The skin care market in 2011

Many advances in the field, including cosmeceutical ingredients, are beginning to filter down to other categories including food and beverage. Although launch activity remained relatively flat, the sector increased product development by 10% on the previous year, with face and neck care products leading the way retaining a 43% market share of the category. Product claims do vary regionally, with Western markets focusing on minimisation through anti-ageing and low allergen products that are sustainably produced. Conversely, products in Asia have continued to focus on conditioning claims and on developing products which reduce pore and oily skin while whitening the skin’s appearance. Nevertheless globally, botanical and hydrating product claims continue to dominate the category as consumers across markets are demanding naturally-based products which optimise skin health and condition.

Consumers remain cautious

Consumer spending over the past year has remained cautious across many markets as consumers are choosing either to compare prices or abandon preferred brands for cheaper alternatives. Other consumers are choosing to sacrifice, retaining premium quality brands but purchasing much less than they would have previously. Product sampling is increasingly important especially for consumers purchasing premium brands who want to ensure products live up to the marketing hype before they make the investment. Spending on beauty and skin care is still a low priority for many consumers’ discretionary income. Nevertheless, consumers are generally more inclined to spend more money on skin care than cosmetics, placing more importance on prevention and skin maintenance. Manufacturers are starting to acknowledge that ageing gracefully is a combination of lifestyle factors and there are no true miracles in a jar. By positioning their products as essential to a healthier lifestyle, they may infuse a transition that resonates with a broader range of consumers, including men. Brands and retailers have a great opportunity to customise their ranges and marketing strategies, utilising purchasing habits to identify consumer needs and preferences. Companies like Boots for instance are doing this effectively, using their loyalty programme to email product recommendations based on past purchases. Customisation will be key in retaining consumer loyalty in the long term as consumers are increasingly looking for solutions which meet their personal as well as their social needs and desires.