“Contrary to the waning performance of some other professional care segments, the limping economy is fueling industry growth by prompting consumers to enjoy and indulge in a little affordable luxury,” observed Agnieszka Saintemarie, the report’s project manager. “Moreover, fashion trends are favoring nails with nail-art fashion, transforming women’s nails into stylish accessories, supported by an encouraging flood of innovative, fashion-forward nail care products.”
The introduction of more than 30 important gel products in the past two years—consequently raising the recognition of gel products—has also spurred the market’s strong performance, noted Kline. However, in some countries such as Brazil, nail gels are not as popular as nail polishes, which are more affordable. Still, gel products continue to grow at a stellar rate, posting nearly 30% growth in 2012.
Express nail bars which have sprouted up in larger US cities, also have become commonplace on Europe’s high streets in recent years. In the UK alone, the number of nail bars increased 20% in 2012.
In the US, and more frequently in Australia, salons are offering young girls and teens “nail parties” as a novel and successful take on birthday parties.
At the regional level, all geographies posted double-digit growth in 2012, with Latin America leading the way with the highest increase of more than 30% due to the increasing number of women in the workplace, steady launches of new products and cultural factors outlined in the report. Developed markets, such as the US, UK and Germany, also highly contribute to market gains.
Leading professional brands vary by region, with the smaller local brands often leading within some regional markets. OPI holds a commanding lead on the overall professional nail care market with nearly 20% of total market share, with CND a distant second.
Recent product innovations enable nail artists to harness cutting edge technology, thereby decreasing service times to be cost-competitive. With this in mind, marketers focus on covering extensive product portfolios so salons do not have to take on additional brands, according to Kline.
The study’s findings reveal that the professional nail care market will continue to grow, although at a slower pace. Having the right manicure and color are the norm not a luxury, driving the market to prosper. However, nail salons must stay current with the latest trends and technologies to remain competitive. Continuous competition coming from other classes of trade, coupled with other new business styles, threaten the segment in most regions. The cyclical nature of the nail category may also swing out of the market’s favor during the forecast period, noted Kline.
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