The U.S. Cosmetics market, measured in manufacturers' shipments, grew by more than one billion dollars in 1994, at a rate of 6.8%. Growth was driven by skin care, color cosmetics and men's products. The latter's strength is due to alpha hydroxy acid formulas and other treatment and grooming products for men.

II. Product Type

A. Dollar Volume in Manufacturer's Sales (millions)

Skin Care continues to lead the market, growing at about $600 million annually. AHAs were
a major factor. Color Cosmetics' volume increased $200 million, fueled by matte finish products and a surge of new mascaras, as well as the emergence of transfer-resistant claims. Body & Bath's growth is wholly due to the bath/aromatherapy segment. Even with a healthy business in foot and leg care, corrective hand & body products can't overcome the losses caused by the failure of anti-cellulite products to deliver their promises. Women's Fragrances showed fractional growth, even with unisex scents included in the results. Even with a record number of launches, had it not been for CkOne, this category would have declined. AHA products fueled the men's market to a $100 million sales increase over 1993.

B. Growth Rate

All product categories experienced some growth, and Men's Products even reversed its sales decline.

C. Market Share

Prestige and Alternative distribution each displayed 3% growth, while Mass lagged behind with a 2% increase. Alternative's rate of growth slowed considerably.