Assessing Key Drivers Behind Skin Care Market Dynamics

Strategy Briefing

About This Report

Feb 2014

At US$100billion sales globally, skin care accounts for a quarter of the total beauty industry. Asia Pacific continues to generate half of total revenues, while Latin America has been the fastest growing region. Category dynamics have been driven by multiple factors, including the increased availability of face masks and devices to replicate salon results at home, while all-in-one offerings and more specialised solutions are gaining equal prominence to address the need for further added value.

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Assessing Key Drivers Behind Skin Care Market Dynamics

Skin care sales reach nearly US$100 billion

2012 marked a special year for skin care, as the category reached a milestone. With nearly 50% of revenue coming from Asia Pacific, the region is the most influential factor in determining skin care’s vitality.

Beyond Asia, Latin America rises as a key region for growth

Latin America and Brazil have emerged as key growth engines in skin care, having more than doubled their skin care sales since 2006. This has most benefited body care with over half of its absolute growth coming from this region.

Anti-agers the top growth category

Anti-agers remained the fastest growing category in skin care, set to add over US$6 billion to its size by 2017. The US, China, South Korea and Japan will be the main drivers.

Accessible luxury - the rise of face masks

Face masks, devices and fashion brands have all gained importance as consumers keep searching for alternative ways to cut down on salon visits, costs and time while living the luxury experience. China alone has been the key contributor to face masks’ one billion dollar growth.

Multifunctionality blurs the lines between categories

Beyond accessible luxury, key trends such as specialisation and multifunctionality have dominated skin care innovation. While the rising desire for more targeted offerings has on the one hand pushed for specialised skin care, on the other hand, consumers’ increasing expectations from products has blurred the lines between categories, with many offerings on the market sitting between categories.

Indonesia, India and Thailand the next skin care markets

Beyond China and Brazil, Indonesia, India and Thailand are expected to continue to emerge as key skin care markets. Indonesia alone will be the third biggest contributor to skin care’s growth with US$1.2 billion by 2017.

What this report includes

  • Top-level strategic analysis of how major consumer trends will influence global markets
  • Consumer insight
  • Impact across all relevant consumer markets
  • Unique graphics and case studies
  • Key market snapshots
  • Accompanying presentation to synthesise main findings

Why buy this report

  • Identify factors driving change now and in the future
  • Understand motivation
  • Forward-looking outlook
  • Briefings and presentation should provoke lively discussion at senior level
  • Take a step back from micro trends
  • Get up to date estimates and comment

Introduction

Scope
Key findings

Global Overview

Skin care sales reach US$100 billion in 2012
Asia Pacific domination unrivalled in skin care
Emerging markets shake up the rankings in skin care
Growth beyond China and Brazil
Skin care dominates across regions
Body care remains in the shadow of facial care
Mass market growth more resilient than premium
Mass skin care dominates across key markets
Premium skin care potential beyond China

Key Industry Drivers

Key industry innovation drivers
Brand loyalty still strong in skin care
Brand image and efficacy key reasons behind brand loyalty
Brand loyalty hit by novelty and price sensitivity

Accessible Luxury

Accessible luxury here to stay
Face masks enter spotlight
Devices: Skin care category of the future
S kin care - an unexplored area for fashion brands
Emerging markets lead growth for fashion brands in skin care
Cosmetics textiles - a new skin care category?

Specialisation

Individuality drives premium skin care innovation
Ageing is not an option as anti-agers continue to lead growth
Anti-agers’ potential not solely driven by ageing nations
Premium players raise the stakes

Multifunctionality

Desire for convenience boosts crossover between categories
Multifunctionality presence a cross skin care
Specialisation vital for success in multifunctional combinations

Natural Skin care

Green becomes the new black in skin care
Asia and Brazil offer major opportunity for natural brands
Intense competition in natural skin care for Western Europe
Complex competitive landscape in natural beauty

Conclusions

Opportunity remains in emerging markets
Asia’s future domination fuelled by China
Mass market to continue to outpace premium
Face masks and anti-agers continue to lead growth
Anti-ageing shifts into a broader context
Further cross-category convergence expected to drive innovation
Skin care’s leading trends to continue to shape future dynamics

Appendix

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