Skin Care Market Trends And Developments

Skin care manufacturers are now targeting Hispanic and African population. Men’s skin care product segment is growing and new products are being introduced. Cosmetic surgery and dermatology have established a medical retail market in which skin care products are directly sold to patients. Physicians have expanded prescription medications to include professional products, physician formulas, and private label brands. Dermatologists and other skin care professionals have launched their own lines of skin care products.

The use of organic ingredients has become quite popular as more people become aware of ingredients to be used on their skin. Consumer demand for organic produce in the supermarket has crossed over to the skin care market.

Vitamins and other natural ingredients continue to be an important ingredient in skin care products. Serums for the face and body used to treat specific skin conditions such as acne, wrinkles, skin redness or other skin problems are being marketed as over the counter treatments. These serums are much more potent than conventional treatment creams or lotions.

Skin Care Market Structure

Skin care is a dynamic, rapidly evolving fragmented market with well established players, some good marketers, old companies, and new ventures. Consumers are well informed and demanding for new products which offer more than just the functional benefits. Sensory and emotional features also play a very important role in the total product package.

Baby boomers are still the core consumers, but the next generation in their 40’s and beauty obsessed youth are also great potential customers for skin care industry. Product innovation is the driving force and the differentiation between mass market and premium category is becoming vague. Besides traditional retailer market – supermarket, drug store and mass merchandise, skin care products are now also sold through professional channels like spas, dermatologist’s office, and plastic surgery clinics.

According to Federal Food, Drug, and Cosmetic (FD&C) Act, cosmetics and their ingredients are not required to undergo approval before they are sold to the public Skin care product sales by mass marketers are increasing. Department stores account for approximately 55% of skin care product sales, but they are losing market share to other retailers such as drug stores, where sales of skin care products increased 7-8% in 1991. Part of the growth reflects efforts by skin care suppliers to market higher quality products to mass marketers.

Global skin care market is estimated to be USD $43 billion per year.

U.S. retail sales of cosmeceuticals constituting of skin care, makeup and hair care products was $ 12.4 billion in 2004 which is 5.4% increase compared to 2003. Out of this, 61% of 2004 retail dollar sales were from supermarkets, chain drug stores and mass merchandisers and more than half of sales (51.7%) were accounted for by skin care products. Skin care market alone is expected to reach $7.2 billion in 2010, mainly due to growth of anti aging products. Currently hand and body lotion is the first category in sales and anti-aging products is expected to be second largest after that.

Men’s segment in U.S. skin care market has grown 42% from 2000 to 2005, whereas the market growth is 23%.

Skin care sales in U.S. grew by 9% in current value trends in 2005. Nourishers and anti-agers showed 18% growth in 2005 over previous year. This growth was the result of new products like chemical peels at home and microdermabrasion kits. General purpose body care showed 10% increase in 2005. Professional skin care is one of the fastest growing segments within cosmetics and toiletries industry. The global market for professional skin care products is estimated at over $5 billion and growing at double digit rates.

Europe and U.S. represent the largest regions in global market. Asia pacific is an important market for skin care. Japan has a large and affluent market, with beauty routines involving 5 or more steps in comparison to North American or European women who use a 3 step regimen. China is the second largest market in the region.

Cosmetic and Toiletries (C&T) market was worth $253 billion in 2005. Europe dominates global C&T sales which is 30% with sales of $76.4 billion in 2005. Asia pacific is second with $63 billion followed by North America with $54 billion. Latin America is the fastest growing market with sales of $28 billion.

Skin care is the largest sector in global C&T and it maintains very strong growth rates with sales up 6.8%. Facial skin care is the most profitable, but in 2005 manufacturers such as L’Oreal and P&G (with its Olay brand) extended their facial brands to other parts of the body. Firming/anti-cellulite body care enjoyed growth of approximately 9.5% in 2005, making it the world’s most dynamic skin care sector and pinpointing to a growing consumer obsession with body-focused skin care. Other factors fueling skin care’s growth in 2005 are the continued obsession with anti-aging products and Men’s skin care.

It’s forecasted that we will seen an average annual growth of 3.7% for C&T industry to reach global sales of more than $300 billion by 2010.

US Medicated Skin Care Market Projections

Projected size of the medicated skin care market.

Over the counter medicated skin care market

2003 – $3.1 billion

2008 – $3.3 billion

Cosmeceuticals market

2005 – $3.8 billion

2007 – $5 billion

2008 – $7.2 billion

2010 – $16 billion

Skincare – 59%

Acne 2008 – $561 million, 16.9% of the market.

The OTC medicated skin care market is forecast to grow by 6.8% over the period 2003 to 2008, reaching $3.3 billion by 2008.

Acne treatments will account for $561 million, or 16.9% of the market by 2008.

Topical germicidals and antiseptic sector accounted for $469 million in 2003, representing 15.3% of total market value. (Source: Euromonitor PLC.)

http://www.majormarketprofiles.com/report_print.asp?country=US&docid=26585&s=snap

US cosmeceuticals demand will grow eleven percent annually through 2008.

Skin care products 59% includes age defying products, acne preparations, medicated lotions and sun protection products.

Haircare 13% includes hair growth products and antidandruff shampoos.

Professional products 10%

Other products 18%

(Source: The Freedonia Group.)

http://freedonia.ecnext.com/coms2/summary_0285-27483_ITM

Skincare products including anti-ageing, acne and sun care products will continue to dominate cosmeceutical product demand, accounting for nearly 60% of the total in 2007. Annual growth of 7.8 percent is projected.

http://www.cosmeticsdesign.com/news/news-NG.asp?n=11107-baby-boomers-drive

Cosmeceuticals – $5 billion by 2007.

(Source: The Freedonia Group.)

http://www.cpcpkg.com/04/03/cosmeceuticals.html

Cosmeceuticals – $7.2 billion by 2008. (Source: The Freedonia Group.)

http://www.cosmeticsdesign.com/marketreport/results.asp?catName=&productID=1063612&detail=abstract

Demand for cosmeceuticals in the US will grow 8.5 percent yearlythrough 2007. Products include age-defying, medicated, sun protection,acne treatment, sunless tanning, skin depigmenting, hair growth,anti-dandruff, collagen injection and implants, tooth whiteners and lip care. (Source: Freedonia.)

http://freedonia.ecnext.com/coms2/summary_0285-251915_ITM

US sales of cosmeceuticals will potentially reach over $16 billion by 2010.

This breakdown as follows:

Skincare – $9 billion

Haircare – $3.5 billion

Makeup – $4 billion

Mass accounts for 61% of retail dollars.

Skincare yields half of retail.

2004 sales:

Skincare – $6.4 billion

Makeup – $3.1 billion

Haircare – $2.9 billion.

(Source: Packaged Facts.)

http://www.packagedfacts.com/product/display.asp?productid=1037623&kw=&CatReturnURL=&SearchReturnURL=&view=toc

US market for cosmeceuticals – $3.8 billion by 2005. (Source: Cosmeceuticals: Functional Food for the Skin. Rohini Grace.)

http://www.naturalfoodsmerchandiser.com/ASP/409/Display-Article

Demand for cosmeceutical products is expected to grow 7.6 percent yearly to $4.3 billion in 2005. (Source: The Freedonia Group.)

http://www.the-infoshop.com/study/fd7736_cosmeceuticals.html

The dermatological market will grow 11.6% per year over the next five years. (Source: Bio Portfolio. September 2004.)

http://www.bioportfolio.com/cgi-bin/acatalog/Navigant_Consulting.html

According to Connetics, the medical dermatology market was worth $3.6 billion in 2000 and is projected to be worth $6 billion by 2010.

http://www.nasdaq.com//aspxcontent/newsstory.aspx?cpath=20050414%5CACQBIZ200504141618BIZWIRE_USPR_____BW5816.htm&symbol=CNCT&selected=CNCT

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Anti-aging

U.S. retail sales of anti-aging skin care products are valued at nearly $2.5 billion.

http://www.cosmeticsdesign.com/productnews/news.asp?id=57323

Anti-aging treatments are growing at 17% annually.

http://66.102.9.104/search?q=cache:4xq23WGsUdsJ:www.lectec.com/releases/12_6_01_Neoskin1.pdf+%22skin+care+market%22+billion+&hl=en&ie=UTF-8

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Sales of anti-itch treatments – $295 million.

https://secure.rgj.com/news/stories/html/2004/06/07/72536.php

Anti-itch sales – $392.5 million, growth rate of 7.2%

http://www.lectec.com/releases/pr041801.htm

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Topical treatments account for 27.9% of the OTC medicated skincare market. (Source: Euromonitor.)

http://worldofinformation.safeshopper.com/29/1419.htm?547

Medicated skin care 2004 – $1.676 million. (Source: Mintel.)

http://reports.mintel.com/sinatra/mintel/new/report/repcode=2896&anchor=a40/doc/302702018&repcode=2896

Acne

Sales of acne treatments are predicted to increase 22% from 2003 to 2008, benefiting from the growing number of teens and young adults. At constant 2003 prices, total sales of medicated skin care products are predicted to increase 7% by 2008.

http://answers.google.com/answers/threadview?id=495647

Anti-fungal treatments have a growth rate of 10% (Source: Mindbranch.)

http://www.mindbranch.co.kr/report/content.asp?serviceid=R566-0047

The OTC Lip therapy market is worth nearly $300 million with an annual growth rate of 11.7%.

http://www.lectec.com/releases/pr121400.htm

Wart remover sales are $125 million. (Source: MotherNature.com)

http://www.mothernature.com/Library/Bookshelf/Books/47/137.cfm

OTC sales of first aid treatments were $50.3 million in 2003. (Source: Find Articles.)

http://www.findarticles.com/p/articles/mi_m3374/is_4_26/ai_114742899#continue

Ointments/antiseptics account for 53% of the first aid market. (Source: Packaged Facts.)

http://www.marketresearch.com/map/prod/376080.html

Annual sales of OTC hydrocortisone creams and ointments are approximately $160 million.

http://www.ftc.gov/os/2003/04/pfizeranalysis.htm>

Analysts note premium skin care products’ role in rising sales.

Organic Skin Care

Skin is the armor of the body. It is the outside waterproofing, element-fighting surface that protects our internal organs and skeletal structure from the harsh outside elements. Yet skin, overall is ignored most of the time. Healthy skin is important for a glowing completion of course, but if your body is unhealthy – your skin will be also.

The toxic world of industrialization has finally caught up with us. Producing toxic waste disasters, disease and tons of garbage buried so deep it can never breakdown. All these “modern advancements” have left our food supply as little more than a chemical compound in itself. If you can do ONE thing to give your skin and your body a fighting chance, you would be wise to choose as organic a diet as possible. To maintain a healthy skin, organically grown food is must.

In light of recent organic trends in our food, organic skin care products are also gaining popularity. For healthy lifestyle and healthy skin, limiting the amount of toxins and chemicals you put in your body is a must. If the environment or living “green” is important to you, you should also be aware of companies that produce the products you buy and their manufacturing practices.

Organic Skin Care is the most rapidly developing field in the beauty industry. Now what does Organic mean? Organic refers to anything grown or raised naturally. But more specifically, it means plants are grown on certified natural land without the use of synthetic fertilizers, pesticides, genetic modification or irradiation. In many cases, these organic farms are highly regulated by the Federal Food Safety Commission. Organic skin care means protecting your skin from harmful chemicals and using organic products whenever possible.

There are many organic products available on the market today. Most can be found at a local organic specialty stores, food suppliers or a national health food chain like Whole Foods. As organic products become more and more popular, many standard food stores, Like Safeway or Albertsons’ are also providing these products on their shelves. There are also plenty of websites offering organic skin or beauty care products online.

An organic product is preferable for natural skin care balance as it will generally contain far fewer chemical properties then it’s drugstore counterparts and thus have less possibility to cause inflammation or irritation. Of course, even an herbal product can have side effects as they are “chemicals” in their own right, so always be aware of the list if ingredients in the products you buy and the reactions your skin personally has to allergens.

Skin Care Companies

Almay
AM Eye Magic
Aloette
Alpha Hydrox
AminoGenesis
Annemarie Borlind
Argireline
Arovita Fluid
Aubrey Organics
Avalon Organics
Avotone
Avotox
Aveeno
Babor
Bare Escentuals
Bellaplex
Bellatone
Benev
Besoplex
BeYouthful
BioFirm
Celladerm
Cellex C
Ceramide C
C-Esta
Clinique
Clinique Anti Gravity
Cosmolara
Deception
DDF
Debon Isa Knox
Decleor
Dermacia
Derma E
DermaFreeze
Dermaglow
Dermalogica
DermaNew
Dermatox
Dermavisu
Dermika
Dermitage
Desert Essence
Dior Capture
Dr Brandt
Dr Hauschka
Dremu Oil
Ecco Bella
Ellen Lange
Freezox
Hydroderm
Hylexin
IQDerma
Jan Marini
Janson Beckett
Jevene Reviews
LaMer
La Prairie
Mavala
Meaningul Beauty
M.D. Formulations
M.D. Forte
Nicholas Perricone
M.D. Skincare
Monteil
Murad
Review
Nivea Q10
NuGlow
NutriMinC
Nuvectin
Obagi
Persona
Prevage
Provectin
Protox
Regenerist
Rejuvinol
Rejuvenex
Re Nutriv
Replexion
ReVive
Revitacil
Revitol
Restylane
Sircuit
Sisley
SkinCeuticals
Strata C
Strivectin
Susan Ciminelli
Venacura
Visifirm
Vitalize
Vivoderm
WholeHealth DMAE Skin Formula
Wilma Schumann
Wrinkle Essence
Wrinkle Raiders
Yonka
Youth Factor
Youthful Essence
Z. Bigatti
Zenmed
Zerotox

Skin Care Market Structure

Skin Care Market