Skin Care Market
The Skin You’re In: Limitless Product Selections
Anything Market – February 22, 2014
The skin care market is 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. 
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. 
According to a detailed analysis from Euromonitor International, facial care products will account for an estimated 86% of the $16.3 billion increase projected for the 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. 
Below is a conservative projection that combines Euromonitor’s 2011 revenue estimate with Transparency’s 2012 forecasts for the global skin care market.
Is a $100.0 – $200.0 billion valuation for the current / future global skin care market realistic? In 2010, Feed-back.com published a report that reviewed online sources to compare and contrast total global skin care market estimates with reported corporate sales by segment. For example, Datamonitor estimated the global skin care market to be nearly $50.0 billion in 2007. Revenues were forecast to reach nearly $60.0 billion in 2012.
Even though skin care market is highly fragmented (thousands of companies), dominant competitors include beauty and cosmetic companies such as Avon, Elizabeth Arden, Estee Lauder, Johnson & Johnson, L’Oreal, Mary Kay, and Proctor & Gamble. A “corporate” bottom-up analysis was conducted by Feed-back.com in 2010 for the “top seven” multinationals. Combined global sales of beauty, dermatology,and skin care products totaled $105.0 billion in 2010. Excessive global skin care market estimates may include other products in the mix.
One company that’s capitalizing on the customization trend is Concoction (www.concoction.co.uk). The website demonstrates how customers can choose a base Shampyou product and create their own custom formulations. Selecting a “Super Serum shot” or booster targets specific hair conditions or goals (e.g., “Back to your Roots”, “Ravishing Red”, “Thermo Straight, etc.).
Harpers Bazaar describes Concoctions’ options as “hair care cocktails” and compares the concept to prescriptive skin care. A limited test of one base (Black Pepper & Citrus) and two shots (Beautiful Brunette and Gimme More Moisture) produced good results: Softer, more manageable hair. 
The cosmetics giant, L’Oreal, has rebranded its Redkin professional line to achieve similar customization prospects. A range of interlocking jars let customers combine two or three products to change layers, textures, and volume.
The competition is apparently just getting started. According to Mintel, the mixing trend extends beyond products to marketing, merchandising, packaging, and technologies. While multifunctional products have been targeted for years, the big difference in 2013 and 2014 is that customization is crossing category lines. It’s the perfect “next step” for manufacturers to migrate from beauty product line extensions to expanding their entire portfolios.
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 “Multifunctional and Customization Set to Reshape the Cosmetics World, www.cosmeticdesign.com, January 28, 2014.
 “Anti-aging Set to Become Even Bigger Business Thanks to Baby Boomers,” www.comesticdesign.com, February 3, 2014.
 “Skin Care Market Radiant for Foreseeable Future,” GCI Magazine, August 28, 2012.
 “Hair Care Cocktail,” www.harpersbazaar.co.uk, July 17, 2013.
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