Despite the GFC, it seems the one thing we’re not willing to compromise is our penchant for skincare and anti-ageing products. The recessionista remains skin savvy.
Looks like we women are putting on a brave face in these harder economic times – a well made up face at that! Luxury items such as skincare and anti-ageing products have not taken a beating. In fact, they are evidently becoming necessities, boosting product demand.
A study on the global cosmeceuticals industry, released by market researchers Scientia Advisors, says the market for cosmeceuticals is growing twice as fast as the personal care market. It also revealed skincare is the largest and fastest growing segment of the industry, fuelled by anti-ageing products geared towards youth-coveting ageing populations.
Cosmeceuticals are representing a large slice of this pie, with demand expected to rise significantly over the next several years. Cosmeceutical is a current buzzword in the world of anti-ageing, coined to describe products that are a cross between cosmetics and pharmaceuticals.
Anti-ageing products are in particularly high demand, as an ageing global population wants to look younger without throwing around their cash too frivolously.
US-based business research firm The Freedonia Group says US demand for cosmeceuticals is projected to rise by 7.4 percent per year to US$8.2billion in 2012, and attributes this to the widespread desire to maintain a youthful appearance in an image-conscious society. ‘Due to obsession with a youthful appearance, the cosmeceuticals target market continues to expand beyond the traditional 45 years and older demographic to include much younger individuals,’ says a spokesperson for Freedonia.
Thanks to a steady stream of new and technologically advanced product introductions and effective marketing, this growing demand bodes well for cosmeceuticals. However, it is facing an escalating pressure in regards to pricing and the availability of innovative ingredients and products. Cosmeceuticals also face competition from alternative treatments, such as laser resurfacing and cosmetic surgical procedures. The latter tend to offer more dramatic results, but they come at a higher cost in terms of time, money and safety, according to Freedonia.
The number of US cosmetic surgery procedures is also expected to reflect the seven percent per year growth, says Freedonia. ‘Demand will be driven by an increasing number of individuals who spend their disposable income on cosmetic surgery procedures to improve their appearance and enhance their self-esteem,’ the firm says.
Meanwhile, emerging markets with ageing populations and increasing disposable incomes will boost demand for cosmeceuticals on the quest to stay young. ‘Although the desire to look youthful is nothing new, many consumers now feel that ageing is something that can and should be actively fought against. Thus, the majority who feel under pressure to look younger but are wary of, or cannot afford cosmetic surgery, are turning to anti-agers, driving the category to record double-digit growth of 13 percent over 2007-2008 globally,’ says global research firm Euromonitor.
Show me the money
Anti-ageing and skin-nourishing products totalled nearly $17.7bn in worldwide retail sales in 2008, according to Euromonitor. The firm projects that this segment will grow to $22.1bn in worldwide retail sales by 2013.
‘Anti-agers accounted for 23 percent of the total global skincare market in 2008 and grew faster than any other product type within skin care,’ says the consultancy. ‘Anti-ageing products are becoming more specialised and this is driving growth in the sector. Beauty houses no longer stop at targeting baby-boomers, or even women in their 30s and 40s, as anti-agers are increasingly being marketed to women in their 20s as a preventative’ treatment.’
Tomorrow’s forecast
The skincare segment will account for 63 percent of all cosmeceutical product demand through 2012, according to Freedonia. This includes anti-ageing, acne management, medicated and sun care products. Injectables will have the fastest growth at 10 percent per annum through 2012 to roughly US$990m. People have responded favourably due to the revolutionary new products that have shown visible and immediate results with minimal patient recovery times, according to Freedonia.
‘Injectables based on botulinum toxin and hyaluronic acid will continue to account for the largest share of product demand, as these two types of injectables continue to enjoy the success of relatively recent product launches,’ says Freedonia.
The anti-agers segment has also begun to feature more men’s skincare lines. In addition, there is wider availability of anti-agers for different skin types and areas of the body, such as cream for under the eyes, neck and chest area, according to Euromonitor.
Antioxidants are expected to hold their dominant place, remaining the largest category of cosmeceutical chemicals. This had been attributed to the widespread incorporation of antioxidants in both topical and ingestible formulations.
Meanwhile, botanicals, enzymes, hyaluronic acid, amino acids and peptides are among the active ingredients expected to increase due to their opportunities in a variety of cosmeceutical products.
Curb your enthusiasm
However, despite a strong outlook for cosmeceuticals, they are not immune to the global economic downturn.
‘In the short term, tightening consumer spending will make the cosmeceutical industry increasingly competitive, as more products vie for fewer consumer dollars. Nevertheless, while some people will forgo purchasing higher-priced cosmeceuticals, many will view these items as necessities that provide an edge in the tightening job market, as well as an affordable luxury capable of enhancing one’s self-image during troubling times,’ says Freedonia.
What is a cosmeceutical?
Cosmeceutical is a term that has been coined for a product that combines the attributes of both a cosmetic and a pharmaceutical. Dr Albert Kligman, the now Emeritus Professor of Dermatology from the University of Pennslyvania, pioneered the term in a presentation he gave to the annual meeting of the Society of Cosmetic Chemists in 1980. While the concept remains a topic of debate, the one aspect that can be commonly acknowledged is that the product contains ‘active’ ingredients that go beyond mere camouflage of items such as blush and lipstick. Whatever controversy that may still persist, cosmeceuticals are now a reality, as evidenced by multiple international symposia and seminars, a growing library of textbooks titled cosmeceuticals, and common usage of the term by marketers who perceive that consumers want products that are functional as well as ornamental.
