................................................................. 13
Table 12 Forecast Sales of Beauty and Personal Care by Category: % Value
Growth 2015-2020 ..................................................................................... 14
Table 13 Forecast Sales of Premium Beauty and Personal Care by Category:
Value 2015-2020 ........................................................................................ 14
Table 14 Forecast Sales of Premium Beauty and Personal Care by Category:
% Value Growth 2015-2020 ....................................................................... 15
Definitions................................................................................................................................... 15
Sources ...................................................................................................................................... 15
Summary 1 Research Sources ...................................................................................... 15
© Euromonitor International
BEAUTY AND PERSONAL CARE IN THE PHILIPPINES Passport 1
BEAUTY AND PERSONAL CARE IN

THE PHILIPPINES
EXECUTIVE SUMMARY
Healthy Economy and Demographics Favour Beauty and Personal Care

Due to favourable socioeconomic factors, beauty and personal care grew steadily in 2015.
Increasing incomes among consumers paved the way to bigger opportunities, even for niche
categories. As young consumers harness the power of digital technology, knowledge about
products, brands and the benefits of using them was readily available and helped in pushing
further growth for the category in 2015.
Beauty and Personal Care Increases As It Aligns With Consumer

Lifestyle Trends
The emerging consumer lifestyle trend of staying healthy has benefited the category,
especially skin care. Consumers across ages and genders are increasingly seeking products
that cater to their health and align with their everyday activities. As more and more consumers
are attracted to participating and engaging in healthy activities, beauty and personal care
companies are readily addressing the growing demand and offering products that combine
health and beauty.
International Brands Still Dominate the Well-fragmented Category

The category was still dominated by Hindustan Unilever Ltd in 2015. The company continues
to succeed thanks to offering a comprehensive product portfolio that not only offers variants but
also responds to the differing demands of Philippine consumers. The market is well-fragmented
as it is heavily saturated with international brands and some local brands vying for market share.
Competition between numerous brands catering to mass consumers is based on operating
appealing promotional strategies to garner a larger consumer base.
Added Product Benefits Appeal Greatly in 2015

A lot of Philippine consumers seek multi-benefits in one product as a means of being able to
get the most value for money, or for practicality. In 2015, a lot beauty and personal care
products incorporated benefits such as anti-ageing, SPF, easier application and whitening. All of
these benefits made consumers more interested as these features aligned with the heath-
centred lifestyle of Filipinos.
Niche Categories Forecasted To Develop Further As Middle-income

Consumers Increase in Number
With the rise of middle-income consumers, more complex demands in the market are
forecasted to manifest. The growing number of employees in BPO and IT industries, where a lot
of these new and emerging middle-income families are coming from, reflects that the bulk of
consumers are young, tech-savvy, knowledgeable and critical consumers. Product demands will
continue to lead to more complex, customised and personalised features that will appeal to this
emerging consumer base, paving the way to further product segmentation.
KEY TRENDS AND DEVELOPMENTS
the Rising Number of Middle-income Families Produced by Ofw, Bpo

and It Industries Encourages the Country’s Resilient Economy
The robust economy of the Philippines reflects the healthy and vigorous private consumption
of its population in 2015, which benefited beauty and personal care. The slowdown in GDP
growth, which was hugely influenced by poor government spending in the first quarter of 2015
and reached a 5% rate, slightly improved in the second and third quarters with 5.8% and 6%
rates recorded respectively. The Philippine government was very positive that the fourth quarter
would further boost the overall growth of GDP as holiday seasons tend to push massive
consumption and overseas remittances, due to the traditions and customs of Filipinos during the
Christmas holiday season. According to CNN, the Philippines ranks as the third-fastest-growing
economy in Asia Pacific. This is further evident from the positive factors contributing to the
blossoming GDP growth in 2015.
In 2015, the inflation rate remained even lower than the perceived 2-4% as it averaged at
1.4%, resulting in consumers being able to enjoy minimal increases in unit prices among
products including beauty and personal care. Even sales of motor vehicles improved in 2015 by
26%, a huge increase depicting the increasing number of consumers being able to purchase
motor vehicles for personal or business purposes. The unemployment rate also continued to
decline from 6% in 2014 to 5.6% in 2015. This was made possible by the abundance of jobs
available for Filipinos, resulting in the lowest unemployment rate in 10 years. Although the
underemployment rate was still very high in 2015 at 17.6%, it was a good improvement from the
18.7% in 2014. One of the biggest and fastest-growing industries, which provides an abundance
of high-paying jobs to college graduates and non-college graduates, is BPO (business process
outsourcing), as is information technology. Having almost 1.2 million employees in 2015, these
two industries alone have the potential to align with the contributions made by overseas
Philippine workers’ remittances in 2017. Amidst the slowdown in China’s economy, causing
worldwide dilemmas, the Philippine’s strength in remittances, BPO and IT businesses makes
the country’s economy resilient and pushes further growth through consumption.
All of these factors contribute to the increasing middle-income population of the country,
which boosts consumption through changes in lifestyle among Filipinos. The demographics of
the country are also one of the biggest contributing factors to this changing socioeconomic
environment as the fertility rate has slowed down, paving the way to most of the population
being of working age. The marrying age has also been pushed further back as promising
careers affect the time Filipinos plan to start their own families. Although poor people still face
the problem of uncontrolled child births, causing even more financial dilemmas, most middle-
income consumers target having fewer children to be able to abundantly support their children
financially, socially and emotionally.
Beauty and personal care was affected by all of these significant issues in 2015, and posted
steady growth of 4% to reach Ps160.8 billion. Due to the steady growth of the economy and the
abundant supply of jobs, consumers enjoyed considerable disposable incomes to spend on
fewer dependents per family. Huge allowances are now expected to be spent on brands
perceived as being of a higher quality within beauty and personal care, which will improve not
only one’s appearance but also the family’s health. The changes in consumers’ lifestyles are
triggering the consumption of products that are not apparently necessary and can be considered
indulgent or even luxury, resulting in the further growth of categories catering to more specific,
beneficial, sophisticated facets of beauty and personal care. Despite some categories in the
market becoming mature, the increase in Filipinos’ allowances provides room for further growth
and the development of niche products as demand rises through changing lifestyles.
Outlook
The country still faces major dilemmas that might impede growth for beauty and personal care
over the forecast period. One of the biggest issues that affects the industry is the looming and
worsening problem regarding traffic and poor road planning. Although this problem is
significantly felt in major cities across the country, the neighbouring countryside areas and small
cities are being well affected as well. This might discourage consumers from purchasing
products, eg premium beauty and personal care ones, that are limitedly available through select
stores in cities. On the brighter side, further plans for improving roads and highways have
already been made, aiming to alleviate the congested traffic in major cities.
Middle-income consumers are foreseen to be wiser in spending their money. Investments in
different formats are expected to increase over 2015-2020 as savings can be made due to rising
incomes and the stable economy. This might result in a greater number of affluent consumers
as middle-income consumers aim to upgrade their social status. Premium brands, product
innovations, niche categories within the market and emerging categories will further benefit from
this lifestyle change over the forecast period.
Changing Philippine Consumer Lifestyles Lead To Demand for Products

With Health and Beauty Aspects
Changes in lifestyle among Filipinos are orientated to more health-focused diets, activities,
recreation and investments. This hugely affects the way everyday routines are performed and
products are consumed, in turn affecting beauty and personal care in a big manner. In 2014 and
2015 there was increasing engagement in many outdoor activities such as hiking, beach
adventures, water sports, cycling and running. Greater incomes and stress at work contributed
to the way recreation shifted from one form to another. However, as this trend continues to
flourish, consumers are becoming more conscious of the benefits of engaging in healthy
activities to the point of changing daily routines, products and even fashion in favour of more
health-conscious decisions. Some of the many examples of this transition and change include
the way organic restaurants are becoming increasingly trendy, consumers spending more time
in gyms and in organised exercise programmes, and sports venues being increasingly available
for regular use instead of for entertainment purposes alone. All of these are, of course, hugely
influenced by the way consumers take to social media to share their experiences and
knowledge to tempt others to join the bandwagon intentionally or not.
As a part of one’s daily routine, beauty and personal care products are hugely affected by this
trend. Consumers are demanding and searching for products that will not only make them look
good outside but also make them feel good. Through the use of nature-inspired or even organic-
based products with added health benefits, consumers feel more aligned with the current trend
of being healthy to feel and look good. Consumers are also after products that are gentle,
sensitive and hypoallergenic instead of harsh formulas, which can harms one’s body. Products
that cater to active lifestyles are also being strongly supported, especially those that target
active men such as body sprays, deodorants and even shower gels. Sun care products are also
hugely benefiting from this trend as outdoor activities demand the increased use of sun
protection. Adding to this trend, one of the fastest-emerging benefits, sought after by consumers
of different ages, is anti-ageing, which is also becoming widely available across brands,
products and channel distribution. Anti-ageing products promise multiple benefits that are
geared towards looking younger and healthier by preserving, maintaining and improving one’s
skin.
Outlook
The trend for healthy active lifestyles among Filipinos is expected to be even stronger over
the forecast period. The increasing popularity of spending extra time outdoors for healthy
recreational activities is foreseen to not only affect individuals or groups of friends. It is set to
further extend to families, which was already an emerging trend in 2015 but will be more
apparent over 2015-2020 as middle-income consumers will continue to rise in number. Demand
for beauty and personal care products that feature health benefits will increase over the forecast
period, creating huge potential for this trend to abundantly develop. Some categories such as
sun care are expected to be taken advantage of by companies since brands offering sun care in
the country remain very limited. Knowledge dissemination of the health benefits of using certain
beauty and personal care products, eg sun protection, is likewise predicted to occur.
Digital Technology in the Everyday Lives of Consumers Benefits the

Market
The Philippines is said be entering the “demographic sweet spot” as the working population is
the biggest representative of the overall population, thus creating massive opportunities for
growth through strong consumer spending. According to Asian Development Bank (ADB),
private consumption played a significant role in the growth of the country’s GDP in 2015 as
favourable factors aligned with the growing consumer population. Private consumption
continued to be the biggest growth driver, amounting to almost 70% of GDP’s growth.
The demographic sweet spot of the Philippines currently aligns with the emerging term
“millennial” or the population that was born in 1980 to 2000 and is hugely affected by
innovations in technology such as digital devices and the internet. In 2015, one third of the
country’s population could be considered millennial, ie aged 15 to 35 years old.
This growing trend in demographics hugely benefited the industry of beauty and personal care
in 2015 in many ways. One of the biggest opportunities created by this trend is the companies’
and brands’ ability to connect with their consumers through different social media platforms such
as Facebook, Instagram and Twitter, which are heavily utilised by the millennial population.
Enquiries ranging from product features and prices to availability are easier to address since the
internet brings real-time convenience through these favoured applications. Comments and
suggestions are easily digested and addressed and information such as announcements and
promotions are conveniently and cheaply disseminated. This method of operating has been
observed to be heavily utilised by different companies and brands in the country, ranging from
international brands to local brands, as well as huge and small start-up companies. Another
emerging trend that relates to this is the increasing support of internet retailing and
consumption. Companies reach out to bigger consumer bases either through setting up their
own online stores and/or conveniently partnering up with one of the many third party online
stores such as Lazada, Zalora, Kallony, BeautyMNL. Through online stores, consumers who are
very busy and who are far from select stores nationwide can easily buy beauty and personal
care products.
Outlook
The trend for internet retailing is expected to heavily affect beauty and personal care over the
forecast period since it currently faces significant obstacles hindering further growth. One of
these dilemmas is the still problematic quality of the internet provided by telecommunication
companies, which triggers doubts and distrust among a lot of consumers. Poor internet service
creates room for massive errors, problems and delays, which can cost both the companies and
the consumers significant time and money. The possible entrance of the huge
telecommunication company Telstra excites consumers due to its global presence and promise
of a higher-quality service, which might encourage its prospective counterparts to lower the
costs of their internet service or at least improve on what they give to their customers. However,
the entrance of Telstra is still yet to be decided upon with no current alternatives to the poor
internet service that the country has. Furthermore, a lot of consumers still doubt the products
being delivered by online retailers due to the massive backlash towards bogus services. This
might continue in the forecast period due to the lack of government initiative and capability to
fight internet scams and crimes.
Further innovations in technology are expected to invigorate the way consumers purchase
their beauty and personal care items. Companies are just waiting for costs to fall, to be able to
be profitable in investing in online retailing, due to the current high price of the service. However,
once the internet improves in the country, many brands, products and companies are expected
to participate in the fast-emerging internet retailing channel.
MARKET DATA
Table 1 Sales of Beauty and Personal Care by Category: Value 2010-2015
PHP million
2010 2011 2012 2013 2014 2015
Baby and Child-specific 6,732.4 6,971.3 7,239.1 7,508.6 7,801.0 8,120.8

Products
Bath and Shower 25,911.6 26,700.3 27,358.2 28,008.0 28,657.3 29,280.8
Colour Cosmetics 6,482.4 6,985.0 7,993.8 8,418.7 9,016.8 9,976.3
Deodorants 6,182.9 6,355.8 6,536.0 6,886.9 7,204.1 7,526.7
Depilatories 133.8 140.2 148.2 156.5 164.9 173.9
Fragrances 7,662.7 7,655.4 7,638.3 7,510.9 7,402.2 7,397.9
Hair Care 30,152.0 31,978.0 33,668.4 34,361.9 35,940.7 37,624.9
Men's Grooming 6,410.8 7,396.0 7,849.6 8,216.2 8,570.8 9,240.1
Oral Care 18,454.6 19,454.7 20,172.4 20,975.1 21,731.2 22,603.4
Oral Care Excl Power 18,361.2 19,359.5 20,074.6 20,882.7 21,643.6 22,516.8
Toothbrushes
Skin Care 28,784.3 30,333.7 31,815.3 32,934.1 34,335.5 36,194.4
Sun Care 297.0 336.3 375.4 413.6 453.8 493.3
Sets/Kits 342.0 361.8 398.0 541.2 517.0 533.7
Premium Beauty and 6,713.2 6,996.1 7,192.8 7,370.8 7,552.8 8,106.2
Personal Care
Mass Beauty and 105,528.5 110,335.0 115,444.5 118,678.5 123,287.2 128,525.9
Personal Care
Beauty and Personal Care 132,084.1 138,206.5 144,269.7 148,533.2 154,110.2 160,796.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Note 1: Premium/mass beauty and personal care sales are additionally included within baby and child-specific
products, bath and shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and
sun care.
Note 2: Sum of categories is greater than market size because of double counting in men’s bath and shower,
men’s deodorants, men’s hair care, men’s skin care, men’s fragrances, colour cosmetics sets/kits, skin
care sets/kits, fragrances sets/kits and baby and child-specific sun care categories.
Table 2 Sales of Beauty and Personal Care by Category: % Value Growth 2010-2015
% current value growth

2014/15 2010-15 CAGR 2010/15 Total
Baby and Child-specific Products 4.1 3.8 20.6

Bath and Shower 2.2 2.5 13.0
Colour Cosmetics 10.6 9.0 53.9

Deodorants 4.5 4.0 21.7
Depilatories 5.5 5.4 30.0
Fragrances -0.1 -0.7 -3.5
Hair Care 4.7 4.5 24.8
Men's Grooming 7.8 7.6 44.1
Oral Care 4.0 4.1 22.5
Oral Care Excl Power Toothbrushes 4.0 4.2 22.6
Skin Care 5.4 4.7 25.7
Sun Care 8.7 10.7 66.1
Sets/Kits 3.2 9.3 56.1
Premium Beauty and Personal Care 7.3 3.8 20.8
Mass Beauty and Personal Care 4.2 4.0 21.8
Beauty and Personal Care 4.3 4.0 21.7
sun care.
Table 3 Sales of Premium Beauty and Personal Care by Category: Value 2010-2015
PHP million
2010 2011 2012 2013 2014 2015
Premium Baby and Child- 117.8 118.5 119.4 120.1 120.9 134.0
specific Products
Premium Bath and Shower 445.7 475.3 506.1 532.2 573.1 614.9
Premium Colour Cosmetics 482.3 515.5 556.4 596.0 519.4 730.3
Premium Deodorants 69.2 69.9 70.6 73.0 75.6 78.3
Premium Fragrances 2,676.3 2,738.4 2,813.0 2,882.3 2,964.6 3,054.5
Premium Hair Care 384.7 408.9 436.1 464.4 502.9 550.2
Premium Skin Care 2,518.6 2,654.6 2,672.6 2,682.2 2,767.7 2,910.0
Premium Sun Care 1.9 2.1 2.3 2.5 2.7 2.8
Premium Sets/Kits 70.2 59.4 67.0 69.8 80.0 87.5
Personal Care
Note: Premium/mass beauty and personal care sales are additionally included within baby and child-specific
sun care.
Table 4 Sales of Premium Beauty and Personal Care by Category: % Value Growth
2010-2015
% current value growth

2014/15 2010-15 CAGR 2010/15 Total
Premium Baby and Child-specific Products 10.8 2.6 13.7

Premium Bath and Shower 7.3 6.6 38.0
Premium Colour Cosmetics 40.6 8.7 51.4
Premium Deodorants 3.5 2.5 13.0
Premium Fragrances 3.0 2.7 14.1
Premium Hair Care 9.4 7.4 43.0
Premium Skin Care 5.1 2.9 15.5
Premium Sun Care 6.8 8.3 49.1

Premium Sets/Kits 9.4 4.5 24.8
sun care.
Table 5 GBO Company Shares of Beauty and Personal Care: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Unilever Group 20.3 20.6 20.8 21.3 22.8

Procter & Gamble Co, The 17.4 17.4 17.5 17.5 16.4
Colgate-Palmolive Co 12.4 12.1 12.2 12.4 12.5
Avon Products Inc 8.7 8.6 8.0 7.7 7.6
Johnson & Johnson Inc 4.8 4.5 4.4 4.4 4.4
Beiersdorf AG 2.6 2.6 2.7 2.7 2.8
L'Oréal Groupe 2.2 2.3 2.2 2.3 2.5
Ever Bilena Cosmetics Inc 1.1 1.4 1.4 1.5 1.5
Estée Lauder Cos Inc 1.0 1.0 1.0 1.0 1.1
GlaxoSmithKline Plc 0.5 0.5 0.5 0.6 0.6
United Laboratories Inc 0.4 0.4 0.5 0.5 0.5
Mary Kay Inc 0.5 0.5 0.5 0.5 0.5
Rogemson Co Inc, The 0.5 0.5 0.5 0.5 0.4
Kao Corp 0.5 0.4 0.4 0.4 0.4
Nestlé SA - - - 0.2 0.3
Revlon Inc 0.3 0.3 0.3 0.3 0.3
Coty Inc 0.2 0.2 0.2 0.2 0.3
Amway Corp 0.3 0.3 0.3 0.2 0.2
Mandom Corp 0.2 0.2 0.2 0.2 0.2
LVMH Moët Hennessy 0.2 0.2 0.2 0.2 0.2
Louis Vuitton SA
Li & Fung Ltd - 0.2 0.2 0.2 0.1
Henkel AG & Co KGaA 0.4 0.2 0.1 0.1 0.1
Shiseido Co Ltd 0.1 0.1 0.1 0.1 0.1
Elizabeth Arden Inc 0.1 0.1 0.1 0.1 0.1
Mercury Drug Corp 0.1 0.1 0.1 0.1 0.1
Pigeon Corp 0.1 0.1 0.1 0.1 0.1
Doetsch Grether & Cie AG 0.1 0.1 0.1 0.1 0.1
Bulgari SpA - - - - -
Alberto-Culver Co - - - - -
Sara Lee Corp - - - - -
Private Label 0.4 0.4 0.4 0.4 0.4
Others 24.6 24.6 24.9 24.3 23.3
Total 100.0 100.0 100.0 100.0 100.0
Table 6 NBO Company Shares of Beauty and Personal Care: % Value 2011-2015
% retail value rsp

Company 2011 2012 2013 2014 2015
Unilever Philippines Inc 19.4 20.1 20.6 21.1 21.4
Procter & Gamble 16.9 16.9 17.2 17.3 17.4

Philippines Inc
Colgate-Palmolive 12.5 12.2 12.3 12.5 12.6
Philippines Inc
Avon Cosmetics Inc 8.7 8.6 8.0 7.7 7.6
Johnson & Johnson 4.8 4.5 4.4 4.4 4.4
(Philippines) Inc
Splash Corp 3.6 3.6 3.6 3.4 3.4
Beiersdorf Philippines 2.6 2.6 2.7 2.7 2.8
Inc
Cosmetique Asia 1.8 1.9 2.0 2.1 2.1
L'Oréal Philippines Inc 1.5 1.6 1.6 1.6 1.8
Ever Bilena Cosmetics Inc 1.1 1.4 1.4 1.5 1.5
Lamoiyan Corp 1.4 1.4 1.4 1.4 1.4
Tupperware Brands 1.5 1.4 1.2 1.2 1.2
Philippines Inc
Estée Lauder Cos Inc 0.9 1.0 1.0 0.9 1.1
Green Cross Inc 0.7 0.7 0.7 0.7 0.7
Sanofi-Aventis 0.5 0.6 0.6 0.6 0.6
Philippines Inc
GlaxoSmithKline 0.4 0.5 0.5 0.5 0.5
Philippines Inc
United Laboratories Inc 0.4 0.4 0.5 0.5 0.5
Mary Kay Philippines Inc 0.5 0.5 0.5 0.5 0.5
Rogemson Co Inc, The 0.6 0.5 0.5 0.5 0.5
Suyen Corp 0.4 0.4 0.4 0.5 0.5
JVS Worldwide Inc 0.5 0.5 0.5 0.4 0.5
Nu Skin Enterprises 0.4 0.4 0.4 0.4 0.4
Philippines Inc
Trinidad Cosmetics 0.3 0.3 0.3 0.3 0.3
Laboratories Inc
Kao Brands Co 0.4 0.3 0.3 0.3 0.3
Dermpharma Inc 0.5 0.5 0.4 0.3 0.3
Galderma Philippines Inc 0.1 0.1 0.2 0.2 0.3
Edgewell Personal Care - - - - 0.3
Brands LLC
Amway Philippines LLC 0.3 0.3 0.3 0.2 0.2
Mandom Philippines Corp 0.2 0.2 0.2 0.2 0.2
Jemica Cosmetics Mfg Inc 0.1 0.2 0.2 0.2 0.2
Energizer Philippines Inc 0.2 0.2 0.3 0.3 -
Henkel Philippines Inc 0.2 0.1 0.0 - -
Other Private Label 0.4 0.4 0.4 0.4 0.4
Others 16.1 15.6 15.4 15.0 14.2
Total 100.0 100.0 100.0 100.0 100.0
Table 7 LBN Brand Shares of Beauty and Personal Care: % Value 2012-2015
% retail value rsp

Brand (GBO) Company (NBO) 2012 2013 2014 2015
Safeguard (Procter Procter & Gamble 5.9 5.9 5.9 5.8

& Gamble Co, The) Philippines Inc
Cream Silk Unilever Philippines Inc 4.1 4.5 4.7 4.7
(Unilever Group)
Johnson's Baby Johnson & Johnson 3.6 3.6 3.6 3.6
(Johnson & Johnson (Philippines) Inc
Inc)
Palmolive Naturals Colgate-Palmolive 2.8 3.0 3.3 3.5

(Colgate-Palmolive Philippines Inc
Co)
Pond's (Unilever Unilever Philippines Inc 2.8 3.0 3.2 3.3
Group)
Dove (Unilever Group) Unilever Philippines Inc 1.7 2.2 2.4 2.5
Pantene (Procter & Procter & Gamble 2.1 2.2 2.3 2.4
Gamble Co, The) Philippines Inc
Olay (Procter & Procter & Gamble 1.7 1.8 2.0 2.2
Palmolive (Colgate- Colgate-Palmolive 2.5 2.3 2.2 2.1
Palmolive Co) Philippines Inc
Silka Cosmetique Asia 1.9 2.0 2.1 2.1
Eskinol (Unilever Unilever Philippines Inc 2.0 2.0 2.0 2.0
Group)
Braun Oral-B Procter & Gamble 2.0 2.0 2.0 2.0
(Procter & Gamble Philippines Inc
Co, The)
Colgate (Colgate- Colgate-Palmolive 1.9 1.9 1.8 1.8
Palmolive Co) Philippines Inc
Colgate Fresh Colgate-Palmolive 1.6 1.6 1.7 1.7
Confidence (Colgate- Philippines Inc
Palmolive Co)
Close-Up (Unilever Unilever Philippines Inc 1.6 1.6 1.6 1.6
Group)
SkinWhite Splash Corp 1.4 1.4 1.4 1.4
Nivea Body Beiersdorf Philippines 1.3 1.3 1.3 1.4
(Beiersdorf AG) Inc
Head & Shoulders Procter & Gamble 1.3 1.3 1.3 1.3
(Procter & Gamble Philippines Inc
Co, The)
Sunsilk (Unilever Unilever Philippines Inc 2.1 1.5 1.4 1.3
Group)
Hapee Lamoiyan Corp 1.3 1.3 1.3 1.3
Rejoice (Procter & Procter & Gamble 1.1 1.2 1.2 1.2
Rexona (Unilever Unilever Philippines Inc 1.0 1.1 1.1 1.1
Group)
Zest (Unilever Group) Procter & Gamble - - - 1.1
Philippines Inc
Simply Pretty (Avon Avon Cosmetics Inc 1.1 1.1 1.0 1.0
Products Inc)
AVON Color (Avon Avon Cosmetics Inc 1.0 0.9 0.9 0.9
Products Inc)
Maxi-Peel Splash Corp 0.9 0.9 0.9 0.9
Avon Skin So Soft Avon Cosmetics Inc 0.7 0.7 0.9 0.9
(Avon Products Inc)
Avon Naturals (Avon Avon Cosmetics Inc 0.9 0.8 0.8 0.8
Products Inc)
Ever Bilena Ever Bilena Cosmetics Inc 0.7 0.7 0.7 0.8
Vaseline (Unilever Unilever Philippines Inc 1.1 1.0 0.9 0.8
Group)
Zest (Procter & Procter & Gamble 1.2 1.2 1.2 -
Other Private Label Other Private Label 0.4 0.4 0.4 0.4
(Private Label)
Others Others 44.3 43.5 42.7 42.4
Total Total 100.0 100.0 100.0 100.0
Table 8 Penetration of Private Label in Beauty and Personal Care by Category: %

Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015
Beauty and Personal Care 0.4 0.4 0.4 0.4 0.4 0.4
Bath and Shower 0.5 0.5 0.5 0.6 0.6 0.6
Fragrances 0.8 0.8 0.9 0.9 0.9 0.9
Hair Care 0.8 0.8 0.9 0.9 0.9 0.9
Men's Grooming 0.6 0.6 0.6 0.5 0.5 0.4
Mass Beauty and 0.4 0.4 0.4 0.5 0.5 0.4
Personal Care
Table 9 Distribution of Beauty and Personal Care by Format: % Value 2010-2015
% retail value rsp

2010 2011 2012 2013 2014 2015
Store-Based Retailing 85.8 86.4 86.5 86.8 87.3 87.9

- Grocery Retailers 53.9 54.3 53.9 53.9 53.6 53.1
-- Modern Grocery 23.2 23.3 23.4 23.6 24.1 24.6
Retailers
--- Convenience Stores 0.7 0.7 0.7 0.7 0.7 0.7
--- Discounters - - - - - -
--- Forecourt Retailers 0.1 0.1 0.1 0.1 0.1 0.1
--- Hypermarkets 2.6 2.7 2.8 2.9 3.0 3.2
--- Supermarkets 19.8 19.8 19.8 19.9 20.3 20.7
-- Traditional Grocery 30.7 31.0 30.6 30.3 29.6 28.4
Retailers
--- Food/drink/tobacco - - - - - -
specialists
--- Independent Small 5.7 5.7 5.6 5.5 5.5 5.1
Grocers
--- Other Grocery 25.0 25.4 25.0 24.7 24.1 23.3
Retailers
- Non-Grocery Specialists 19.5 19.6 20.1 20.3 20.5 21.5
-- Apparel and Footwear - - - - - -
Specialist Retailers
-- Electronics and - - - - - -
Appliance Specialist
Retailers
-- Health and Beauty 18.9 19.0 19.5 19.8 19.9 20.9
--- Beauty Specialist 2.6 2.6 2.7 2.7 2.8 2.9
Retailers
--- Chemists/Pharmacies 0.2 0.2 0.2 0.2 0.2 0.1
--- Drugstores/ 16.1 16.2 16.6 16.9 17.0 17.9
parapharmacies
--- Other Health and 0.0 0.0 0.0 0.0 0.0 0.0
Beauty Specialist
retailers
-- Home and Garden - - - - - -
--- Homewares and Home - - - - - -

Furnishing Stores
-- Other Non-Grocery 0.6 0.5 0.6 0.6 0.6 0.5
Specialists
--- Outdoor Markets 0.5 0.5 0.5 0.5 0.5 0.4
--- Other BPC Non- 0.1 0.1 0.1 0.1 0.1 0.1
Grocery Specialists
- Mixed Retailers 12.4 12.5 12.5 12.6 13.2 13.4
-- Department Stores 12.4 12.5 12.5 12.6 13.2 13.4
-- Mass Merchandisers - - - - - -
-- Variety Stores - - - - - -
-- Warehouse Clubs - - - - - -
Non-Store Retailing 14.1 13.4 13.3 13.1 12.6 11.9
- Direct Selling 13.9 13.3 13.2 12.9 12.2 11.5
- Homeshopping - - - - - -
- Internet Retailing 0.1 0.1 0.1 0.2 0.3 0.4
- Vending - - - - - -
Non-retail channels 0.2 0.2 0.2 0.2 0.2 0.2
- Hair Salons 0.2 0.2 0.2 0.2 0.2 0.2
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 10 Distribution of Beauty and Personal Care by Format and Category: % Value
2015
% retail value rsp

BC BS CC D DP F

-- Modern Grocery 36.0 23.3 4.7 33.8 28.7 7.4
Retailers
--- Discounters 0.0 0.0 0.0 0.0 0.0 0.0
--- Hypermarkets 4.7 3.4 0.7 3.5 1.6 1.6
--- Supermarkets 29.7 18.9 3.5 28.8 23.0 5.2
Retailers
--- Food/drink/tobacco 0.0 0.0 0.0 0.0 0.0 0.0
specialists
Grocers
--- Other Grocery 14.5 29.2 0.9 7.2 30.1 0.4
Retailers
-- Apparel and Footwear 0.0 0.0 0.0 0.0 0.0 0.0
-- Electronics and 0.0 0.0 0.0 0.0 0.0 0.0
Retailers
Retailers
--- Drugstores/ 10.1 21.7 28.6 8.9 13.2 0.0
parapharmacies
--- Other Health and 0.0 0.0 0.0 0.0 0.0 0.0
Beauty Specialist
retailers
-- Home and Garden 0.0 0.0 0.0 0.0 0.0 0.0
--- Homewares and Home 0.0 0.0 0.0 0.0 0.0 0.0
Furnishing Stores
Specialists
--- Outdoor Markets 0.0 1.0 0.5 0.1 1.1 0.0
--- Other BPC Non- 0.6 0.0 0.0 0.0 0.0 1.3
Grocery Specialists
- Mixed Retailers 13.6 7.6 16.9 14.4 16.9 34.5
-- Mass Merchandisers 0.0 0.0 0.0 0.0 0.0 0.0
-- Variety Stores 0.0 0.0 0.0 0.0 0.0 0.0
-- Warehouse Clubs 0.0 0.0 0.0 0.0 0.0 0.0
- Direct Selling 11.7 6.4 40.6 26.4 0.9 47.5
- Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0
- Vending 0.0 0.0 0.0 0.0 0.0 0.0
Non-retail channels - - - - - -
- Hair Salons - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
HC MG OC SC SU SK

-- Modern Grocery 26.0 23.4 22.5 30.0 39.6 14.9
Retailers
--- Discounters 0.0 0.0 0.0 0.0 0.0 0.0
--- Hypermarkets 3.4 2.7 2.5 3.8 4.7 4.7
--- Supermarkets 22.6 19.6 20.0 24.8 27.2 10.2
Retailers
--- Food/drink/tobacco 0.0 0.0 0.0 0.0 0.0 0.0
specialists
Grocers
--- Other Grocery 34.0 16.9 39.8 13.5 6.8 0.0
Retailers
-- Apparel and Footwear 0.0 0.0 0.0 0.0 0.0 0.0
-- Electronics and 0.0 0.0 0.0 0.0 0.0 0.0
Retailers
Retailers
--- Drugstores/ 19.9 11.3 17.9 17.5 14.5 1.5
parapharmacies
--- Other Health and 0.0 0.0 0.0 0.0 0.0 0.0
Beauty Specialist
retailers
-- Home and Garden 0.0 0.0 0.0 0.0 0.0 0.0

--- Homewares and Home 0.0 0.0 0.0 0.0 0.0 0.0
Furnishing Stores
Specialists
--- Outdoor Markets 0.7 0.5 0.2 0.1 0.0 0.0
--- Other BPC Non- 0.0 0.3 0.0 0.0 0.1 0.0
Grocery Specialists
- Mixed Retailers 9.2 18.4 11.5 17.8 27.6 9.2
-- Mass Merchandisers 0.0 0.0 0.0 0.0 0.0 0.0
-- Variety Stores 0.0 0.0 0.0 0.0 0.0 0.0
-- Warehouse Clubs 0.0 0.0 0.0 0.0 0.0 0.0
- Direct Selling 1.1 19.5 0.1 15.5 1.5 67.0
- Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0
- Vending 0.0 0.0 0.0 0.0 0.0 0.0
Non-retail channels 0.7 - - - - -
- Hair Salons 0.7 - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Key: BC = baby and child-specific products; BS = bath and shower; CC = colour cosmetics; D = deodorants;
DP = depilatories; F = fragrances; HC = hair care; MG = men’s grooming; OC = oral care; SC = skin
care; SU = sun care; SK = sets/kits
Table 11 Forecast Sales of Beauty and Personal Care by Category: Value 2015-2020
PHP million
2015 2016 2017 2018 2019 2020
Baby and Child-specific 8,120.8 8,301.2 8,385.4 8,545.4 8,766.2 9,033.7

Products
Bath and Shower 29,280.8 29,709.4 30,080.2 30,439.5 30,869.3 31,345.1
Colour Cosmetics 9,976.3 10,444.4 10,941.7 11,501.4 12,133.0 12,811.6
Deodorants 7,526.7 7,673.8 7,778.7 7,973.8 8,249.8 8,606.5
Depilatories 173.9 176.9 181.9 188.9 197.5 207.9
Fragrances 7,397.9 7,293.2 7,229.5 7,236.5 7,281.4 7,306.1
Hair Care 37,624.9 38,917.9 40,260.1 41,786.4 43,498.6 45,423.0
Men's Grooming 9,240.1 9,799.5 10,387.0 11,083.4 11,877.6 12,785.6
Oral Care 22,603.4 22,711.8 23,066.0 23,596.6 24,255.8 25,057.0
Oral Care Excl Power 22,516.8 22,624.3 22,979.1 23,509.4 24,167.6 24,967.4
Toothbrushes
Skin Care 36,194.4 37,406.7 38,558.7 40,031.1 41,745.9 43,626.6
Sun Care 493.3 516.4 540.1 568.6 601.5 638.8
Sets/Kits 533.7 551.3 564.0 577.4 591.9 607.0
Personal Care
Mass Beauty and 128,525.9 131,760.9 135,011.5 138,984.8 143,657.6 148,885.1
Personal Care
Beauty and Personal Care 160,796.0 164,576.6 168,454.4 173,321.8 179,086.8 185,588.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
sun care.
Table 12 Forecast Sales of Beauty and Personal Care by Category: % Value Growth
2015-2020
% constant value growth

2015/2016 2015-20 CAGR 2015/20 TOTAL
Baby and Child-specific Products 2.2 2.2 11.2

Bath and Shower 1.5 1.4 7.1
Colour Cosmetics 4.7 5.1 28.4
Deodorants 2.0 2.7 14.3
Depilatories 1.7 3.6 19.5
Fragrances -1.4 -0.2 -1.2
Hair Care 3.4 3.8 20.7
Men's Grooming 6.1 6.7 38.4
Oral Care 0.5 2.1 10.9
Oral Care Excl Power Toothbrushes 0.5 2.1 10.9
Skin Care 3.3 3.8 20.5
Sun Care 4.7 5.3 29.5
Sets/Kits 3.3 2.6 13.7
Mass Beauty and Personal Care 2.5 3.0 15.8
Beauty and Personal Care 2.4 2.9 15.4
trade sources
sun care.
Table 13 Forecast Sales of Premium Beauty and Personal Care by Category: Value
2015-2020
PHP million
2015 2016 2017 2018 2019 2020
Premium Baby and Child- 134.0 141.1 146.7 153.8 162.2 171.6
specific Products
Premium Bath and Shower 614.9 623.9 661.8 700.1 740.9 783.6
Premium Colour Cosmetics 730.3 752.0 814.1 883.3 960.9 1,030.1
Premium Deodorants 78.3 79.0 77.8 80.5 82.5 86.1
Premium Fragrances 3,054.5 3,098.0 3,141.5 3,203.9 3,277.4 3,356.7
Premium Hair Care 550.2 586.5 623.1 664.6 710.6 761.3
Premium Skin Care 2,910.0 3,200.9 3,273.6 3,384.0 3,522.3 3,681.8
Premium Sun Care 2.8 2.9 3.0 3.1 3.2 3.3
Premium Sets/Kits 87.5 94.3 101.0 107.5 114.4 121.5
Personal Care
trade sources
sun care.
Table 14 Forecast Sales of Premium Beauty and Personal Care by Category: % Value
Growth 2015-2020
% constant value growth

2015/2016 2015-20 CAGR 2015/20 TOTAL
Premium Baby and Child-specific Products 5.3 5.1 28.1

Premium Bath and Shower 1.5 5.0 27.4
Premium Colour Cosmetics 3.0 7.1 41.1
Premium Deodorants 1.0 1.9 9.9
Premium Fragrances 1.4 1.9 9.9
Premium Hair Care 6.6 6.7 38.4
Premium Skin Care 10.0 4.8 26.5
Premium Sun Care 1.6 3.3 17.5
Premium Sets/Kits 7.7 6.8 38.8
trade sources
sun care.
DEFINITIONS
Explanations of words and/or terminology used in this report are as follows:
 Barangays – the Philippines’ most basic unit of administration, which can be equated to
smaller constituencies of regions.
 Sari-sari stores – convenience stores of varying sizes and product portfolios found in the
streets, subdivisions and other important social and economic areas in Philippine
communities.
SOURCES
Sources used during the research included the following:
Summary 1 Research Sources

Trade Associations Chamber of Cosmetics Industry in the Phils
Direct Selling Association of the Philippines
Trade Press Beauty Business News
Beauty International
Bussiness World Online
Cosmetique News
European Cosmetic Markets
Forbes
Happi Magazine
Inquirer.net
International Cosmetique News
Manila Bulletin
PR Newswire
Soap Perfumery & Cosmetics
SunStar Network
Source: Euromonitor International

Beauty and Personal Care in The Philippines

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BEAUTY AND PERSONAL CARE

LIST OF CONTENTS AND TABLES

BEAUTY AND PERSONAL CARE IN

Healthy Economy and Demographics Favour Beauty and Personal Care

Beauty and Personal Care Increases As It Aligns With Consumer

International Brands Still Dominate the Well-fragmented Category

Added Product Benefits Appeal Greatly in 2015

Niche Categories Forecasted To Develop Further As Middle-income

KEY TRENDS AND DEVELOPMENTS

the Rising Number of Middle-income Families Produced by Ofw, Bpo

Changing Philippine Consumer Lifestyles Lead To Demand for Products

Digital Technology in the Everyday Lives of Consumers Benefits the

Baby and Child-specific 6,732.4 6,971.3 7,239.1 7,508.6 7,801.0 8,120.8

% current value growth

Baby and Child-specific Products 4.1 3.8 20.6

Colour Cosmetics 10.6 9.0 53.9

% current value growth

Premium Baby and Child-specific Products 10.8 2.6 13.7

Premium Sun Care 6.8 8.3 49.1

% retail value rsp

Unilever Group 20.3 20.6 20.8 21.3 22.8

% retail value rsp

Unilever Philippines Inc 19.4 20.1 20.6 21.1 21.4

Procter & Gamble 16.9 16.9 17.2 17.3 17.4

% retail value rsp

Safeguard (Procter Procter & Gamble 5.9 5.9 5.9 5.8

Palmolive Naturals Colgate-Palmolive 2.8 3.0 3.3 3.5

Table 8 Penetration of Private Label in Beauty and Personal Care by Category: %

% retail value rsp

Table 9 Distribution of Beauty and Personal Care by Format: % Value 2010-2015

% retail value rsp

Store-Based Retailing 85.8 86.4 86.5 86.8 87.3 87.9

--- Homewares and Home - - - - - -

% retail value rsp

Store-Based Retailing 87.8 93.4 58.9 73.6 99.1 50.7

Store-Based Retailing 98.2 79.9 99.9 83.6 98.4 33.0

-- Home and Garden 0.0 0.0 0.0 0.0 0.0 0.0

Baby and Child-specific 8,120.8 8,301.2 8,385.4 8,545.4 8,766.2 9,033.7

% constant value growth

Baby and Child-specific Products 2.2 2.2 11.2

% constant value growth

Premium Baby and Child-specific Products 5.3 5.1 28.1

Summary 1 Research Sources

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