Demand for cosmeceutical products is expected to increase 7.4% a year to $8.2 billion in 2012, driven by an aging populace seeking to youthful appearance in an image-conscious society, according to a new report from Freedonia Group. This, coupled with an increasingly competitive work force, a steady stream of new and technologically-advanced product introductions and the continuation of astute marketing, will bode well for the cosmeceuticals marketplace.
On the flipside, limiting further gains will be growing pricing pressures and intense competition from alternative treatments, including laser resurfacing and various cosmetic surgical procedures.
According to the Cleveland-based industry research firm, injectables and skin care products will register the fastest growth in the market. Growth of injectables will be fueled by their ability to provide quick wrinkle reduction without recovery time. Further propelling gains will be the FDA approval of new injectables—such as calcium hydroxylapatite—that provide long-lasting results.
In addition to achieving above-average growth, skin care products will remain the largest product category, set to account for 63% of all cosmeceutical product demand in 2012. Age-defying products will achieve above-average growth, with gains driven by a highly receptive, fast-expanding group of middle-aged consumers, as well as a growing number of younger individuals, who want to redress or prevent visible damage to the skin caused by aging, ultraviolet radiation and other environmental stressors.
In terms of raw materials, antioxidants will remain the largest category, with above-average gains promoted by their incorporation in both topical and ingestible formulations. Botanicals and enzymes, as well as hyaluronic acid, amino acids and peptides, are among the active ingredients set for favorable opportunities in a variety of cosmeceutical products. More info: www.freedoniagroup.com