GLOBALLY, SKINCARE WILL REMAIN BEAUTY’S BIGGEST CATEGORY DURING THE COMING YEARS.
Euromonitor International expects global sales to exceed AUD$166 billion in 2019, adding AUD$25.5 billion in value over 2014-2019.
What’s increasing in Australian consumers is their curiosity of what goes into beauty products, which is driving growth of greener and cleaner, natural and organic skincare ranges.
Skincare is projected to grow at a CAGR of 5% from 2014-2019, which is 1% higher than the average annual growth for the overall beauty category.
63% of millennial women believe it’s ‘very important’ to buy natural skincare products.
Consumers are proactively checking labels, ingredient lists and looking for products that contain natural or active ingredients. They know what they want from their skincare products.
Globally, the Asia Pacific region is leading the market in terms of revenue for cosmetic skincare products and is projected to hold its position as the leader from 2016 to 2024. This is being driven by the huge population in the region, as well as increasing consumer disposable income, rising demand for chemical-free skincare products and the changing lifestyle of consumers.
It’s now clear that natural and organic skincare ranges are the ones to expand, but with so many brands available, what makes a brand stand out? What else is it that consumers are looking for? Where are the sales growth areas in the category? Here’s what we’ve found to answer your skincare category questions and have you yelling ‘you beauty!’.
PUT DOLLARS ON PRESTIGE SKINCARE
Skincare is so much more complex these day in terms or offerings. There’s a sense of indulgence that consumers crave during their skincare routine, using multiple products in their regime, as well as several assorted products for various times of the day, days of the week and even times of the year.
With this, there has been an increase in demand for products from smaller, niche players, particularly for those positioned as natural and prestige. Natural brands delivered significant growth last year in the prestige category, in fact they accounted for all gains in the category and this is expected to continue.
Brands with a natural and/or botanically derived clinical orientation now represent the largest combined share of prestige skincare sales.
The premium skincare market over 2016-2021, will grow with a CAGR of 3.6%, compared to 2.4% in the mass segment and the Asia Pacific region is again leading the premium market over 2016-2021. During this period, it is expected to generate AUD$8.4 billion in gains.
NATURAL BUT STILL INNOVATIVE
Experts are predicting that the future growth in the cosmetic skincare market will also be fuelled by continuous innovation and development of more effective anti-ageing and sun protection products.
This is expected to create prospective market opportunities for natural and active cosmetic ingredients including enzymes, botanical extracts, amino acids, as well as natural ingredients such as herbs, vegetables and fruits with anti-ageing properties.
Innovative natural brands that particularly tap into the brightening skin trend (that’s huge among the younger generations) are also expected to be snapped up in the Australian market.
FIBRE SHEET AND HYDRO MASKS ARE WHERE THE SERIOUS SALES ARE
The sheet face mask market is gaining traction in the beauty world and fast. From 2016-2024 this market will grow at a CAGR of 8.7% globally. The largest growth (60.8%) will take part in the Asia Pacific region. Again, this is said to be due to its huge population base with rising disposable incomes.
In dollar terms, this market will see a huge AUD$225.6 million increase from 2016 to reach AUD$430.8 million by the end of 2024.
There are a few trends that are driving demand for sheet masks, including skin brightening and anti-aging. Performing the strongest in the category are hydrogel sheet face masks, many of which are natural and biodegradable.
BRANDS EMBRACING CATEGORY CHANGES TO GAIN COMPETITIVE ADVANTAGE
Organic skincare products are expected to grow at a CAGR of 9.8% from 2014 to 2020. Acure Organics is on top of this demand, offering a huge range of organic skincare. They use on trend innovative methods, including fruit stem cell technology and natural active components to offer different product ranges for different skin concerns. With more pressure from consumers to be able to trial and travel with products, ACURE Organics’ travel packs and convenient cleansing towelettes are a huge hit with on-the-go Australian consumers. Read more about the brand values on the ACURE Organics website.
The Perfecting Active Gold Eye Masks from 24K Goddess effectively provide a cross-over between the natural beauty market and prestige skincare. The single-use hydro masks are tapping into the sheet mask skincare category, which is expected to almost double in value over the next 7 years. The masks are also vegan-friendly, biodegradable, plant-based and contain prestige ingredients like real nano-gold particles. Discover the full list of their ingredients and what positive effect each offers on the 24K Goddess website.
As beauty offerings continue to expand, ensuring you’re on top of the trends will allow you to achieve ‘BEAUTY’ sales! Add ACURE Organics, and 24K Goddess to your next online order, or if you not yet a Unique Health Products account holder, easily get started here.