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The Top 5 Metro Areas for Spending on Personal Care Products

The beauty and personal care industry is expected to experience robust growth in the coming years as the increasing number of new products with advanced formulations continues to influence demand.

Sales of beauty and personal care products rose 7% in 2013 and are expected to reach a total of $81.7 billion by 2017.

With the beauty category thriving, more retailers are pushing into this space – viewing it as a stable sector with intensifying demand.

Due to this segment’s growth and retailers’ strong interest in entering or expanding in this space, we decided to pinpoint the U.S. metro areas that are experiencing the most growth. To do this, we measured average annual household spending on personal care products.

Below are the results:

The top 5 metro areas ranked by average annual household spending on personal care products in 2013 are:

  1. San Jose-Sunnyvale-Santa Clara, CA - Average Household Spending: $852.67 per year
  2. Oxnard-Thousand Oaks-Ventura, CA - Average Household Spending: $848.50 per year
  3. Napa, CA - Average Household Spending: $844.67 per year
  4. Anchorage, AK - Average Household Spending: $838.23 per year
  5. Santa Rosa-Petaluma, CA - Average Household Spending: $826.58 per year

With such a high representation of California metro areas in the top 5, it would stand to reason that if you are launching a new personal care product or want to expand your current line, California is an important market to consider.

But, before expanding into seemingly lucrative markets, it’s necessary to determine if those markets have high concentrations of your customers or your potential customers – because that’s critical in determining how successful you’ll be in a particular market.

Which means you also need to know do you the answer to the million dollar question: who are your customers and what do they want?

With effective customer analytic strategies – those that focus on defining who your customers truly are as consumers – you have the customer insights needed to guide your future growth.

Want to know who your customers are and what markets would be most successful in your expansion efforts? Then we should talk. 


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