Handsome profits ahead from a booming market in men's grooming products

According to the latest research from cosmetics to toiletries group L'Oreal, UK male cosmetics sales are growing at twice the rate of the female market.

It's a trend that is also being seen at natural chemicals group Croda, which is based in Snaith, East Yorkshire.

Croda's chief executive Mike Humphrey said: "The men's market is growing 20 per cent faster than the global market. It's partly being driven by the launch of full ranges designed specifically for men."

He added that these ranges are being launched at both the

top end, with upmarket companies like Clinique getting in on the act, down to more mass market products from the likes of Nivea.

Croda, which produces natural chemicals for anti-wrinkle creams and other skin care products, supplies ingredients to skin care and cosmetics companies such as L'Oreal, Chanel, Clarins, Este Lauder, Boots and Procter and Gamble.

Mr Humphrey said half of the men's market is connected to shaving, but there has also been huge growth in the skincare market and deodorants.

His tip for the next big growth area is hair dyes for men.

"Men are definitely getting vainer," he said. "They want hair dyes that offer a slow graceful change in colour rather than a sudden change.

"I think dyes will get more sophisticated so the hair isn't completely black, it's more subtle."

L'Oreal believes that the key drivers behind the growth in male cosmetics are the need to look good for job interviews and the fear of looking old.

According to a survey of 1,013 males for L'Oreal UK, one in five men already use hair dye to cover up signs of grey.

The poll concluded that taking care of your appearance is now a status of manhood, with almost two-thirds of men (56 per cent) using cosmetic products daily and 82 per cent saying there are no cosmetic products that they would be embarrassed to buy.

Mr Humphrey said that the recession has had some impact as there is a trend towards looking smarter in a more difficult economic environment.

"Suits have come back – men are no longer going to work looking like escaped Boy Scouts. Male grooming is part of that trend," he said.

According to L'Oreal, a quarter of men regularly use facial moisturisers and two in every five (39 per cent) use facial cleansers every day to take care of their skin and combat the effect of work stress and ageing.

Pierre-Yves Arzel, managing director for L'Oreal UK & Ireland said: "We know from the report's findings that ageing is not

just a female concern and that a growing number of men are looking to cosmetics to help present a more professional image in times of economic uncertainty.

"Men's anti-ageing products are therefore the major driver of the overall men's grooming market," he added.

The 850m male grooming market is one of the biggest growth areas in the UK cosmetics industry. But it is still less than a tenth of the size of the 9.6bn women's market.

Yet that looks set to change as men start buying their own products rather than pinch their female partner's – which is what nearly half of British men do at the moment.

Nearly three out of four men said looking groomed increases their confidence at work.

Mr Humphrey said that while a huge amount of male toiletries are bought by wives and girlfriends, it has now become acceptable for men to buy them themselves.

"Men in their late twenties and early thirties are using their own skincare with no embarrassment. That age group is the core market and they will continue to use men's products as they get older," he said.

One new area that could possibly catch on is male hair removing creams.

Balance sheet is looking good too

Croda has made a strong start to 2010.

The natural chemicals company has managed to avoid the recession as consumers continue to splash out on top-of-the-range beauty and

skincare products.

The group reported a 10.5 per cent rise in underlying pre-tax profits

to 106.4m for the year to December 31.

Sales rose 0.6 per cent to 916.2m.

The firm, which has a growing pipeline of products, said its ingredients represent a very small proportion of the final selling price of a personal care product.

But these ingredients are frequently the reason the product has an effect and the reason it sells.

Finance director Sean Christie said: "The consumer care part of our business never really even saw a recession.

"Some of the industrial markets got a bit harder in the first half, but from about June onwards we've seen a really strong pick-up in

those businesses.

"As we enter the new year, trading is very strong there as well."