Cosmeceutical Product Demand to Reach $8.5 Billion in 2015

US demand for cosmeceutical products is expected to increase 5.8 percent per annum to $8.5 billion in 2015, driven by an aging populace seeking to maintain the appearance of youth.  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.  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). These and other trends, including market share and product segmentation, are presented in US Cosmeceuticals, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

The chemicals used in cosmeceutical products provide a competitive advantage by which product manufacturers differentiate their products.  Gains will be spurred by the use of new, value-added active ingredients in product formulations.  Antioxidants will remain the largest category, with above-average gains promoted by their incorporation into both topical and ingestible formulations.  Botanicals will continue to see the fastest gains in demand as consumers continue to favor “natural” products.

Injectables and skin care products will experience the fastest growth, based on anti-aging benefits.  Brands such as Allergan’s BOTOX COSMETIC and JUVÉDERM have been essentially synonymous with injectables since their introduction, and will continue to lead growth going forward.  The first direct competition to BOTOX emerged in 2009 with the Food and Drug Administration’s approval of DYSPORT which will help to reshape the injectables market.  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, expanding group of graying “baby boomers,” 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.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.