Cosmeceutical and Anti-Aging Products in the U.S.

• Report Parameters
• Methodology
• Terms Clarified
• Three Cosmeceutical Categories: Skincare, Makeup, Haircare
• The Skincare Category
• The Makeup Category
• The Haircare Category
• Cosmeceuticals Market Leaps Past $13 Billion in 2005
• Cosmeceuticals Market to Surpass $17.2 Billion in 2010
• Skincare, at $7 Billion, Is the Power-Category
• Skincare Category Projected to Soar to $9.2 Billion in 2010
• Makeup Category Thrives, Breaks $3.3 Billion Mark
• Makeup to Push to $4.4 Billion in 2010
• Haircare Category Brushes $3 Billion
• Haircare to Nudge $3.6 Billion in 2010
• Table 1-1 U.S. Retail Dollar Sales of Cosmeceuticals, by Category, 2001-2010 (In Millions)
• Table 1-1a U.S. Retail Dollar Sales of Cosmeceuticals, by Total Combined Mass/Prestige Categories, 2001-2010 (In Millions)
• Still More Plastic Surgery, Yet More Health-Consciousness, Too…
• Boomers Still Make Best Targets
• Table 1-2 Projected U.S. Population, by Age Bracket, 2005-2020 (In Thousands)
• Surprise! Twentysomethings and Teens Fret About Wrinkles
• Home “Medical” Procedures Reorganize Mass Skincare Shelves
• Men, Ethnics, Youth Lured by Conditions/Concerns Positioning
• The Changing Distribution Picture
• Possibly 700 Cosmeceuticals Marketers, Maybe More
• But Only About 111 Have Significant Brand Share in Mass
• Table 1-3 Numbers of Cosmeceuticals Marketers Achieving Significant Share* of Retail Dollar Sales in Mass Channels (Supermarkets, Chain Drugstores, Mass Merchandisers), by Category and Selected Product Segments, 2004 versus 2005
• Marketing and Product Trends
  • Blurring Prestige With Mass: Now Get High Prices Everywhere!
  • Anti-Aging Skincare Assortment Mushrooming
  • Skin Peel and Micro-Dermabrasion Kits
  • Doctor-Endorsed Brands Still Proliferating
  • A Race for Fastest Wrinkle-Reduction
  • Cosmeceuticals Marketers 2005 Ad Spend: $1.7 Billion
  • Margins Still Rich
  • Table 1-4 Supermarket Retailers' Average Gross Profit Margins on Health and Beauty Care (HBC) Products, by Category and Product
  • Psychographics: The Old Want Health, the Young Want Youth!
  • Big Spenders Not Necessarily Brand-Conscious

Chapter 2 The Products

• Report Parameters
• Three Cosmeceutical Categories: Skincare, Makeup,
• Haircare
  • The Skincare Category Anti-Aging
  • Facial Cleansers and Other Preparations
  • Hand & Body Lotion
  • At-Home Skin-Peel and Microdermabrasion Kits
  • Moisturizers
  • Suncare
  • The Makeup Category
  • Eye
  • Face
  • Lip
  • The Haircare Category
  • Conditioner/Treatments
  • Hair Growth
  • Shampoo
  • Assortments for Ethnic Consumers Broadening - and Narrowing
  • Regulation by FDA, FTC
  • Industry Representation

Chapter 3 The Numbers

• Market Size and Growth
  • Cosmeceuticals Market Leaps Past $13 Billion in 2005
  • Table 3-1 U.S. Retail Dollar Sales of Cosmeceuticals, by Category, 2001-2005 (In Millions)
  • Skincare, at $7 Billion, Is the Power-Category Table 3-2 U.S. Retail Dollar Sales of Cosmeceutical Skincare Products, by Sales Channel, 2001-2005 (In Millions)
  • Table 3-2a U.S. Retail Dollar Sales of Cosmeceutical Skincare Products, by Mass Segment, 2001-2005 (In Millions)*
  • Makeup Category Thrives, Breaks $3.3 Billion Mark
  • Table 3-3 U.S. Retail Dollar Sales of Cosmeceutical Makeup, by Sales Channel, 2001-2005 (In Millions)
  • Haircare Category Brushes $3 Billion
  • Table 3-4 U.S. Retail Dollar Sales of Cosmeceutical Haircare Products, by Sales Channel 2001-2005 (In Millions)
  • Table 3-4a U.S. Retail Dollar Sales of Cosmeceutical Haircare Products, by Mass Segment, 2001-2005 (In Millions)*
  • Mass Maintains 61% Share of Sales
  • Outlet Share: Mass Dominates Skincare
  • Outlet Share: Prestige Edges Out Mass in Makeup
  • Outlet Share: Mass Commands Haircare Segment
  • Skincare Still Accounts for Half of Retail
  • Table 3-5 Share of U.S. Retail Dollar Sales of Cosmeceuticals, by Category, Segment, and Sales Channel, 2004-2005

Chapter 4 What Lies Ahead

• Factors in Future Growth
• More Plastic Surgery, Yet More Health-Consciousness, Too…
• Table 4-1 A Selection of Statistics on U.S. Plastic Surgery Procedures, 2004 (In Thousands)
• Boomers Still Make Best Targets
• Gen-Xers Getting Long in the Tooth
• Surprise! Twentysomethings and Teens Fret About Wrinkles
• Table 4-2 Projected U.S. Population, by Age Bracket, 2005-2020 (In Thousands)
• Home “Medical” Procedures Reorganize Mass Skincare Shelves
• Men, Ethnics, Youth Lured by Conditions/Concerns Positioning
• The Changing Distribution Picture
• Ingestibles Not Seen As a Threat

• Projected Sales
• Cosmeceuticals Market to Surpass $17.2 Billion in 2010
• Skincare Category Projected to Soar to $9.2 Billion
• Makeup to Push to $4.4 Billion
• Haircare to Nudge $3.6 Billion
• Table 4-3 Projected U.S. Retail Dollar Sales of Cosmeceuticals, by Category, 2005-2010 (In Millions)

Chapter 5 The Competitive Situation

• The Marketers
  • Estimated 700 Cosmeceuticals Marketers
  • But Only About 111 Have Significant Brand Share in Mass
  • Table 5-1 Numbers of Cosmeceuticals Marketers Achieving Significant Share* of Retail Dollar Sales in Mass Channels (Supermarkets, Chain Drugstores, Mass Merchandisers), by Category and Selected Product Segments, 2004
  • Types of Companies Involved
  • Table of Marketers and Brands
  • Table 5-2 Leading Marketers of Cosmeceuticals and Their Representative Brands
  
  
• Marketer and Brand Share
  • Special Note on IRI Data
  • L’Oreal, P&G, J&J Command Anti-Aging Facial Preparations
  • Table 5-3 Share of U.S. Retail Dollar Sales of Anti-Aging Facial Preparations in Mass Channels,* by Marketer and Brand, 2005
  • Anti-Aging Body Preparations: P&G, J&J, Lansinoh on Top
  • Table 5-4 Share of U.S. Retail Dollar Sales of Anti-Aging Body Preparations in Mass Channels,* by Marketer and Brand, 2005
  • Facial Cleansers: J&J, P&G, Unilever
  • Table 5-5 Share of U.S. Retail Dollar Sales of Facial Cleansers in Mass Channels,* by Marketer and Brand, 2003-2005
  • Five Marketers Hold Double-Digit Shares in Fade
  • Creams/Lighteners
  • Table 5-6 Share of U.S. Retail Dollar Sales of Fade/Lightening Creams in Mass Channels,* by Marketer and Brand, 2005
  • Table 5-6 [cont.] Share of U.S. Retail Dollar Sales of Fade/Lightening Creams in Mass Channels,* by Marketer and Brand, 2005
  • Hand & Body Lotions: Four Leaders With Double-Digit Share
  • Table 5-7 Share of U.S. Retail Dollar Sales of Hand & Body Lotions in Mass Channels,* by Marketer and Brand, 2003-2005
  • Moisturizers Dominated by P&G, J&J, Unilever
  • Table 5-8 Share of U.S. Retail Dollar Sales of Facial Moisturizers in Mass Channels,* by Marketer and Brand, 2003-2005
  • Table 5-8 [Cont.] Share of U.S. Retail Dollar Sales of Facial Moisturizers in Mass Channels,* by Marketer and Brand, 2003-2005
  • Suncare Double-Digit Leaders: Schering-Plough, Playtex, J&J
  • Table 5-9 Share of U.S. Retail Dollar Sales of Suncare Products in Mass Channels,* by Marketer and Brand, 2003-2005
  • Hair Conditioner: P&G, L’Oreal, Unilever Still Lead
  • Table 5-10 Share of U.S. Retail Dollar Sales of Hair Conditioners in Mass Channels,* by Marketer and Brand, 2003-2005
  • In Hair Growth Preparations, Pfizer Gives Up Share to Private Label
  • Table 5-11 Share of U.S. Retail Dollar Sales of Hair Growth Preparations in Mass Channels,* by Marketer and Brand, 2003-2005
  
  
• Competitive Profile: The Estee Lauder Companies, Inc.
  • Net Sales of $6.3 Billion in Fiscal 2005
  • Estee Lauder a Practicing “Brand-ist”
  • Estee Lauder Extends Cosmeceutical Depth and Breadth
  • Other Estee Lauder Brands
  
  
• Competitive Profile: Johnson & Johnson
  • Sales of $50.5 Billion in 2005
  • Table 5-12 Johnson & Johnson Consumer Segment Sales, by Subsegment, 2005 (In Millions)
  • J&J the Queen of OTC Medical Cachet
  • Aveeno and Neutrogena: Acquired and Inspired
  • Other J&J Brands
  
  
• Competitive Profile: L’Oreal Group
  • Sales Exceed €14.5 Billion in 2005
  • HBC Giant L’Oreal in Cosmeceutical Vanguard
  • An Expanding Research Capability
  • L’Oreal Acquires The Body Shop
  
  
  • Competitive Profile: The Procter & Gamble Company
  • Net Sales of Close to $57 Billion in Fiscal 2005
  • Acquisitions of Gillette and Wella
  • P&G Fields Up-to-Date Cosmeceuticals in Wide Range of Price-Tiers
  • Other of P&G’s Famous Brands
  
  
  • Competitive Profile: Unilever PLC/Unilever N.V.
  • Turnover of €40 Billion in 2005
  • Unilever Sells Value-Priced Cosmeceuticals to the Masses
  • The “Real Beauty” Campaign for Dove
  • Unilever Controls a Legion of Household Names
  
  
• Marketing and Product Trends
  • Blurring Prestige With Mass: Now Get High Prices Everywhere!
  • Anti-Aging Skincare Assortment Mushrooming
  • Skin Peel and Micro-Dermabrasion Kits
  • Doctor-Endorsed Brands Still Proliferating
  • A Race for Fastest Wrinkle-Reduction
  • Table 5-13 Selected New Introductions of Cosmeceuticals, by Marketer and Brand, 2005-2006
  
  
• Consumer Advertising Expenditures
  • Cosmeceuticals Marketers Spent $1.7 Billion to Advertise in 2005
  • P&G Dominant Among Four $100 Million-Plus Advertisers
  • Beiersdorf Leads Among Four Marketers Spending $60 Million-$90 Million
  • Pfizer and Revlon Lead Among Five Spending $16 Million-$32 Million
  • Other Marketers Spend Over $96 Million...
  
  
• Consumer Advertising Positioning
  • Beautiful People and/or Beautiful Products
  • Highlighting Technology
  • Specific Age Groups
  • Doctor, Doctor…
  • For Men Only
  • Stress Relief
  • Protection From The Environment
  • Hair Strength

Chapter 6 Distribution and Retail

• More Distribution Opportunities for Cosmeceuticals Marketers
• Margins Still Rich
• Table 6-1 Supermarket Retailers' Average Gross Profit Margins on Health and Beauty Care (HBC) Products, by Category and Product
• Retail Focus: Ulta Salon, Cosmetics & Fragrance, Inc./Ulta.com
• Sales of $362 Million, At Least
• The Open-Sell Format, American-Style

Chapter 7 The Consumer

• About Simmons Survey Data
• What They Are…
• …And How to Use Them
• The Survey’s Overall Gauge
• Marketing Regions Defined
• Northeast
• East Central
• West Central
• Southeast
• Southwest
• Pacific
• Table 7-1 Projections of Numbers of U.S. Adults, by Demographic Factor, 2005 (In Thousands)
• The Consumer of Moisturizers
  • Almost 132 Million Adults Use Moisturizers
  • Need, Not Affluence, Regulates Moisturizer Use
  • Table 7-2 Demographic Characteristics Most Favoring Use of Moisturizers, Creams, and Lotions, 2005 (Adults in Thousands, in Recent 12 Months)
  • Lotion the Most Popular Form
  • Table 7-3 Numbers of Users of Moisturizers, by Product Form, 2005 (Thousands of Adults, in Recent 12 Months)
  • Regular the Most Popular Type
  • Table 7-4 Numbers of Users of Moisturizers, by Product Type, 2005 (Thousands of Adults, in Recent 12 Months)
  • Daily Moisturizer Use Is Prevalent
  • Table 7-5 Frequency of Use of Moisturizers, 2005 (Thousands of Adults, in Recent 7 Days)
  • Olay, Vaseline, Avon, Jergens the Most Popular Moisturizers
  • Table 7-6 Numbers of Users of Moisturizers/Creams/Lotions, by Brand, 2005 (Thousands of Adults, in Recent 12 Months)
  
  
• The Consumer of Facial Cleansers/Medicated Products
  • Over 87 Million Users
  • Youth, Health-Knowledge, Urban Settings Are Prominent
  • Table 7-7 Demographic Characteristics Most Favoring Use of Facial Cleansing/Medicated Products, 2005(Adults in Thousands, in Recent 12 Months)
  • Foaming Washes the Most Popular Cleanser Form
  • Table 7-8 Numbers of Users of Facial Cleansing/Medicated Products, by Product Form, 2005 (Thousands of Adults, in Recent 12 Months)
  • Simple Cleansing Is the Most Common Motivation to Use
  • Table 7-9 Reasons for Use of Facial Cleansing/Medicated Products, 2005 (Thousands of Adults, in Recent 12 Months)
  • Daily Use Predominates
  • Table 7-10 Frequency of Use of Facial Cleansing/Medicated Products, 2005 (Thousands of Adults, in Recent 7 Days)
  • Olay, Neutrogena Are Most Popular Cleansing/Medicated Products Brands
  • Table 7-11 Numbers of Users of Facial Cleansers/Medicated Products, by Brand, 2005 (Thousands of Adults, in Recent 12 Months)
  
  
• The Consumer of Suncare Products
  • Almost 82 Million Adults Use Suncare Products
  • Affluence, White Skin Encourage Use of Suncare Products
  • Table 7-12 Demographic Characteristics Most Favoring Purchase of Suncare Products,* 2005 (Adults in Thousands, in Recent 12 Months)
  • Sunblock the Dominant Suncare Product Type
  • Table 7-13 Numbers of Users of Suncare Products, by Form, 2005 (Thousands of Adults, in Recent 12 Months)
  • A Tendency to Consumption of Only One or Two Units Annually
  • Table 7-14 Frequency of Use of Suncare Products, by Bottles/Tubes Used, 2005 (Thousands of Adults, in Recent 12 Months)
  • Consumers Prefer Tanning with Coppertone, Banana Boat
  • Table 7-15 Numbers of Users of Suncare Products, by Brand, 2005 (Thousands of Adults, in Recent 12 Months)
  
  
• The Consumer of Hair Conditioner/Treatments
  • About 105 Million Adult Users
  • Youth, Presence of Kids, Minorities Influence Conditioner Use
  • Table 7-16 Demographic Characteristics Most Favoring Use of Hair Conditioner/Treatments, 2005 (Adults in Thousands, in Recent 12 Months)
  • Pantene and Suave Vastly More Popular Than Other Brands
  • Table 7-17 Use of Hair Conditioner/Treatments, by Brand, 2005 (Adults in Thousands, in Recent 12 Months)
  
  
• The Consumer of Cosmeceutical Makeup
  • Numbers of Cosmeceutical Makeup Users, By Brand
  • Table 7-18 Numbers of Users of Cosmeceutical Makeup Types, by Brand (Thousands of Adults, in Recent 12 Months)
  
  
• Psychographics of the Cosmeceutical Consumer
  • The Old Want Health, the Young Want Youth!
  • Table 7-19 Demographic Characteristics Most Favoring Agreement with Two Statements of Attitude, 2005 (Adults in Thousands)
  • Big Spenders Not Necessarily Brand-Consciousness...
  • Table 7-20 Demographic Characteristics Most Favoring Agreement with Two Statements of Attitude, 2005 (Adults in Thousands)
  
  
• The Teen Consumer of Cosmeceuticals
  • Girls, Girls, Girls!
  • Table 7-21 Projections of Numbers of U.S. Teenagers, by Demographic Factor, 2005 (In Thousands)
  • Blacks and Hispanics Most Apt to Moisturize
  • Older Teens Notable Facial Cleanser/Medicated Products Users
  • Younger Teens, Whites Gravitate to Suncare
  • Older Teens, Blacks and Hispanics Are Standout Hair Conditioner Users
  • Table 7-22 Demographic Characteristics Most Favoring Teenagers' Use of Cosmeceuticals, by Product, 2006 (Adults in Thousands, in Recent 12 Months)

Chapter 8 Trends and Opportunities

• Cosmeceuticals Strategy Not Broke? Don’t Fix It!
• The Next Wave(s) in Marketing/Product Trends
• A Return to Low-End Activity
• Cosmeceutical Makeup SKUs
• Natural/Organic/Botanical Positioning
• Stress Relief
• Cross-Branding
• Private Labels Becoming Real Brands
• The Dove Experiment
• Look for the Demographic Quirks…
• Ingestibles Are a Sideline