Canadeanhttp://www.canadean.com2015-07-01T16:55:10umbracoLatest information from Canadean.enBaby boomers expanding UK outbound tourism markethttp://www.canadean.com/news/baby-boomers-expanding-uk-outbound-tourism-market/Wed, 01 Jul 2015 00:00:00 GMThttp://www.canadean.com/news/baby-boomers-expanding-uk-outbound-tourism-market/In a new Expert Insight piece, Gillian Kennedy, analyst at Canadean, looks at the travel behaviour of 55+ year olds, whose purchasing power has been strengthened by recent changes in pension annuities.

Canadean expects that British tourists will make over 62 million trips abroad in 2015, which makes the UK one of the largest outbound tourism markets in Europe, only second behind Germany as the top source market. Among those travelling, the British baby boomer generation of over 55+ year olds has fast become one of the most significant demographics with greater purchasing power and more holiday time than younger cash-strapped tourists. While this ‘baby boomer’ generation have consistently been a major part of the entire UK outbound market, recent changes in pension annuities have strengthened their ability to take leisure holidays abroad. 

Highlights from the Expert Insight piece by Gillian Kennedy:

  • A Canadean survey found 34% of 55+ year olds opt for two holidays a year
  • 55+ year olds often return to the same destination when taking more than one trip abroad
  • Spain, Portugal and Greece are the top choices for baby boomers
  • Only 11% of 55+ year olds go abroad during June, while 15% opt for a holiday in April
  • A transport provider which is near the place of arrival/departure is very important for baby boomers
  • With the removal of pension restrictions and the improvements in LCC customer service, older UK consumers are likely to increase the frequency in which they travel abroad 

Baby Boomer Tourism Graph 2

Based on a Canadean survey of 344 UK based respondents that are 55 years or older and are planning a trip abroad in 2015.

 

If you would like to receive the full article, please contact press@canadean.com.

 

NOTES

About the author

Gillian Kennedy Profile Pic 

Gillian Kennedy completed her PhD in Middle Eastern Politics at King’s College London in 2014, and has since been working for Canadean’s Travel and Tourism division as a lead analyst for the Middle East and North Africa (MENA). 

For more information

Please get in contact if you have any questions to this or other Canadean surveys. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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Natural ingredients and craft production are key to Russia’s oral care markethttp://www.canadean.com/news/natural-ingredients-and-craft-production-are-key-to-russia’s-oral-care-market/Tue, 30 Jun 2015 00:00:00 GMThttp://www.canadean.com/news/natural-ingredients-and-craft-production-are-key-to-russia’s-oral-care-market/According to a new survey by Canadean, nine out of ten Russians find it important to have healthy teeth and gums. However, they rarely have an emotional connection to their choice of toothpaste or mouthwash and often pick certain products out of habit or due to better prices. Veronika Zhupanova, analyst at Canadean, says: “To catch the consumer’s eye, new launches should promote the artisanal traits of the product and imply higher quality. This can be achieved by using authentic recipes and ingredients that will reflect positively on consumers’ oral health.”

Botanical, natural and organic ingredients influence purchasing decision

When asked about the importance of product attributes when buying personal care items, botanical, natural and organic ingredients were among the most influential product traits. Over two thirds of Russians find botanical, as well as natural and organic ingredients important (68% and 67%, respectively). To capitalise on this trend, manufacturers should turn to traditional medical ingredients that have been known and respected by generations.

Zhupanova says: “Ingredients such as galipot and calendula are known for their healing properties. Brands should use trendy ingredients, such as superfoods, a high concentration of vitamins or charcoal – which is becoming popular for its absorbing properties and natural origin.” This is especially applicable to smaller brands, which consumers often perceive as more trustworthy, artisanal and crafty.

For example, manufacturer SPLAT rolled out Siberry (Siberian Berries) toothpaste. The product features extracts of superfood berries such as juniper, sea-buckthorn and cranberries. Additionally, the toothpaste claims to contain Olaflyur, an organic form of fluoride, adding a more personalised and craft touch to the product. “This toothpaste appeals to consumers who are interested in smaller and more artisanal brands that offer a holistic approach to health and beauty,” adds Zhupanova.

 

Tooth Paste W Logo

Nine out of ten Russians find it important to have healthy teeth and gums.

 

NOTES

All numbers used in this text are based on a Canadean survey of 2,000 Russia based consumers. 

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Baby food market in Malaysia valued at US$443 million in 2014http://www.canadean.com/news/baby-food-market-in-malaysia-valued-at-us$443-million-in-2014/Wed, 24 Jun 2015 00:00:00 GMThttp://www.canadean.com/news/baby-food-market-in-malaysia-valued-at-us$443-million-in-2014/Although the volume of the baby food market in Malaysia only grew marginally over the last few years, the overall value has increased by over 60%. This is due to rising incomes, a decline in births and the trend towards super-premium and specialised baby food.

The baby food market in Malaysia has been relatively stable over recent years in volume terms, despite minor fluctuations. In 2014, Malaysians bought 33,413 tonnes of baby food, representing a growth of 3.6% from 2008. However, in value terms, baby food increased by over 60%, reaching US$443 million in 2014.

The Malaysian baby food market is dominated by multinational brands – most notably Danone, Nestle and Dutch Lady – which together accounted for 75% of baby food sales by volume in 2014. Around 29,375 tonnes of baby milks were consumed in Malaysia in 2014, accounting for 90% of the market value. 

Milks suppliers to expand into 3+ and 6+ markets

According to Canadean, birth rates have declined by 4% between 2011 and 2014 and this trend is set to continue: By 2020, births will have declined by a further 7.6%. Consequently, the number of infants is shrinking, while the number of toddlers aged 1-3 is increasing. Sam Allen, analyst at Canadean, says: "This change will have a significant effect on the market as a whole, with specialised and follow-on milks increasing their market share in the next couple of years. Moreover, milks suppliers are likely to focus on products for older children, and try to expand into the 3+ and 6+  years markets.”

Malaysians unwilling to compromise on baby food 

Research compiled by Canadean* finds that commercial baby food is an important part of the food budget for families with small children. Not only was baby food one of the food categories least affected by the economic recession, but parents also tend to be loyal to particular baby food brands. Around half of families with babies said that they would not change their usual purchasing habits, and just 4% said they would buy less baby food because of food inflation or income problems. 

According to Canadean, disposable incomes are generally increasing in Malaysia and should encourage parents to buy more baby food in coming years. However, the decline in the number of births will have a definite impact on the market. Allen says: “Most value growth will occur as a result of higher prices and the trend towards more premium products, including super-premium and more specialised milks.”

 

Asian Baby Food 2 W Logo

Disposable incomes are increasing in Malaysia, encouraging parents to buy more baby food.

 

NOTES

The information used in this text is based on the Canadean report 'Baby Food in Malaysia.'

*original source: Malaysia Statistics

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Energy drinks resilient in declining European beverage markethttp://www.canadean.com/news/energy-drinks-resilient-in-declining-european-beverage-market/Thu, 18 Jun 2015 00:00:00 GMThttp://www.canadean.com/news/energy-drinks-resilient-in-declining-european-beverage-market/Despite difficult financial times, energy drinks show robust growth in Europe. This is due to flavour and ingredient innovations, as well as the emergence of low calorie options that meet the needs of a small, but growing, health-conscious consumer group, finds new report by Canadean.

According to the report, the European energy drinks market is expected to increase by 4.9% to reach close to 550 million litres in 2015. “Energy drinks are highly submerged in people’s daily routines, which might be one of the reasons why they are so resilient in countries where other categories such as carbonates and beer have been continually declining,” says Angela Wynne, analyst at Canadean. Even in countries like Greece and Russia, where consumers spend less on beverages due to the economic circumstances, energy drink volumes have stayed stable. The report finds that the widening range of flavours and product extensions are the main drivers behind the continued expansion of energy drinks. Nevertheless, energy drinks remains a niche market, accounting for less than 0.1% of total beverage consumption.

Fruit-flavoured energy drinks prove to be popular

The volume of fruit-flavoured products has increased by around 11% between 2013 and 2014, with new flavours such as orange, mojito, lemon-lime or pineapple-lime being launched. “These new flavours are targeting consumers who do not like the classic taste of energy drinks and who use them for refreshment, especially during the summer time,” says Wynne. In some countries, such as Hungary and Poland, new flavour innovations have succeeded in bringing back the younger generation to energy drinks.

Energy drinks with natural ingredients on the rise

Canadean also witnessed some development in energy drinks with natural ingredients, such as naturally sourced caffeine and drinks without taurine. In Latvia, Aldaris (Carlsberg Group) launched ‘Super Manki’ in 2014 – a natural energy drink free from caffeine and taurine. Guarana is also becoming more popular, with product ranges in Belgium, the Netherlands and Germany often containing the guarana berry as an ingredient.

Low calorie options to meet concerns over health 

Low calorie energy drinks have also increased by 11.6% across Europe between 2013 and 2014, as consumers see low calorie options as a way to overcome the current health concerns over energy drinks. “The industry is trying to change the perception of the category and tap into the new health-conscious demographic to ensure its future growth,” says Wynne. However, the market share of low calorie energy drinks is low (<0.1%) and likely to remain low as most energy drinks are consumed by young men who are less concerned about calorie content.

 

Energy Drinks W Logo

 

NOTES

All numbers used in this text are based on Canadean's 'Quarterly Beverage Tracker Q1-15,' published in May 2015.

Please get in contact if you have any questions to this or other Canadean reports. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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Cider still UK-centric product, but USA, Australia and South Africa making inroadshttp://www.canadean.com/news/cider-still-uk-centric-product,-but-usa,-australia-and-south-africa-making-inroads/Thu, 11 Jun 2015 00:00:00 GMThttp://www.canadean.com/news/cider-still-uk-centric-product,-but-usa,-australia-and-south-africa-making-inroads/Canadean expects global consumption of cider to grow around 5% annually to reach over three billion litres in 2020. Although the UK will remain the world’s largest cider market, it will lose considerable consumption share to the US, Australia and South Africa.

According to a new Canadean report, over the next five years an additional 640 million litres of cider will be consumed worldwide. Total volume of the global cider market is expected to reach three billion litres in 2020, up from an anticipated 2.4 billion litres in 2015. Although the UK will retain its global supremacy with a 33% share, the USA, Australia and South Africa are forecast to contribute nearly 70% of the additional cider volume.

Cider Growth Rate 2

Table: Comparison of 2015 cider growth rate to 2020.

 

New and innovative ciders will cause growth in the US

The US cider market -- the third largest in the world -- will grow at an average annual rate of 12 percent between 2015 and 2020, compared to an average global growth rate of just 5 percent. Rakhee Sturgess, analyst at Canadean, says: “The launch of new and innovative ciders will cause this growth, as will the introduction of cider to new regions in the US. More consumers will discover the beverage and change from beer and other flavoured alcoholic drinks to cider. Tradition and culture are important in the promotion of ciders and will increase demand for products from the UK.”

Premium flavours and craft drive growth in Australia

According to Canadean, growth will also be strong in the Australian cider market, with an average annual growth rate of 12 percent between 2015 and 2020. “Super premium fruit flavours of Scandinavian cider brands like Kopperberg and Rekorderlig are driving the increased consumption in Australia. But growth is also caused by the introduction of mass market brands like Somersby at a far lower price point than typical branded ciders,” says Sturgess. Craft ciders are also growing in popularity, with more apple producers returning to their roots and producing small-scale artisanal ciders.

Product positioning key to success in South Africa

In South Africa, product innovation in terms of both flavour and packaging, which appeals particularly to a younger demographic, is helping to drive up both volume and value. The market is becoming increasingly competitive, with new players entering the sector and existing producers investing in strong product positioning to expand their consumer base.

In terms of per capita consumption increase, New Zealand stands out, with consumers expected to drink an extra 10 litres per person in 2020 than in 2015; reaching 18 litres compared to the UK’s 15.5 litres and a global average of just 0.4 litres. New Zealand’s premium apple crop is spawning a flourishing interest in cider production. “Cider's profile as a summery, fun drink fits well with the taste and culture preferences of Australians and New Zealanders,” adds Sturgess.

 

Rekorderlig Cider

Australia is Rekorderlig's biggest market outside the UK.

 

NOTES

All numbers used in this text are based on Canadean's report 'Global Beverage Forecast - March 2015.'

Please get in contact if you have any questions to this or other Canadean reports. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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British tourists will flock to Europe this summer due to strong Poundhttp://www.canadean.com/news/british-tourists-will-flock-to-europe-this-summer-due-to-strong-pound/Thu, 04 Jun 2015 00:00:00 GMThttp://www.canadean.com/news/british-tourists-will-flock-to-europe-this-summer-due-to-strong-pound/Canadean predicts strong growth in outbound trips from the UK to Europe, while fewer Brits will travel to the US this year.

According to new research by Canadean, Europe will be a prime destination for British tourists this year, while the US is losing popularity. Spain – the number one holiday destination for UK tourists – is expected to attract an additional 352,000 British tourists in 2015. For he first time ever, more than 12 million Brits will travel to Spain, while more than 8 million will visit France. Outbound trips to the United States, however, will only grow by a marginal 2.2% to reach 3.3 million in 2015, compared to a growth rate of 5.8% in the previous year.

Outbound Trips To Europe

Table: Top ten countries for outbound trips from the UK.

UK tourists have 15% more spending power in Europe this year

Arnie van Groesen, analyst at Canadean, sees a clear connection between the increase in outbound trips to Europe and the strong performance of the Pound: “The Euro has been in downfall since the beginning of the year, which makes it cheaper for British citizens to go to Europe.” In March 2015, the Pound reached a seven year high against the Euro, which means that UK tourists will have 15% more spending power in Europe compared to last year. In 2014, the average British holidaymaker spent 10.5 nights at their outbound destination, while spending around £1060 per trip.

Almost half of UK consumers say good exchange rates are “important”

A  Canadean survey, conducted in January 2015, found that 44% of UK consumers consider it either important or very important whether a country has a good exchange rate when they are searching for a holiday destination. “The US is looking expensive this year compared to Europe as the US dollar is currently the strongest it has been against the pound for five years. This would explain the sudden drop in outbound trips to the States,” says van Groesen.

 

Beach With Umbrellas W Logo

Spain is expected to attract an additional 352,000 British tourists in 2015.

 

NOTES

All numbers used in this text are based on a Canadean report: 'Source Market Insights: United Kingdom,' published in May 2015.

Please get in contact if you have any questions to this or other Canadean surveys. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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Spanish cigarettes market showing signs of stabilisation after years of declinehttp://www.canadean.com/news/spanish-cigarettes-market-showing-signs-of-stabilisation-after-years-of-decline/Thu, 28 May 2015 00:00:00 GMThttp://www.canadean.com/news/spanish-cigarettes-market-showing-signs-of-stabilisation-after-years-of-decline/Following declines of upwards of 10% in year-on-year cigarette consumption since 2009, a decrease of just 1.5% in 2014 indicates some degree of stabilisation across the Spanish cigarettes market, finds a new report by Canadean.

Since the global economic downturn in 2008, consumption of duty paid cigarettes declined by 48.2% to reach just under 47 billion pieces in 2014. According to Canadean, this is due to consumers increasingly turning to roll-your-own, non-duty paid and contraband cigarettes. The number of contraband cigarettes, for example, rose from just 500 million in 2008 to over 4.5 billion in 2014. 

However, the overall legitimate sales value in the Spanish cigarettes market increased by 0.2% to reach over US$11 billion  last year. Moreover, volume sales only shrank by 1.5% in 2014 – a marginal decline when compared to recent years. Sam Allen, analyst at Canadean, says: “These findings indicate that the Spanish cigarettes market is stabilising to a certain degree. However, one needs to keep in mind that this increase in value sales can be largely attributed to a growing population and an increase in prices.”

Increase in national production reflects improvement

In Spain, national cigarette production increased for the first time since 2008 to reach almost 34 billion pieces in 2013. This was a 5.8% rise from 2012, and marked a reversal in a continuing decline, which peaked at a fall of 16.3% in national production between 2009 and 2010. 

Allen says: “Despite recent signs of stability in the Spanish cigarette market, manufacturers need to ensure that they exercise caution in a market which has witnessed significant decline in recent years. Spanish smokers will continue to be primarily concerned with value, and the challenge for brands is to turn consumers away from contraband and roll-your-own cigarettes, back towards legitimate sales.” 

Percentage of smokers in Spain gradually decreasing

Canadean’s research shows that 24% of all Spanish adults smoked regularly in 2012 (27.9% of Spanish adult males and 20.2% of adult females). Back in 1990, 33.8% of all Spanish adults were smokers (44.2% of males, 24% of females). In 2014, Spain had an estimated adult smoking population of 9 million. Of these, 56.4% were male and 43.6% were female.

 

Cigarette Pack W Upper Logo 

Consumption of cigarettes declined by 48.2% in Spain to reach just under 47 billion pieces in 2014.

 

NOTES

All numbers used in this text are based on data from the Canadean Tobacco Intelligence Center.

Please get in contact if you have any questions to this or other Canadean reports. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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Spanish brands compete with private label through aggressive pricinghttp://www.canadean.com/news/spanish-brands-compete-with-private-label-through-aggressive-pricing/Mon, 11 May 2015 00:00:00 GMThttp://www.canadean.com/news/spanish-brands-compete-with-private-label-through-aggressive-pricing/Private label growth in Spain is set to slow down as branded manufactures respond with aggressive pricing and promotional strategies. Canadean investigates how store own brands can make their products stand out on the shelf.

Although the economy in Spain is steadily recovering, seven out of ten Spanish consumers are not feeling confident about the current state of the economy, according to a new survey by Canadean. These feelings of uncertainly and insecurity have led Spanish consumers to look for affordable food and drink products that help them save money. The trend of ‘better value for money’ has been dominating the market in recent years and has created a habit of thrifty spending. Even now, as many consumers have more stable jobs and a better income, they still want to spend wisely.

According to Canadean, private label sales have grown over the past few years. However, this growth will begin to slow as branded manufacturers respond with increased promotional offers. Only one third of Spanish consumers are planning to buy more private label products in the coming year, as price-oriented consumers seek out branded products on promotional offer. The survey finds that 57% of Spaniards look for promotions and discounts, while 49% use vouchers and coupons and 38% use websites to compare different prices at supermarkets. Brands are positioning their goods around affordability and are increasing the number of reductions and sales. Raquel Perez-Lopez, analyst at Canadean, says: “As a consequence, both private and branded manufacturers will suffer due to aggressive discounting. This will not just erode premium credentials of brands, but also mean that consumers focus too much on price and promotion and do not evaluate other product attributes such as health and convenience.”

Private label manufacturers need to emphasise premium credentials 

Promotional branded products and store own brands are often offered at the same price in supermarkets. However, consumers will fall back on known products as they believe that branded products are of better quality. “Private label manufacturers should promote the quality of their goods via clear labelling that states the origin of the product along with the production method. This will encourage consumers to think twice about what product to buy,” adds Perez-Lopez. “Unbranded food and drink products need to stand out on the shelf in order to compete with branded products.”

 

Supermarket Discount Recut 2

Brands are set to implement aggressive pricing strategies to respond to private label's success.

 

Editor’s notes

All numbers used in this text are based on a Canadean survey of 2,000 Spain based consumers. 

Please get in contact if you have any questions to this or other Canadean surveys. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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The ‘Big Night In’ in Poland: Dining in on a budget with family and friendshttp://www.canadean.com/news/the-‘big-night-in’-in-poland-dining-in-on-a-budget-with-family-and-friends/Thu, 07 May 2015 00:00:00 GMThttp://www.canadean.com/news/the-‘big-night-in’-in-poland-dining-in-on-a-budget-with-family-and-friends/A new Canadean survey shows that Polish consumers enjoy eating out, but are feeling financially challenged. Thus, many consumers opt for the ‘Big Night In’ to socialise with family and friends instead of going out – a trend that looks like a win-win situation for retailers and manufacturers alike. 

Much like consumers across the globe, Polish consumers like to indulge in the luxury of eating out. In fact, Canadean’s 2015 global attitude and behaviour survey reveals that many Polish consumers eat out of the home more than once a week. Especially the young like to dine out, with 44% of 18-24 year olds and 40% 25-34 year olds doing so more than once a week. In comparison, only 30% of 35-44 year olds are eating out at least once a week, and even fewer 45-54 year olds at just 26%. 

The survey also shows that more than half (56%) plan to spend more time socialising with friends over the next year. With respondents who have family, this number rises to seven out of ten. However, 36% of survey participants also say they are not confident in their financial wellbeing over the next twelve months. According to Kirsty Nolan, analyst with Canadean, this is a growing opportunity for FMCG companies: “Polish consumers can be targeted with the ‘Big Night In’ by providing an indulgent experience they can enjoy with family and friends at home without the expenses of dining out.”

Targeting social gatherings with fun and nostalgic sharing 

Food and beverage manufacturers need to offer products that encourage social gatherings. For instance, experimental and fun prepared meals for multiple people and traditional hands-on sharing meals such as large pizzas are sure to be a hit with Polish consumers. Similarly, indulgent snacks and treats such as share bags of potato chips and confectionery will be popular. Such products encourage sharing and togetherness, but also keep washing and cleaning to a minimum.

According to Canadean, 65% of Polish consumers find food that reminds them of their childhood and simpler times appealing. Nostalgic treats will prove popular among older generations who look to share their enjoyment with the family’s younger members. Nolan says: “Positioning is everything in this market. Products for social occasions should be arranged alongside each other on the shelf. Product pairing, promotional meal-deals and shelf displays will all be influential in encouraging consumers to trade their dining out for a big night in.”  

 

Friends Sharing Pizza

Sharing meals such as large pizzas are sure to be a hit with Polish consumers.

 

NOTES

All numbers used in this text are based on Canadean survey of 2,000 Poland based adults.

Please get in contact if you have any questions to this or other Canadean surveys. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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Young Chinese under immense pressure to look good and succeed in lifehttp://www.canadean.com/news/young-chinese-under-immense-pressure-to-look-good-and-succeed-in-life/Tue, 05 May 2015 00:00:00 GMThttp://www.canadean.com/news/young-chinese-under-immense-pressure-to-look-good-and-succeed-in-life/Younger adults in China are under more pressure than ever to be successful and look good, taking more drastic steps to try and achieve the desired image. According to Canadean, industry players should take a more holistic approach towards what constitutes beauty and avoid perpetuating stereotypes.

A new Canadean survey finds that 41% of Chinese consumers feel under pressure to look good, with 78% believing that better looking people have better opportunities in life both personally and professionally. A further 58% believe that society has an increasingly narrow view about what constitutes attractiveness. These responses were most common among younger adults. Michael Hughes, lead analyst at Canadean, says: “Industrialisation in China has opened up many opportunities for a growing middle class, but it has also brought about many challenges – and one in particular is the desire to succeed in life both professionally and personally.”

One-child family system leads to heightened expectations

The one-child family system in China has led to only children receiving a lot of attention from their parents in a time of continued economic growth. This generation is now expected to take advantage of their families’ social advancement and succeed both personally and professionally. Social acceptance and recognition is a big issue for these consumers, as they look to juggle developing a successful career with settling down and starting a family. “The so-called ‘Little Emperor Syndrome’ is leading consumers to feel intense pressure to look good because of their associations with attractiveness and the desire to not only settle down but demonstrate their new found wealth through maximising physical appearance,” says Hughes.

Industry players need to encourage holistic approach to beauty

According to Canadean, industry players should avoid projecting any stereotypes around what constitutes beauty and instead encourage consumers to adopt a more holistic approach, associating beauty with traits such as feeling happy and relaxed. Hughes adds: “Industry players should encourage consumers to adopt a wider view of what constitutes attractiveness. They should advocate feelings of happiness and esteem, as opposed to trying to achieve an image that in reality is neither achievable nor sustainable and not a reflection the true identities of consumers.” 

Asian Girl Looking At Mirror

Four out of ten Chinese consumers feel under pressure to look good.

 

NOTES

All numbers used in this text are based on a Canadean survey of 2,000 China based adults.

Please get in contact if you have any questions to this or other Canadean surveys. Analysts are available to comment. Contact the Canadean press office on +44 (0) 207 936 6536 or email press@canadean.com

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