Growing up as a Gen-Xer, I had my fair share of cordials, fruit-boxes, and powdered drinks that are essentially sugar with some fruit flavouring. However, decades ago this was what businesses could produce sensibly. It would have been very difficult to distribute different kinds of perishable fruit juice due to production and logistical limitations.
The fact that we now consume refrigerated juices in all of their types and variants shows the upward expansion or premiumisation that occurs in the category. This is part of the levers of category growth that is discussed in a journal paper that I co-authored in 2025. By price per volume, cold-pressed mixes and fresh juice varieties are more expensive than shelf-stable cordials and powders. However, many consumers consider the value to be reflective of the benefits for these premiumised options.
The same phenomenon is currently taking place in body spray and fragrances. In the not-so distant past, perfumes were often reserved for grown-ups. They are typically more expensive than deodorants and anti-perspirants that are more affordable for teenagers. In recent years, teenagers are slowly moving into fragrances as they are more accessible due to supply abundance and the arrival of dupes and clones of the more expensive fragrances. Colognes and perfumes that were once only stocked in high-end department stores can be found across pharmacy chains and online, allowing the category to grow its physical availability across the market. Deodorants and anti-perspirants still serve important roles in the category, but there is likely to be a detectable shift in purchases towards the higher price per volume for this category.
This is not just observable in fragrances, as consumers have also become more familiar in purchasing different kinds of serums, potions, and lotions, where thirty years ago they would only purchase one. I was even targeted by a brand of concealer for men – which may be useful for me if I have to deliver online seminars at odd hours.
It is therefore understandable that firms are increasingly focusing on beauty and personal care categories, where consumers are willing to purchase more premiumised options with higher price per volume. There are currently some movements in the market where firms focus or consolidate their business into the beauty segment. This year, Unilever pivots away from food to beauty and personal care. There are also other consolidations in the market, with reported acquisitions and mergers of beauty powerhouses.
The challenge of this category shift is not just firms taking advantage of the category growth, as they now also have the responsibility to focus on category growth. In another research at the Ehrenberg-Bass Institute, we discover that the bigger firms rely more on category growth for their business performance. This means focusing on strategies that would grow the category in terms of its mental availability and physical availability: keeping the brands and the category fresh in consumers’ mind – and keeping them easily accessible for purchase. Research in category growth is continuing at the Institute, with more to share with the sponsors and within the wider circle in due time.
I love analogies. So, consider this: if you’re a farmer, you’d want to keep animals that help the farm remain productive and sustainable. You may need to sell off the alpacas you bought because of the trend you followed years ago, and added more cows to take advantage of the market interest in consuming more protein. However, if you only milk your cows without giving them sufficient food and support, I will be surprised if your farm survives in the long term.