JANUARY / FEBRUARY 2007 Volume 10 Issue 1

The Skin Care Market

According to Johnson & Johnson's 2003 annual report, the global skin care market generates $43 billion per year. [1] Manufacturers launch thousands of new products each year, many of which are not successful. [2]

Consumers can purchase skin care products directly from retail outlets such as department and drug stores that feature a relatively small portion of commercially available offerings. For "professional" products, consumers can consider recommendations made by medical and spa personnel that complement or extend facial, filler, peels, and other cosmetic treatments.

Competitive News

In recent years, many manufacturers have developed and run sophisticated ad campaigns to promote their products. Other competitors conduct clinical trials that support marketing claims (e.g., "using our product enhances skin appearance and health"), although specific findings may be difficult to obtain.

Facing an increasingly competitive environment, sellers need support from manufacturers, including:

Education and training for sales staff

Product displays, literature, and samples

The Market

U.S. skin care product sales through the medical and spa segments accounted for an estimated $870 million in 2006, according to the latest edition of Kline & Company's Professional Skin Care report. Product sales through dermatology and plastic surgery offices increased 17% from 2006 to 2006. [3] Information about marketing and sales support needs were derived from interviews conducted with 300 dermatologists, plastic surgeons, and spa managers.

The latest market report from Feedback Research Services (FRS) also looks at U.S. skin care product sales. "Medical Retail Markets" focuses on cosmetic surgery and dermatology practices. "Medical retail" assessments are based on findings from 700+ surveys that were conducted with a minimum of four medical offices per state per specialty (cosmetic/plastic surgery and dermatology). Highlights from FRS' 2006 report, "Medical Spa Market Review," are included, along with separate assessments of the day and resort spa segments.

Medical Retail Markets presents an independently generated total U.S. "professional skin care" market estimate which features a market estimate that is approximately twice as high as Kline & Company's $870 million figure. The two figures may have resulted from using different research/analytical methodologies or because different numbers/types of segments were included.

For more information, visit: Medical Retail Markets: U.S. Skin Care Sales & Markets

[1] "2003 Annual Report", Johnson & Johnson, www.jnj.com

[2] "Cosmeceuticals Come of Age", Happi.com, July 2006

[3] "Doctors, Spas Looking to Professional Skin Care Brands for Support, According to Kline Survey", Yahoo! Finance News Press Release, January 30th, 2007