LITTLE FALLS, N.J. -- After another year of disappointing sales, the cosmetics and toiletries industry is facing steadily dropping growth rates, according to data recently released by Kline & Co. The U.S. cosmetics and toiletries market grew by less than 2% in 2003, representing the third consecutive year of low single-digit growth for the market after it averaged roughly 5% annually through the late 1990s, the research company reported. "C&T companies have been finding it difficult to generate excitement in a mature market that is saturated with many competing lines," said Carrie Bonner, consumer products industry manager for Kline. "Even some of the product classes that had fairly successful new product launches still saw sales declines or weak growth overall." Of the 34 product categories examined in the upcoming edition of Cosmetics and Toiletries USA, Kline's annual market analysis, more than half recorded sales declines from 2002 to 2003. Bonner noted that some of these categories, including hair coloring and sun care products, experienced a drop in sales for the first time in decades.
