This is the conclsion of a report by Scientia Advisors, based on a recently conducted study into this dynamic and fast-evolving niche.
According to Harry Glorikian, managing partner of Scientia Advisors, the category is growing at twice the pace of the cosmetics industry in both the US and worldwide, but the development of technologically advanced active ingredients is not keeping up with the growth.
Cosmeceutical skin care products are most commonly marketed as an effective and more sophisticated to fight signs of aging, by combining base moisturizing ingredients with highly effective active ingredients that commonly combine properties such as anti-oxidants, skin cell regeneration and exfoliants.
CoQ10, peptides, AHA...
Traditionally common ingredients included in cosmeceutical formulations include CoQ10, peptides, glycolic acid (for skin peeling), echinacea propolis, ascorbic acid and alpha hydroxyl acids.
The formulations also include naturally-derived ingredients such as camphor, allantoin and algae extract, which can all be difficult to source because of limited supply resources.
Glorikan says that the development of the cosmeceuticals category is taking place against a background of changing consumer trends and spending patterns as well as evolving government regulation that is helping to shape the category.
Europe and Asia Pacific dominate
According to the study, the US has remained on the edge of this development, with Europe and the Asia Pacific region continuing to account for approximately 70 percent of the total global market value.
Demonstrating the current levels of growth, the value of the cosmetics market in the US alone is set to fall by 1.2 percent in 2009, to reach a value of $60.37bn, but market researcher IBIS World says that in contrast the cosmeceuticals category should grow by 7.7 percent to reach a value of $3.5bn.
Meanwhile this growth is set to continue, driven by the current obsession for youthful looks and wellness, combined with the fact that these products are heavily marketed by manufacturers, resulting in predictions that the category in the US should attain a value of $4bn by 2011.