Premiumization Driving Sales In Many Categories Worldwide

December 1, 2016: 12:00 AM EST

A Nielsen report highlights the strength of the premiumization trend that is driving sales around the world and looks set to continue as powerful underlining shifts play out. Rising income and a desire for exceptional quality (cited by 54% as a factor in premium purchases) and superior performance (46%), are core drivers. Interestingly, Nielsen finds that products with social or environmental benefits have premium potential. Some 42% of global respondents say they’d be very willing to pay a premium for products made with organic or all-natural ingredients, while nearly the same proportion (39%) say they’d pay extra for sustainable or environmentally friendly products.

Premium is well established in many markets – it already accounts for about 25% of dollar sales in both the personal-care category in the U.S. and Southeast Asia and is growing faster than other segments. In Southeast Asia, for example, the premium segment grew 21% from 2012 to 2014, over double the rate of the mainstream and value tiers (8% and 10%, respectively). Strong and growing levels of consumer acceptance indicate the segment will continue to expand. Nielsen states that over 25% of global respondents say they’ll consider buying premium personal-care product: hair-care (27%), body-care (26%) and oral-care (26%).
More: we previously looked at prestige strategies in India. [Image credit © KMM Productions]

Domains

PERSONAL CARE BUSINESS
Consumers
Market News
Market Segments
Products & Pricing
Retail
Trends
Facial Care
Oral Care
Skin Care

Geographies

Worldwide
North America
EMEA
Asia-Pacific
Latin America
United States of America
Europe
Middle East- Africa

Premiumization Driving Sales In Many Categories Worldwide

Domains

Geographies

Categories

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