A new market report points to category leading growth for the global cosmeceutical market as advancements in ingredients technology leads to more innovative and effective products.
According to a new report entitled ‘Global Cosmeceuticals Market Outlook 2016’, the market was estimated to be valued at $30.5bn, and is likely to grow at a consistent CAGR of 7.7 percent during the period 2012 – 2016.
Cosmeceutical products have a big emphasis on scientifically developed and technologically advanced formulations and often contain active ingredients that can also be also found in pharmaceutical products.
The continued emergence of increasingly sophisticated active ingredients is said to be the main driving force behind the growth of this segment, which is rapidly evolving from what was a niche market into a still relatively small but significant category.
Advanced formulations target anti-aging
The technological advancements tie in with the continuing trend for consumers who want to try and turn back the hands of time or hold on to their youthful looks.
This is particularly apparent amongst the baby boomer generation, many of whom have a higher expendable income, making them the target consumer for cosmeceutical skin care products that often have a price tag in excess of $100.
Although the US remains the biggest market for this category, the report points to the fact that it is the emerging markets in the Asia Pacific region that is likely to be the driver of the predicted high future growth.
Asia Pacific likely to be main driver of future growth
The report highlights the rapidly emerging markets of India and China, which continue to register strong economic growth and a burgeoning middle class with higher expendable income levels, but also points to Japan another growth driver.
Although the market in India and China remains largely untapped for cosmeceutical, there is already an established niche market for the category in Japan that ‘is effectively improving’, the report notes.
As the anti-aging skin care continues to be the main driving force for the category, hair care is also important, while other areas such as tooth whitening and lip protection are likely to grow in popularity as the category continues to expand and mature.