Cosmeceuticals in the U.S, 6th Edition
In the New [ab]Normal of economic sluggishness, cosmeceuticals marketers have an opportunity to shine across multiple generations, including Boomers, Gen X-ers, and increasingly, Gen Y-ers. Like many consumer packaged goods categories, cosmeceuticals sales suffered during the recession, but the going could have been tougher were it not for cosmeceuticals’ “little luxury” appeal and bang-for-the-buck ability to deliver curative and preventative benefits on top of cosmetic ones. Now, this same appeal is contributing to a market rebound amounting to 2% growth in 2010 and 4% growth in 2011. This upswing puts U.S. retail sales of cosmeceuticals at $9.7 billion in 2011, with ongoing annual sales gains expected to boost the market to $11.7 billion by 2016.
Younger generations have grown up immersed in marketing messages making them both appearance-oriented and aware of the importance preventive healthcare. As a result, new marketing prospects are opening up at the younger end of the age spectrum, even as aging Boomers open their wallets ever wider to stave off the cosmetic toll of aging. Still, cosmeceuticals marketers may take nothing for granted. More than ever given their ongoing budget constraints, shoppers expect the cosmeceuticals they buy to perform, and the faster the better. Thus any product with a quantifiable “instant gratification” benefit—which has always been a powerful appeal in the color cosmetics category—has an edge. In addition, with the upper end of the market rebounding the fastest, particular attention is owed to prestige channel shoppers expressing pent-up demand post recession.
This completely updated Packaged Facts report examines the market for cosmeceutical products within the context of broader HBC trends in new product development and marketing, segmenting cosmeceuticals into three categories: skincare, hair care, and color cosmetics. Fully exposing the driving forces behind this market, the report analyzes market size and drivers, new product introductions, and competitive strategies, as well as the social and lifestyle patterns shaping the fortunes of cosmeceutical products. Marketer and brand profiles specific to each of the three categories help to define the relationship between consumer attitudes and new product development and marketing strategy.
Younger generations have grown up immersed in marketing messages making them both appearance-oriented and aware of the importance preventive healthcare. As a result, new marketing prospects are opening up at the younger end of the age spectrum, even as aging Boomers open their wallets ever wider to stave off the cosmetic toll of aging. Still, cosmeceuticals marketers may take nothing for granted. More than ever given their ongoing budget constraints, shoppers expect the cosmeceuticals they buy to perform, and the faster the better. Thus any product with a quantifiable “instant gratification” benefit—which has always been a powerful appeal in the color cosmetics category—has an edge. In addition, with the upper end of the market rebounding the fastest, particular attention is owed to prestige channel shoppers expressing pent-up demand post recession.
This completely updated Packaged Facts report examines the market for cosmeceutical products within the context of broader HBC trends in new product development and marketing, segmenting cosmeceuticals into three categories: skincare, hair care, and color cosmetics. Fully exposing the driving forces behind this market, the report analyzes market size and drivers, new product introductions, and competitive strategies, as well as the social and lifestyle patterns shaping the fortunes of cosmeceutical products. Marketer and brand profiles specific to each of the three categories help to define the relationship between consumer attitudes and new product development and marketing strategy.
CHAPTER 1: EXECUTIVE SUMMARY
Introduction
Market Definition: Cosmeceuticals
Report Methodology
Market Trends
U.S. Cosmeceuticals Market Nears $9.7 Billion
Category Shares Remain Stable
Figure 1-1: Share of U.S. Retail Sales of Cosmeceuticals by Category, 2007 vs. 2011 (percent)
Prestige Channels vs. Mass-Market Outlets
Figure 1-2: Share of U.S. Retail Sales of Cosmeceuticals by Channel, 2011 (percent)
Prestige Sales Surge While Mass Sales Falter
New Year, Same Economic Troubles
Many Cosmeceuticals Still Affordable
Return to Luxury Spending
A Cosmeceutical World
The Graying of America
The Rise of Natural and Organic
Cosmeceuticals vs. Cosmetic Surgery
The Quest for the Next Big Ingredient
Competitive Overview
Cosmeceutical Skin Care Marketers
Cosmeceutical Hair Care Marketers
Cosmeceutical Cosmetics Marketers
Marketing Trends
Plant Power in Skin Care
Brand Overhauls in Hair Care
Antioxidants and Vitamins in Color Cosmeceuticals
Consumer Trends
Moisturizers Are Most-Used Skin Care Product
More Consumers Choosing Anti-Aging Skin Care Over Antioxidants
Shampoo Is Most Frequently Used Hair Care Product
Shampoo, Conditioner Use Steady Among Men, Up Among Women
Lip Color Is Most-Used Color Cosmetic
CHAPTER 2: MARKET TRENDS
Introduction
Market Definition: Cosmeceuticals
Report Methodology
Market Size & Composition
U.S. Cosmeceuticals Market Nears $9.7 Billion
Table 2-1: U.S. Retail Sales of Cosmeceuticals, 2007-2011 (in billions of dollars)
Category Shares Remain Stable
Figure 2-1: Share of U.S. Retail Sales of Cosmeceuticals by Category, 2007 vs. 2011 (percent)
Dollar Sales Outpace Volume Growth at Mass
Table 2-2: SymphonyIRI-Tracked Retail Sales of Cosmeceuticals by Dollar and Volume Growth, 2010-2011 (in millions of dollars and pounds)
Prestige Channels vs. Mass-Market Outlets
Figure 2-2: Share of U.S. Retail Sales of Cosmeceuticals by Channel, 2011 (percent)
Prestige Sales Surge While Mass Sales Falter
Factors to Market Growth
New Year, Same Economic Troubles
Personal Care Prices Defy Inflation
Table 2-3: Consumer Price Index for All Items vs. Personal Care Items: 2001-2011
Many Cosmeceuticals Still Affordable
Return to Luxury Spending
Figure 2-3: Attitudes of Wealthy U.S. Consumers, 2009 vs. 2010 (percent)
The Spa Treatment…At Home
A Cosmeceutical World
Beauty Products Key to Attracting Shoppers
Illustration 2-1: Target’s Destination Beauty Aisles
The Graying of America
Table 2-4: U.S. Population by Age Bracket: 2000, 2010 and 2020 (in thousands)
Beauty From the Outside In
The Rise of Natural and Organic
What Is Natural?
Cosmeceuticals vs. Cosmetic Surgery
The Rise of the Metrosexual
The Quest for the Next Big Ingredient
Regulation and Safety
Cosmetics vs. Drugs
Supervision by the FTC
So Is This Stuff Really Safe?
Industry Representation
Natural and Organic Product Standards
Standardizing Organic Personal Care Products
Still No Standards for “Natural”
Seven Controversial Ingredients
1,4-Dioxane
Bisphenol-A (BPA)
Hydrosols
Parabens
Phthalates
Propylene Glycol
SLFs (Sulfates)
Environmental Concerns and Social Responsibility
Going “Green”
Sustainability Crucial to Consumer Good Will
“Green” Packaging
Cruelty-Free Products
U.S. Cosmeceuticals Market to Approach $12 Billion in 2016
Table 2-5: Projected U.S. Retail Sales of Cosmeceuticals, 2011-2016 (in billions of dollars)
CHAPTER 3: SKIN CARE
Introduction
Scope of Cosmeceutical Skin Care Category
Category Size and Growth
Skin Care Category at $4.7 Billion in 2011
Table 3-1: U.S. Retail Dollar Sales of Cosmeceutical Skin Care Products, 2007-2011 (in millions of dollars)
Facial Moisturizers Exhibit Category-Defying Growth
Table 3-2: U.S. Retail Dollar Sales of Cosmeceutical Skin Care Products by Segment: 2010-2011 (dollars and percent)
Table 3-3: Share of U.S. Retail Dollar Sales of Cosmeceutical Skin Care Products by Segment, 2010-2011 (percent)
Factors to Future Growth
Cosmeceutical Skin Care Products Appeal to All Ages
Gen-X and Gen-Y: Maintaining a Youthful Appearance Means Starting Now
Menopause Gives Rise to Skin Changes
Teens and Tweens: Growing Up Too Fast?
Ethnic Consumers Driving Specialty Products
Ethnics Spend More on Non-Ethnic Skin Care Products
Increase in Ethnic Demand to Grow for Next 30 Years
Prestige vs. Mass: Channel Blurring Continues
The Marketers
HBC Specialists Dominate Cosmeceutical Skin Care at Mass
Table 3-4: SymphonyIRI-Tracked Sales of Selected Cosmeceutical Skin Care Products by Marketer and Brand, 2011 (in millions of dollars)
Prestige and Pop-Prestige Marketers
Table 3-5: Selected Prestige Channel Marketers and Brands of Cosmeceutical Skin Care Products, 2011
Brand Profiles
Brand Profile: Olay
Number One Beauty Brand
Illustration 3-1: Olay Professional Pro-X Clear
Olay Going Global
Merging Product Lines
Illustration 3-2: Definity Merges with Total Effects
Brand Profile: Clinique
“Allergy Tested, 100% Fragrance-Free”
Illustration 3-3: Clinique 3-Step Process
Illustration 3-4: Clinique Skin Supplies for Men
High-Tech Skin Care
Brand Profile: Avon
Direct Selling Specialist
The Products
Illustration 3-5: Avon ANEW Genics
Avon’s Ongoing Troubles
New Product Trends
Skin Care New Product Introductions Peak, Level Off
Detox in a Bottle
Illustration 3-6: One Lump or Two Body Scrub
Beauty Rest
Illustration 3-7: Neutrogena Facial Lifting Wrinkle Treatment
Illustration 3-8: Aveeno Ageless Vitality
The Eyes Have It
Illustration 3-9: Estee Lauder Idealist Cooling Eye Illuminator
Plant Power
Illustration 3-10: Juice Beauty Stem Cellular Repair Moisturizer
Illustration 3-11: Estée Lauder Re-Nutriv Replenishing Comfort Creme
Combatting Dark Spots
Illustration 3-12: Lancôme Bright Expert
Body Care
Illustration 3-13: Essie Ejuvenate
Exotic Ingredients
Illustration 3-14: Josie Maran Argan Day + Night Eye Cream
Like Cosmetic Surgery, Only Better
Illustration 3-15: Lancôme Visionnaire Advanced Skin Corrector
Illustration 3-16: Avon ANEW Clinical Luminosity Pro Brightening Serum
Vitamin Fortified
Illustration 3-17: Walgreens Oil-Free Acne Wash Pink Grapefruit Foaming Scrub
Fighting Blemishes
Illustration 3-18: Boscia B.B. Cream
Functional Food Ingredients
Resveratrol
Illustration 3-19: 100% Pure Red Wine Resveratrol Antioxidant Serum
Oats
Illustration 3-20: BeneFit Moisture Prep Toning Lotion
Super Fruits
Illustration 3-21: Nature’s Gate Acai Lotion
Men’s Products on the Rise
Illustration 3-22: Dior Homme Dermo System
Stem Cells
Mapping the Genome
Illustration 3-23: Lancôme Genifique Youth Activating Concentrate
Natural and Organic Products
Consumer Trends
Methodology
Moisturizers Most-Used Skin Care Product
Table 3-6: Skin Care Product Use by Gender, Type, Brand and Frequency: 2011 (percent)
More Consumers Choosing Anti-Aging Skin Care Over Antioxidants
Table 3-7: Percentage of U.S. Consumers Using Anti- Aging/Antioxidant Skin Care: 2012 (percent)
Moisturizer Use Remains Steady, Cleanser Use Declines
Table 3-8: Percentage of U.S. Consumers Using Moisturizers by Type: 2008-2011
Table 3-9: Percentage of U.S. Consumers Using Facial Cleansers and Most Frequent Reasons for Use: 2008-2011
Effects of Employment Status and Changes
Table 3-10: Index of Skin Care Product Use and Employment Changes in Past 12 Months: 2011 (U.S. Women)
Table 3-11: Index of Skin Care Product Use and Employment Status: 2011 (U.S. Women)
Demographic Trends
Who’s Using Moisturizers
Who’s Using Lip Care Products
Who’s Using Facial Cleansers
Who’s Using Anti-Aging Skin Care Products
Table 3-12: Demographic Indexes for Moisturizers/Creams/Lotions Used Most Often: By Brand, 2011 (U.S. consumers)
Table 3-13: Demographic Indexes for Lip Care Products Used Most Often: By Brand, 2011 (U.S. consumers)
Table 3-14: Demographic Indexes for Facial Cleansers Used Most Often: By Brand, 2011 (U.S. consumers)
Table 3-15: Demographic Indexes for Regular vs. Anti-Aging Skin Care Products: By Type, 2011 (U.S. consumers)
CHAPTER 4: HAIR CARE
Introduction
Cosmeceutical Hair Care Category Definition
Cosmeceutical Functions
Two Major Product Categories
Shampoos
Conditioners and Hair Treatments
Unique Hair Care Needs of U.S. Ethnic Population Sectors
African Americans
Hispanics
Asians
Category Size and Growth
Cosmeceutical Hair Care Surpasses $3 Billion in 2011
Table 4-1: U.S. Retail Dollar Sales of Cosmeceutical Hair Care Products, 2007-2011 (in millions of dollars)
Shampoos Account for Majority of Market
Table 4-2: U.S. Retail Sales of Cosmeceutical Hair Care Products, 2010 vs. 2011 (in millions of dollars)
Factors to Future Growth
Hair Care Category Tried by Recession
Brand Loyalty
Ubiquity
The Commodity Herd
The Pursuit of Health Hair
The Problem with Sulfates
A Little Thin On Top
Growing Number of Ethnic Hair Care Consumers
The Marketers
1,000 Competitors in Cosmeceutical Hair Care
Twelve Major Marketers at Mass
Table 4-3: SymphonyIRI-Tracked Sales of Cosmeceuticals Hair Care Products by Marketer and Brand, 2011 (in millions of dollars)
Specialists the Norm in Prestige Hair Care Market
Prestige Marketers and Brands
Table 4-4: Selected Prestige Channel Marketers and Brands of Cosmeceutical Hair Care Products: 2012
Marketer and Brand Profiles
Marketer Profile: Unilever + Alberto Culver
Illustration 4-1: Nexxus ProMend Overnight Treatment Crème
Brand Profile: Ojon
Mainstreaming Relaunch
Illustration 4-2: Ojon Damage Reverse Ritual
Brand Profile: Sexy Hair Concepts
Illustration 4-3: Healthy Sexy Hair Reinvent
Marketer in Trouble
New Product Trends
Brand Overhauls
Illustration 4-4: Herbal Essences Reformulated Products
Illustration 4-5: Figure Redken Extreme Product Line
Keratin
Illustration 4-6: Joico RevitaLuxe Bio-Advanced Restorative Treatment
Antioxidants
Illustration 4-7: Garnier Fructis Acerola Berry Antioxidant Shampoo
Omega 3 and 6
Illustration 4-8: L’Oréal EverCrème Line
Super Fruits
Illustration 4-9: Burt's Bees Very Volumizing Pomegranate & Soy Shampoo
Botanical Oils
Argan Oil
Illustration 4-10: Organix Moroccan Argan Oil Line
Other Oils
Illustration 4-11: Matrix Biolage rejuvathérapie ConditionerAt- Home Straightening Systems
Illustration 4-12: John Frieda Frizz-Ease 3-Day Straight
Illustration 4-13: Suave Professionals Keratin Infusion Line
Dandruff Formulas
Illustration 4-14: Aveda Invati Product Line
For Thinning Hair
Illustration 4-15 Redken IntraForce
Consumer Trends
Shampoo Is Most Frequently Used Hair Care Product
Shampoo, Conditioner Use Steady Among Men
Conditioner Use Grows Slightly Among Women
Table 4-5: Skin Care Product Use by Gender, Type, Brand and Frequency: 2011 (percent)
Table 4-6: Percentage of U.S. Men Using Hair Care Products by Type: 2008-2011 (percent)
Table 4-7: Percentage of U.S. Women Using Hair Care Products by Type: 2008-2011 (percent)
Demographic Trends
Who’s Using Shampoo?
Who’s Using Conditioner?
Table 4-8: Demographic Indexes for Shampoo Used Most Often: By Brand, 2011 (U.S. consumers)
Table 4-9: Demographic Indexes for Conditioner Used Most Often: By Brand, 2011 (U.S. consumers)
CHAPTER 5: COLOR COSMECEUTICALS
Introduction
Defining the Color Cosmeceuticals Category
Four Color Cosmeceutical Segments: Face, Eye, Lip and Nail
Face Makeup
Lip Color
Eye Makeup
Nail Polish
Category Size and Growth
Color Cosmeceuticals Category Surpasses $2 Billion in 2011
Table 5-1: U.S. Retail Dollar Sales of Color Cosmeceutical Products, 2007-2011 (in millions of dollars)
Table 5-2: U.S. Retail Dollar Sales of Color Cosmeceutical Products by Segment: 2010-2011 (in millions of dollars)
Table 5-3: Share of U.S. Retail Dollar Sales of Color Cosmeceutical Products by Segment, 2010-2011 (percent)
Factors to Market Growth
Color Cosmeceuticals’ Recession Resistance
Appealing to All Ages, But Only One Gender
Boomer Women as Trailblazers
Gen-X Women Guide Their Households Through Hard Times
Gen-Y Women Resist Pandering
Teens, Tweens Using Cosmeceutical Makeup?
The Question of Efficacy
Does The Stuff Really Work?
The Color of the Season
The Natural Choice
The Marketers
Seven Marketers Account for Over 80% of Mass-Market Sales
Major Players in Prestige Color Cosmeceuticals
Table 5-4: SymphonyIRI-Tracked Sales of Color Cosmeceuticals by Marketer and Brand, 2011 (percent)
Table 5-5: Selected Color Cosmeceuticals Marketers in Prestige Channels, 2011
Marketer and Brand Profiles
L’Oréal Paris
Illustration 5-1: Jennifer Lopez Infallible Lip Color Ad
Marketer Profile: Bare Escentuals
Acquisition by Shiseido
Illustration 5-2: bareMinerals Touch Up Veil
Brand Profile: Tarte
Illustration 5-3: Tarte Amazonian Clay 12-Hour Blush
New Product Trends
New Product Introductions Peak
Antioxidants and Vitamins
Illustration 5-4: Korres Quercetin & Oak Anti-Aging/Anti- Wrinkle Concealer
Illustration 5-5: Clinique Lid Smoothie Antioxidant 8-Hour Colour
Proprietary Formulas
Illustration 5-6: Lancôme L'Absolu Nu Lipstick
Illustration 5-7: DiorSkin Forever Flawless Perfection Wear Makeup
Exotic Ingredients
Illustration 5-8: Josie Maran Argan Eye Love You
Illustration 5-9: Babor Deluxe Foundation
Mineral Makeup
Illustration 5-10: bareMinerals READY Eye Color Collection
Is It Powder? Is It Sunscreen? Is It Skin Care?
Illustration 5-11: Peter Thomas Roth Anti-Aging Instant Mineral SPF 45
Collagen
Illustration 5-12: Beauty for Real See the Light! Illuminating Lip Gloss
Illustration 5-13: Rimmel London Moisture Renew Lipgloss
Peptides
Illustration 5-14: Wet n Wild MegaLash Clinical Serum
Functional Food Ingredients
Illustration 5-15: Dior Serum de Rouge Luminous Lip Color Treatment
Olive Oil
Illustration 5-16: Badger Lip Tint and Shimmer
Plump Those Lashes
Illustration 5-17: Rimmel London Lash Accelerator Mascara
Makeup for Men?
Illustration 5-18: EvolutionMan Nail Varnish
Consumer Trends
Methodology
Lip Color Is Most-Used Cosmetic
Table 5-6: Percentage of U.S. Women Using Color Cosmetics by Type, Brand and Frequency: 2011
Lipstick Use on the Decline
Table 5-7: Percentage of U.S. Women Using Lipstick/Lip Gloss by Type: 2008-2011
Use of Mascara, Foundation Remains Steady, Eye Shadow Use Climbs
Table 5-8: Percentage of U.S. Women Using Mascara by Type: 2008-2011
Table 5-9: Percentage of U.S. Women Using Foundation/Concealer by Type: 2008-2011
Table 5-10: Percentage of U.S. Women Using Eye Shadow by
Type: 2008-2011
Employment Changes and Cosmetics Use
Table 5-11: Use of Color Cosmetics and Employment Changes in Past 12 Months: U.S. Women, 2011 (index)
Demographic Trends
Lipstick/Lip Gloss Use
Mascara Use
Foundation/Concealer Use
Table 5-12: Demographic Indexes for Lipstick/Lip Gloss Used Most Often: By Brand, 2011 (U.S. women consumers)
Table 5-13: Demographic Indexes for Mascara Used Most Often: By Brand, 2011 (U.S. women consumers)
Table 5-14: Demographic Indexes for Foundation/Concealer Used Most Often: By Brand, 2011 (U.S. women consumers)
CHAPTER 6: LOOKING AHEAD
Cosmeceutical Products Offer More
Wider Selection Means More Opportunities
“Green” Concerns Continue to Take Priority
Natural and Organic Products Provide Counterpoint
Growth of Cosmeceuticals at Mass
Not All Mass Channels Are Equal
Table 6-1: Selected Cosmeceutical Product Cost Comparison: Target vs. CVS, 2011 (in dollars)
Problems with Diversion
Growth in Online Shopping
E-Marketing Cosmeceuticals
Dove Campaign Demonstrates Multi-Outlet Marketing
Individualized Marketing
QR Codes Allow High-Tech Purchasing
Social Networking: Facebook, Twitter, Then…
User-Driven Content: Pinterest
International Perspective
Growth in Developing Markets
Different Standards Lead to Confusion
International Expansion
Free Trade Legislation Encourages Global Cosmetics Market
Introduction
Market Definition: Cosmeceuticals
Report Methodology
Market Trends
U.S. Cosmeceuticals Market Nears $9.7 Billion
Category Shares Remain Stable
Figure 1-1: Share of U.S. Retail Sales of Cosmeceuticals by Category, 2007 vs. 2011 (percent)
Prestige Channels vs. Mass-Market Outlets
Figure 1-2: Share of U.S. Retail Sales of Cosmeceuticals by Channel, 2011 (percent)
Prestige Sales Surge While Mass Sales Falter
New Year, Same Economic Troubles
Many Cosmeceuticals Still Affordable
Return to Luxury Spending
A Cosmeceutical World
The Graying of America
The Rise of Natural and Organic
Cosmeceuticals vs. Cosmetic Surgery
The Quest for the Next Big Ingredient
Competitive Overview
Cosmeceutical Skin Care Marketers
Cosmeceutical Hair Care Marketers
Cosmeceutical Cosmetics Marketers
Marketing Trends
Plant Power in Skin Care
Brand Overhauls in Hair Care
Antioxidants and Vitamins in Color Cosmeceuticals
Consumer Trends
Moisturizers Are Most-Used Skin Care Product
More Consumers Choosing Anti-Aging Skin Care Over Antioxidants
Shampoo Is Most Frequently Used Hair Care Product
Shampoo, Conditioner Use Steady Among Men, Up Among Women
Lip Color Is Most-Used Color Cosmetic
CHAPTER 2: MARKET TRENDS
Introduction
Market Definition: Cosmeceuticals
Report Methodology
Market Size & Composition
U.S. Cosmeceuticals Market Nears $9.7 Billion
Table 2-1: U.S. Retail Sales of Cosmeceuticals, 2007-2011 (in billions of dollars)
Category Shares Remain Stable
Figure 2-1: Share of U.S. Retail Sales of Cosmeceuticals by Category, 2007 vs. 2011 (percent)
Dollar Sales Outpace Volume Growth at Mass
Table 2-2: SymphonyIRI-Tracked Retail Sales of Cosmeceuticals by Dollar and Volume Growth, 2010-2011 (in millions of dollars and pounds)
Prestige Channels vs. Mass-Market Outlets
Figure 2-2: Share of U.S. Retail Sales of Cosmeceuticals by Channel, 2011 (percent)
Prestige Sales Surge While Mass Sales Falter
Factors to Market Growth
New Year, Same Economic Troubles
Personal Care Prices Defy Inflation
Table 2-3: Consumer Price Index for All Items vs. Personal Care Items: 2001-2011
Many Cosmeceuticals Still Affordable
Return to Luxury Spending
Figure 2-3: Attitudes of Wealthy U.S. Consumers, 2009 vs. 2010 (percent)
The Spa Treatment…At Home
A Cosmeceutical World
Beauty Products Key to Attracting Shoppers
Illustration 2-1: Target’s Destination Beauty Aisles
The Graying of America
Table 2-4: U.S. Population by Age Bracket: 2000, 2010 and 2020 (in thousands)
Beauty From the Outside In
The Rise of Natural and Organic
What Is Natural?
Cosmeceuticals vs. Cosmetic Surgery
The Rise of the Metrosexual
The Quest for the Next Big Ingredient
Regulation and Safety
Cosmetics vs. Drugs
Supervision by the FTC
So Is This Stuff Really Safe?
Industry Representation
Natural and Organic Product Standards
Standardizing Organic Personal Care Products
Still No Standards for “Natural”
Seven Controversial Ingredients
1,4-Dioxane
Bisphenol-A (BPA)
Hydrosols
Parabens
Phthalates
Propylene Glycol
SLFs (Sulfates)
Environmental Concerns and Social Responsibility
Going “Green”
Sustainability Crucial to Consumer Good Will
“Green” Packaging
Cruelty-Free Products
U.S. Cosmeceuticals Market to Approach $12 Billion in 2016
Table 2-5: Projected U.S. Retail Sales of Cosmeceuticals, 2011-2016 (in billions of dollars)
CHAPTER 3: SKIN CARE
Introduction
Scope of Cosmeceutical Skin Care Category
Category Size and Growth
Skin Care Category at $4.7 Billion in 2011
Table 3-1: U.S. Retail Dollar Sales of Cosmeceutical Skin Care Products, 2007-2011 (in millions of dollars)
Facial Moisturizers Exhibit Category-Defying Growth
Table 3-2: U.S. Retail Dollar Sales of Cosmeceutical Skin Care Products by Segment: 2010-2011 (dollars and percent)
Table 3-3: Share of U.S. Retail Dollar Sales of Cosmeceutical Skin Care Products by Segment, 2010-2011 (percent)
Factors to Future Growth
Cosmeceutical Skin Care Products Appeal to All Ages
Gen-X and Gen-Y: Maintaining a Youthful Appearance Means Starting Now
Menopause Gives Rise to Skin Changes
Teens and Tweens: Growing Up Too Fast?
Ethnic Consumers Driving Specialty Products
Ethnics Spend More on Non-Ethnic Skin Care Products
Increase in Ethnic Demand to Grow for Next 30 Years
Prestige vs. Mass: Channel Blurring Continues
The Marketers
HBC Specialists Dominate Cosmeceutical Skin Care at Mass
Table 3-4: SymphonyIRI-Tracked Sales of Selected Cosmeceutical Skin Care Products by Marketer and Brand, 2011 (in millions of dollars)
Prestige and Pop-Prestige Marketers
Table 3-5: Selected Prestige Channel Marketers and Brands of Cosmeceutical Skin Care Products, 2011
Brand Profiles
Brand Profile: Olay
Number One Beauty Brand
Illustration 3-1: Olay Professional Pro-X Clear
Olay Going Global
Merging Product Lines
Illustration 3-2: Definity Merges with Total Effects
Brand Profile: Clinique
“Allergy Tested, 100% Fragrance-Free”
Illustration 3-3: Clinique 3-Step Process
Illustration 3-4: Clinique Skin Supplies for Men
High-Tech Skin Care
Brand Profile: Avon
Direct Selling Specialist
The Products
Illustration 3-5: Avon ANEW Genics
Avon’s Ongoing Troubles
New Product Trends
Skin Care New Product Introductions Peak, Level Off
Detox in a Bottle
Illustration 3-6: One Lump or Two Body Scrub
Beauty Rest
Illustration 3-7: Neutrogena Facial Lifting Wrinkle Treatment
Illustration 3-8: Aveeno Ageless Vitality
The Eyes Have It
Illustration 3-9: Estee Lauder Idealist Cooling Eye Illuminator
Plant Power
Illustration 3-10: Juice Beauty Stem Cellular Repair Moisturizer
Illustration 3-11: Estée Lauder Re-Nutriv Replenishing Comfort Creme
Combatting Dark Spots
Illustration 3-12: Lancôme Bright Expert
Body Care
Illustration 3-13: Essie Ejuvenate
Exotic Ingredients
Illustration 3-14: Josie Maran Argan Day + Night Eye Cream
Like Cosmetic Surgery, Only Better
Illustration 3-15: Lancôme Visionnaire Advanced Skin Corrector
Illustration 3-16: Avon ANEW Clinical Luminosity Pro Brightening Serum
Vitamin Fortified
Illustration 3-17: Walgreens Oil-Free Acne Wash Pink Grapefruit Foaming Scrub
Fighting Blemishes
Illustration 3-18: Boscia B.B. Cream
Functional Food Ingredients
Resveratrol
Illustration 3-19: 100% Pure Red Wine Resveratrol Antioxidant Serum
Oats
Illustration 3-20: BeneFit Moisture Prep Toning Lotion
Super Fruits
Illustration 3-21: Nature’s Gate Acai Lotion
Men’s Products on the Rise
Illustration 3-22: Dior Homme Dermo System
Stem Cells
Mapping the Genome
Illustration 3-23: Lancôme Genifique Youth Activating Concentrate
Natural and Organic Products
Consumer Trends
Methodology
Moisturizers Most-Used Skin Care Product
Table 3-6: Skin Care Product Use by Gender, Type, Brand and Frequency: 2011 (percent)
More Consumers Choosing Anti-Aging Skin Care Over Antioxidants
Table 3-7: Percentage of U.S. Consumers Using Anti- Aging/Antioxidant Skin Care: 2012 (percent)
Moisturizer Use Remains Steady, Cleanser Use Declines
Table 3-8: Percentage of U.S. Consumers Using Moisturizers by Type: 2008-2011
Table 3-9: Percentage of U.S. Consumers Using Facial Cleansers and Most Frequent Reasons for Use: 2008-2011
Effects of Employment Status and Changes
Table 3-10: Index of Skin Care Product Use and Employment Changes in Past 12 Months: 2011 (U.S. Women)
Table 3-11: Index of Skin Care Product Use and Employment Status: 2011 (U.S. Women)
Demographic Trends
Who’s Using Moisturizers
Who’s Using Lip Care Products
Who’s Using Facial Cleansers
Who’s Using Anti-Aging Skin Care Products
Table 3-12: Demographic Indexes for Moisturizers/Creams/Lotions Used Most Often: By Brand, 2011 (U.S. consumers)
Table 3-13: Demographic Indexes for Lip Care Products Used Most Often: By Brand, 2011 (U.S. consumers)
Table 3-14: Demographic Indexes for Facial Cleansers Used Most Often: By Brand, 2011 (U.S. consumers)
Table 3-15: Demographic Indexes for Regular vs. Anti-Aging Skin Care Products: By Type, 2011 (U.S. consumers)
CHAPTER 4: HAIR CARE
Introduction
Cosmeceutical Hair Care Category Definition
Cosmeceutical Functions
Two Major Product Categories
Shampoos
Conditioners and Hair Treatments
Unique Hair Care Needs of U.S. Ethnic Population Sectors
African Americans
Hispanics
Asians
Category Size and Growth
Cosmeceutical Hair Care Surpasses $3 Billion in 2011
Table 4-1: U.S. Retail Dollar Sales of Cosmeceutical Hair Care Products, 2007-2011 (in millions of dollars)
Shampoos Account for Majority of Market
Table 4-2: U.S. Retail Sales of Cosmeceutical Hair Care Products, 2010 vs. 2011 (in millions of dollars)
Factors to Future Growth
Hair Care Category Tried by Recession
Brand Loyalty
Ubiquity
The Commodity Herd
The Pursuit of Health Hair
The Problem with Sulfates
A Little Thin On Top
Growing Number of Ethnic Hair Care Consumers
The Marketers
1,000 Competitors in Cosmeceutical Hair Care
Twelve Major Marketers at Mass
Table 4-3: SymphonyIRI-Tracked Sales of Cosmeceuticals Hair Care Products by Marketer and Brand, 2011 (in millions of dollars)
Specialists the Norm in Prestige Hair Care Market
Prestige Marketers and Brands
Table 4-4: Selected Prestige Channel Marketers and Brands of Cosmeceutical Hair Care Products: 2012
Marketer and Brand Profiles
Marketer Profile: Unilever + Alberto Culver
Illustration 4-1: Nexxus ProMend Overnight Treatment Crème
Brand Profile: Ojon
Mainstreaming Relaunch
Illustration 4-2: Ojon Damage Reverse Ritual
Brand Profile: Sexy Hair Concepts
Illustration 4-3: Healthy Sexy Hair Reinvent
Marketer in Trouble
New Product Trends
Brand Overhauls
Illustration 4-4: Herbal Essences Reformulated Products
Illustration 4-5: Figure Redken Extreme Product Line
Keratin
Illustration 4-6: Joico RevitaLuxe Bio-Advanced Restorative Treatment
Antioxidants
Illustration 4-7: Garnier Fructis Acerola Berry Antioxidant Shampoo
Omega 3 and 6
Illustration 4-8: L’Oréal EverCrème Line
Super Fruits
Illustration 4-9: Burt's Bees Very Volumizing Pomegranate & Soy Shampoo
Botanical Oils
Argan Oil
Illustration 4-10: Organix Moroccan Argan Oil Line
Other Oils
Illustration 4-11: Matrix Biolage rejuvathérapie ConditionerAt- Home Straightening Systems
Illustration 4-12: John Frieda Frizz-Ease 3-Day Straight
Illustration 4-13: Suave Professionals Keratin Infusion Line
Dandruff Formulas
Illustration 4-14: Aveda Invati Product Line
For Thinning Hair
Illustration 4-15 Redken IntraForce
Consumer Trends
Shampoo Is Most Frequently Used Hair Care Product
Shampoo, Conditioner Use Steady Among Men
Conditioner Use Grows Slightly Among Women
Table 4-5: Skin Care Product Use by Gender, Type, Brand and Frequency: 2011 (percent)
Table 4-6: Percentage of U.S. Men Using Hair Care Products by Type: 2008-2011 (percent)
Table 4-7: Percentage of U.S. Women Using Hair Care Products by Type: 2008-2011 (percent)
Demographic Trends
Who’s Using Shampoo?
Who’s Using Conditioner?
Table 4-8: Demographic Indexes for Shampoo Used Most Often: By Brand, 2011 (U.S. consumers)
Table 4-9: Demographic Indexes for Conditioner Used Most Often: By Brand, 2011 (U.S. consumers)
CHAPTER 5: COLOR COSMECEUTICALS
Introduction
Defining the Color Cosmeceuticals Category
Four Color Cosmeceutical Segments: Face, Eye, Lip and Nail
Face Makeup
Lip Color
Eye Makeup
Nail Polish
Category Size and Growth
Color Cosmeceuticals Category Surpasses $2 Billion in 2011
Table 5-1: U.S. Retail Dollar Sales of Color Cosmeceutical Products, 2007-2011 (in millions of dollars)
Table 5-2: U.S. Retail Dollar Sales of Color Cosmeceutical Products by Segment: 2010-2011 (in millions of dollars)
Table 5-3: Share of U.S. Retail Dollar Sales of Color Cosmeceutical Products by Segment, 2010-2011 (percent)
Factors to Market Growth
Color Cosmeceuticals’ Recession Resistance
Appealing to All Ages, But Only One Gender
Boomer Women as Trailblazers
Gen-X Women Guide Their Households Through Hard Times
Gen-Y Women Resist Pandering
Teens, Tweens Using Cosmeceutical Makeup?
The Question of Efficacy
Does The Stuff Really Work?
The Color of the Season
The Natural Choice
The Marketers
Seven Marketers Account for Over 80% of Mass-Market Sales
Major Players in Prestige Color Cosmeceuticals
Table 5-4: SymphonyIRI-Tracked Sales of Color Cosmeceuticals by Marketer and Brand, 2011 (percent)
Table 5-5: Selected Color Cosmeceuticals Marketers in Prestige Channels, 2011
Marketer and Brand Profiles
L’Oréal Paris
Illustration 5-1: Jennifer Lopez Infallible Lip Color Ad
Marketer Profile: Bare Escentuals
Acquisition by Shiseido
Illustration 5-2: bareMinerals Touch Up Veil
Brand Profile: Tarte
Illustration 5-3: Tarte Amazonian Clay 12-Hour Blush
New Product Trends
New Product Introductions Peak
Antioxidants and Vitamins
Illustration 5-4: Korres Quercetin & Oak Anti-Aging/Anti- Wrinkle Concealer
Illustration 5-5: Clinique Lid Smoothie Antioxidant 8-Hour Colour
Proprietary Formulas
Illustration 5-6: Lancôme L'Absolu Nu Lipstick
Illustration 5-7: DiorSkin Forever Flawless Perfection Wear Makeup
Exotic Ingredients
Illustration 5-8: Josie Maran Argan Eye Love You
Illustration 5-9: Babor Deluxe Foundation
Mineral Makeup
Illustration 5-10: bareMinerals READY Eye Color Collection
Is It Powder? Is It Sunscreen? Is It Skin Care?
Illustration 5-11: Peter Thomas Roth Anti-Aging Instant Mineral SPF 45
Collagen
Illustration 5-12: Beauty for Real See the Light! Illuminating Lip Gloss
Illustration 5-13: Rimmel London Moisture Renew Lipgloss
Peptides
Illustration 5-14: Wet n Wild MegaLash Clinical Serum
Functional Food Ingredients
Illustration 5-15: Dior Serum de Rouge Luminous Lip Color Treatment
Olive Oil
Illustration 5-16: Badger Lip Tint and Shimmer
Plump Those Lashes
Illustration 5-17: Rimmel London Lash Accelerator Mascara
Makeup for Men?
Illustration 5-18: EvolutionMan Nail Varnish
Consumer Trends
Methodology
Lip Color Is Most-Used Cosmetic
Table 5-6: Percentage of U.S. Women Using Color Cosmetics by Type, Brand and Frequency: 2011
Lipstick Use on the Decline
Table 5-7: Percentage of U.S. Women Using Lipstick/Lip Gloss by Type: 2008-2011
Use of Mascara, Foundation Remains Steady, Eye Shadow Use Climbs
Table 5-8: Percentage of U.S. Women Using Mascara by Type: 2008-2011
Table 5-9: Percentage of U.S. Women Using Foundation/Concealer by Type: 2008-2011
Table 5-10: Percentage of U.S. Women Using Eye Shadow by
Type: 2008-2011
Employment Changes and Cosmetics Use
Table 5-11: Use of Color Cosmetics and Employment Changes in Past 12 Months: U.S. Women, 2011 (index)
Demographic Trends
Lipstick/Lip Gloss Use
Mascara Use
Foundation/Concealer Use
Table 5-12: Demographic Indexes for Lipstick/Lip Gloss Used Most Often: By Brand, 2011 (U.S. women consumers)
Table 5-13: Demographic Indexes for Mascara Used Most Often: By Brand, 2011 (U.S. women consumers)
Table 5-14: Demographic Indexes for Foundation/Concealer Used Most Often: By Brand, 2011 (U.S. women consumers)
CHAPTER 6: LOOKING AHEAD
Cosmeceutical Products Offer More
Wider Selection Means More Opportunities
“Green” Concerns Continue to Take Priority
Natural and Organic Products Provide Counterpoint
Growth of Cosmeceuticals at Mass
Not All Mass Channels Are Equal
Table 6-1: Selected Cosmeceutical Product Cost Comparison: Target vs. CVS, 2011 (in dollars)
Problems with Diversion
Growth in Online Shopping
E-Marketing Cosmeceuticals
Dove Campaign Demonstrates Multi-Outlet Marketing
Individualized Marketing
QR Codes Allow High-Tech Purchasing
Social Networking: Facebook, Twitter, Then…
User-Driven Content: Pinterest
International Perspective
Growth in Developing Markets
Different Standards Lead to Confusion
International Expansion
Free Trade Legislation Encourages Global Cosmetics Market
