Skin care remains the key revenue driver in beauty with global sales exceeding US$111 billion in 2014. Beyond China, Indonesia and India will be key growth markets by 2019. Demand and innovation are driven by multiple factors. On one hand, technology gives rise to devices and diagnostic tools, changing the consumer beauty experience, while on the other, niche brands and Asianification revive categories such as face masks and facial moisturisers marking a new turning point for the market.
With global value sales expected to exceed US$131 billion in 2019, skin care will remain beauty’s biggest category adding some US$20.1 billion to its value over 2014- 2019. This will be mainly driven by emerging markets in Asia Pacific including China which will account for nearly 60% of skin care’s absolute value growth by 2019.
Indonesia will become the second largest contributor to skin care’s absolute growth replacing the US in third, while India will follow South Korea and rise to become the fifth largest market in absolute growth terms. Indonesia and India together will add over US$2 billion to skin care by 2019. Turkey remains a major growth engine in Western Europe as increasing marketing activity by beauty players will boost skin care’s value in the market.
Technology’s influence in skin care has been twofold. Firstly, it is influencing innovation through the rise of beauty devices, new ingredients and new technologies such as 3D printers which can change the manufacturing process. Secondly, customer interaction and experience through the use of diagnostic tools and digital apps as well as payments and delivery are the other areas that are transforming rapidly.
In 2014, fast-growing niche brands climbed the rankings leading to various acquisitions by large multinationals. Consumers’ desire for high-efficacy skin care has helped niche brands flourish in a crowed space as they are viewed as specialists in their field. This trend was most notable in the US.
Asia Pacific remains the most important region in both value terms and as the key origin for skin care trends. The introduction of novel products such as essence and emulsion, the revival of skin care categories such as face masks, and the expansion of Asian brands to the West are shifting the balance between East and West.
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