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Skin Care Market: Get Industry Insights

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Global Skin Care Products Industry

The world skin care industry expanded by almost 5% in 2010, generating more than $78 billion and a volume of over 11 billion units, reports MarketLine. Between 2010 and 2015, the market is expected to grow by more than 21% to generate almost $95 billion and should reach a volume in excess of 13 billion units. Facial care represents the leading market segment, with more than 64% of overall value. Asia-Pacific represents almost 45% of the global market. L’Oreal holds the top spot with 12% market share.

The skin care industry has witnessed a shift from demand from older consumers to a growing younger consumer base. People are beginning to use skin care at an increasingly young age in a bid to delay the signs of aging, while the number of older consumers is beginning to fall, reports Canadean. Skin care companies may adapt their marketing strategies to correct this balance and hold on to their older consumer base.

Key Segments

The world anti-aging products market is expected to be worth almost $292 billion in 2015, according to Global Industry Analysts. This market is expected to benefit from high baby boomer disposable incomes. Anti-aging product sales have remained relatively unaffected by the economic recession. Consumers continue to purchase these products despite the unfavorable economic climate, though they may switch to cheaper alternative products. Moving forward consumers will demand more value for money, with functional and visual benefits proving a high priority for choosing anti-aging products.

MarketLine predicts the world sun care market will generate almost $9 billion by 2015, representing almost 24% growth in five years. The market is expected to exceed a volume of 1 billion units by 2015. Sun protection is the sun care market’s leading segment, representing more than 66% of overall market value.

The EU holds close to a 42% share in the overall global sun care market in terms of value. Rising awareness as to the potentially harmful effects of the sun, such as skin cancer, is driving demand for sun protection products. Consumers are also paying greater attention to what ingredients are being used in these products.

Regional Market Share

The US cosmetics and toiletries industry enjoyed strong recovery in 2010 following the economic recession, reports RNCOS. Encouraged by this recovery, companies are once again launching new products and services. In 2010, the industry recorded almost 3% growth. As consumer confidence rises, demand for cosmetics and toiletries will fuel sales, and companies will focus their efforts on marketing more expensive products and skin treatments. These efforts involve the manufacture of products boasting superior research and development formulas.

The US cosmetics and toiletries market is benefitting from rising demand for natural and organic products, with a faster growth rate than that of the overall market. Companies continue to offer consumers innovative products, concentrating on developing environmentally friendly products either made locally or using locally sourced ingredients. Anti-aging products also represent a strong growth area in the US cosmetics and toiletries market.

China’s cosmetics and toiletries market is led by skincare sales, representing the leading market segment in 2010, according to RNCOS. International players including L’Oreal and Procter & Gamble are topping the Chinese market. Companies compete mainly through product innovation, with domestic and international outfits regularly launching new products. The country’s three leading retailers are international players and collectively hold more than 50% of China’s skincare market, reports Canadean. Private labels represent around 10% of China’s overall cosmetics and toiletries market. This high percentage is due to the large market share held by big retailers like Tesco, Walmart and Carrefour.

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