The paper "Market Drivers and Trends" is a perfect example of marketing coursework. In the past decade physicians, pharmacists and nutritionists have come up with new applications to meet the demand and needs of the end consumer. The beauty, health and wellness industry has experienced significant growth because of increased consumer awareness. Apart from the awareness for natural products to enable them to lead healthier lifestyles, the other major factors driving growth in this industry are demand for anti-ageing products and affluence in the general population (Anunciato & Filho, 2012).
People across the globe are experiencing changes in lifestyles; there is an increase in sedentary behavior and less physical activities. For instance, obesity has become more prevalent in most European countries, with an estimated increase of about 10%- 40 % in the past decade (Mahabir & Pathak, 2010). 1.2 Market Segments Areas such as Europe, Asia Pacific, and North America in recent years have experienced growing trends. According to research the nutraceutical, Nutri cosmetic, and cosmeceutical, the market is growing more than 7% annually. Industry analysts have estimated that the global market worth is approximately US $ 129 billion, with a projected average annual growth rate of 4.9%.
Analysts also expect that North America and Asia Pacific segments will have a market share of 39.2% and 30.4% respectively (Mahabir & Pathak, 2010). The disparity in market share within specific market segments such as Japan, Europe, and North America is due to differences in culture, economic climate, and legislation; as a result, each market segment has developed independently, and the industry players have customized solutions for each region (Barel et al. , 2014). The table below depicts how the stakeholders within the industry have tackled each geographic area to enable them to maximize sales. Characteristics of Nutricosmetic Markets Japan Europe North America Application Form Liquids Tablets Tablets Distribution Channels Main Stream Channels Pharmacies Speciality Brands Unique to Japan Unique to Europe Unique to N.
America Pricing Low Prices High Prices Moderate prices Benefits Skin & Beauty support Skin & Hair Skin Source: Handbook of Cosmetic Science and Technology, Fourth Edition 1.3 Global Market Outlook The ageing population is increasing and by the year 2020, people over 60 years are expected to be more than one billion. A large proportion of those aged 60 years and above will be from the developed countries; this upsurge is expected to increase the global market worth to about US $ 250 billion (Mahabir & Pathak, 2010).
Currently, the top markets for the three segments include Japan, China, United States, Italy, France, Germany and Spain. The emerging markets that have shown significant potential include India, Brazil, Turkey, Australia, New Zealand and the Middle East. These markets most of which are untapped have immense opportunities for significant growth. Manufactures within the industry are continuously engaging in product innovation to come up with solutions for the different market segments. 2.0 Survey Research 2.1 Review 2.1.1 Age Band The study shows that majority of respondents are under thirty, comprising of 25% closely followed by those of aged between 30 and 40 years at 23%.
Respondents aged between 60 and 70 years are the least in the three consumer segments. 2.1.2 Monthly Expenditure Expenditure patterns indicate that most of the consumers spend between $ 50 and $ 100 on any of the three segments. According to the study, very few customers spend more than $ 100 on a monthly basis. The clients who spend less than $50 bracket comprises of 27%; while the customers spending over $100 are 9%. 2.1.3 Confidence Rating The study also reveals consumer confidence in the expected results.
Only 14.5% of the respondents gave the lowest rating of one while a majority (33.9%) gave the segments a 4-point rating.
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