07.01.16
The improving economy has left Americans with a little extra money in their pockets, encouraging many consumers to increase spending across categories—but where are they putting it?
While it appears that consumers have a particular penchant to splurge on entertainment activities and are also willing to send more on beauty and personal care products that deliver added benefits, they are holding on to a budget–conscious mindset when it comes to household products, reveals new research from Mintel.
According to Mintel’s new American Lifestyles report, which tracks spending across major consumer markets, a reliance on beauty and personal care staples has resulted in slow but steady market growth of 17% between 2010-15, reaching estimated sales of $124.3 billion.
While most consumers are spending the same amount on beauty purchases in 2016 (67%) as they have in the past (vs. 65% in 2013), Mintel research indicates that some consumers are beginning to shift away from lower-priced options and are spending more for products with added benefits, as 16% of beauty retailing consumers purchase products to upgrade their existing collections. This is especially true of grooming staples like hair care as natural hairstyles are trending, driving consumers to seek healthy-looking hair and boosting sales of conditioners as well as products touting smoothing and moisturizing claims, according to Mintel’s research.
Meanwhile, in household care, it appears that the recession mentality is hard to shake. Mintel data shows that the household care products market has experienced only minimal growth in recent years, rising just 3% from 2010 to 2015 to an estimated $47 billion. A budget–conscious mindset persists long after the recession, keeping sales growth in check.
According to Mintel, household care consumers balance their continued focus on economizing with strong interest in products that offer greater convenience, cleaning performance, and safety, as 47% of household care consumers say easy to dispense is a top purchase driver, along with safe (43%) and easy (31%) to use.
Meanwhile, the vacation/tourism (+3.9%) and leisure/entertainment (+2.8%) markets have grown steadily, reaching an estimated $233 billion and $365.5 billion, respectively in 2015.
Much of the success seen in discretionary categories is due to the fact that Americans are more confident in their financial situations compared to years past, according to Mintel. More than two in five (44%) Americans describe their financial situations as “healthy” in 2016, compared to 37% in 2015 and 33% in 2013, indicating that improvements in the economy are being felt at a household level.
“As the economy continues to improve, and Americans settle into ‘healthy’ financial situations, our research shows that consumers are interested in spending discretionary income on vacations, leisure and entertainment experiences,” said Dana Macke, senior lifestyles and leisure analyst at Mintel.
“However, some Americans are still struggling to find a balanced approach to spending,” Macke added. “In an attempt to spend prudently while still enjoying whatever extra they have, consumers are trading down in categories like household care and seeking out lower priced options for basic beauty and personal care needs, while allowing themselves modest luxuries like a nice dinner out.”
More info: www.mintel.com
While it appears that consumers have a particular penchant to splurge on entertainment activities and are also willing to send more on beauty and personal care products that deliver added benefits, they are holding on to a budget–conscious mindset when it comes to household products, reveals new research from Mintel.
According to Mintel’s new American Lifestyles report, which tracks spending across major consumer markets, a reliance on beauty and personal care staples has resulted in slow but steady market growth of 17% between 2010-15, reaching estimated sales of $124.3 billion.
While most consumers are spending the same amount on beauty purchases in 2016 (67%) as they have in the past (vs. 65% in 2013), Mintel research indicates that some consumers are beginning to shift away from lower-priced options and are spending more for products with added benefits, as 16% of beauty retailing consumers purchase products to upgrade their existing collections. This is especially true of grooming staples like hair care as natural hairstyles are trending, driving consumers to seek healthy-looking hair and boosting sales of conditioners as well as products touting smoothing and moisturizing claims, according to Mintel’s research.
Meanwhile, in household care, it appears that the recession mentality is hard to shake. Mintel data shows that the household care products market has experienced only minimal growth in recent years, rising just 3% from 2010 to 2015 to an estimated $47 billion. A budget–conscious mindset persists long after the recession, keeping sales growth in check.
According to Mintel, household care consumers balance their continued focus on economizing with strong interest in products that offer greater convenience, cleaning performance, and safety, as 47% of household care consumers say easy to dispense is a top purchase driver, along with safe (43%) and easy (31%) to use.
Meanwhile, the vacation/tourism (+3.9%) and leisure/entertainment (+2.8%) markets have grown steadily, reaching an estimated $233 billion and $365.5 billion, respectively in 2015.
Much of the success seen in discretionary categories is due to the fact that Americans are more confident in their financial situations compared to years past, according to Mintel. More than two in five (44%) Americans describe their financial situations as “healthy” in 2016, compared to 37% in 2015 and 33% in 2013, indicating that improvements in the economy are being felt at a household level.
“As the economy continues to improve, and Americans settle into ‘healthy’ financial situations, our research shows that consumers are interested in spending discretionary income on vacations, leisure and entertainment experiences,” said Dana Macke, senior lifestyles and leisure analyst at Mintel.
“However, some Americans are still struggling to find a balanced approach to spending,” Macke added. “In an attempt to spend prudently while still enjoying whatever extra they have, consumers are trading down in categories like household care and seeking out lower priced options for basic beauty and personal care needs, while allowing themselves modest luxuries like a nice dinner out.”
More info: www.mintel.com
• What happens in the bedroom may have a lot to do with what happens in the bathroom, according to a recent Delta Dental survey. The dental insurance company found that oral health matters more to women than men and that just about three-quarters of US women consider good oral health to be one of the sexiest qualities in a partner. According to the survey, only 68% of men consider good oral health one of the sexiest qualities. Some 70% of women say they won’t kiss someone they believe has poor oral health while 65% of men said the same. With poor hygiene topping the list of reasons women say they’ll break up with someone (women, 67% vs. men, 60%), 27% of women say they’ll break up with someone who doesn’t brush their teeth twice a day vs. 22% of men. Additionally, 40% of women say they’ll end a relationship with someone who uses their toothbrush versus only 20% of men. As a comparison, that’s the same percentage of women who would break up with someone for looking through their phone without permission. |