Health-based Beauty Resetting Industry Standards

Strategy Briefing

About This Report

Jun 2015

The beauty-health alignment is progressing, with the proliferation of multifunctional and cross-industry inspired innovation, reaffirming the space for products like dermocosmetics and nutricosmetics. In parallel, industry players are exploring new distribution methods to exploit this growing trend. Discerning consumers are contributing to this evolution, as they expect more from beauty products, leading brand owners to look past their existing knowledge for more advanced product formulations.

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Health-based Beauty Resetting Industry Standards

Health benefits driving growth in FMCG

Adjacent categories to beauty and personal care, such as nutraceuticals in health and wellness, remain strong. The growing prevalence of health benefits in several FMCGs is narrowing the competitive distance as industry boundaries blur.

Beauty and personal care holds a role in preventative care

Rising public healthcare costs across developed markets mean consumers are increasingly encouraged to self-medicate for minor ailments. Consumer health is serving as a product ideation platform for solution-driven beauty products.

The beauty-health union is metamorphosing with the creation of a new class of products

Cross-industry products are emerging strongly and this is translating into extensions to categories such as skin care and hair care. Notably, dermocosmetics is consolidating, while “hairceuticals” and nutricosmetics are witnessing refined product claims.

Nutricosmetics aims to redefine beauty but cynicism over efficacy may hinder its growth

While nutricosmetics could seemingly revolutionise consumers’ beauty routines, reservations over product claims could limit this segment from thriving. However, the segment is still in its exploratory stage, and it could present opportunities to high equity beauty and personal care brands.

Product formulations seeing heightened use of scientific methods

While natural formulations are on the rise, the expense and challenge in sourcing new ingredients is leading industry players to turn to scientific methods, in particular biomimetics. Ingredients normally associated with consumer health products are entering the beauty space as well.

Distribution patterns progressively altering

Pharmacies are becoming one of the preferred channels for brand owners active in health-based beauty. This channel benefits from a perception of stocking more credible products and of providing more trusted advice.

Introduction

Scope
Objectives
Key findings

Health-based Beauty: Overview of Key Trends

Health-positioned products among growth drivers in FMCG
BPC category adjacencies resilient with health-supportive products
Multifunctionality a promising quality in beauty-health marriage
Specialised solutions are needed to reinforce brand credentials
Beauty holds potential for a soft remedial role in mild health matters
Consumer health an inspiration for more targeted beauty products

The Emergence of Cross-industry Segments

Beauty redefined as more categories provide clinical remedies
Opposing drift between fortifying and cosmetic hair care categories
“ Hairceuticals ” gaining traction as focus shifts to strong-looking hair
Skin care cosmeceuticals gaining edge over pure cosmetics
Medical image a measure of product credibility in skin care
“Skinperfumes” may follow with a plethora of concepts
Nutricosmetics: Braced for underdog status?
Beauty pills’ hold on Western Europe some hope for nutricosmetics
Nutricosmetics could be extensions to existing cosmetics ranges
Premium beauty brands’ reputation benefits their supplements lines

Innovation and New Product Concepts

Scientific methods professionalising beauty
Novel claims and ingredients surge as beauty and health overlap
Urban pollution to raise demand for explicit skin care solutions
Tactical repositioning may suffice in tapping into anti-pollution trend
Oral care scale of innovation a dual clinical and beauty direction

Direction of Company Activity

Industry players taking advantage of beauty-health convergence
Mergers and acquisitions likely in high-functioning skin care
FMCG competitive distance narrows as health features rein in
Channel presence of health-based beauty products readjusting
Some retail players take the bull by the horns to drive change
Brand personification a distinct quality in health-positioned products
Key players adopting strategies to excel in skin health

Future Scenario

Beauty witnessing a paradigm shift as consumer perceptions alter
Distribution and ingredients usage to evolve in parallel with beauty

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