Driven by an aging population looking for anti-aging solutions, the cosmeceutical market in the US is projected to grow at almost double the average rate for the cosmetics sector, according to the Freedonia Group.
The market researcher has just released the latest trend projections about the category and predicts that it will grow by an average 5.8 percent per year to reach a value of $8.5bn by the year 2015, compared to a value of $6.4bn in 2010.
Although the market for traditionally pricey cosmeceutical products has tended to focus on the 45-years-and-older consumer, the research points to the fact that the demographic target is expanding, to include much younger consumers.
Freedonia’s research earmarks the fact that the US population is continually searching for products to stave off the physical signs of aging, a trend that is encouraging younger consumers to search out anti-aging products that are both preventative as well as being designed to treat their first wrinkles.
Private label brands will up competition
However, Freedonia also believes that the segment is likely to face a number of pressures and challenging in the coming years, including the fact that increased competition in the sector from private label brands is likely to lead to growing pricing pressures.
Likewise, the premium pricing of cosmeceutical products means that they are priced against other more expensive treatments, including cosmetic surgeries, adding to the competitive pressures.
Need to develop ever-advanced formulations
To move forward, the Freedonia researchers stress the fact that cosmeceutical providers will have to concentrate on enhancing the scientifically-advanced chemicals and ingredients that make up the formulations.
Antioxidants will remain the largest and most important ingredient category for the segment, but botanicals are likely to see the biggest gains, the research points out.
The research also categorizes injectables such as Allergan’s Botox in the segment, and says that these type of treatments are likely to head up the growth as they continue to gain in popularity.
Watch out for injectables!
In relation to this, even faster growth, albeit from a smaller base, is likely to be witnessed by the more recently-introduced hyaluronic acid-based injectable treatments.
The injectables category was valued at $686m in 2010, and experienced and annual growth rate of 7.0 percent in the five preceding years. In 2015 the category is predicted to reach $980m, representing annual growth of 7.4 percent.
Skin care will remain the biggest category, valued by Freedonia at $4.0bn in 2010, a figure that is predicted to grow at an annual rate of 6.2 percent to reach $5.4bn.
Other categories include hair care, which is set to grow by 3.4 percent per year to reach $650m in 2015, lip care, which is set to grow by 2.5 percent per year to reach $430m and tooth whitening, which should grow at 6.6 percent per year to reach $600m.