Rising to the Surface

By Melissa Meisel, Associate Editor | April 30, 2012

The skin care segment is booming with innovations in anti-aging and sensitive SKUs for the face.

All the beauty of the world, ‘tis but skin deep, said 17th century clergyman Ralph Vennings. And not too much has changed since then… most men and women around the globe want to look and feel youthful and attractive. The first step is achieving healthy, glowing skin, which is attainable by way of modern formulations for the face and body like anti-aging serums or soothing washes. Industry experts agree that the skin care sector is indeed on the rise.

Estee Lauder’s Perfectionist CP+R serum is new for 2012.
Sales of skin care—including acne treatments, body anti-aging, depilatories, facial anti-aging, facial cleansers, facial moisturizers and fade/bleach—in food, drug and mass-market outlets (excluding Walmart) rose 2.5% to $2.27 billion for the 52 weeks ended Feb. 19, 2012, according to data from SymphonyIRI Group, a Chicago-based market research firm. Acne treatments (covered in the March edition of Happi) rose 3.1% to $398 million, while facial cleanser sales increased 6.8% to $622.2 million and facial moisturizers rose 5.9% to $268.4 million. Two categories that didn’t fare so well, according to SymphonyIRI’s report, were body anti-aging (sales fell 15.9% to $22.4 million) and facial anti-aging (a decrease of 1.5% to $793.4 million). Could it be that more marketers are incorporating anti-aging ingredients into their general skin care products? Or is it that consumers are looking to prestige treatments for clock-reversing benefits?

Sounds like the latter. Skin care sales surged in the prestige beauty sector last year, with growth of 14% in dollars and 9% in units, according to The NPD Group, Port Washington, NY. Since 2000, anti-aging facial skin care has grown to account for 63% of prestige facial skin care or $1.5 billion—a 17% increase over 2010. And, products that have both anti-aging and brightening benefits almost doubled in share in the past four years, according to NPD. Premium face products priced at $75 and above experienced a 21% dollar increase and a 23% gain in units for the year.

“In the 15 years that NPD has been tracking the prestige beauty industry, we have never seen growth like this—especially across all categories,” said Karen Grant, VP and senior global industry analyst, The NPD Group.

Niche Opportunities
Sales of men’s skin care are particularly robust, noted NPD. According to a new study from the market research group (Men’s Grooming Consumer Report), more than 9 in 10 men (ages 18+) are using some sort of grooming product, which can include facial and body skin care, shaving, hair care and fragrance. The men’s facial skin care market has grown 11% in dollar sales in 2011.

“There is a huge opportunity with men for facial skin care. The challenge is getting them involved and engaged,” said Grant.

Another segment on the rise is skin care devices. A recent report from worldwide consulting and research firm Kline & Companyrevealed key findings on the booming market for power-operated devices designed for acne elimination, anti-aging treatment and daily cleansing. In At-home Skin Care Devices 2011: U.S. Market Analysis and Opportunities, Kline pegged the market at close to $1 billion at the retail level for 2011, with exceptional growth expected for the next five years.

“We knew this market was really taking off, but even we were shocked by its sheer size,” said Karen Doskow, industry manager for consumer products at Kline. “Clearly, these devices are finding a very receptive and growing audience of savvy consumers looking to save time and money by avoiding regular trips to the doctor for those in-office procedures that were once commonplace in more robust economic times.”

Clarisonic debuted the Acne Clarifying Collection.
While sonic cleansing products, led by market leader Clarisonic (which most recently rolled out its Acne Clarifying Collection complete with a travel-sized device, special brush head and 2% salicylic acid facial cleanser), top the list as the highest growth segment, acne treatment devices are the fastest growing. Meanwhile, anti-aging devices are expected to grow by a very healthy 50% this year alone, benefiting from consumers’ demand for products to reduce the appearance of fine lines, wrinkles and age spots. Kline’s recent Professional Skin Care research revealed that anti-aging is the No. 1 skin care concern for consumers, with topical product sales in this category comprising more than 40% of the market.

“This dynamic provides a perfect opportunity for device and topical product manufacturers to pair their products together to meet consumers’ anti-aging needs,” Doskow said.

Taking it one step further, according to Mintel Beauty & Personal Care (BPC), there’s a key trend set to impact global beauty consumers in 2012—“kinetique.” Encompassing electricity and energy in beauty and “beauty that’s plugged in,” the trend is set to drive innovation in the year ahead, said the Chicago-based cosmetics research and insight firm.

“We’re seeing this trend manifest itself in several ways,” explained Nica Lewis, global skin care analyst at Mintel. “From the next generation of at-home beauty devices that harness energy and light to new ingredients that boost cellular energy, beauty brands are giving consumers more power and vitality for better results.”

While at-home and on-the-go beauty devices are more established in the US and Japan, the kinetique trend forecasts Europe as the next market for these beauty devices to take hold.

As well as the growth in beauty devices, 2012 and beyond will also look at the power behind the technology—what is driving it and ingredients that harness or boost cellular energy, such as sugar and oxygen. But its counter trend—beauty ingredients that limit or shield the skin from hi-energy blue or violet light—will also be a focus. And anti-glycation claims, first seen in Japan, will give this trend renewed energy because of new actives coming to market, such as African Manilkara and Japanese apricot.

“Shoppers are looking for multi-tasking skin care products to save time and reduce steps,” said Virginia Lee, senior research analyst, Euromonitor International, Chicago, IL. “Today’s consumers are impatient and looking for products that offer quick results. Waiting even four weeks for visible changes is a long time for many, so manufacturers are introducing products that offer instant results via light reflectors or other cosmetic ingredients while the active ingredients produce results over time.”

Consumers also are looking for value—but that doesn’t mean the lowest price, added Nancy Mills, industry manager, consumer products, Kline & Company. She said, “The new definition of value includesseeing the importance of the various components that contribute to the price and the purchasing decision. As consumers trade up, they see the value in purchasingwith the guidance of sales associates. Consumers are willing to spend on value-sets of multiple productsthat offer a lower price than if each piece were purchased separately.”

Essential Aspects
Since the skin care category is overrun with new entrants each year, marketers should be aware of the key benefits that move products from store shelves to consumer’s medicine cabinets.

“Skin whitening and skin tone evening products have been all the rage in the prestige market in the last couple of years, and they are making their entrance into mass market,” noted Victoria Gustafson, principal, strategic insights, SymphonyIRI Group, Inc., Chicago, IL. “We see strong product performance for these products in the mass market, and we expect more brands to jump on the skin tone evening bandwagon and add it as a benefit to their products.”

In the general anti-aging fray, shoppers have always looked for products that provide noticeable results and are delightful to use, claimed Mary Begovic Johnson, principal scientist, P&G Beauty, Cincinnati, OH. She said products like Olay Regenerist Wrinkle Revolution Complex are particularly popular because they instantly and noticeably reduce the appearance of fine lines and wrinkles while long-term use actually diminishes the depth and breadth of even the deepest wrinkles around the eyes.

Olay Regenerist fights aging skin.

“The hottest ingredients continue to be the tried and true like niacinamide (vitamin B3) and peptides like pal-KTTKS and pal-KT because they have been proven to work and are based on solid science,” Johnson said. “Retinoids like those found in the Olay Professional Pro-X Deep Wrinkle Treatment are also very popular because of their powerful wrinkle-reducing action.” The latest rollout from the Olay brand is a fragrance-free version of Olay Regenerist Micro-Sculpting Cream.

Marcia Kilgore, founder of Soap & Glory, London, England told Happi that tried and true SKUs that deliver immediate results with a variety of benefits are key in today’s skin care marketplace.

“Consumers want multi-tasking products and, of course, fast acting is always the dream,” she said. “If you’re looking to achieve the clinically proven results that a product is claiming, you have to use it for the same duration and with the same frequency as the test subjects. You could say that peptides, and alpha hydroxy acids, and regenerative vitamin blends (like retinols) work like diets. You can’t stick with the program for five minutes and expect the same results you would get after a month.”

Soap & Glory garners attention with its whimsical packaging and anti-aging ingredients.
Kilgore points to her favorite Soap & Glory product, Make Yourself Youthful Rejuvenating Face Serum, as an example. Said to deliver results in about 48 hours, this anti-aging serum includes collagen-boosting pentapeptides, a proven wrinkle-smoother Deliner, and a circulation-stimulating organic oxygen complex.

Shoppers are looking for product lines that are efficient, effective and contain the newest technology. But most importantly, they want products that benefit their general wellbeing.

“They not only seek quality ingredients, they demand integrity of the science behind the product,” said Dr. Stuart H. Kaplan, CEO, Kaplan MD, Inc., Beverly Hills, CA.

Ingredients that prolong the life cycle of the skin cell, such as plant stem cells and Juvinity, a state-of-the-art ingredient that uses Nobel Prize winning technology to delay senescence within the cell, are big for 2012, added Kaplan, who recently launched an anti-aging skin care line exclusive in Neiman Marcus and Bergdorf Goodman.

But sometimes, skin care SKUs can’t be too high tech. According to Nathalie Eleni, a specialist with Molton Brown Skincare, London, England, “A lot of the time with the amount of products by one brand it’s just too confusing and too much information. For some of those brands, you go in and think ‘oh but I can’t just moisturize, I’ve got to have the pre-thing and the serum-thing after’ and it almost feels a bit like you’re being taken advantage of. People just want a simple system, which obviously has clear results.”

Right now, Molton Brown is launching its first anti-aging range. Each product in the 10-piece skin care collection is designed for individual skin types and targets specific problems. For example, kalahari melon keeps skin supple and pink toronja grapefruit helps lift old surface cells to polish the skin.
Ultimately, consumers are looking for a quality product—but one they perceive has real value, said Dr. Michele Green, dermatologist and CEO/founder of MG Skinlabs Inc., New York. She said that the hottest ingredients in skin care right now are products that work on pigmentation, redness, wrinkles and overallsun damage.

Innovation Aplenty
There is a barrage of skin care rollouts this season that cater to these needs, especially in the anti-aging sector. But one trend that keeps on expanding are skin care offerings for the eye area.
Consider the latest from Avon. After genetic research conducted by a university in Italy that revealed a “highly active” youth gene is linked to longevity, Avon partnered with these researchers to find a connection between this youth gene and skin. The result was Avon’s Anew Genics Treatment Cream and now, Anew Genics Eye Treatment. According to the company, the latter SKU boosts skin components like collagen and hyaluronic acid that can contribute to a more youthful look in the eye region.

Also targeting the ocular area is Ole Henriksen’s latest innovation, the Ultimate Lift Eye Gel Roller Ball, one of the brand’s hero products now in a roll-on delivery system. Ingredients include menthol, witch hazel and cucumber to soothe, firm and improve skin’s elasticity while diminishing puffiness and inflammation. The new formula and stainless steel roller ball improve application under or over mineral-based makeup.

Perricone MD Cosme-ceuticals debuted Acyl-Glutathione Eye Lid Serum, which is said to tighten and firm the upper eyelid area while smoothing creases and improving the appearance of redness and dark circles. It is formulated with a patent-pending molecule, acyl-glutathione, that replenishes antioxidant-rich glutathione levels in the skin. The product works on the 360° orbital rim by tightening sagging skin, smoothing creases and tackling dark circles. Also new from Perricone is Vitamin C Ester 15, which helps boost collagen production, smooth skin texture and dramatically brighten its appearance.

Some marketers are going “back to basics” this spring by returning to retinol. According to Jeff Murad, VP-product development, Murad, Inc., El Segundo, CA, “Various forms of this vitamin have been used for anti-aging for as long as topical treatments have been created. However, one of the most topically active and effective of these forms, retinol, has fallen out of favor due to its instability and tendency to irritate the skin. Fortunately, in the past year, there have been enormous breakthroughs in retinol technology that not only help overcome these issues, but allow manufacturers to use the ingredient at higher concentrations than ever before for unparalleled performance.”

Murad recently unveiled its newest advancement in retinol technology, Time Release Retinol Concentrate for Deep Wrinkles, which uses a micro-encapsulated time-release delivery system.According to Murad, this technology allows the retinol to diffuse and integrate into the skin in a slow, controlled manner, which increases efficacy and stability, while helping to reduce the sensitivity and irritation often associated with this ingredient.

Amway’s Artistry brand is also utilizing retinol to bulk up its “Intensive” skin care line with a new serum. According to the company, Artistry Intensive Skincare Anti-Wrinkle Firming Serum will be the first and only anti-aging SKU to utilize a breakthrough patented Targeting Complex technology that reduces the common side effects found in retinol treatments. It works to correct multiple signs of skin aging by utilizing collagen-boosting ingredients: a “next generation retinol,” peptides and vitamin C, with a balancing complex of anti-irritants, moisture barrier restorers and antioxidants.

A similar concept in mass is Kinerase’s Dr. LeWinn Wrinkle Repair Day & Night Cream, an antioxidant rich formulation featuring echinacea purpurea extract (SymFinity) 0.1%, a 100% natural ingredient that works synergistically with kinetin (the brand’s cornerstone component) to protect the skin.

And, aiming to “supercharge” the skin, next month Estée Lauder will launch its Perfectionist [CP+R] Wrinkle Lifting/Firming Serum to help “correct, prevent and repair” in one week, according to the company. The product features CPR-75 Technology, a dual-action, advanced amino acid and protein complex that creates a virtual “force field” against wrinkles. Artemia and chlorella vulgaris extracts round out the mix. It also includes Flexible Elastomer Technology that acts as a “liquid bandage” to fill in lines.

A Sensitive Matter
Some big skin care news this season is the US arrival of Simple skin care from the UK. Unilever unveiled a 13-SKU facial skin care line said to be the only mass facial skin care line specifically for those with sensitive skin. The brand has a 50-year-old heritage in the UK and features cleansers, moisturizers, eye care products and wipes with no dyes, artificial perfumes or harsh irritants that can upset the skin.

Unilever brings Simple to the US market.
“Simple will further strengthen Unilever’s skin care portfolio and fill a void that currently exists in the mass skin care market,” said Alison Clark, brand building director, Unilever US, skin care. “Sensitive skin is a concern for so many women, yet is somehow an overlooked category within the industry. We are confident that American women will embrace Simple—this iconic UK brand with years of history, and we look forward to delivering.”

Another sensitive skin care brand expanding this Spring is Cetaphil. Its new DermaControl products are formulated for acne-prone skin. The system is said to be one of the first to contain zinc, ceramide and oleosome technologies to help reduce oil, control shine and support healthy skin by helping maintain its barrier function and soothe irritation. The products also contain licorice root extracts known to have anti-inflammatory properties. Products include a foam facial wash and a moisturizer with SPF 30. This is the second addition to the Cetaphil brand’s extention into disease-specific products; in 2010, the brand launched Restroraderm to help manage the symptoms of eczema and atopic dermatitis. It is also celebrating its 65th anniversary this year.

Classic brand Dickinson’s Original Witch Hazel is launching three new products formulated with natural witch hazel extract for those with sensitive skin. Founded in 1997, Dickinson Brands brought together the heritage hallmarks of Dickinson’s and T.N. Dickinson’s, which were established in the early 1800s. According to the company, Dickinson’s is the only gentle, non-irritating skin care line formulated with 100% natural witch hazel to effectively remove excess oil and impurities without stripping skin of essential moisture. The new Gentle Skin Cleanser, Foaming Facial Wash, and Oil Controlling Astringent are in Walgreens stores now.

This new cleanser from Biore targets combination skin.
Bioré is also bulking up its skin care offerings with a new Combination Skin Balancing Cleanser. Developed with Skin Purifying Technology, comprised of dirt-seeking cleansing molecules that target and cling to impurities, the product cleanses skin without stripping away its natural moisture, said the company.

“Women with combination skin may over-cleanse, leaving the dry areas stripped and imbalanced,” says dermatologist Dr. Sapna Westley, Bioré’s consulting dermatologist, New York. “Otherwise they tend to under-cleanse, leaving behind excess oil that can cause breakouts. Bioré Combination Skin Balancing Cleanser deep cleans oily T-zones while thoroughly yet gently cleansing drier areas, leaving skin clean and balanced.”

Combination Skin Balancing Cleanser is a part of the new look of the Bioré Skincare collection, now color-coded to help shoppers find the targeted regimen for various complexions: orange clears the complexion, blue thoroughly cleanses it and pink removes makeup.

“A hot trend in skin care products right now is looking at the vehicle (i.e. solutions, ointments, gels, creams, lotions, foams) of the product,” added Westley. “The vehicle must efficiently deposit the ingredients on the skin with an even distribution, release the ingredients so it can migrate freely to the site of action, and sustain a level for sufficient duration to provide a proven effect in the skin.”

Indeed, technology does not fall short when it pertains to specialized skin care in the mass market. Another drugstore skin care brand, Finnish beauty import Lumene (known for harnessing the power of Arctic ingredients) recently added two new sensitive SKUs: a 5 Minute SOS Cream, formulated with 100% organic linen seed and said to improve the condition of skin in just five minutes, as well as Sensitive Touch Arctic Aqua Moisture-Booster, a blend of Arctic spring water and natural hyaluronic acid, clinically-proven to instantly improve skin’s hydration by up to 65%, according to the company.

“The natural trend with technology will continue. We likely will see more skin care products with stem cells derived from uniquenatural sources, such as wild Arctic berries,” noted Tiina Isohanni, vice president of innovation and development, Lumene, Espoo, Finland. For example, Lumene is re-launching its Excellent Future product line, which currently contains apple stem cells, to include stem cells from an Arctic berry called the cloudberry. According to Isohanni, cloudberry boosts skin’s collagen synthesis.

And, a staple in sensitive skin care regimes, Clinique is targeting shine with its new Pore Refining Solutions Stay-Matte Hydrator. According to the company, this moisturizer instantly mattifies the skin, controls excess sebum and provides oil-free hydration throughout the day. Laminaria saccharina extract helps minimize excess sebum production, resulting in less surface oil over time; while Siegesbeckia orientalis extract helps support skin and makes the pores appear smaller and tighter.
Besides shrinking pores, exfoliating dead skin without irritation is another challenge skin care formulators are taking on these days, according to Dustin Holt, marketing manager for Valeant Consumer Products, Bridgewater, NJ, which recently rolled out CeraVe Renewing Lotion for sensitive skin.

“As far as technology goes, exfoliating ingredients have been combined with skin barrier repair and moisturizing ingredients into a single formulation. CeraVe developed a product with salicylic acid (beta hydroxy acid) and ammonium lactate (alpha hydroxy acid) to exfoliate. Then, we added ceramides, hyaluronic acid and moisturizers into the formulation to provide a complete product for people with chronic, dry skin who need to exfoliate and moisturize at the same time,” he told Happi.

Full Speed Ahead
So, what’s in store for this important personal care category? More of the same with a slight twist, say industry tastemakers. Shoppers are starting their anti-aging regimes earlier, so marketers are tweaking their products to target different age groups. Also fueling the marketplace are novel actives and social media trends like QR codes.

Driven by an aging populace’s desire to maintain the appearance of youth, the US demand for cosmeceutical products is expected to increase 5.8% a year to $8.5 billion in 2015, according to data from The Freedonia Group, Cleveland, OH. The target market for cosmeceuticals continues to expand beyond the traditional 45-years-and-older demographic to include much younger individuals, as the national obsession with youth continues and focus shifts to products intended to stave off the first signs of aging.

The chemicals used in cosmeceutical products also provide a competitive advantage by which product manufacturers differentiate their products. Gains will be spurred by the use of new, value-added active ingredients in product formulations, noted Freedonia. Antioxidants will remain the largest category, with above-average gains promoted by their incorporation into both topical and ingestible formulations. Botanicals will continue to post the fastest gains in demand as consumers continue to favor “natural” products.

In addition to achieving above-average growth, skin care products will remain the largest product category, set to account for 64% of all cosmeceutical product demand in 2015. Age-defying products will achieve the fastest gains in the segment, driven by a highly receptive, expanding group of graying “baby boomers,” who want to redress visible damage to the skin caused by aging, ultraviolet radiation and other environmental stressors, as well as a growing number of younger individuals seeking to prevent signs of aging.

Kline researchers predict more multi-tasking products thattarget the signs of aging.In the professional channels, there is a growing trend toward both sun protection products and tinted moisturizers.

“Both trends will accelerate in the future and a growing number of blemish balm (BB) creams should also enter the US market,” said Mills. “There is also likely to be an increasing number of products designed to treat several skin conditions simultaneously. The most recent trend looks at products for adult acne that treats both acne and aging signs.” (For more on BB crèmes, see the January 2012 Happi.com)

Skin care products will continue to push the envelope on what is possible, predicted Begovic Johnson of P&G Beauty.

“New insights into how our skin ages will allow the identification of new ingredients that will provide faster, more noticeable anti-aging results.At-home devices will continue to be hot as women look to replicate professional procedures in their own homes,” she explained.“A trend that will only grow through 2013 are skin care products that work with the natural circadian rhythms of our skin to provide skin benefits.”

Besides anti-aging advancements, marketers are also banking on trends in technology. Lee of Euromonitor noted that more multi-functional products and the greater use of QR codes on skin care packaging is the next big thing.

“Burt’s Bees and Mary Kay are already using QR codes on their packaging for the güd by Burt’s Bees and Mary Kay botanical effects lines,” she told Happi. “QR codes are expected to become more popular among skin care manufacturers as they are a cheap way to signal that they are a technologically innovative brand to younger consumers, many of whom have smartphones that can scan QR codes that link to product websites/videos.”

Despite the technological advances, it’s still the consumer who holds the future of skin care in the palm of his or her hand. According to Kaplan of Kaplan MD: “As creators and manufacturers, our customers rely on our integrity to create products that do what they promise. Products that benefit our wellbeing should always be in a constant state of evolution—especially since every time we think we have figured out the human body, Mother Nature slaps us down with another enigma.”

According to Kaplan, exciting things happening in the dermatology field, especially with biotechnology.

“Gone are the days of fluff ingredients with pretty marketing stories behind them,” he insisted. “The skin is the body’s largest organ and we should approach its care with a true marriage between medical science and aesthetics.”

Happi’s 1st Annual Anti-Aging Conference & Tabletop Exhibition Set for Sept. 18-19

• Happi’s 1st Annual Anti-Aging Conference—slated for Sept. 18-19 at the Hyatt Regency in New Brunswick, NJ—will feature the latest news you need when it comes to skin care. A one-day tabletop exhibition will be held Sept. 18. Speakers and topics will include:

Day 1 keynote speaker Dr. Nicholas V. Perricone, MD, Perricone, MD, “Nutrigenomics and Cell Signaling: The Future of New Product Development,” and Day 2 keynote speaker Dr. Jennifer Linder, MD, “The Aging Face, What’s Really Happeningand HowCan We Fix It with Anti-Aging Skin Care.”

Other presenters will include: Dr. Andrew Alexis, MD, “Current ApproachestoFacialRejuvenationin Ethnic Skin;” Dr.Jeanine B. Downie, MD, “Cosmeceutical Update—Problems Associated with Cosmetic Products and How to Remedy Them;” Georgia Ravitz, Esq., Arent Fox, “Anti-Aging Market and Regulatory Trends;” May Shana’a, VP-R&D, Johnson & Johnson, “FormulatingEffective Cosmeceuticals;” Carrie Mellage, Kline & Company, “Identifying New Growth Opportunities for Cosmeceuticals;” Elizabeth Nach, Federal Trade Commission, “Clarifying Rules for Labeling Claims;” and James Larkey, VP-Marketing, Canfield Scientific, “Advances in Skin Imaging Applications: From Research to Retail.”

Finally, a roundtable discussion entitled “The Four Sides Of Advertising Claims: How to Effectively Promote Your Product While Managing Legal Risks” will feature Gail Civille, Sensory Spectrum and David Zetoony, Esq., Bryan Cave.

To learn more, contact Tom Branna, 201.880.2223, tomb@rodpub.com or visit http://conference.happi.com/

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