According to the latest report from the
Freedonia Group, entitled Cosmetics & Toiletry Chemicals, new products being
launched to cater for the personal care needs of these specific groups is set to
boost future growth, estimated to hit 5.4 per cent per year until 2010 to give a
projected market value of $7.6bn.
But over and above this level of growth those key demographic groups are
expected to exceed this level as key niche categories defines themselves as
categories in their own right.
US demographics have distinct characteristics that are helping to drive the
cosmetics and toiletries market. These include an aging population, growing
ethnic populations – especially Hispanic – as well as a rising birth rate.
In turn these demographic characteristics are helping to drive growth in
products aimed at older consumers, including anti-aging treatments and make-up
products designed for older skin.
For the ethnic market product launches have concentrated on hair and cosmetic
products, whereas a big increase in products aimed at toddlers and pre-teens has
met with a flood of products aimed at younger consumer’s requirements.
All of these categories are expected to maintain growth rates at current
rates, ensuring that there are still plenty of opportunities for cosmetic and
toiletry manufacturers in the coming years.
On the formulation front, the growth of increasingly targeted products has
led to a rise in the number of active ingredients being incorporated into
products.
According to Freedonia, this means that enzymes, amino acids, and peptides
will be driven by continued gains in cosmeceutical skin care products and high
value innovations such as nanotechnology.
But alongside the increasingly innovative formulations, there is a parallel
demand for simple, natural formulations, giving way to consumer fears over harsh
chemicals. This means botanical extracts, soy protein and natural fats and oils
are all expected to achieve significant growth rates in the coming years.
However, this trend towards more natural ingredients will also hit more
traditional ingredients such as refined pertroleum products and surfactants,
which are expected to achieve limited gains, primarily due to the popularity of
water-based formulations in skin and hair care products.
Looking at specific products, the growth in men’s grooming is expected to
give way to high-end shaving products and hair care preparations, as well as a
plethora of dedicated facial cleansers and skin care items.
Ethnic product launches will also continue to proliferate, with most products
concentrating on dedicated products for skin care, cosmetics and hair care.
Likewise, the continued growth of the graying baby boomer generation will
lead to even more anti-aging products creeping on to the market, with growth
expected to continue at well into double figures for the foreseeable future.
This means retail shelves will become even more crowded with products
catering to graying hair and aging skin, which in turn will bode particularly
well for producers of active ingredients and delivery systems.
SOURCE:
CosmeticsDesign.com