What is skin care? “It is the range of practices that support skin integrity, enhance its appearance and relieve skin conditions. Skincare is at the interface of cosmetics and dermatology with some overlap among the two.”
Source: Wikipedia
The global skin care market is broadly segmented by product categories namely face cream, skin brightening cream, anti-aging cream, sun protection cream, body lotion etc. The value chain in case of skin care markets consists of raw material suppliers, manufacturers of skin care products, distribution channels primarily wholesalers then retailers leading on to the end users. The retail distribution is different for each product category and managed accordingly through pharmacies, salons, home stores, supermarkets and so on. The branding strategy around each is devised by the brand.
It is a fast-growing and ever-expanding market, inclusive of over the counter drugs and prescription drugs. As per a leading market research company, skin care is the leading category valued at € 130 billion accounting to about 36% of the total global cosmetics market in the year 2016. According to a new report by Grand view research, Inc., the global skincare market is forecasted to reach USD 177.15 billion by 2024 growing at the rate of 4.7% from 2016 to 2024. These market values are established based on the current consumption patterns, the past market trends but most importantly because of the rising awareness about the advantages of skin care products accompanied by proven customer feedback and results. Also, a great portion of this business is contributed by the extensive accessibility created by the explosion of e-commerce.
The global market is facing both industry-wide and market-specific drivers and restraints such as patent expiration, variable drug/raw material pipeline, emerging markets/brands/technologies, and the emergence of biologics. Also, concepts such as organic and natural products are emerging to become popular and most sought after products as they are aimed at eliminating the harmful effects of synthetic products. This rising awareness and acceptance have forced manufacturers to invest more in R&D and innovation and build their marketing strategies around it.
The global market is becoming highly competitive with a lot of multinational brands such as L’Oréal, P&G, Unilever, which provide a vast array of products. But in spite of leading and driving the markets, these brands are increasingly facing the heat from a number of new brands intending to shake up the industry. These challenger brands that are mostly consumer-focused with an inclusive mindset are taking over the likes of leading brands as consumer favourites.
References:
Simeon Pinder (July 9, 2018) “The Global Skincare and Dermatology market from 2018 to 2028”, Market Research.com (online) retrieved from
https://blog.marketresearch.com/the-global-skincare-and-dermatology-market-from-2018-to-2028
April 2018, Electronic (pdf) report “Skin care products market worth $177.15 Billion by 2024, CAGR 4.7%”, Grand view research (online) retrieved from https://www.grandviewresearch.com/press-release/global-skin-care-products-market
Cos' we care ! 