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    Editorial

    Overoptimism Greets 2018

    ...

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    • The Next Normal
    Tom Branna, Editorial Director01.04.18
    Twelve months since my last prognostication (and yep, I was wrong again) and the global economy is still humming along. Back then, I wondered how long the already-long-in-the-tooth recovery could continue—turns out, a year and counting. Now, a lot of analysts expect things to only get better through 2018. For example, Goldman Sachs noted late last year that for the first time since 2010, the world economy is outperforming most predictions. According to GS, global GDP rose 3.7% last year and will increase 4.0% this year. What’s more, there are even signs of an increase in productivity—something that’s been sorely lacking since The Great Recession. Barring any geopolitical crisis, the year ahead could be a good one for our industry. But rather than ride the wave, some marketers are trying to turbocharge their gains.


    As we went to press, Colgate-Palmolive agreed to acquire PCA Skin and EltaMD in two separate transactions. Terms of the deals weren’t disclosed, but industry estimates put combined sales of the two companies at $100 million. It’s all part of Colgate’s strategy to focus on its higher-margin oral care, personal care and pet nutrition businesses. More precisely, the acquisitions enable Colgate to enter the professional skin care category where Colgate hopes to leverage the expertise it has in the professional oral care space.


    No matter what the M&A activity, Mintel says four trends will drive the global beauty market in 2018: Biotechnology, Personalized Beauty, Look Good and Feel Good, and Customized Shopping.


    Many entrepreneurs are tapping into these trends when launching their own lines of cleansers, cosmetics and conditioners. This month, Melissa Meisel looks at some of the leading beauty startups and how they’re shaking up the industry. Learn more about companies like Wander Beauty, Riddle Oil and Stowaway Cosmetics click here. But before you get the urge to break out and create your own cosmetics line, be sure to read FDA Is Getting Personal. After all, the last thing an entrepreneur can afford is ending up on FDA’s radar.


    It’s shaping up to be another interesting year for the global household and personal products business. And yet, the question remains, will a stronger global economy translate into bigger gains for our industry?  


    Tom Branna
    Editorial Director
    tbranna@rodmanmedia.com
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