This comprehensive study analyzes the US market for cosmeceutical products and chemicals. The term “cosmeceuticals” is a relatively new concept and as yet does not have a universally accepted definition. For the purposes of this study, the term will refer to products or ingredients of products that provide direct anti-aging or other appearance-enhancing benefits. Cosmetics that mask visible signs of aging or other superficial defects without exerting any corrective action on the site of application are not considered to be cosmeceuticals. By contrast, the classification includes pharmaceuticals and pharmaceutical ingredients indicated for the treatment or prevention of dermatological and related external disorders (e.g., male pattern baldness) that detract from overall appearance. Nonpharmaceutical products and chemicals that alleviate or slow the onset of age-associated conditions such as wrinkles and graying hair also are categorized as cosmeceuticals.

INTRODUCTION ix

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4
General 4
Macroeconomic Overview 5
Demographic Trends 8
Consumer Spending 9
Dermatological Conditions 11
Hair Loss 12
Skin Conditions 14
Cosmetic & Toiletry Market 15
Skin Care Products 17
Hair Care Products 21
Oral Hygiene Products 23
Other Cosmetics & Toiletries 25
Cosmetic Surgery Procedures 27
Dermatological Pharmaceutical Shipments 30
Nanotechnology in Cosmeceuticals 32
Regulatory Considerations 34
Historical Market Trends 36
International Markets 38

III. COSMECEUTICAL PRODUCTS 41
General 41
Skin Care Cosmeceuticals 44
Age-Defying Products 46
Types 50
Applications 54
Acne Preparations 56
Medicated Lotions 59
Sun Protection Products 61
Other Skin Care Products 63
Hair Care Cosmeceuticals 65
Hair Growth Products 66
Finasteride-Based 67
Minoxidil-Based & Other 68
Anti-Dandruff Shampoos 70
Professional Cosmeceutical Products 72
Botulinum Toxin-Based 74
Tissue Fillers 77
Hyaluronic Acid 78
Other Tissue Fillers 80
Collagen 81
Calcium Hydroxylapatite 83
Synthetic Polymers 83
Other Professional Products 85
Other Cosmeceutical Products 88
Lip Care Products 90
Tooth Whiteners 92
Professional Tooth Whitening 94
Over-The-Counter Tooth Whitening 95
Oral Beauty Supplements 96
All Other Cosmeceutical Products 98
Hair Growth Retardants 98
Anti-Cellulite/Body Slimming 99
Color Cosmetics 100
Breast/Penis Enhancers 100
Nail, Hand & Foot 101

IV. COSMECEUTICAL CHEMICALS 102
General 102
Antioxidants 105
Vitamin A Compounds 107
Vitamin E Compounds 110
Vitamin C Compounds 111
Coenzyme Q10 & Other 113
Sunscreens 115
Organic 118
Inorganic 118
Acids 120
Alpha Hydroxy Acids 121
Other Acids 123
Enzymes 125
Botulinum Toxin 127
Other Enzymes 129
Proteins 131
Collagen 132
Amino Acids 133
Elastin 136
Other Proteins 136
Botanicals 138
Other 142
Finasteride 143
Hyaluronic Acid 144
All Other 146

V. INDUSTRY STRUCTURE 149
General 149
Market Share 153
Cosmeceutical Products 154
Procter & Gamble 156
Johnson & Johnson 157
L’Oreal 158
Estee Lauder 158
Avon Products 159
Allergan 159
Other Market Leaders 160
Cosmeceutical Chemicals 162
Royal DSM 164
BASF 164
Cognis 165
Merck 165
Allergan 166
Eastman 166
Croda 166
Other Market Leaders 167
Marketing & Distribution 168
Manufacturing 170
Competitive Strategies 171
Research & Development 173
Cooperative Agreements 175
Acquisitions & Divestitures 180
Company Profiles 183
Active Organics Incorporated 184
Allergan Incorporated 186
Arch Chemicals Incorporated 191
Ashland Incorporated 194
Avon Products Incorporated 195
BASF AG 199
Bayer AG 202
Beiersdorf AG 203
Bristol-Myers Squibb Company 206
Ciba Specialty Chemicals Holding Incorporated 208
Clariant International Limited 210
Cognis Deutschland GmbH & Company KG 211
Colgate-Palmolive Company 215
Croda International plc 217
Degussa AG 222
Desert Whale Jojoba Company Incorporated 225
DuPont (EI) de Nemours 226
Eastman Chemical Company 227
Estee Lauder Companies Incorporated 229
Galderma SA, see L’Oreal SA
Goldschmidt GmbH, see Degussa AG
Imperial Chemical Industries plc 235
Inamed Corporation, see Allergan Incorporated
Indena SpA 236
International Specialty Products Incorporated 238
Johnson & Johnson 240
Kao Corporation 245
Kyowa Hakko Kogyo Company Limited 248
La Prairie Incorporated, see Beiersdorf AG
Laboratoires Serobiologiques, see Cognis Deutschland GmbH & Company KG
L’Oreal SA 250
McNeil Consumer & Specialty Pharmaceuticals, see Johnson & Johnson
Medicis Pharmaceutical Corporation 258
Merck & Company Incorporated 262
Murad Incorporated 263
Neutrogena Corporation, see Johnson & Johnson
Novartis AG 265
NV Perricone MD Limited 267
Obagi Medical Products Incorporated 269
OrthoNeutrogena, see Johnson & Johnson
Pfizer Incorporated 271
Procter & Gamble Company 273
Rhodia SA 277
RoC SA, see Johnson & Johnson
Roche Holding Limited 279
Royal DSM NV 280
Schering-Plough Corporation 282
Sederma SA, see Croda International plc
SkinCeuticals LLC, see L’Oreal SA
SkinMedica Incorporated 284
Spectrum Designs Medical, see Allergan Incorporated
Symrise GmbH & Company KG 287
Unilever Group 289
Uniqema, see Croda International plc
Other Companies Mentioned in Study 292

LIST OF TABLES
TABLE NUMBER PAGE
SECTION I -- EXECUTIVE SUMMARY
Summary Table 3

SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Indicators 7
2 Demographic Trends 9
3 Personal Consumption Expenditures & Disposable Personal Income 11
4 Selected Dermatological Conditions 12
5 Cosmetic & Toiletry Supply & Demand 17
6 Skin Care Product Supply & Demand 21
7 Hair Care Product Supply & Demand 23
8 Oral Hygiene Product Supply & Demand 25
9 Other Cosmetic & Toiletry Product Supply & Demand 27
10 Cosmetic Surgery Procedures 29
11 Dermatological Pharmaceutical Shipments 32
12 Cosmeceutical Chemical Market, 1995-2005 38

SECTION III -- COSMECEUTICAL PRODUCTS
1 Cosmeceutical Product Demand 43
2 Skin Care Cosmeceutical Product Demand 45
3 Age-Defying Cosmeceutical Product Demand 50
4 Acne Preparation Cosmeceutical Product Demand 59
5 Medicated Lotion Cosmeceutical Product Demand 60
6 Sun Protection Cosmeceutical Product Demand 63
7 Other Skin Care Cosmeceutical Product Demand 65
8 Hair Care Cosmeceutical Product Demand 66
9 Hair Growth Cosmeceutical Product Demand 67
10 Anti-Dandruff Cosmeceutical Product Demand 72
11 Professional Cosmeceutical Product Demand 74
12 Botulinum Toxin Cosmeceutical Product Demand 76
13 Tissue Filler Cosmeceutical Product Demand 78
14 Other Professional Cosmeceutical Product Demand 88
15 Other Cosmeceutical Product Demand 90

SECTION IV -- COSMECEUTICAL CHEMICALS
1 Cosmeceutical Chemical Demand 104
2 Antioxidants: Cosmeceutical Applications 107
3 Sunscreens: Cosmeceutical Applications 117
4 Acids: Cosmeceutical Applications 120
5 Enzymes: Cosmeceutical Applications 127
6 Proteins: Cosmeceutical Applications 132
7 Botanicals: Cosmeceutical Applications 142
8 Other Cosmeceutical Chemical Demand 143

SECTION V -- INDUSTRY STRUCTURE
1 US Cosmeceutical Product & Chemical Sales by Company, 2005 151
2 R&D Spending Patterns: Selected Cosmeceutical Suppliers 175
3 Selected Cooperative Agreements 177
4 Selected Acquisitions & Divestitures 182

LIST OF CHARTS
CHART NUMBER PAGE
SECTION III -- COSMECEUTICAL PRODUCTS
1 Cosmeceutical Product Demand by Type, 2005 44
2 Skin Care Cosmeceutical Product Demand by Type, 2005 46

SECTION IV -- COSMECEUTICAL CHEMICALS
1 Cosmeceutical Chemical Demand by Type, 2005 104

SECTION V -- INDUSTRY STRUCTURE
1 US Cosmeceutical Product Market Share by Company, 2005 156
2 US Cosmeceutical Chemical Market Share by Company, 2005 164