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What’s Next for Cosmeceuticals and Nutricosmetics?
By: Eleni Grammenou, Euromonitor International
Posted: April 6, 2009, from the April 2009 issue of GCI Magazine.
- Women looking for beauty products that complement a natural lifestyle are expected to drive demand for nutricosmetic products.
- The industry must work to overcome consumers’ overriding skepticism as to the effectiveness of cosmeceutical products, and educate them on how and why cosmeceutical products differ from conventional cosmetics.
- Effective new technologies and ingredients will continue to win over consumers.
Skin care products have evolved, with basic ingredients such as mineral oils giving way to the high tech and exotic. It’s not the anomalies on shelf that boast of nanotechnology to deliver actives or once outlandish sounding naturals such as sea kelp and red ginseng. Premium cosmetic brands, in fact, have embraced the new and unusual, and the cosmeceuticals market has provided new scope for masstige segment products—with products such as Olay Regenerist and Avon Anew quickly attracting consumer interest and demonstrating consumers’ strong awareness of these types of products.
The $14 billion global market has been posting strong single-digit growth rates. Before the economic downturn, this market would have been expected to achieve double-digit growth. In light of the current economic climate, consumer confidence has fallen and this is expected to impact demand for this niche and premium market.
Skin is What You Feed It
The nutricosmetics market was worth $1.5 billion in 2008, according to Euromonitor International, with 95% of sales generated in Europe and Japan. Due to stringent regulations, the U.S. market lags behind with only a 3% share, but interest is growing as Americans become acquainted with a wide array of functional foods and drinks that promote health. The success of functional products such as VitaminWater, Airborne and Emergen-C are strong indicators that consumers are warming to cosmeceutical and nutricosmetic products.
The launch of Viactiv Multi-Vitamin chews a few years ago was one of the most notable launches in the nutricosmetics segment. A super-vitamin targeted primarily at women, its success offers hope to similar products. Frutels continued with this vision, and launched a nutricosmetic candy bar tailored to the younger demographic in 2006. The supplement was marketed to support the body’s own defenses against acne by regulating hormone fluctuations and supplying micronutrients that are absent in poor diets.