Cosmeceuticals Market Size, Share & Industry Analysis, By Product (Skin Care, Hair Care, Injectables and Others), By Distribution Channels (Pharmacy/Drug Stores, Online Stores, and Others), and Regional Forecast, 2019-2026

Cosmeceuticals are cosmetic products with biologically active ingredients asserting to have medical or drug like benefits. Cosmeceuticals are the advances made with the world of cosmetic dermatological products and the innovative trending era in skin care. Cosmeceuticals improve the appearance, but they do so by providing nutrients necessary for healthy skin and treats medically on impaired skin cells. The inception of cosmeceuticals has restructured the cosmetic and personal care industry, and the market is projected to expand due to growing consciousness of the consumers about their physical appearance. According to the United States Food and Drug Administration (FDA), the Food, Drugs, and Cosmetics Act; a product can be a drug, a cosmetic, or an amalgamation of both, however the term cosmeceuticals has no meaning under the law. Thus the term ‘cosmeceuticals’ is not recognised by the Federal Food, Drug, and Cosmetic Act.

Cosmeceuticals products are available as over-the-counter and are largely used as a part of the regular skin care treatment to help improvise pigmentation, skin tone, texture, and fine lines. Antioxidants, peptides and proteins retinoid, exfoliants, and botanical extracts are some of the common ingredients used in these products. Cosmeceuticals active ingredients are continuously advancing by various emerging as well as international players that are involved in pharmaceutical cosmetics, biotechnology, and natural products. Besides, the advancements in the field of dermatology and pharmacology have augmented the development of new active compound (such as liposomes) more swiftly. For example, companies such as Onlynaturals in England and LoveLula in U.K. produce most of their revenue from the natural skin care cosmetic products. Moreover, with growing perception of skin-care beauty products owing to sensitive skin of most of the Asian and American women, they are eyeing cosmetic products that provide anti-septic, anti-inflammatory, anti-bacterial, and moisturising properties.

Factors such as the growing consumer perception regarding appearance, increasing preference towards the natural/organic products, rising disposable income in emerging economies, availability of scientifically advanced products are impelling the growth of this market. However, misleading marketing practices are likely to hinder the growth of this  market.

MARKET TRENDS

Advancements in Nano Technology is Dominating the Anti-Aging Skin Care Market

The growing demand among individuals to look youthful is driving anti-aging product manufacturers to offer better and more effective products. Apart from a therapy that helps ward off wrinkles, uneven skin tone, and sagging skin, customers appear to be interested in natural environment-friendly formulations. In this industry, nanotechnology plays a key role. By using new techniques and technology to deploy matter at an atomic or molecular level, nanotechnology have been the key of several innovations, delivering new perceptions for the future of this market. Nanotechnology-based cosmeceuticals provide the advantage of diversity in products segment, and surges bioavailability of active ingredients by growing the aesthetic appeal of cosmeceuticals products with prolonged effects. In addition to this, plant stem cell technology, is fast emerging as a solution to these demands.

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Major market players are spending on research and development to offer better stem cells component products for anti-aging creams. Recently, Pevonia announced advancements in a plant stem cell technology with the new Stem Cells Phyto-Elite collection. A breakthrough in phyto-biology with proprietary advanced formulae, Stem Cells Phyto-Elite features two stem cell sources, Argan Tree and European Comfrey Root, which are proven to visibly repair aging skin. Featuring a Multi-Active Foaming Cleanser, an Intensive Serum and an Intensive Cream, the skincare collection sets higher standards in cellular regeneration by getting to the root cause of skin aging. Furthermore, DermaTech Research Laboratories has discovered a proprietary technology developed as the world's first skin care line that incorporates both human adult and plant stem cells. Thus, new introduction of such technologies and advancements are driving the growth of cosmeceuticals market.

MARKET DRIVERS

Ageing Population and Growing Consumer Awareness is Driving the Growth of Cosmeceuticals Market

The cosmeceuticals market shows a significant growth, due to the surge in consumer obsession of maintaining a youthful appearance. With the rapid ageing population, majorly in the developed markets such as US and Europe, the demand of cosmetics is expected to increase. Additionally, factors such as high demand of natural beauty products along with healthy lifestyle are expected to propel the demand for cosmeceuticals products. As the baby-boomer generation turns out to be more cautious in resolving indications of ageing, the demand for cosmeceuticals products have increased significantly. Furthermore, product manufacturers are concentrating on the early prevention of premature ageing by providing better anti-aging products and thus, growing their customer base. The major customers of such products are people above 35 years. The most recent trend observed in this industry is increasing use of natural ingredients in anti-aging cosmetics. Therefore, several cosmeceuticals companies have utilized ayurvedic knowledge for producing anti-aging cosmeceuticals. With the strong base of innovation and technology, the cosmeceuticals industry is likely to have a bigger market in near future.

Adoption and Affordability of Cosmeceuticals in Emerging Economies is Likely to Propel the Growth of the Market

Growing usage of cosmeceuticals products in emerging economies is one of the prime factors responsible for the cosmeceuticals market growth. The US and European markets have already experienced rapid growth in this industry. Currently, countries such as Brazil, China, and India are the major focus areas for the market players.

Aspects such as increasing disposable income, growing awareness, and rise in appearance consciousness, are fuelling the market growth in the emerging countries. Besides, the huge population base of the Asian region also makes it a prime location for the market players.

Several global players are planning to expand their presence in emerging economies. For instance, in September 2013, L’Oréal made its first acquisition in India by acquiring a Mumbai-based company, Cheryl’s Cosmeceuticals. The acquisition helped L’Oréal broaden its product offering and boost its distribution network for professional products in India.

Additionally, there is an opportunity in the Chinese market, as China has the capability to build its own industry and compete in the global marketplace. Increasing wealth in emerging markets such as Latin America, China, and India, is expected to attract an even wider audience in the future owing to growing demand for more efficient products and luxury brands.

MARKET RESTRAINT

Lax Regulations Likely to Hinder the Market Growth

As the cosmeceuticals are neither placed under cosmetics, nor the pharmaceuticals, they are not regulated by the FDA. Moreover, the Federal Trade Commission monitors advertising statements for unbearable claims by products, hence rigorous actions and laws are required for testing, regulation, good environmental management. Lax regulations are a major constraint for the growth of this market as it gives scope for growth of fake products in the market, causing skin and hair damage. Although with the industry is flourishing, the FDA does not actually recognise the term cosmeceuticals. Instead, this industry exists in a state of regulatory limbo: at times they are measured as drugs, but most often they are regulated as cosmetics.

The regulatory system for cosmeceuticals products is complex and not stringent as compared to drugs. Most of the time, new launched products are susceptible to uncertainty of regulatory review. This uncertainty in the regulations leads to launch of counterfeit goods in market which hampers the credibility of cosmeceuticals in the market.

SEGMENTATION

By Product Type Analysis

Skin Care Segment Dominated the Global Cosmeceuticals Market

Based on type, the cosmeceuticals market is segmented into skin care, hair care, injectables and others.

On the basis of type, skin care market is further categorised into anti-ageing, skin whitening, sun protection, professional skincare, anti-acne, and others. Furthermore, hair care market is further bifurcated into hair growth, anti-dandruff and others. The skin care segment dominated the market with a share of 48.7% in 2018. Swiftly aging statistics directs a strong demand for anti-aging products to avoid uneven skin tone, age spots, wrinkles, and dry skin. Additionally, this increasing demand has generated a room for innovations in cosmetics, henceforth promoting this industry growth. Likewise, a key trend remarked in the global cosmeceuticals market is the emergence and popularity of natural and organic products.

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The hair care market segment is also set to grow moderately, owing to the upsurge in the demand for products such as hair oil, hair colour, shampoo, and conditioner. Benefits provided by shampoos such as dirt, removal of dandruff, and environmental pollutants are making it a widespread daily used product. In addition, purge of the unwanted build-up without flaking out much sebum in order to make the hair unmanageable drives the consumers to buy branded hair care products.

By Distribution Channel Analysis

Pharmacy/Drug Stores is Responsible for Dominance of the Segment in 2018

Based on distribution channel the market has been segmented into pharmacy/ drug stores, online channel, and others (specialty stores, convenience stores, supermarkets). Among them, pharmacy/ drug stores held the largest market share in 2018 due to the antagonistic promotions and many marketing strategies of the distributors and manufacturers in the stores, such as offers on bulk purchase.

The online distribution channel is projected to witness significant growth over the forecast period due to technology advancements and acceptance of technology among consumers. Apart from the key players of the market, the e -commerce platforms such as Amazon are stimulated to gain traction by selling these cosmetic products in certain areas with comparatively less drug stores.Besides, discounts that are offered online are moderately more than that in the stores, thus attracting the consumers and increasing the product sales. In addition, several global companies are proposing new and exciting products that are being marketed through social media sites such as YouTube and Instagram. By rigorously selling online, these new companies are able to reach an extensive range of consumers without the struggles of creating new physical store locations.

REGIONAL ANALYSIS

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Cosmeceuticals market in Asia Pacific was valued at USD 18.32 billion in 2018 and is also expected to witness the highest growth during forecast period. Growing awareness regarding cosmeceutical and cosmetics products, such as anti-aging, sun care, and hair care products, coupled with rising disposable income is expected to drive the market growth. Besides this, advancements in technology and advent of new ingredients have further added to the progress in the commercialisation of cosmeceutical products globally.  For example, in 2016, over 2 billion people have spent on premium personal care products instead of cosmetic surgeries in Asia-Pacific region.

On the other hand, Europe and North America cosmeceutical market is expected to grow moderately. Factors such as technological advancement and launch of new and innovative products in this market are expected to drive the market growth.

KEY INDUSTRY PLAYERS

Innovation, Expansion Opportunities, and Market Development of L’Oréal., has Propelled the Company to a Leading Position in the Global Market

L'Oréal SA is one of the most active companies, with numerous brands offering a broad range of cosmeceuticals, globally. The company has spent significantly on product innovation, improving quality in terms of functionality, ingredients, and packaging. Likewise, these active companies have embraced strategic acquisition as their key strategy, to surge their geographical presence and customer base.

However, the regional and domestic players such as Procter & Gamble, Shiseido Co. Ltd, Estée Lauder Companies Inc., Avon Products Inc., Croda International., BASF SE, Allergan Inc., and others are the key market players in cosmeceuticals market. Thus, anticipating to impact the global market positively, and these companies are likely to gain market share during the forecast period.

LIST OF KEY COMPANIES COVERED:

• L’Oréal


• Beiersdorf Global


• Croda International Plc


• Allergan


• Avon


• BASF SE


• Estée Lauder Companies Inc.


• Shiseido Company, Limited


• Procter & Gamble


• Elementis


• Others

KEY INDUSTRY DEVELOPMENTS:

• October 2019 Shiseido announced its acquisition of clean-clinical skincare brand Drunk Elephant for a huge USD 845 million. Shiseido has acquired a 100% stake in the company. With the help of this acquisition the company is enable to attain sustainability across the brand and increase their customer base.

REPORT COVERAGE

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The Cosmeceuticals Market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading modalities types. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation