Skin care's arsenal for growth
High consumer demand for anti-aging products
-- Gifts & Decorative Accessories, 4/1/2006
*This article originally appeared in our sister publication, Chemical Market Reporter, a unit of ICIS (www.icis.com).
The cosmeceuticals market continues to boost growth for the matured-skin-care industry, capitalizing on high consumer demand for anti-aging products.
Valued at $2.6 billion in 2004, the US cosmeceuticals market is expected to reach $3.6 billion in 2009 at a growth rate of 6%, according to Datamonitor. The European cosmeceuticals market will reach $4.4 billion by 2009 at a 5% annual growth rate.
"The desire of consumers to look good and the aging of the population mean that the cosmeceuticals market will grow quickly over the next five years," says Lawrence Gould, consumer markets analyst at Datamonitor. "There is a growing appetite amongst consumers for nonsurgical treatments with comparable effects. The availability of high-performance cosmetics will continue to push this market forward."
Cosmetic and personal care manufacturers have increased their investment activities in this market space, says Euromonitor. Several companies have already entered into joint ventures, alliances and acquisitions that centered around cosmeceuticals.
L'Oréal bought Dallas, Tex.-based professional skin care company SkinCeuticals last year, and plowed money into nanotechnology research in cosmetics. Elizabeth Arden formed a co-marketing deal with Allergan Inc. for the company's Prevage anti-aging skin care line. Allergan, a specialty pharmaceutical company, is the manufacturer of Botox Cosmetic.
Also last year, Hydron Technologies bought Clinical Results Inc., a contract manufacturer of cosmeceutical and other personal care products; Mentholatum, a subsidiary of Rohto Pharmaceutical Company of Japan, acquired Chattem Inc.'s Phisoderm skin care brand; and Shiseido entered the cosmetic dermatology treatment field with its new Navision brand cosmetic products for clinical institutes in Japan. Shiseido plans to expand the business in the retail channel in the future.
This month, Nextera Enterprises bought Woodridge Labs which produces Firminol-10, an anti-aging body product line.
FACIAL ANTI-AGING SALES UP
In 2005, US sales for facial anti-aging products (ending February 19) recorded the largest growth among skin care categories, according to International Resources Inc. (IRI). The data excludes Wal-Mart sales.
"Sales of facial anti-aging products grew 12% to $436.5 million," says IRI. "Procter & Gamble's Olay Regenerist and Total Effects occupy the top three individual brands with combined market share of 26%."
Acne treatments were also popular last year with sales up by 9% to $316.3 million. Boots Group's Clearasil brand occupies the top two sales spots followed by Johnson & Johnson's Neutrogena Oil Free Acne Wash.
Sales of anti-aging body products, however, plunged 20% to $25 million last year with most of the top individual brands posting double-digit sales declines. Some analysts attribute the sales slide to lack of new innovations.
Overall sales for the US skin care market went up 7% to $1.8 billion last year. Facial cleansers and moisturizers also posted sales growth of 4% and 12%, valued at $549 million and $286 million, respectively.
SPECIALTY ACTIVES GAIN IN COSMECEUTICALS The value of actives and delivery systems in cosmeceutical products continues to gain at a fast rate, driven by the need for innovative and higher-value-added ingredients in product formulations. Peptides/proteins, vitamins and botanicals were some of the key active categories in leading cosmeceutical product launches for the past three years.
Top 10 US body anti-aging brands*
|
Brand |
Sales (thousands) |
|
Night of Olay |
$7,446.8 |
|
Neutrogena Visibly Firm |
5024.2 |
|
Lansinoh |
4438.5 |
|
Neutrogena Anti-Cellulite |
2259.4 |
|
Olay Complete Plus |
1717.4 |
|
Private Label |
885.5 |
|
Coty Healing Garden |
653.2 |
|
Medela Purelan |
482.5 |
|
University Medical Body Lift |
430.0 |
|
Dr. Fred Palmer |
385.6 |
|
*Excluding Wal-Mart sales |
|
|
Source: Information Resources Inc. (IRI) |
