Global: Indian FMCG Company Emami Limited announced the acquisition of German personal care brand, Creme 21. This Creame 21 brand is now available in west Asia and other markets. From Emami Ltd. Perspective, this acquisition is international acquisition is in line with the company’s strategy for pursuing growth through inorganic route. Creme 21 is present in skin and body care products such as creams and lotions, shower gels, sun care range and men’s portfolio. More than 80% of the brand’s business is contributed by MENA ((Middle East and North Africa) region and the balance by Germany and other countries. The products are manufactured by a third party in Germany under asset-lean model. Harsha V. Agarwal, director, Emami Limited, said, “ Creme 21 has a strong business fit as it operates in Emami’s focus markets and chosen categories. With this acquisition, the company will be able to enjoy economies of scale due to additional business base.”
According to BlueWeave Consulting, The personal care industry is the one which produces consumer products that are used for beautification and personal hygiene. Some of the products that are included in personal care are wet wipes, toothpaste, toilet paper, talcum powder, moisturizer, shaving cream, razors, perfumes, pomade, nail files, makeup, lotion, lipstick, lip gloss, hair clippers, facial tissue, eye liner, deodorant, cotton pads, cotton swabs, colognes, and cleansing pods. The rise in the social media, beauty specialist retailers and e-commerce which has given huge opportunities for personal care brands to success in global markets. Demand for personal care products is increasing due to increasing purchasing power of millennial’s and significant players undertaking acquisitions and divestments to remain competitive. In addition, increasing demand for the anti-aging products is propelling the growth of personal care products market.
According to BlueWeave Consulting‘s reports,Titled-“ Global Skincare Product Market by Type (Face Creams and Body lotions), by Face Creams (Skin-Whitening Cream, Anti-acne Cream, Anti-Aging Cream, Sunscreen Lotions and Others), by Distribution Channel (supermarkets, hypermarkets, speciality stores and online channels); Size and Forecast by 2016-2025“ – Global skincare product market is expected to grow at a CAGR over 4.58% during 2018-2025 in terms of value . The key factors for growth of personal skincare products are such as, rise in disposable income, technological advancements, growing awareness for health & beauty, rise in the male grooming market, increased demand of anti-aging products coupled with easy availability of skincare products via modern stores & e-commerce channels.