The overall facial skincare and anti-aging market experienced a 1.4 percent decrease in sales in 2015, falling to US$6.6 billion, with limited engagement from the aging Baby Boomer population impacting the entire category. Consumers age 55+ are the least likely to report usage of nearly every facial skincare product surveyed by Mintel [1], with one third (32 percent) not using any of the surveyed products (vs 19 percent overall). However, according to a recent report by the market research firm [2] consumer interest in natural formulations and changing cleansing habits present opportunities.

Lifestyle factors

According to Mintel, natural formulations have become central to the facial skincare and anti-aging market, as major brands and niche brands alike now feature natural claims on product packaging. Interest in natural beauty and personal care ingredients is on the rise, and natural product trends paired with the strong association between diet and skin is driving the emergence of food-based and probiotic facial skincare.

Actually more, consumers are interested in milder, more natural formulations and those that shield against pollution as one in seven (14 percent) agree that pollution impacts the appearance of their skin. What’s more, consumers also view lifestyle as an important factor in their skin’s appearance, with many agreeing that factors such as hydration (44 percent) and diet (36 percent) impact skin’s appearance more than using skincare products (26 percent). Another 38 percent agree that stress impacts the appearance of their skin, and as such, 30 percent of consumers look for anti-aging products featuring anti-stress claims.

As a consequence, consumers are most likely to be using or interested in using products with vitamin C (85 percent), fruit based ingredients (78 percent), oatmeal (78 percent) and honey (76 percent). Further supporting this trend, 72 percent of consumers use or are interested in using products featuring probiotics.

Consumers are embracing healthy, holistic living, and our research shows that these lifestyle changes are driving the facial skincare and anti-aging market. In such a saturated marketplace, products featuring natural formulations are standing out to consumers who trust identifiable and natural ingredients,” said Shannon Romanowski, Category Manager, Health, Household, Beauty and Personal Care at Mintel. “The link between diet and skin is evident, and as consumers increasingly associate their lifestyle with their skin’s appearance, product formulations with added food-based ingredients and vitamins stand out among the competition.

Blurred boundaries

Furthermore, Mintel research reveals that saturation in the facial skincare and anti-aging market is occurring as benefits in traditional moisturizers, anti-aging products and specialized products blur category segments. Products such as daily use moisturizers now integrate anti-aging benefits, leading to a decline in sales of strictly defined anti-aging treatments. In fact, while anti-aging is still the largest segment in the category, it saw sales decrease 6.3 percent 2014-15. Further, 21 percent of consumers do not use and are not interested in using anti-aging products compared to 18 percent of consumers who use them.

While lip balm has been one of the most dynamic and fastest growing segments of the category, with sales increasing 55 percent from 2010-14, the segment faltered in 2015 as sales declined 3 percent due, in part, to competition from coloured cosmetics (e.g. tints, gloss, lipstick) with moisturizing and protective qualities undercutting sales. Reported usage of lip balm took a slight dip from 2014-15, dropping from 52 percent to 49 percent of consumers using these products.

New skin cleansing habits

Meanwhile, facial cleansers continue to gain market share from the anti-aging segment. The cleanser segment is currently the fastest growing in the market, increasing sales 4.6 percent 2014-15 to reach $1.8 billion. Anti-aging products are also losing market share to moisturizers, which experienced an uptick of sales of 2.9 percent 2014-15, amassing US$765 million.

As the facial cleanser segment increases market share, no-rinse cleansers are poised for growth. Mintel research reveals that while just 8 percent of adults currently use cleansing waters (also referred to as micellar waters), this increases to 14 percent of consumers age 18-34. And consumers view cleansing waters favourably, with many agreeing that they are refreshing (45 percent), safe for sensitive skin (43 percent) and more gentle (39 percent) than rinse-off cleansers. However, there are barriers to usage: nearly half (46 percent) of consumers perceive these products as more expensive than rinse-off cleansers and one quarter (28 percent) agree they have confusing usage instructions.

While the facial skincare category has experienced tepid sales over the years, in 2015 we saw declines for the first time in five years. Moving forward, the category’s success will rely on younger consumers and the growing facial cleanser segment, with an emphasis on natural, recognizable ingredients and innovation like ‘waterless cleansing.’ To broaden the appeal of these products, brands should be proactive in addressing concerns surrounding cost and usage instructions,” concluded Romanowski.