Features

The Key to Cosmeceuticals

August 4, 2008

Annual conference looks at top trends in this growing segment.

The Key to Cosmeceuticals



Annual conference looks at top trends in this growing segment.



Melissa Meisel & Christine Esposito
Associate Editors



What do you get when you combine beauty products with active ingredients? The global cosmeceuticals market, one of the fastest growing segments of personal care valued at $55 billion, according to the ALM/Strategic Research Institute.
   
At the 5th Annual Cosmeceuticals conference on June 26 and 27 in New York City—hosted by the ALM/Strategic Research Institute—the latest developments in anti-aging skin care, natural ingredients and ethnic cosmetics were presented by expert speakers at the Marriott East Side hotel.
   
The event kicked off with the Chairperson’s Opening Remarks segment. Happi columnist Navin Geria, vice president, research and development, Spadermaceutical Products Group, offered a presentation on the global skin care market. According to Mr. Geria, more women today are demanding products that work. Furthermore, consumer concerns are rising about misinformation in product advertising. For example, a high price on prestige brands may offer a false promise of efficacy and quality.
   
In the marketplace, consumers are also increasingly clamoring to buy more eco-friendly, greener products. “This is not a passing trend, but a strong current reality,” said Mr. Geria.
   
The future of the cosmetic industry was also discussed in Mr. Geria’s presentation. Global “mega trends” in society and technology play a strong role in the changing market, as well as a boost in innovation.
   
Mr. Geria also discussed nutricosmetics later on at the seminar. As consumers desire to be beautiful inside and out, they are searching for alternatives to plastic surgery and botox. Breakthroughs in beauty science are showing that vitamins and supplements can produce the same results, according to Mr. Geria.
   
Actives and delivery mechanisms are also crucial to growth in the market, according to Gillian Morris, a director in the chemicals industry consulting practice at Kline & Company, who reported on innovations in the cosmeceuticals category as well at the conference.
   
Next on Thursday’s event roster was Dr. Andrew F. Alexis, director for the Skin of Color Center at St. Luke’s-Roosevelt Hospital, who provided “Insights Into the Development of Ethnic Cosmeceuticals.”
   
According to Dr. Alexis, the goal of his presentation was to highlight important issues in cosmeceuticals for the ethnic consumer. In fact, African-Americans, Hispanics and Asian-Americans have an annual purchasing power of $1.9 trillion.
   
These consumers want products that even the skin tone, clear up blemishes and in some cases, lighten or brighten skin. There are also differences in needs for hair care, as ethnic tresses can be dry or brittle. Be on the lookout for hydroquinone, arbutin, kojic acid, retinols, licorice, niacinamide, AHA and vitamins C and E in the leading ethnic skin and hair care of the future.
   
Julia McNamara, vice president, consumer markets consulting for Datamonitor, delved into the topic of “Emerging and Future Cosmeceutical Trends in the U.S.,” and emphasized the importance of noting the needs in global markets. For example, more and more U.S. consumers are buying products due to “word of mouth”; therefore, marketers need to clarify the message in advertising products. Also, the development of more multifunctional products can be targeted toward time-pressed consumers.

Panelists Tackle Cosmetic Marketing Issues



Promotion also was the matter at hand at the final presentation of the day, “Hot Legal Issues in Cosmetic Marketing.” An expert panel consisting of Thomas A. Cohn, senior attorney, Federal Trade Commission (FTC), Northeast Region; Jennifer Fried, staff attorney, National Advertising Division of the Better Business Bureau; and  Andrew B. Lustigman of The Lustigman Firm looked at perspectives on regulatory, self-regulatory and private practice issues.
   
Topics examined by the panel included controversial claims in cosmetic marketing, FTC/Food and Drug Administration (FDA) dual jurisdiction and respective roles, enforcement priorities, the role of the self-regulatory process and strategies for marketing cosmetics in a compliant manner.
   
Opening the second day of the conference was Lauren Thaman, global director, P&G Beauty Science. According to Ms. Thaman, consumers aren’t looking for hope in a jar, “they want science in a bottle.”
   
She noted that the beauty market is calling for sophisticated products that deliver the unexpected and in which ingredients team up to provide expected results that are profitable.
   
To illustrate her point, Ms. Thaman cited an example from the candy industry: the ubiquitous peanut butter cup. For Reese’s, the unexpected pairing of peanut butter and chocolate proved to be a huge revenue generator.
   
In the beauty industry, the “unexpected and” is the combination of beauty and science. “If we are going to grow and expand, it is because of this unexpected and,” said Ms. Thaman. She discussed how quickly science has changed the beauty industry, noting advances such as in-vitro testing, genomics and other recent technologies that are allowing companies to sell more sophisticated products that deliver “meaningful, measurable results.”
   
Because skin care science has increased efficacy, the consumer has become comfortable spending more on skin care products. Along those lines, Ms. Thaman discussed a project in which P&G was testing a daily UV lotion 20 years ago with affluent female consumers. Ms. Thaman said the women liked the product, but said they wouldn’t spend $7 on a moisturizer. Today, the consumer mindset has changed; as women are spending considerably more for mass market skin care products.
   
According to Ms. Thaman, trends that will shape the future of the market include a growing interest in medical mimics, such as at-home microdermabrasion. These products, which offer alternatives to more costly, more invasive procedures, will help fuel steady growth in the cosmeceutical market. But with this growth comes responsibility, according to Ms. Thaman. The industry, she said, needs “to be held accountable to ourselves and to our consumer” to make sure that the claims being made are accurate. Ms. Thaman said cosmetic companies should keep in mind lessons learned by the herbal supplements market—an industry that experienced explosive growth only to have FDA step in when promises didn’t match results.
   
“Claims must be supported. We need to push ourselves to a higher standard,” said Ms. Thaman. “If we don’t, the credibility of our industry could be contaminated.”
   
Carrie M. Mellage, director, consumer products practice, Kline & Company, presented an update on the global skin care market. According to Kline & Company, the global personal care market was valued at $270 billion in 2007, with skin care sales accounting for $80 billion. The personal care market will reach $350 billion by 2012, with skin care growing approximately 7% over the next five years.
    
In her presentation, Ms. Mellage provided information on the top global facial treatment brands. In prestige, they are L’Oreal (all brands), P&G, Estée Lauder, Shiseido and Kao. In mass they are Olay, Avon, Mary Kay, Nivea and L’Oreal Paris, according to Kline & Company.

Help for Aging Skin



Following Ms. Mellage was Dr. Karen Burke, Dermatology and Dermatological Surgery, Department of Dermatology, The Mount Sinai Medical Center in New York. Her topic was “Emerging Developments Using Antioxidants and Trace Mineral for Treatment of Aging Skin.”
   
According to Dr. Burke, sunscreen does not offer skin enough protection from the onslaught of environmental effects. She discussed various findings on the role of antioxidants, such as topical vitamin C, ferulic acid and selenium in skin care.   
   
In “The Role of Stem Cells in Anti-Aging,” Dr. Gary S. Friedman, a medical consultant to Coty, Inc., presented an overview of stem cell sources (embryonic and adult or non-embryonic). According to Dr. Friedman, the by-products of stem cell research have included cell, cytokine and growth factor discoveries, which create myriad potential opportunities for the cosmetics, anti-aging and reconstructive surgery industries. The potential applications for stem-cell derived cytokines and growth factors in cosmetics and anti-aging include epidermal modification and regeneration; dermal modification and regeneration; hypodermal modification and regeneration and anti-aging therapeutics.

Success in an Open-Sell Environment



As a departure from the science of cosmeceuticals, Laura Filancia, director of training and development, Sephora University, presented “The Power of Packaging and Product Innovation in an Open Sell Environment.”
   
Ms. Filancia outlined the history of Sephora, which was born as a perfume shop in Limoges in 1969, and highlighted its top brands.
   
“In an open sell environment—for the shopper who doesn’t want help—your package has to be even more compelling,” said Ms. Filancia.  She suggested companies consider their packaging from many vantage points.
   
According to Ms. Filancia, practicality is a key issue for brands looking to market their wares. “People aren’t sure how to spend their money,” she said, and a great way to market to Sephora’s clientele is by offering a kit that presents a month’s worth of product or a sampling of key products.
   
Additional presentations on day two were made by suppliers to the cosmeceuticals market. These included: “Active Targeting Stress-induced Hyper Pigmentation,” by Carla Perez, personal care actives business manager, North America, Seppic, Inc;  “Natural Approaches for Today’s Cosmetic Materials,” by Kristen Potts, marketing director, Active Concepts Company, and “Novel Ex-vivo Skin Models as an Alternative for Efficacy and Safety Testing,” by Paulo Pertile, chief executive officer of Cupech Company.
  • Patent Activity: Colgate-Palmolive

    Patent Activity: Colgate-Palmolive

    December 6, 2016
    New oral care compositions, the use of radish root ferment filtrate in a cleanser and more.

  • Sparkle & Shine

    Sparkle & Shine

    Melissa Meisel, Associate Editor||November 21, 2016
    Glam packaging and upscale scent combos are big at Yankee Candle for Holiday 2016.

  • Cos Bar: Turning 40 and Hitting Fast Forward

    Cos Bar: Turning 40 and Hitting Fast Forward

    Christine Esposito, Associate Editor||November 21, 2016
    With a recent investor infusion, a new CEO and rebranding effort underway, this luxury beauty retailer has big plans.

  • Slow & Steady

    Slow & Steady

    Tom Branna, Editorial Director||December 1, 2016
    In a tumultuous environment, steady gains posted in the industrial and institutional cleaning sector are welcomed.

  • The World Comes to Orlando

    The World Comes to Orlando

    Tom Branna, Editorial Director||December 1, 2016
    More than 1,600 chemists traveled to Florida for the IFSCC Congress

  • The Plex  Phenomenon

    The Plex Phenomenon

    Denise Costrini, Croda North America||December 1, 2016
    Croda details the hair-protecting qualities of bond multipliers and the company’s new bond-building formulation system.

  • New Hair Care Ingredients

    December 1, 2016
    Check out the latest releases from suppliers.

  • Hair & Now

    Hair & Now

    Melissa Meisel, Associate Editor ||December 1, 2016
    The shampoo and conditioner category is expanding with modern takes on these classic formulations.

  • Perform or Perish

    Perform or Perish

    Christine Esposito, Associate Editor||December 1, 2016
    Success in today’s skin care sector begins with active ingredients, formulated in products that address modern-day issues.

  • Aromas Revealed: Fragrance Disclosure

    Aromas Revealed: Fragrance Disclosure

    Daniel Greenberg, Agilex Fragrances||November 2, 2016
    Fragrance disclosure is a potentially dangerous issue.

  • New and Noteworthy:  Fine Fragrance Roundup  for Fall 2016

    New and Noteworthy: Fine Fragrance Roundup for Fall 2016

    Melissa Meisel, Associate Editor||November 2, 2016
    Check out the latest launches in fragrance this season.

  • Soap Opera

    Soap Opera

    Christine Esposito, Associate Editor||November 2, 2016
    FDA’s recent antibacterial ruling has soap sector stakeholders scrambling to keep some ingredients in their formulation kit.

  • New Ingredients for  Household Cleaners

    New Ingredients for Household Cleaners

    Tom Branna, Editorial Director||November 2, 2016
    Here are ingredients introduced by suppliers during the past 12 months.

  • Clean It Up

    Clean It Up

    Tom Branna, Editorial Director||November 2, 2016
    The home care industry takes a hard look at itself and the changing world it competes in.

  • A-Okay!

    A-Okay!

    Imogen Matthews, For In-Cosmetics||November 2, 2016
    K-Beauty influences cosmetic development around the world.

  • Shine On

    Shine On

    Melissa Meisel, Associate Editor||November 2, 2016
    Oral care products are rising to the task with innovative components.

  • Next Gen  Antiseptics

    Next Gen Antiseptics

    Emily Kalal and Katherine S. Maka, RITA Corporation||November 2, 2016
    RITA researchers detail the benefits of 0.75% chlorhexidine gluconate (CHG) antiseptic handwash

  • Change Is in the Air

    Change Is in the Air

    Doreen Wang, BrandZ ||October 3, 2016
    Technology is changing the personal care market

  • Skin Care of One’s Own

    Skin Care of One’s Own

    Christine Esposito, Associate Editor||October 3, 2016
    Nu Skin’s ageLOC Me—which melds the worlds of smart-phone technology, efficacious ingredients and personalization

  • Proof Positive

    Proof Positive

    Christine Esposito, Associate Editor||October 3, 2016
    Testing service providers enable companies to back up their claims and stay in compliance with regulations.

  • Contract Manufacturing / Private Label Directory

    Contract Manufacturing / Private Label Directory

    October 1, 2016
    Our directory is your source to find a manufacturer to get your product to market.

  • Back to School

    Back to School

    Tom Branna, Editorial Director||September 1, 2016
    It may be September, but class was in session this summer during the Private Label Manufacturers Association’s Executive Educ

  • What

    What's In Your Formula?

    Christine Esposito, Associate Editor||September 1, 2016
    A look at the ingredients beauty brands are using to fuel their formulations and capture consumers’ attention.

  • A Sweet-Smelling Sanctuary

    A Sweet-Smelling Sanctuary

    Melissa Meisel, Associate Editor||September 1, 2016
    Home fragrance is enhanced by aromatic developments in delivery and components.

  • How Green Is Your Surfactant?

    How Green Is Your Surfactant?

    Tom Branna, Editorial Director ||September 1, 2016
    Suppliers offer a range of solutions to help household and personal care product formulators develop formulas

  • New Surfactants

    Tom Branna, Editorial Director ||September 1, 2016
    Here’s a list of new ingredients introduced by surfactant suppliers

  • The International Top 30 Household and Personal Products Companies

  • Special Effects

    Special Effects

    Melissa Meisel, Associate Editor||August 1, 2016
    Fall 2016 color cosmetics reflect light and offer a focus on elements like pigment, slip and wear.