Haircare - Italy - March 2006

Executive Summary

Market Drivers

Market Size and Trends

Market Segmentation

Distribution

The Supply Structure

New Product Development

Prospects

Forecast

Haircare - Italy - March 2006

Table of Contents

Introduction

Definitions

Abbreviations

Executive Summary

Socio-economic trends impact haircare sales

Conditioners are star performers

Figure 1: Indexed Italian retail value sales of haircare products, by sector, 2000-05

Figure 2: Italian retail value sales of haircare products, % share by sector, 2000-05

Mass-market dominates distribution

Figure 3: Italian retail value sales of haircare products, % share by outlet type, 2005

L’Oréal in dominant position

Product innovation focuses on cosmetic benefits

Further growth, but at slower rate

Figure 4: Forecast indexed Italian retail value sales of haircare products, by sector, 2005-10

Market Drivers

Contrasting effects of population trends

Figure 5: Trends in Italian adult population, by age, 2000-05

Growth in consumer expenditure slows down

Figure 6: Trends in Italian consumer expenditure, at current and constant prices, 2000-05

Rising female employment supports sales

Figure 7: Trends in Italian employment, 2000-05

Figure 8: Women as % of working population, by country, 2005

Figure 9: Trends in Italian adult female population, by age, 2000-05

Men pay increasing attention to haircare

Figure 10: Trends in Italian adult male population, by age, 2000-05

Low penetration rates in Western European terms

Figure 11: Penetration of haircare products, by women, by country, 2005

Market Size and Trends

Overall growth in cosmetics and toiletries slows down

Figure 12: Italian retail value sales of cosmetics and toiletries, at current and constant prices, 2000-04

Haircare recovers from a mild dip

Figure 13: Italian retail value sales of haircare products, at current and constant prices, 2000-05

Conditioners outperform other sectors

Figure 14: Italian retail value sales of haircare products, by sector, 2000-05

Figure 15: Annual Italian per capita spend on haircare products, 2000-05

Market Segmentation

Shampoos

Product innovation supports sales

Figure 16: Italian retail value sales of shampoos, at current and constant prices, 2000-05

Figure 17: Italian retail value sales of shampoos, by type, 2003-05

Standard/beauty shampoos

2-in-1 shampoos

Anti-dandruff/medicated shampoos

Child-specific shampoos

Usage patterns

Hair salons

Styling products

Not so slick

Figure 18: Italian retail value sales of styling products, at current and constant prices, 2000-05

Figure 19: Italian retail value sales of styling products, by type, 2003-05

Gels

Hairsprays

Mousses

Waxes

Colourants

New products keep up growth

Figure 20: Italian retail value sales of colourants, at current and constant prices, 2000-05

Figure 21: Italian retail value sales of colourants, by type, 2003-05

Permanent colourants

Semi-permanent colourants

Temporary colourants

Tone-on-tone colourants

Other

Conditioners

Healthy growth

Figure 22: Italian retail value sales of conditioners, at current and constant prices, 2000-05

Intensive care conditioners put on best performance

Figure 23: Italian retail value sales of conditioners, by type, 2003-05

Home perms

Figure 24: Italian retail value sales of home perms, at current and constant prices, 2000-05

Distribution

Grocery multiples account for bulk of sales

Figure 25: Italian retail value sales of haircare products, by outlet type, 2003-05

Shampoos have mass-market bias

Figure 26: Italian retail value sales of shampoos, by outlet type, 2003-05

Supermarkets take their largest share in styling products

Figure 27: Italian retail value sales of styling products, by outlet type, 2003-05

Perfumeries remain important for colourant sales

Figure 28: Italian retail value sales of hair colourants and home perms, by outlet type, 2003-05

Despite declining share, pharmacies remain important distributors of conditioners

Figure 29: Italian retail value sales of conditioners, by outlet type, 2003-05

Figure 30: Italian retail value sales of haircare products, % share by outlet type, 2005

The Supply Structure

Manufacturers’ shares

Increasing concentration

Figure 31: Manufacturers’ retail value shares of haircare products*, 2003-05

Most big shampoo brands increase sales

Figure 32: Brands’ retail value shares of shampoos, 2003-05

Overall market leader L’Oréal dominates in styling products

Figure 33: Brands’ retail value shares of styling products, 2003-05

Colourants sales highly concentrated

Figure 34: Brands’ retail value shares of colourants, 2003-05

Familiar names lead in conditioners

Figure 35: Brands’ retail value shares of conditioners, 2003-05

Leading manufacturers

L’Oréal Italiana Saipo SpA

Procter & Gamble Italia SpA

Henkel Italia SpA

Unilever Italia Srl

Beiersdorf SpA

Other suppliers

New Product Development

Shampoos for every hair problem…

… and with enhanced cosmetics effects

Conditioners combine regenerative and style benefits

Intensive care treatments – a showcase for high technology

Advanced anti-dandruff formulations

Focus on solving hair problems

Providing strong hold

Complete haircare lines

Sun protection

New product launches 2005-06

Prospects

Importance of lifestyle trends

Haircare more resilient to economic downturns

Growth of female employment maintains sales

Ageing population

Figure 36: Projections in Italian population, by age, 2006-10

Demand for natural products and curative treatments

Low penetration of conditioners and styling gels

Forecast

Gone flat

Figure 37: Forecast of Italian retail value sales of haircare products, at current prices, 2005-10

Steady but slower

Mixed fortunes by sector

Well conditioned

Steady shampooing

Colourants a shade better

Other sectors languish

High inflation squeezes market

Figure 38: Forecast of Italian retail value sales of haircare products, at constant prices, 2005-10