Top Emerging Trends in Cosmeceutical Market

Cosmeceuticals are topical cosmetics and pharmaceutical hybrid intended to enhance the beauty through ingredients that provide additional health related benefits and function. Cosmeceuticals are applied topically as cosmetics, but contain ingredients that influence skin’s biological function. These cosmeceutical products serve as bridge between personal care and pharmaceutical. The cosmetic industry uses the term ‘cosmeceutical’ to refer to products that have medicinal or drug-like benefits.

Figure 2: Total Population Suffering from Skin Diseases, 2030 (Thousands) 

Global Cosmeceutical Market: Overview

The cosmeceuticals market in the developed countries such United States, Germany, United Kingdom etc. are going through a maturity phase, which has opened new growth scope for emerging regions like

Asia-Pacific. The markets in countries like China and India in Asia-Pacific represents considerable growth opportunities for the market players, mainly because of the increasing youth population with relatively high awareness of cosmeceutical and cosmetics products such as skin whitening, anti-aging, facial serums & face oils. Owing to the high costs of these products, it becomes important for the suppliers to make their products affordable to the consumers to extend their consumer base. The skin care category has emerged as the largest product category in the global cosmeceutical market, and will be a major focus area for the market players to gain a competitive edge over their counterparts.

Figure 3: Urban Population in Mid-Year, By Region, 2010, 2015 & 2020F (Million) 

Figure 4: Global Population (Billion), 2010-2016 

                 
                                                               Figure 5: Global GDP per Capita, 2011-2016 (USD) 

                                                                                                                                                Source: World Bank

Difference between Cosmetics and Cosmeceutical

Changing Marketing Strategies

Companies are constantly advertising cosmetics containing pharmaceutical on social networking sites such as Facebook, Twitter, YouTube and other websites such as Instagram, where beauty bloggers are very popular. Companies are also conducting online contests based on brand history and recognition. Tie ups with international and reputed salons such as Looks, Affinity, and Schwarzkopf, is also an emerging trend in the global organic cosmetics market. Companies are engaging in celebrity endorsements and using actors and sportsmen as their brand ambassadors to lure customers. Moreover, companies are advertising their products in fashion and lifestyle magazines for cosmetics, while also engaging in sponsorships for model hunt shows. Product promotion on reality shows, youth centric shows is also increasing. 

Advanced Formulations Target Anti-Aging

The technological advancements tie in with the continuing trend for consumers who want to try and turn back the hands of time or hold on to their youthful looks. Anti-aging and skin-brightening products are popular in the organic skin care market across the globe, due to various health issues caused by chemical based conventional skin-whitening products. This is leading to consumers switching to organic & natural cosmetics. In case of anti-aging products, expectations of consumers are rising. Further, greater awareness of ageing indicators such as reduced skin radiance with age, wrinkles, etc., is propelling demand for organic anti-ageing products across the globe. Brands add “healthy white” and “natural white” tags in order to position their products at par with their counterparts, along with the ability to deliver desired results. 

Plants used in Skin Cosmetics & Toiletries as Cosmeceutical

The Federal Food, Drug and Cosmetic Act (FD&C) Act does not recognize the term ‘cosmeceutical’. However, the intended use of the product may be established in a number of ways:

• Claims stated on the product labelling, in advertising, on the Internet, or in other promotional materials. Certain claims may cause a product to be considered a drug, even if the product is marketed as if it were a cosmetic. Such claims establish the product as a drug because the intended use is to treat or prevent disease or otherwise affect the structure or functions of the human body. Some examples are claims that products will restore hair growth, reduce cellulite, treat varicose veins, or revitalize cells.
• Consumer perception, which may be established through the product’s reputation. This means asking why the consumer is buying it and what the consumer expects it to do
• Ingredients that may cause a product to be considered a drug because they have a well-known (to the public and industry) therapeutic use. An example is fluoride in toothpaste. 

·        Summary of cosmetic regulations- USA, EU and INDIA

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