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What Will Be The Barrier To Entry For New Players In The Skin Care Products Market?
Skin care products are those that support in maintaining the skin’s texture, enhance its appearance, in addition to curing skin conditions. For instance, Revlon Inc. launched a series of Almay Kinetin Skincare Advanced Anti-Aging products in 2017. Moreover, skin care products provide nutrition required for the skin, whereas products such as sunscreen lotions protect the skin from harmful UV-radiations and help prevent skin cancer.Growing personal care industry worldwide is driving growth of the skin care products market. According to the International Trade Administration (ITA), in 2014, per capita spending on cosmetic products was reported as US$ 139 in the U.S., US$ 171 in South Korea, and US$ 174 in Japan.
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The skin care products market is projected to reach US$ 179.51 billion by the end of 2027, at a CAGR of 4.37% over the forecast period, owing to benefits such as aiding in skin protection, and prevention of skin diseases and skin cancer. For instance, according to the World Health Organization (WHO), 1.04 million cases of skin cancer (non-melanoma) were reported globally in 2018.
According to the World Health Organization (WHO), in 2018, skin diseases were among the most common of all human health afflictions and affected around 900 million people in the world. Excessive exposure to solar ultraviolet radiation increases the risk of all types of skin cancers. Avoiding excessive exposure and using skin care products such as sunscreen lotions and protective clothing are effective preventive measures. Moreover, in 2018, the World Health Organization (WHO) published a training guideline that aims to make it easier for health workers to identify the signs and symptoms of skin-related neglected tropical diseases.
Moreover, new product launches and various innovation in the skin care products such as organic personal care products, are driving growth of the skin care products market. For instance, Revlon Inc. launched a series of Almay Kinetin Skincare Advanced Anti-Aging products in 2017. However, limited shelf life of skin care products is a factor retraining the market growth.
The global skin care products market is expected to be valued at US$ 179.51 billion by 2027, and is expected to register a CAGR of 4.37% in terms of revenue over the forecast period (2019 – 2027).
Figure 1. Global Skin Care Products Market Share (%), By Region, 2018
Skin Care Products | Coherent Market Insights
Source: Coherent Market Insights, 2018-19
Asia Pacific is the fastest growing region and accounted for the largest market share of around 48.66% in 2018, owing to increasing demand for organic skin care products over chemical-based products in this region. Moreover, increasing disposable income in emerging countries such as China and India is another factor responsible for growth of the market. Additionally, as per the International Trade Administration (ITA), in 2014, per person annual expenditure on personal care and cosmetics in Japan was US$ 174.
Figure 2. Global Skin Care Products Market Share (%), By Distribution Channel, 2018
Skin Care Products | Coherent Market Insights
Source: Coherent Market Insights, 2018-19
Players operating in the global skin care products market are adopting various growth strategies such as mergers, acquisitions, and business expansions to cater to increasing demand for skin care products. For instance, in 2018, Unilever Plc. acquired 75% stake in the Italy-based personal care company, Equilibra. Equilibra offers skin care and hair care products and nutritional supplements in Italy, and is well established in the Italy personal care and skin care market. This acquisition helped Unilever enhance its skin care business in Italy.
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In January 2018, Colgate-Palmolive Company acquired Physicians Care Alliance, LLC and Elta MD Holdings, Inc., professional skin care businesses, which are two of the fastest-growing brands in the professional skin care market. These acquisitions enabled Colgate-Palmolive to enter the highly attractive professional skin care category, while complementing its existing global personal care businesses.
Major players operating in the global skin care products market include Unilever Plc., Shiseido Company Ltd., Johnson & Johnson Inc., Procter & Gamble Co., L'Oréal S.A., Revlon Inc., Kao Corporation, and Avon Products Inc., Beiersdorf AG, Colgate Palmolive Company, and others.
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