As the proportion of those in the 50+ age bracket rises, these customers become a core purchasing group and retailers must ensure their needs are understood and met. An ageing population means consumers' needs are changing and innovation in the market makes it a high-paced sector. Learn what the changes are in this sector over the next five years and where the opportunities lie. Verdict is offering a FREE case study highlighting where the health & beauty opportunities lie by category, channel and region. The full Verdict report Health & Beauty Retailing in the UK offers data and forecasts to demonstrate which players pose a threat over the next five years. Key questions answered: Which areas of health & beauty are exceeding expectations, and which are suffering? Which retailers are the winners and losers in health & beauty? Which are the key demographics for health & beauty retailers to be targeting and how will this change over the next five years? What are the key trends in health & beauty retailing? How can I capitalise on them?

1. think retail think
UK Health
& Beauty Retail
Prospects Among
50+ Shoppers
Ageing population to propel
growth in health & beauty retail
Case Study:

2. Year
Sales – Current
prices £m
Year-on-year
change %
2013e 19,224 2.6
2014e 19,755 2.8
2015e 20,441 3.5
2016e 21,055 3.0
2017e 21,705 3.1
• South West
• South East
• Eastern England
• Skincare
• OTC Medicines
• Dental Care
By Category
• Online
• Local Pharmacies
• Grocers
By Channel
By Region
Where are the opportunities?
• 50+ age bracket will represent 37.3% of the
population by 2016
• In 2011, 55+ represented 25.8% of online
shoppers, and this is set to increase
• Disposable incomes relatively low
• Tend to shop at local pharmacies
December 2012
UK Health & Beauty Retail Prospects Among 50+ Shoppers page 2
Figure 1: Health & beauty sales forecasts
Figure 2: UK’s ageing shoppers
Health & beauty market set for growth in next five years
The health & beauty retail sector has been somewhat of a shining light in current retail
trading conditions and is unlikely to dim.
Verdict forecasts the sector’s sales to grow by £3 billion in the five years to 2017.
Consumers will be more reluctant to cut back on health & beauty spending in areas
such as skincare and cosmetics, so there is room for retailers to push their prices up on
premium and upper midmarket products without impacting on volumes. Some health
& beauty products have an essential role to play in everyday lives, which keeps volumes
high but price competition remains. Meanwhile even higher end health & beauty
products can be bought as a ‘treat’ purchase without consumers having to part with too
much money, so these may be alternatives to more luxurious purchases as consumer
confidence remains low.
The ageing population may be a
repetitive phrase but it is a driver in
the health & beauty sector’s continued
growth. Heightened concern over
looking younger, combined with an
increased need for medicinal and
dental products, means that shoppers
aged 50+ - which will represent more
than one-third of the UK population
by 2016 - will become increasingly
important to retailers in this space.
Therefore, those that accommodate
this demographic, both with the types
of products on offer and the channels
they use to sell them, will make the
most of a significant opportunity.
Source: Shopping Centers in Europe
2012,Verdict Research
Source:Verdict Research

3. 0
10
20
30
40
50
Health&beautymarketsales(%)
2008 2009 2010 2011 2012f 2013f 2014f 2015f 2016f 2017f
Figure 3: Grocers’ share of health & beauty market sales (%)
Source: Health & Beauty Retailing in the UK,Verdict Research
December 2012
UK Health & Beauty Retail Prospects Among 50+ Shoppers page 3
Where shoppers aged 50+ will buy health & beauty products
An ageing population has huge implications for where and how we buy health & beauty
products. The growth of the 70+ age bracket means a higher proportion of consumers
will become less mobile, and will choose more accessible and convenient shopping
channels.
Pharmacies, online shops and supermarkets/grocers are most likely to benefit.
Pharmacies will increasingly focus on the health side of the sector, as the growth of
online shopping means a lesser need for beauty products in these outlets, and there
are many opportunities here for differentiation. Offering services such as blood pressure
and cholesterol checks alongside strong customer service and a wide range of health
products will help entice shoppers.
Pharmacy store numbers have risen dramatically over the past five years, and are
set to hit 14,500 by the end of 2012, a rise of 6.3% on 2011. There has been an influx
in supermarket pharmacy numbers over the year to 2012, with a rise of 7.6%, while
store numbers among leading specialists such as Boots, Lloyds Pharmacy, Rowlands,
Superdrug and The Co-operative Pharmacy, are expected to remain static this year.
Pharmacies are not the only benefits to shopping for health & beauty products in
supermarkets. Grocers or supermarket chains have already seen a healthy increase
in their share of the market and Verdict expects this to continue. The convenience of
adding everyday health & beauty products to the regular food shop, such as toothpaste
and deodorant, coupled with growth in online grocery shopping will continue to appeal
to those wanting an easy shopping experience, with shoppers aged 50+ feeling a
particular resonance.
To further capitalise on their increasing popularity, grocers should consider broadening
their selection to more brands and product ranges, and expanding in-store pharmacy
services, such as blood pressure checks and flu jabs, to better serve the UK’s ageing
population.

4. December 2012
UK Health & Beauty Retail Prospects Among 50+ Shoppers page 4
Online opportunities in health & beauty
Online, while slowing in growth, is set to become an ever-more important shopping
destination in the sector. In 2012, 4.9% (£919.1m) of the total health & beauty spend will
be online, and this is set to rise to 6.9% in 2016 to reach almost £1.5bn.
Despite the sensory nature of shopping for health & beauty products, greater ranges,
convenience and low prices signify opportunities for online retail, as well as the fact
that once shoppers are happy with a store-bought product, the benefits of shopping
online will give them more confidence to buy said product through that channel. In
addition, the growth of online supermarket shopping will play its part. As consumers
continue to buy some of their health & beauty products at grocers, at a growing rate,
this will translate to simply putting these products into their regular online grocery
shopping basket.
Online shopping will continually become attractive to shoppers aged 50+. This age
group is becoming more tech savvy, and the meteoric rise in the popularity of tablets
will offer a more accessible shopping experience than a PC or laptop, meaning those
that have not in the past been used to computers will find tablets more appealing.
Verdict’s e-Retail in the UK 2012 research showed that across all age groups, 22.0% of
online health & beauty product shoppers in 2011 used a mobile phone to buy goods,
while 11.0% did so via a tablet. Retailers should therefore optimise their sites for
mobile browsers or develop a transactional app for smartphones and tablets. Mobile
optimisation is the most important of these – as an easy-to-use mobile website will
benefit retailers and is a great deterrent for moving to a competitor.
There is no getting away from the fact that physical stores are still important to the
sector, indeed continuing to account for the vast majority of sales. The senses play a
crucial role in the buying decision surrounding these types of products, something that
shopping online cannot get around. To continue to combat any online push, alongside
aggressive pricing retailers could combat this with exclusive in-store products and
ranges. Boots offers Kings male grooming products in-store. Complimentary services
will also be a draw – for example, those NHS health services at Boots and the spa
services at Neal’s Yard and certain branches of Lush.
Therefore, it is worth looking at regions with a higher proportion of shoppers aged
50+, but with enough disposable income to encourage spending. For example, the
North East has the second highest proportion of consumers aged 50+ in its population,
but the lowest average weekly expenditure per person. However, the southern regions
(East, South East and South West) have relatively high levels of both, so opportunities
definitely lay in these areas.

5. Figure 4: Spending in health and beauty categories in next five years
Category
Spending £m (% annual growth)
2013 2014 2015 2016 2017
Dental care 882 (2.2) 902 (2.3) 927 (2.8) 951 (2.5) 976 (2.7)
OTC medicines 2,678 (3.2) 2,767 (3.3) 2,886 (4.3) 2,995 (3.8) 3,115 (4.0)
Skincare 2,301 (3.4) 2,389 (3.8) 2,489 (4.2) 2,584 (3.8) 2,687 (4.0)
Source: Health & Beauty Retailing in the UK,Verdict Research
December 2012
UK Health & Beauty Retail Prospects Among 50+ Shoppers page 5
Ageing population provides healthy opportunities for
certain categories
Certain health & beauty products will undoubtedly benefit from the rise in shoppers
aged 50+. Dental care will grow steadily over the next five years as the ageing
population boosts a requirement for dentures and associated products, while
continued promotion and advancement of teeth whitening will also drive dental sales.
Meanwhile, over-the-counter medicines already have a solid revenue stream due to
their necessity across all age groups, but they will also benefit from this demographic
as demand grows for vitamin and mineral supplements.
The 50+ shopper is not just concerned with a necessity to keep healthy and functional.
Consumers of all ages are increasingly concerned with looking younger and halting the
ageing process – and this is marked in the 50+ age group. Women in their 50s today
are dressing and wanting to look younger than those aged 50+ 20 years ago, and the
trend is expected to continue with more emphasis on anti-ageing products, cosmetic
surgery and hair plugs.

6. December 2012
UK Health & Beauty Retail Prospects Among 50+ Shoppers page 6
This case study was taken from Health & Beauty Retailing in the UK, Verdict
Market Report
For more information on this report please email information@verdict.co.uk, http://bit.
ly/U23Y6o or call +44 (0)20 7551 9664
Introduction
Despite the continued economic pressure, health & beauty has remained relatively
resilient and provides opportunities for growth. An ageing population means
consumers needs are changing and innovation in the market makes it a high paced
sector. Learn what the changes are in this sector over the next five years and where the
opportunities lie.
Features and benefits
■ Discover our comprehensive analysis of the key issues set to impact the health &
beauty market over the next five years.
■ Use our market sizing and growth rates broken down by categories including skincare,
cosmetics, babycare and OTC medicines to plan future strategies.
■ Learn who will be gaining market share and who will be losing it.
Highlights
While volumes will be slightly impacted by consumers making more considered
purchases the sector remains fairly resilient. Low selling prices, increasing concerns
around looks and a necessity element to some products keeps shoppers buying.
As grocers and general merchandisers take more share, specialists need to give
consumers a reason to shop with them. Own label ranges, alongside loyalty schemes
and a unique shopping experience (offering free makeovers or special beauty days with
discounts) should help fight off competition.
Retailers need to ensure websites are mobile optimised and are easy to navigate or
apps are provided to provide a positive brand experience. While mobile payment is
in its infancy in the UK, it is something which retailers will need to consider over the
coming year.
Your key questions answered
■ Which areas of health & beauty are exceeding expectations, and which are suffering?
■ What channels are gaining share and which are struggling?
■ How are Health & Beauty specialists performing compared to the total health &
beauty market?

7. December 2012
UK Health & Beauty Retail Prospects Among 50+ Shoppers page 7
About Verdict
Verdict is a retail information specialist within the Informa Group. With almost 30 years’
experience, Verdict publishes unrivalled independent analysis. We provide a complete
picture of the UK and increasingly the international retail arena, helping retailers,
manufacturers, service suppliers, analysts and consultants to fully exploit opportunities
within the industry.
www.verdict.co.uk