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Cosmeceuticals in the U.S, 6th Edition

Abstract

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.

Key data sources include Experian Simmons Market Research Bureau national consumer surveys, covering category and brand usage levels and demographic patterns, and Information Resources, Inc. InfoScan Reviews, quantifying cosmeceuticals marketer and brand shares at the mass-market level across the three product categories. The report includes many product images, and as a special feature, late-breaking data from Packaged Facts' own consumer survey, which was conducted online in March 2012.

Table of Contents

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: Estee Lauder Re-Nutriv Replenishing Comfort Creme
    • Combatting Dark Spots
      • Illustration 3-12: Lancome 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: Lancome 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: Lancome 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 Creme
    • 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 EverCreme 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 rejuvatherapie 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: Lancome 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
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