A study on the global cosmeceuticals industry released by market researchers Scientia Advisors on Tuesday says that the sector is growing rapidly and manufacturers need to add new ingredients to their product lines to sustain the growth.
According to the study, the market for cosmeceuticals -- cosmetics offering health benefits and that often have biologically active ingredients that could have drug-like effects -- is growing twice as fast as the personal care market. Manufacturers must keep in mind that tightening government regulations, market dynamics and shifting cultural trends will affect their sales.
The study also found that:
- Skincare is the largest and and fastest growing segment of the industry, fueled by anti-aging products geared towards youth-obsessed aging populations.
-Market leaders include Europe and Asia-Pacific, accounting for 70 percent of worldwide sales. However, China, Latin America, Russia and India, considered emerging markets, are showing the greatest growth across all subsegments.
-Supermarkets and pharmacies account for most sales of cosmeceutical products but further growth is expected in high-end specialty stores and salons, spas and in dermatology practices. Currently, direct and home sales are fueling growth in emerging markets.
-Increased demand has created a so-called masstige market, with mass brands offering additional benefits sold at higher prices, and premium brands made more available in less expensive retail outlets.
A previous study by the market research firm Freedonia projected that sales for cosmeceuticals is expected to increase 7.4 percent annually through 2012 in the United States. Antioxidants are currently the main ingredients of cosmeceutical products, but some of the best growth opportunities may be with botanicals and enzymes, according to the firm.