Face it, when it comes to skin care, baby boomers, millennials, octogenarians and everyone far and in between are driving the demand for newer, better and more innovative skin care products. And the latest market trend report is showing just how much growth the cosmetic skin care industry is going through at the moment. A recent report by Transparency Market Research (TMR), a market intelligence company, providing global business information reports and services; predicted the global cosmetic skin care market to be worth just over US$200 billion during the period of 2016 to 2024. Not surprisingly, the product type leading the growth are anti-aging, which is predicted to retain its leading position throughout the forecast period and amounting to over $44 bn by 2024.
The consumer demand for anti-aging creams and skin care products is driving the global market growth. Due in part to the the rise of people age 65 and above increasing in the U.S., Germany, Italy, Japan and China. Interestingly however, the TMR report shows “the demand for anti-aging products is not restricted only to the aging consumer group. Women over the age of 30 have also been contributing significantly to the demand for anti-aging creams and lotions.”
The cosmetic skin care market, fairly consolidated with the top five companies being L’Oreal S.A., Unilever Group, Procter & Gamble, Beiersdorf AG, and Avon, and with all focusing on research and development, and new product development. Therefore, the growing focus on new product innovation and an improvement in the quality and functions of various cosmetic skin care products is a key factor boosting the global market. And these companies are “investing huge capital in research, and development to improve the effectiveness of products such as anti-aging creams, sunscreen products, and multi-utility skin care products.” the TMR reports states.
Additionally, these top companies are also aiming at acquisitions as part of its growth strategy, as seen with Unilever’s acquiring of Dermalogica in June 2015. This being one among the many strategic alliances and acquisitions that companies have been engaging in, in recent years to shape their brands into more premium offerings.
The TMR report also predicts a rise in ‘natural’ and organic products, as consumers are “becoming more aware of the ingredients in skin care products. The inclusion of this product segment in the portfolio can prove to be immensely lucrative for [brand] players,”
One things for sure, with this boost in the skin care industry and companies focus on new product development to drive growth, we have a slew of new, innovative cosmetic skin care products to look forward to.