The Skin Care Market: Limitless Product Selections
The table above is a conservative forecast created in 2013. The skin care market is still huge and growing. Market report publishers cite baby boomers as the primary drivers for sales of anti-aging products and services. To increase product appeal, manufacturers are researching and developing new ingredients to substantiate effectiveness claims. The anti-aging category is also targeting more than just wrinkles with products that are customized, hybrid / multi-functional, premium, etc.[1]
The Numbers
Transparency Market Research attributes future revenue growth to the “first” set of baby boomers retiring in 2012. The global anti-aging market is forecast to grow from $122.3 billion in 2012 to $191.7 billion in 2019.[2]
A detailed analysis from Euromonitor International suggests that facial care products will account for an estimated 86% of the $16.3 billion increase projected for the entire global skin care market from 2012 through 2016. Total revenues in 2011 were $96.5 billion. Anti-aging products demonstrated the strongest growth. Personalized targeted products are expected to support further gains.
Manufacturers are targeting the Asia-Pacific region with specially formulated “premium” versions of the popular “blemish balm” and brightening / whitening products.[3] [A “corporate” bottom-up analysis conducted by Feed-back.com in 2010 for the “top seven” multinationals suggested combined global sales of beauty, dermatology, and skin care products of $105.0 billion.]
Trends, Etc.
Even though skin care market is highly fragmented with thousands of companies, leading manufacturers include beauty and cosmetic companies such as Avon, Elizabeth Arden, Estee Lauder, Johnson & Johnson, Mary Kay, and Proctor & Gamble. Competition is fierce, forcing even dominant companies to innovate. For example, L’Oreal, rebranded its Redkin professional line to promote customization. A range of interlocking jars let customers combine two or three products to change layers, textures, and volume.
While multifunctional products have been pursued for years, the big difference in 2013 and 2014 is that customization is crossing category lines. The mixing trend extends beyond products to marketing, merchandising, packaging, and technologies. It’s the perfect “next step” for manufacturers to migrate from beauty product line extensions to expanding their entire portfolios.
2017 Update
According to an ASEAN analysis published in 2015, the global skin care market reached $105.2 billion in 2013, and the global beauty market was expected to grow to $265.0 billion by 2017. Two important Asia-Pacific market drivers are: 1) Coordinated regulatory efforts to harmonize regionally manufactured products and 2) increased consumer demand for cosmetics, hair / skin care offerings, and medical services.[4]
In 2016, Grand View Research offered a more conservative forecast of $196.7 billion by 2024. Revenue growth was attributed to higher e-commerce sales volumes; improved product longevity / shelf life; ongoing organic product development / stringent soil regulatory standards; and rising consumer demand in Asia.[5]
[1] “Multifunctional and Customization Set to Reshape the Cosmetics World, www.cosmeticdesign.com, January 28, 2014.
[2] “Anti-aging Set to Become Even Bigger Business Thanks to Baby Boomers,” www.comesticdesign.com, February 3, 2014.
[3] “Skin Care Market Radiant for Foreseeable Future,” GCI Magazine, August 28, 2012.
[4] www.vietbeautyshow.com/pdf/ASEANBeautyIndustry.pdf [Download PDF]
[5] Skin Care Products Market Size Is Projected To Reach USD 196.67 Billion By 2024: Grand View Research, Inc.