Anti-aging products are currently among the leading product category in the United States. Global skincare markets have no fear of being threatened by the suffering economy.
Anti-aging skincare industry is more resilient than ageless skin
Special to FashionIndustryToday.com
May 2, 2008
by Samantha Rose, San Francisco
Anti-aging products are currently among the leading product category in the United States. Global skincare markets have no fear of being threatened by the suffering economy. Skin care is the largest of all of the cosmetics and toiletries industries. Additionally, it is the fastest growing both historically and by forecast. Consumers want products that reverse, stop, and prevent the signs of aging thus fueling sales.
Economic struggles materialize as a new deep wrinkle on our country’s financial face. As there are less money available to spend on anti-aging skincare, the consumer will further educate themselves to choose products and solutions that are economical and best-suited to their specific needs. Despite finances, focus on anti-aging skincare will continue to grow, since we all want to look more youthful and feel energetic despite what our chronological age states. Botox, facial lasers and many surgical procedures will be expensive options and utilized with less frequency. Products that help people feel better and provide actual skin repair from the comfort of their home will become the focus of the anti-aging skincare industry. People want to see improvement in their skin, without a large expense.
Men and women alike are finding it more important to stay competitive and on top of their game in the business world today without feeling and looking young. Given society’s emphasis on youth and beauty business executives, and home makers alike are finding it more important to take care of their skin and reduce visible aging effects.
Even in a suffering economy, individuals are continuing to take care of their skin and use anti-aging treatments. Additionally, people are increasingly utilizing radio frequency techniques such as Thermage and Accent in addition to Botox and other fillers to create and maintain a youthful look maximizing their public presence. Working mothers between the ages of 40 and 55 years old are the most common users of Botox. One of the major benefits of these treatments is that there are no real discernible signs or scars and the downtime and recovery is minimal.
Author and International Beauty expert Wendy Lewis stated “Anti-aging skincare shows no signs of slowing down. If anything, we can expect to see it take off even more, as consumers are tightening their belts in an economic downspin. Everyone is downsizing – they may put off a big cosmetic surgery and choose instead to go with Botox, Restylane or a Pearl laser treatment to turn back the clock. If they are in a real crunch, they might stretch out botox or filler treatments longer in between sessions, or look for less expensive alternatives. Anti aging skin care is the one thing they won’t ever give up.
Most consumers who buy into the concept of defying aging through intervention, believe that if they stop using wrinkle creams, their wrinkles will not only come back but come back even stronger. Consumers may turn to less pricey brands now, such as moderate priced cosmeceuticals or mass brands like Olay, Roc and Neutrogena instead of opting for the $500 anti-aging cream they saw at Bloomingdales. The anti-aging skincare segment is so diverse today that consumers can buy effective products for as little as $10.”
According to CosmeticDesign.com the Packaged Facts Report states that the overall skincare market is estimated to currently stand at $5.8 billion and is expected to increase by leaps and bounds in the future. The company states that it will reach $115.5 billion by 2010. It is said that anti-aging products will continue to act as industry leader with an annual growth rate of 11.3% being expected by 2010- which is among the highest growth grates for the skincare industry as a whole.
The $3.2 billion cosmeceutical skin care market is forecast to grow up to $5 billion in the next three years. Medical spa revenues rose to $1 billion in 2006, compared to $469 million in 2005. The number of medical spas providing anti-aging skincare procedures went from approximately 45 facilities in 2002 to more than 2,000 facilities in 2007, according to the International Medical Spa Association.
Facial skincare accounts for almost 20% of the entire skin care category- a $3 billion dollar amount- and has proven to have the highest growth rate. This rate can bet attributed to an increased interested in the sophisticated and technologically advancing skin care products which focus on anti-aging.
Studies have shown that for the most part anti-aging and facial moisturizing products sell at a higher rate when priced higher. Consumers are swayed by the concept that the higher the price would mean the better the product when it comes to caring for their skin. While results vary depending on various variables, as long as products are delivering the results as they promise, consumers are compelled to buy regardless the price.
In 2007, two anti-aging facial skin care launches proved to be top producers among the entire skin care market. Aveeno Active Naturals Positively Ageless had sales of $20 million and Garnier Nutrionisted Skin Renew Moisturizer with sales of $17 million.
Though typically dominated and supported by the Baby Boomer generation, anti-aging skincare industry is opening its doors to other markets, which also include women ages 25 to 30, as they are getting more aware of today’s longevity and well-being trends.
Younger age groups are beginning to jump on the anti-aging bandwagon by changing not only their lifestyle but their grooming practices as well. In general, consumers wish to fight the aging process and minimize the visible effects of aging.
Middle-class aging women are also spending their hard earned dollar on aesthetic enhancement and are willing to admit it. The medical spa industry, a $1 billion dollar industry has grown 133% over the past five years. This is due to a shift toward mainstream acceptance of anti-aging procedures. Women with middle-class incomes are forking over up to $3,000 annually to reduce wrinkles and achieve firmer, younger celebrity-like skin.
Broadening the target market for anti-aging products has led to an increase in spending on anti-aging products and a new market of individuals who purchase the products.
Innovation is now an extremely important feature in the skin care industry because brand loyalty is low. Companies strive to lure customers with eye-catching new developments. Target markets are now sophisticated and not only are companies encouraging younger women to use higher valued products they are also targeting consumers who are over 55 with products such as whitening and brightening creams in lieu of traditional anti-aging products.
Not only are younger women and middle class individuals purchasing the products but with trends such as organic and natural product sales are bound to grow and this industry is guaranteed to flourish. In addition to natural and organic products vitamins and minerals are used in topical formulations to prevent physical signs of aging as well as in dietary supplements. These two areas have coincided lately with supplements and food products designed to better one’s skin from within the body. This allows the products to serve the health care and beauty enhancement process. The companies dominating the organic and natural product niche are becoming targets for buy-outs and takeovers by larger, branded, well known companies. A great example of this is the recent acquisition of Sanoflore by L’Oreal. Products mimicking the results or experience of going to a salon or spa are also an extremely important trend in anti-aging skin care products.
Consumers want products which serve multiple functions. Promising protection, prevention, deep cleansing, and regeneration are desirable product functions among average consumers.
According to a report from market research company Global Industry Analysts, the United States and Europe are the leaders in the skin care market controlling a 62.8% share of the global market according to 2007 figures.
Changes in marketing strategies are expected to cause future growth. With cosmecueticals on the rise the ability to grow your customer base by boasting products with drug-like benefits you are honing in on a new generation well versed and educated in the pharmaceutical industry and understanding and believing in the amazing power of drugs on the body. Marketed with reference to services such as Botox and dermatology these trends have provided the industry markable growth rates over the last year.
Publisher of The Packaged Facts Reports, Don Montuori stated “Rebranding has paid off in several instances and positioning products in a more cosmeceutical fashion has fueled market growth and will continue to do so in the next several years as consumers buy into the promise of better looking skin”.
The anti-aging skincare industry is experiencing extreme upward growth. The availability of Botox, microdermabrasion, and laser resurfacing has allowed for more consumers to utilizes these services and procedures. These procedures have experienced a significant boost in the past five years and are showing little to no signs of slowing down. According to the American Academy of Cosmetic Surgery’s 2007 Procedural Survey, laser resurfacing has seen the greatest increase- with an increase of 126.7% in the past five years. Following closely behind laser resurfacing is abrasion with a 40.9% increase, and Botox increasing 11.6%.
In addition to the boost in the performance of these procedures the the cost of the procedures has not seen a dramatic increase. In fact, laser resurfacing has actually seen a $483 decrease in price since 2002. The price decreases across the board will continue to make this industry affordable no matter the status of the economy. The data provided in the 2007 Procedural Survey proves that even in our faltering economy consumers are not being anymore frugal when it comes to their beauty, health and reducing the signs and visibility of aging skin. In fact research has shown that individuals with an annual household income of less than $100,000 (44%) are more likely to utilize Botox than individuals with annual incomes of more than $150,000 (35%).
These statistics raise many questions regarding our culture. Are we become more vain? Are women becoming more educated about the importance of treating the skin as a health care issue? Skin-care professionals/aestheticians attribute to the growth of the med-spa industry and the demand for anti-aging procedures and products to great advancements in non-surgical techniques which reduce wrinkles, fine lines, varicose veins and other significant signs of aging.
On the topic of anti-aging products and procedures in our economy today, Dermatologist Joe Schlessinger stated “Interestingly, my website sales are up approximately 10% year over year and the sales for the cosmetic treatments are up as well, although certain larger procedures are flat year over year. My opinion is that most people will skimp on certain large things like a vacation to an exotic location or a new car, but medically appropriate purchases and those that are ‘ongoing maintenance’ such as skincare regimens will be continued. What we are seeing, however, is more of a slant toward value driven products and purchasing those that are on sale. This makes sense in this milieu and we are doing our best to hold our prices steady at this time. Most likely these robust sales and continued emphasis on looking good is a response to the constant drumbeat of bad news in a reactionary and resilient way. People need to feel and look good while such dreary things are being told to them every day and these sorts of purchases make sense as they are small and not extravagant, but fit the bill for the cosmetically oriented consumer of today.
People in our faltering economy still wish to look their best. They are even opting for better, more expensive skin care lines to avoid the cost of expensive plastic surgery procedures. Any skincare line that is producing positive results for individuals regardless of cost will still be purchased. The days of purchasing skin care items because of their scent are long gone. Now individuals expect to look visibly better, or they’re on to utilizing the next latest and greatest product. Anti-aging skincare products that produce promised results will still thrive in almost any economy.[]
Samantha Rose is a business writer at FashionIndustryToday.com