Global demand for medicated skin care set for recovery

A new market report from Global Industry Analysts highlights the fact that the recovery should gain momentum in the next year, after the market in both Europe and the United States shrank in value during the recession.

Although recovery is expected to be a global phenomenon in the next five years, the report, entitled Medicated Skin Products : A Global Strategic Business Report, highlights the fact the emerging markets should lead the way, with Asia Pacific likely to record a CAGR of 6.0 percent.

But the gains expected this year are only likely to counterbalance the poor performance during 2008 – 2009, when shifting consumer patterns saw a big move towards lower-end and value products.

Innovation key to recovery​

Likewise, in the developed Western markets, the lull in retail activity forced manufacturers to launch more innovative products to get an all-important competitive edge during this period.

According to the GIA market report, the high perception of medicated skin care products is likely to fuel a recovery in the category which should be sustained until at least 2015, when it is estimated the market will be valued at $5.6bn, globally.

On a regional basis the largest market is likely to remain the United States, but it was also the market that was hardest hit by the recession. However, the research team at GIA believes that this market will show resilience in 2010, thanks to growing concerns for effective skin care treatments on the part of US consumers.

Opportunities in the acne and anti-aging categories ​

On a product category basis, the report stresses that treatments for acne and anti-aging products are likely to fuel the most growth in the coming years.

Acne is understandably the leading skin care concern for the teenage and young adult market, with four fifths of the world’s teen population estimated to suffer from some form of acne at any given stage of their development.

This is giving way to products such as medicated creams that also cleanse the skin and prevent acne outbreaks – a category that GIA says is now expanding and giving way to significant opportunities for manufacturers.

Anti-aging and prevention​

The anti-aging market is also continuing to expand, thanks partly to the uptake by younger adults, often in the twenty-something age group. This consumer group is more likely to be interested in the growing number of products that prevent or delay the onset of aging.

The report also highlights the fact that the move towards preventative anti-aging treatments is likely to give way to significant opportunities for active ingredients providers to supply innovative and effective solutions.