The latest Ingredient-Led Beauty Report from in-cosmetics Global shows that the line between cosmetics and dermatology has been slowly blurring over the past few decades. As dermocosmetics has emerged as a distinct category, the report reveals that consumers are increasingly drawn to skincare brands rooted in dermatological science, including CeraVe, La Roche-Posay, Avène, SkinCeuticals, and Cetaphil.
A rapidly growing segment
Dermocosmetics have emerged as a powerful force in the skincare space. They are seen as focusing on performance, ingredient efficacy, targeted treatment of skin concerns, and dermatological validation rather than on sensory appeal and marketing.
The dermocosmetics market is a rapidly growing sector. According to Fortune Business Insights, it was valued at USD 35.77 billion in 2022 and is projected to grow to USD 77.51 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 9.9% during the forecast period. [1]
Many industry experts believe that an increased awareness of skin health among beauty consumers has played a pivotal role in the development and evolution of the market.
Dr. Sara Raccovelli and Dr. Caterina Deganutti, industrial researchers at Transactiva, say that growth is being driven by “a demand for effective solutions to common concerns like redness and dryness."
Navigating an unclear definition
According to the report, one of the critical challenges the sector faces is the absence of a standardized, legal definition of the term "dermocosmetics." This regulatory grey area creates confusion for consumers, brands, and supply chain partners alike.
"We should be careful that ‘dermocosmetics’ doesn’t become another example of marketing masquerading as a movement," highlights Brian Freedman, Senior Director Strategic Marketing, Regional Director North America, Natural Ingredients at Evolved By Nature.
While some advocate for clearer distinctions between traditional skincare and dermocosmetics, others believe that the entire skincare industry should aspire to the high standards dermocosmetics represent. Regardless of the outcome, transparency and trust remain essential, the report emphasizes.
Aging population
The demographic of beauty consumers is an important element to consider, as it paints an illuminating picture of the industry.
Leslly Brito, Freelance Key Account & Business Development Manager for Personal Care suppliers or Consultants, highlights the impact of a significantly ageing global population. For example, data from the World Health Organization (WHO) suggests that by 2030, one in six people in the world (1.4 billion) will be aged 60 years or over, which is an expected increase from 1 billion in 2020.
“An ageing population, who are likely interested in skin health, is a significant driver of the market, as dermocosmetics probably can effectively address age-related changes while supporting the skin microbiome,” confirms Dr. Kristin Neumann, Co-Founder and CEO at MyMicrobiome.
Recent data from Euromonitor International supports this idea. Research from its 2022 Voice of the Consumer Beauty Survey found that, out of all generations, Generation X registered more positive shifts to ingredient features in skin care, followed by Baby Boomers.
Despite this, Gen Z consumers are also emerging as a key demographic for dermocosmetics. Unlike previous generations, Gen Z has grown up with access to vast amounts of online information about skincare and health, fostering a strong interest in preventative care and a focus on long-term skin health.
Unlike previous generations, Gen Z shoppers are heavily influenced by social media. For example, according to data from Survey Monkey [2], more than half of all Gen Zers (58%) have made a purchase based on a recommendation from a social media influencer or content creator – higher than any of the other generations surveyed.
AI, science and microbiome
As the dermocosmetics market segment expands, three key trends are shaping its trajectory.
The one that attracts the most attention today is certainly the development of artificial intelligence (AI) and its application to skin diagnostics, enabling personalized skincare regimens.
Beyond tailored formulations, Faiza Hussain, Co-founder and Head of Product Innovation at NEX Skincare advises that real-time “AI-driven skin diagnostics, with capabilities to analyze skin at a cellular level,” will be essential “for enhancing ingredient bioavailability and efficacy through delivery systems.”
According to the report the two other trends are a focus on sustainably sourced and high-performance ingredients, and the growing recognition of the skin microbiome’s role in maintaining healthy skin.
As we look ahead, dermocosmetics are not just a trend: they appear as a true transformation in how consumers understand skin health and care for it.
The full report can be downloaded here.
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** “Gen Z Social Media And Shopping Habits,” SurveyMonkey Study
