Consumer and Market Insights: Skincare Market in the US

CT0030IS Sample Pages

October 2014

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Example table of contents

Introduction

Category classifications

Demographic definitions

Summary methodology

Market overview

Macro-economic analysis: GDP Per Capita, Population, Consumer Price Index, and Age Profile

Overall market value, (US$ millions), 2008-2018

Overall market growth rate, in value and volume, 2008-2018

Global country comparison of market volume and growth, (millions of KG), 2008-2018

Components of change analysis of market value growth, 2013

Market volume, (millions of KG), 2013-2018, by category

Category value growth, 2008-2018

Change in category value share, 2013-2018

Change in segment value share, 2013-2018

Leading company analysis

Leading brand analysis

Retailer and packaging

Identification of key retailers

Channel analysis: sector and industry distribution, 2010-2013

Channel analysis by category, 2013

Private Label penetration by category, 2013

Brand and Private Label growth, 2010-2013

Packaging Material and Type analysis, sector and category, 2013

Packaging Closure and Outer analysis, sector and category, 2013

Growth in Packaging Material, Type, Closure, and Outer, 2013-2018

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Example table of contents - continued

Demographic cohort consumption patterns

Breakdown of overall consumption occasions 2012, by age and gender

Breakdown of Private Label consumption occasions 2012, by age and gender

Over/under consumption compared to the proportion of society represented

Breakdown of consumption frequency 2012, by gender

Breakdown of consumption frequency 2012, by age group

Private label consumption by age group compared to overall market consumption by age, 2012

Consumer trend analysis

Trend framework

Level of influence each trend has on overall consumption, by volume, 2012

Level of influence each trend has on overall consumption by category, by volume, 2012

Primary market drivers – the top five trends influencing consumption

For each primary market driver:

Sub-trend explanations and analysis

Value of consumption influenced by the trend, (US$ millions), 2013

Volume of consumption influenced by the trend, (millions of KG), 2013

Percentage of consumption motivated by the trend, by category

Percentage of consumption motivated by the trend, by gender

Percentage of consumption motivated by the trend, by age group

Percentage of consumption motivated by the trend, by leisure time group

Percentage of consumption motivated by the trend, by income group

Analysis of how the trend influences consumption habits

Recommendations of how manufacturers can formulate their products to target the trend

How the trend will evolve in the category

What trends will increase in importance over the next ten years?

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Example table of contents - continued

Innovation examples

Innovative country-specific launches in the sector

Innovative global launches in the sector

Recommended actions

For each primary market driver and category, how to target the driver through:

Formulation

Positioning

Packaging

Occasion

Appendix

An explanation of the sub-trends

Detailed methodology

About Canadean

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Reasons to buy this report

This report brings together consumer analysis and market data to provide actionable insight into the behavior of consumers.

This is based on Canadean’s unique consumer data – developed from extensive consumption surveys and consumer group

tracking – which quantifies the influence of 20 consumption motivations within your industry.

Consumer trends analysis An overview of the key demographic groups driving

consumption in your industry, and what their motivations are

for doing so. This enables the reader to identify the most

important trends within the market and also determine

whether beliefs over what influences consumer behavior

within the category are accurate.

Future outlook The report provides insight to highlight the "so what?"

implications behind the data, and analysis of how the

need states of consumers within your industry will evolve

in the short-to-medium term future.

Recommended actions Strategic recommendations of how to capitalize on the

evolving consumer landscape are offered at a sector and

category level, allowing product and marketing strategies

to be better aligned with the leading trends in the market.

Product innovation examples Examples are provided of innovative international and

country-specific product development within your

industry, with analysis of how these products effectively

target the most pertinent consumer need states.

Demographic analysis Key demographic groups driving consumption within the US

market are identified. The figures showcase the number of

Skincare occasions attributed to specific age groups and

genders, as well as identifying whether these demographic

groups "over" consume in the category.

Market sizing Market value and volumes are given over 2008–2018 for

every category in the sector. In addition, distribution and

packaging dynamics are studied to provide a complete

review of current and future market dynamics.

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Canadean has identified nine mega-trends that drive consumer choice and these can be broken down into 20 sub-trends

Aspiration

Beauty

Better Value

Busy Lives

Changing Age Structures

Changing Life Stages

Connection

Experience Seeking

Fun & Enjoyment

Individualism

Indulgence

Media

Technology

Trust

Urbanization &

Migration

New Gender

Behaviors

Personal Space & Time

Quality Seeking

Health

Ethics

MEGA-TRENDS:

CHANGING

LIFESTAGES

CONNECTIVITY

CONVENIENCE

ETHICS

EXPERIENCE &

ENJOYMENT

HEALTH &

WELLNESS

INDIVIDUALITY

TRUST

VALUE

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The US Skincare market is currently valued at US$XXX billion, and is forecast to reach US$XXX billion by 2018

Market value of the US Skincare market,

2008-2018

Market volume of the US Skincare market,

(Unit Million), 2008-2018

CAGR 2008-2013 XX%

CAGR 2013-2018 XX%

The Skincare market in the US was valued at US$XX million in 2013 and is forecast to grow at a CAGR of XX%,

to reach US$XX million by 2018. Improving economic conditions, rising consumer sentiment and a wide range of

product offerings are factors stimulating Skincare market growth in the US. Continuous product innovations and

the rising demand for premium skincare products by high income consumers will drive growth in the market.

Market volume is expected to grow at a CAGR of XX% during 2013-2018, higher than the historic CAGR of XX%

during 2008-2013, helped by a marginal rise in per capita consumption levels, which can be partially attributed to

the growing aging population in the US, who are seeking anti-aging solutions.

US$ millions

2008 XX

2013 XX

2018 XX

CAGR 08-13 XX%

CAGR 13-18 XX%

2008 2013 2018

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Women and Older Consumers enjoy the most Skincare occasions in the US on an annual basis

Number of occasions in the US Skincare industry, by age, 2012

Number of occasions in the US Skincare industry, by gender, 2012

Women:

Occasions: XX billion

Per person: XX

Men:

Occasions: XX billion

Per person: XX

Women in the US both use more Skincare overall and apply it more frequently compared to men. Older Young

Adults, who are often young working professionals, are the most frequent consumers of Skincare products.

Moreover, Older Consumers have the highest overall number of Skincare occasions in the US market and account

for XX% of total occasions, this is attributable to their large share of the population and desire to hide the signs of

aging.

Tweens & Early

Teens:

Occasions:

XX billion

Per person: XX

Early Young

Adults:

Occasions:

XX billion

Per person: XX

Pre-

Mid-Lifers:

Occasions:

XX billion

Per person: XX

Mid-Lifers:

Occasions:

XX billion

Per person: XX

Older Young

Adults:

Occasions:

XX billion

Per person: XX

Older

Consumers:

Occasions:

XX billion

Per person: XX

Kids & Babies

Occasions:

XX billion

Per person: XX

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How the Changing Age Structures trend influences Skincare consumption habits in the US

Consumers’ age-specific Skincare needs evolve significantly

as they progress through life

Even the most basic Skincare needs of consumers change as

consumers age. Kids & Babies need functional, sensitive

products and many Teens & Early Tweens need acne remedying

products. Moving onto Young Adults, they are likely to seek

mattifying products that help them retain their appearance

throughout the working or studying day; whereas the needs of

more mature adults change as they are likely to have dryer skin

and seek anti-aging benefits. Older Consumers again are likely

to have dry skin and need products that offer lasting moisturizing

properties.

Men are most likely to desire Skincare suited to their age-related

needs. Following the recent recession, many professional men

may feel insecure in the workplace; as such, they will seek anti-

aging Skincare that makes them look younger and more

refreshed so they feel in a better position to compete with more

energetic, younger consumers in a professional capacity.

The influence of the trend is also particularly high among Kids &

Babies aged from 0 to 9 years. Parents of this age group are

likely to seek out Skincare specifically formulated and marketed

for children, as this offers them assurance that they are doing

best by their child.

St Ives’ Timeless Skin

is a collagen elastin

moisturizer; this

appeals to consumers

seeking an anti-aging

product.

These night-time

soothing make-up

remover wipes are

ideally suited to on-the-

go consumers who are

looking to relax and

wind down in the

evening.

Skincare with added anti-aging ingredients

will grow in popularity

Nostalgic packaging can be used to illicit

moments of comfort

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Innovative new product launches in the global Skincare market

Brand: Maybelline New York

Manufacturer: L'Oréal

Launched: 2014, India

Trend: Beauty, Quality Seeking, Busy

Lives

Maybelline New York’s Clean Express

Total Clean is a new multi-functional

Make-up remover. The two-phase

product removes both waterproof and

long-lasting Make-up, leaving the skin

clean and fresh; it is convenient for

consumers leading busy lives.

Brand: BeeBio

Manufacturer: BeeBio

Launched: 2014, Australia

Trend: Indulgence, Beauty, Experience

Seeking, Changing Age Structures

New Zealand manufacturer BeeBio has

recently launched its exclusive anti-aging

Skincare collection in Australia. Its range

includes: active manuka honey day

crème with SPF 15, active manuka

honey night crème and bee venom and

fruit boost anti-aging face masque.

Brand: Michael Mikiala Men

Manufacturer: Michael Mikiala Men

Launched: 2013, South Africa

Trend: New Gender Behaviour,

Individualism, Beauty, Quality Seeking

Michael Mikiala Men launched twelve

products to suit all types of skin type,

shade and age. The products are

masculine and the range includes

products suited to all Skincare

occasions.

Brand: MDNA Skin

Manufacturer: MTG Co. Ltd.

Launched: 2014, Japan

Trend: Aspirations, Beauty, Experience

Seeking, Quality Seeking

Pop star Madonna has launched her own

celebrity Skincare line in collaboration

with Japanese cosmetics major MTG Co.

Ltd. The product range includes: chrome

clay masks, a skin rejuvenator and a skin

serum. The celebrity endorsement

assures consumers of the quality.

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How to successfully target the New Gender Behaviors trend

Body Care Facial Care Hand Care Depilatories Make-Up Remover

Pro

du

ct

Formulation

• Masculine scents will attract men to use more Body Care

• Formulations that soothe the skin post shave will be popular among men

• Hand Care that lasts throughout the day grants convenience for working men and women

• The difference between male and female skin must be considered such as, thickness, pH level and oiliness

• The difference between male and female skin must be considered such as, thickness, pH level and oiliness

Positioning

• Positioning Body Care as an essential, affordable item will increase consumption among men

• Positioning around shaving can encourage consumption among men

• Hand Care for men should be positioned as functional as the appearance of their hands is less important to them, than it is to women

• Positioning as an alternative to shaving for men with sensitive skin •Modern women view hairlessness as part of their professional image

• Make-up Remover for men should be positioned as an essential component of their grooming routine to increase consumption

Packaging

• Packs for men must remain masculine in order to attract those with retro-views as well as those with more metro-sexual attitudes

• Packs for men must remain masculine in order to attract those with retro-views as well as those with more metro-sexual attitudes

• Modern women are demanding Hand Care in on-the-go packaging suitable for carrying round in a handbag to suit their busy lives

• Fast applicators are essential for modern, working women

• Wipes or other quick to apply products are ideally suited to busy women

Occasion

• Rich moisturizers that allow modern women to indulge and relax following a busy day will increase in popularity

• Face Care specifically for day and night use will become increasingly important, especially among men who wish to use products more discreetly

• Hand cream that will last throughout the day from one morning application is important to men who may be embarrassed topping up their Hand Care

• Products that can be used while showering offer busy women a time-effective hair-removal solution

• Make-up Remover for men should be positioned as an essential component of their grooming routine to increase consumption

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Summary Methodology

MARKET DATA

• Method: Analyst triangulation of

consensus numbers based upon

comprehensive primary and desk

research as part of an international

research programme.

• Coverage:

• 50 Countries fully researched

• Category and segment breakdown

• 8 channels

• Value and Volume data

• Internationally comparable data

• 100% standardized definitions

CONSUMER DATA

• Method: Extensive consumption surveys

and consumer group tracking with strict

age and gender quotas to ensure

nationally-representative results.

• Coverage:

• 10 Countries

• 20 Consumer Trends

• 26 Consumer Groups

• Category breakdown

• Integrated market sizing at the

country and category level

• Interim 2013 Consumer data

generated by mapping 2013 Market

size data onto 2012 Consumer data

consumption values

Details on the methodology for both of these research programs can be found in the Appendix.

This report is comprised of two data research programs

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