Exploring the Evolving Landscape of Dermocosmetics

November 2021

Dermocosmetics benefited from COVID-19-induced consumer desire for safety, transparency and science. Active consumer digital engagement and strong e-commerce presence are key pillars that help sustain growth. Genderless positioning and emphasis on consumer education set it apart from other beauty and personal care categories, while notable launches in prebiotics and post-biotics underscore the potential of the microbiome segment.

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Key Findings

Desire for safety, transparency, and science boosts demand for dermocosmetics globally

As more consumers globally seek a “back to basics” approach in beauty that relies on scientific claims and underscores healthy living trends, dermocosmetics experienced notable growth, due to its association with safety, efficacy and transparency.

Target dermocosmetics consumer is motivated by skin health outcomes

Since dermocosmetics is linked with health rather than with beauty, the segment is positioned as genderless and leads with consumer education and science-backed claims, giving brands a larger pool of potential users. Dermocosmetic users tend to be younger, digitally-savvy, have premium preferences and have extensive routines. Different target audiences present different challenges and opportunities for dermocosmetics players.

Mass dermocosmetics outpaced premium since 2019

Although premium dermocosmetics accounts for a larger share than mass dermocosmetics, the mass segment grew faster than premium in 2020. Mass dermocosmetic brands are demonstrating high efficacy through formula and technology, putting pressure on premium dermocosmetic brands to justify higher prices through quality or other services.

Dermocosmetics competes against a diversified competitive landscape

Clean beauty, therapeutic/herbal, traditional Chinese medicine, doctor-founded brands in the premium space, and microbiome overlap with dermocosmetics consumers' demand for "safer" solutions.

Consumer digital engagement and e-commerce strengths are key pillars of dermocosmetics’ success

2020 and 2021 were met with a wave of supply and demand for digital health solutions. Dermocosmetics players were able to capitalise on virtual consultations, telehealth visits, health apps and diagnostic tracking devices, and even personalisation capabilities (through product recommendations or skin consultations), which all help to strengthen the segment's science-backing positioning and credibility.

Introduction

Scope
Key findings

State of Play

The changing epidemiology of skin conditions affects dermocosmetics
COVID-19 amplified health and wellness drivers
Beauty’s convergence with health contributed to dermocosmetics appetite
Dermocosmetics remains a resilient and pandemic-resistant category
Dermo aligns with evolving consumer preferences and priorities
Dermocosmetics demand well timed amid desire for “back to basics”
Solutions-focused positioning lifts prospects for tech-driven personalisation
Phygital reality to influence dermocosmetics consumers’ path to purchase
Skin care accounts for largest share of dermocosmetics in every region
US, China, and France dominate dermocosmetics sales

Consumer Demand

Who is driving the demand for dermocosmetics ?
Positioning seems genderless and heavily reliant on consumer education
Users tend to be digitally-savvy, skew premium, with extensive routines
Users cite skin/hair health as top reason for dermocosmetics usage
Acne, hormones, and sensitive skin top dermo users’ main skin concerns

Competitive Landscape

Mass dermocosmetics growth outpaces premium pre-pandemic
Mass outpaces premium through the bond of efficacy and affordability
Dermocosmetics players record dynamic growth in 2020
Top 10 global dermocosmetic companies include “sensitive skin” claims
L'Oréal Groupe houses a strong portfolio of mass and premium brands
Johnson & Johnson grows its footprint in Asia Pacific through M&A
Pierre Fabre expands sales beyond skin care
Global momentum from Galderma comes from Cetaphil
New launches from Beiersdorf focus on anti-agers , personalisation
Other top companies focus on hero products and dermatologist partners
Strategies also include preventative claims and sustainability initiatives
Dermocosmetics is aided, not heavily threatened, by adjacent categories

Innovations and Opportunities

Microbiome actively explored, but unclear regulations may lead to limits
Prebiotics skin care is easily accepted and rated well among consumers
Post-biotics have most potential to grow, due to consumer awareness
Nutrition companies move into microbiome, increasing fragmentation
Maskne is the focal point as wearing face masks becomes normal
Using a milder approach resonates with goals to preserve skin barrier
Brands address skin health through trending ingredients
Consumer awareness of blue light protection heightened during pandemic
Pandemic recovery period an important year to reset dermo sun care
Opportunities for dermocosmetics beyond skin care

Shopping For Dermocosmetics

Traditional channels hold most significance for dermo distribution
Distribution strategy centred on drugstores, parapharmacies , chemists
However, e-commerce takes a more active role in segment’s expansion
Dermocosmetics path to purchase heavily influenced by digital
Digital health solutions, apps, devices to act as complements to offerings

Key Takeaways and SWOT Analysis

Key takeaways
SWOT analysis of dermocosmetics
Addressing weaknesses in dermocosmetics (1)
Addressing threats in dermocosmetics (2)

Appendix

Euromonitor’s definition: what is dermocosmetics ? (1)
Euromonitor’s definition: what is dermocosmetics ? (2)
Footnotes
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