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Cosmeceuticals to See Growth Rate of 7.7% Over Coming Years
Posted: April 10, 2013
Expanding at a rapid compound annual growth rate of 7.7% between 2012 and 2016, the global cosmeceuticals market should reach $31.84 billion by 2016, according to the report “Global Cosmeceuticals Market Outlook 2016” by RNCOS E-Services Pvt. Ltd., which is also available through Global Information Inc. Cosmeceuticals—or cosmetic products with drug-like benefits—has become one of the fastest-growing segments of the cosmetics and personal care industry. The global cosmeceutical market offers huge potential among the Asian countries, such as Japan, China and India, which are set to attract major players in future. Though the market is at nascent stage in the developing countries, such as India and China, there remains a large untapped population, with the desire to look young and fair. Japan has already made a niche mark in the global cosmetics market, and its position in the cosmeceutical segment is effectively improving.
The "Global Cosmeceuticals Market Outlook 2016" provides an in-depth analysis in all the major segments and their sub-segments with key developments at the global level. The report finds that within the skin care and hair care, major segments in the global cosmeceuticals market, tooth whitening and lip protection are emerging as key segments for significant growth. New ingredients, such as stem cell and peptides for skin care-based cosmetics, also are anticipated to alter the market landscape in the near future.
A second report, "Cosmeceuticals Market to 2018" from GBI Research, forecasts the global cosmeceuticals market (U.S., U.K., France, Germany, Italy, Spain and Japan) will reach $42.4 billion by 2018. The report further notes that the market is dominated by a small number of large players such as Procter & Gamble, L’Oréal, Unilever and Beiersdorf. Their success is driven by building big brands such as Olay, L’Oréal, Garnier and Nivea through access to large marketing budgets.
With an aging population and increasing consumer awareness, demand for high-quality, innovative and premium-priced cosmeceutical products is increasing in the top seven global markets. Demand is further boosted by increasing urbanization and affordability in emerging markets such as Latin America, China and India. The per-capita disposable income is steadily increasing in these economies, making it a lucrative growth target for the cosmetics industry.
Looking to hair care, the report “The Divergent Worlds of Hair Care: Global Strategies for Growth” from Euromonitor International notes that, over the past five years, hair care spending in the BRICs and key second tier emerging markets has offset sluggishness in the U.S., Japan and Western Europe. Two divergent global markets emerged, one characterized by downtrading and the other by uptrading. With the economies of the biggest growth markets now starting to cool, there is mounting pressure to find green shoots of growth in developed markets and to build new positions in the most resilient regions of the emerging markets.