Nail polish a comforting cosmetic buy, Kline research finds

LITTLE FALLS, N.J. During these tough economic times, women are turning to nail polish as a little pick-me-up, according to recent data by worldwide research and consulting firm Kline.

While U.S. sales in the cosmetics and toiletries market declined 0.8% in 2009, nail polish proved to be the winner and was the only category to post a double-digit increase. Nail polish reached 14.3% growth in 2009. Kline attributed the growth in nail polish to its return in the fashion world, as well as the shift from nail salons to at-home manicures as consumers skipped pricey salon visits to cut costs. Nail industry marketers also responded well to consumer demand and focused on new launches.

Meanwhile, lipsticks and lip gloss dropped 5.3% in 2009. Fragrances have suffered the most while other toiletries, such as personal cleansing products, shaving products and deodorants, suffered the least.

"The beleaguered fragrance market took an even harder hit in 2009 than it did in 2008, when we started to see serious decline," stated Nancy Mills, industry manger for Kline's Consumer Products Practice. "There are a number of factors contributing to this, including fragrances losing their appeal as gifts, and over-crowded selection of fragrances leading to consumer confusion. On the other hand, anti-bacterial hand gels had a stellar year, with sales partly boosted by the unfortunate H1N1 flu epidemic. It is evident that practical purchases and small indulgences kept the industry alive during this very difficult period."

Kline also noted that, in 2009, natural products continued to proliferate through the mainstream channels, including mass market and direct sales. However, most of the natural product offerings are only natural-inspired with fewer chemicals that conventional products, but still contain synthetic ingredients.