Cosmeceuticals

US demand to rise 5.8% annually through 2015
US demand for cosmeceutical products is expected to increase 5.8 percent per annum to $8.5 billion in 2015, driven by an increasingly competitive employment environment, a steady stream of new and technologically advanced product introductions, and the continuation of astute consumer-targeted marketing. Limiting further gains will be growing pricing pressures due to the expanding market penetration of private label brands and the rapid commoditization of innovative ingredients and products. Additionally, cosmeceuticals face intense competition from alternative treatments (e.g., cosmetic surgery) that tend to offer more dramatic results, though at a greater cost in terms of time, money and safety. Furthermore, though cosmeceutical formulations continue to improve as a result of research and development efforts, many consumers remain skeptical regarding the efficacy of cosmeceutical products, or are unwilling to follow the strict usage and application regimens required for optimal results.

Skin care and injectable cosmeceuticals to be fastest growing products
The target market for cosmeceuticals continues to expand beyond the traditional 45-years-and-older demographic to include much younger individuals, as the national obsession with youth continues and focus shifts to products intended to stave off the first signs of aging. Injectables and skin care products will register the fastest growth, based on anti-aging benefits. Products such as BOTOX COSMETIC (Allergan) have been essentially synonymous with the procedures since their introduction, and will continue to lead growth going forward. Relatively recently-introduced hyaluronic acid-based dermal fillers will see particularly fast growth.

In addition to achieving above-average growth, skin care products will remain the largest product category, set to account for 64 percent of all cosmeceutical product demand in 2015. Age-defying products will achieve the fastest gains in the segment, driven by a highly receptive, fast-expanding group of middle-aged consumers, who want to redress visible damage to the skin caused by aging, ultraviolet radiation and other environmental stressors, as well as a growing number of younger individuals seeking to prevent signs of aging.

Value-added ingredients and natural actives to be fastest growing chemicals
The chemicals used in cosmeceutical products provide the necessary competitive edge by which product manufacturers differentiate their products and capture market share. The value of chemicals used in cosmeceutical products is expected to advance 6.1 percent per year to nearly $1.5 billion in 2015, with gains spurred by the use of new, valueadded active ingredients in product formulations. Antioxidants will remain the largest category, with above-average gains promoted by their incorporation in both topical and ingestible formulations. Botanicals will continue to see the fastest gains in demand as consumer desire for “natural” products continues. Fast gains will also be seen for enzymes, particularly botulinum toxin used in injectables.