Meeting Beauty & Wellness Needs through Cosmeceuticals

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
THE FUTURE DECODED 2
Defining cosmeceuticals 2
TREND: Appearance conscious consumers are increasingly buying cosmeceuticals with active ingredients 3
The US is the largest cosmeceuticals market and is also experiencing buoyant growth 3
Skincare cosmeceuticals represent the most developed and fastest growing market 5
Skincare is the most popular form of personal care product to be launched with active ingredients 6
The US also leads in cosmeceutical haircare, with Spain also experiencing notably high growth 7
Cosmeceuticals' share of the overall market continues to increase 7
Facial moisturizers are the strongest category 8
Shampoo leads haircare cosmeceuticals in both market size and growth 10
The marriage of aesthetic and health concerns is seen in the growing oral beauty products market 11
TREND: Consumers increasingly want specific personal care problem solving solutions 13
Consumers use cosmeceuticals to solve specific problems 14
TREND: Aging populations are fueling growth in the cosmeceuticals market 16
Societies are aging across Europe and the US 16
Seniors are becoming an important consumer segment in personal care 17
As societies age the fear of visible signs of aging will have the greatest influence on cosmeceuticals 18
INSIGHT: The need to feel beautiful is increasingly evident among image and appearance conscious consumers 20
Societal and personal pressures are prevalent with regards to looking good 21
Cosmetic surgery has grown in popularity in some countries 22
Appearance is increasingly associated with health, happiness and feeling of wellness 22
INSIGHT: More skincare consumers are looking to take preventative action 24
Many consumers use facial creams as a way of feeling more attractive 24
Over half of consumers in the US and Europe are concerned about skin dryness, but many consumers are not acting upon these concerns 24
Sensitive skin and rash concerns affects a significant proportion of European and US consumers 26
More than a quarter of European and US consumers are actively addressing skin healing problems 28
Consumers are concerned about the visible manifestations of aging 30
Cellulite causes a problem for a number of consumers across Europe and the US 32
INSIGHT: Important cosmeceutical needs are also apparent in haircare and oral hygiene 35
People place a high degree of importance on hair especially with regard to physical attractiveness 35
Many consumers do not act upon concerns about graying hair 35
Nearly a third of consumers across Europe and the US are concerned about hair thinning 37
Many European and US consumers are concerned about dandruff, but few actually address them 39
Sensitive teeth is cause for concern for many consumers 40
INSIGHT: Cosmeceutical consumers will predominately be female Mid-lifers in mid to high income households 43
Females outspend males in key cosmeceutical categories 43
INSIGHT: There is a willingness to pay a small premium for the superior efficacy and need-specific benefits of cosmeceuticals 44
Product efficacy is the most important factor influencing personal care quality perceptions 44
Women are more willing than men to pay a premium for cosmeceuticals 45
INSIGHT: Consumer skepticism remains an impediment to achieving market potential 47
Many consumers have doubts about the benefits of cosmeceuticals 47
Consumers' trust varies according to product market 48
Lack of trust will be a significant barrier to oral beauty cosmeceuticals 49
ACTIONS 50
Summary of action points 50
Action: Research consumers' familiarity with cosmeceutical ingredients and seek to educate them further 51
Action: Develop products that target specific consumer needs 53
Anti-aging products have been launched that target previously ignored areas of the body 53
Cosmeceuticals have also been developed that provide new ways to treat rosacea and sunburn 55
Action: Target aging consumers and general aging concerns through efficacy focused cosmeceuticals 56
Consumers are willing to pay a premium for anti-aging products 56
Premium launches overtake the $350 mark 57
Despite the premium trend, mass marketers still release a significant proportion of anti-aging products 58
Case Study: Olay Regenerist brings premium ingredients and functionality to the mass market 59
Develop new anti-age ingredients and novel functionality 60
Action: Overcome consumer skepticism using 'trust-enhancing' marketing strategies 62
Organic and natural ingredients address consumer concerns over 'harmful' chemical ingredients 62
Manufacturers must back up claims with professional partnerships and consumer product opinions 64
Action: Develop more convenient and multifunctional applications 65
Multifunctional products are targeted at time-pressured consumers 65
Health and beauty crossover encourages skincare giants to enter the supplement market 66
APPENDIX 68
Definitions 68
Additional Data 68
Methodology 74
Ask the analyst 74
Datamonitor consulting 74
Disclaimer 74
List of Tables
Table 1: Total cosmeceuticals sales by country (US$m), 2001-2011 4
Table 2: Per capita value consumption of cosmeceuticals by country (US$), 2001-2011 4
Table 3: Total skincare cosmeceuticals sales by country (US$m), 2001-2011 6
Table 4: Total haircare cosmeceuticals sales by country (US$m), 2001-2011 7
Table 5: Cosmeceuticals market value by product market, Europe and US (US$m), 2001-2011 8
Table 6: Cosmeceuticals penetration of the European skincare market by category (US$m), 2001-2011 9
Table 7: Cosmeceuticals penetration of the US skincare market by category (US$m), 2001-2011 9
Table 8: Cosmeceuticals penetration of the European haircare market by category (US$m), 2001-2011 10
Table 9: Cosmeceuticals penetration of the US haircare market by category (US$m), 2001-2011 11
Table 10: Oral Beauty Products Market Value, US & Europe (US$ m), 2001-2011 12
Table 11: Oral Beauty Products Market Value by category, US & Europe, US$ m, 2001-2011 12
Table 12: Population by age group (m), Europe and US, 2001-2011 16
Table 13: Population by country (m), Under 50s and 50+, 2001-2011 17
Table 14: Per capita value consumption of skincare (US$), by country, age group, gender, 2005 43
Table 15: Per capita value consumption of haircare (US$), by country, age group, gender, 2005 43
Table 16: Consumer survey: percentage of consumers who would be willing to pay more (any percentage) for cosmetics and toiletries with active ingredients for their specific requirements by gender and lifestage 46
Table 17: Consumer survey: attitudes towards oral beauty products (% of respondents) 49
Table 18: Upscale variants continue to dominate new launches in anti-aging personal care products 57
Table 19: Global launches of anti-aging products by corporation, 2006 59
Table 20: Consumer survey: How concerned are you about skin dryness? By country, 2006 68
Table 21: Consumer survey: How concerned are you about sensitive skin and rashes? By country, 2006 69
Table 22: Consumer survey: How concerned are you about skin healing problems? By country, 2006 69
Table 23: Consumer survey: How concerned are you about wrinkles and fine lines? By country, 2006 70
Table 24: Consumer survey: How concerned are you about cellulite? By country, 2006 70
Table 25: Consumer survey: How concerned are you about dandruff? By country, 2006 71
Table 26: Consumer survey: How concerned are you about thinning hair? By country, 2006 71
Table 27: Consumer survey: How concerned are you about graying hair? By country, 2006 72
Table 28: Consumer survey: How concerned are you about sensitive teeth? By country, 2006 72
Table 29: Top ten personal care categories launched with active ingredients in 2006 73
Table 30: Consumer survey: "To what extent do you agree with the following statements regarding cosmeceuticals?" 73
Table 31: Consumer survey: "What is your opinion of manufacturers' claims regarding their cosmeceutical products in the following product markets?" 74
List of Figures
Figure 1: Cosmeceuticals in perspective: boundaries are blurring between inner and outer beauty 2
Figure 2: The US is the largest and fastest growing cosmeceutical market 5
Figure 3: Skincare was the leading category in global personal care launches containing active ingredients in 2006 6
Figure 4: Consumers desire products customized to their specific needs 13
Figure 5: More than a quarter of consumers sought the latest innovative technologies in personal care more in 2006 14
Figure 6: Proportion of consumers who believed active ingredients in cosmetics and toiletries designed for their specific requirements was important, 2004 14
Figure 7: More than half of consumers in Europe and the US use cosmeceuticals to address a specific beauty problem 15
Figure 8: Generally older consumers aged 45 and over account for more personal care consumption than the average population (2005) 18
Figure 9: Fear of the visible signs of aging will have the greatest influence on consumers' use of cosmeceuticals 19
Figure 10: Europeans and Americans place considerable importance on their personal appearance and are spending more time on looking good as a result 20
Figure 11: Proportion of consumers who spent more time on improving their personal appearance in the last year, US & Europe, 2006. 21
Figure 12: Consumers, especially women, put considerable pressure on themselves to look good 22
Figure 13: Many consumers use facial care products to feel more physically attractive 24
Figure 14: US consumers are the most active in actually addressing their skin dryness concerns whereas Spanish consumers have higher levels of general concern 25
Figure 15: Skin dryness is something that concerns females more than males (Responses to the question: How much are the following a concern to you? Skin dryness - I am concerned and am actively doing something about it) 26
Figure 16: Spanish consumers have the largest attitudinal gap between being concerned about skin rashes and sensitive skin yet not acting upon this 27
Figure 17: More than a third of US consumers are concerned about sensitive skin (Responses to the question: How much are the following a concern to you? Sensitive skin - I am concerned and am actively doing something about it) 28
Figure 18: Spanish and Italian consumers are the most concerned about skin healing problems 29
Figure 19: Concerns over skin healing problems vary considerably by country (Responses to the question: How much of a concern are the following for you? Sensitive Skin or skin rashes - I am concerned and actively doing something about it) 30
Figure 20: Spanish and US consumers are the most concerned with wrinkles and fine lines 31
Figure 21: In most nations, less than a third of consumers are actively addressing concerns about the appearance of wrinkles and fine lines (Responses to the question: How much of a concern are the following for you? Wrinkles or appearance of fine lines) 32
Figure 22: Many consumers are not acting upon their cellulite concerns 33
Figure 23: Proportion of consumers who are concerned about cellulite and are actively doing something about it, 2006 34
Figure 24: Many consumers use hair care products to feel more physically attractive 35
Figure 25: German consumers have the largest attitudinal gap between being concerned about grey hair yet not acting upon this 36
Figure 26: Proportion of consumers who are concerned about grey hair and are actively doing something about it, 2006 37
Figure 27: Over a third of Spanish and Italian consumers are concerned about thinning hair 38
Figure 28: Proportion of consumers who are concerned about thinning hair and are actively doing something about it, 2006 39
Figure 29: There are many consumers concerned about dandruff yet currently not acting upon this concern 40
Figure 30: A large proportion of consumers suffer from concerns about sensitive teeth 41
Figure 31: Proportion of consumers who are concerned about sensitive teeth and are actively doing something about it, 2006 42
Figure 32: Effectiveness, Healthiness and Convenience are considered the three most important attributes of the 'best of its kind' personal care products 44
Figure 33: Proportion of consumers who have sought personal care products and applications with the latest innovative technology more in 2006 45
Figure 34: Proportion of consumers who are prepared to pay over 10% more for personal care products with active ingredients specific to their requirements, 2004 46
Figure 35: Three-quarters of consumers have misgivings about the benefits of cosmeceuticals 47
Figure 36: Consumers are most wary of manufacturers' claims regarding the effectiveness of skincare cosmeceuticals 48
Figure 37: Consumers are skeptical about the benefits of oral beauty products despite indicating a willingness to experiment 49
Figure 38: Cosmeceuticals are positioned between Health, Beauty and wider Wellness areas 50
Figure 39: Typical cosmeceutical ingredients and their functional properties 52
Figure 40: Skincare cosmeceuticals aimed at specific body parts will become more important 53
Figure 41: A number of new eye make up products offer anti aging benefits 54
Figure 42: Offer targeted cosmeceutical benefits in hair care 55
Figure 43: Target the needs of consumers with specific skin concerns 56
Figure 44: Target the rising affluence in Late Mid-lifers and Seniors with super-premium offerings 58
Figure 45: Olay Regenerist uses vitamin E to provide a more natural hydrator for lips at a mass market price 60
Figure 46: Develop new ingredients and novel functionality 61
Figure 47: Organic ingredients help assuage consumer concerns over cosmeceuticals' basis 63
Figure 48: Natural botox alternatives aim to address consumer distrust 63
Figure 49: Consumers are much more likely to use a cosmeceutical if it is backed up by reliable scientific evidence of its' effectiveness 64
Figure 50: Professional endorsements and consumer feedback support efficacy claims 65
Figure 51: Multifunctional products benefit time-pressured consumers 66
Figure 52: Supplements have crossover potential for cosmeceutical applications 67