Facial Skincare and Anti-Aging - US - May 2017

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Moderate growth as specialty products slow sales
Figure 1: Percent change of sales growth, by segment, 2016 (est)
Lackluster engagement, habitual buying pose challenges for brands
Figure 2: Share of facial skincare consumer segments, February 2017
Most products used on an as-needed basis
Figure 3: Product usage, by routine, February 2017
The opportunities
Natural offerings appeal to a range of buyers
Figure 4: Select attitudes toward natural skincare, by segment, February 2017
New formats can increase repertoire of skincare products used
Hispanics are highly engaged, but brands must combat value-driven approach
Figure 5: Select benefits of skincare products – Any agree (net)*, by all, Hispanic origin, and Black, February 2017
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Facial skincare and anti-aging experience moderate growth
Facial cleansers dominate market, drive growth
Beauty category comprised of four consumer segments
Most skincare spend allocated toward face, direct sales brands on the rise
Population trends impact product usage
MARKET SIZE AND FORECAST
Historic and projected sales performance
Figure 6: Total US sales and fan chart forecast of facial skincare and anti-aging, at current prices, 2011-21
Figure 7: Total US sales and forecast of facial skincare and anti-aging, at current prices, 2011-21
MARKET BREAKDOWN
Facial cleansers command largest share of market
Figure 8: Share of facial skincare and anti-aging market, by segment, 2016 (est)
Lip balms falter, anti-aging struggles continue
Figure 9: Percent change of sales growth, by segment, 2016 (est)
FACIAL SKINCARE CONSUMER SNAPSHOT
Facial skincare consumers divided into four categories
Figure 10: Share of facial consumer segments, February 2017
Figure 11: Beauty indifferent segment, February 2017
Figure 12: Frustrated but Engaged segment, February 2017
Figure 13: Natural Beauty segment, February 2017
Figure 14: Habitual Beauty segment, February 2017
MARKET PERSPECTIVE
Facial skincare comprises most of skincare sales, staples drive growth
Figure 15: Share of sales in skincare market, by segment, 2016 (est)
Figure 16: Percentage change in skincare sales, by segment, 2016 (est.)
Direct sales and direct-to-consumer skincare brands are trending
Beauty from within increasingly mainstream
Skincare segments continue to blur
Enthusiasm for natural looks, product trial benefits skincare
Figure 17: Benefits of skincare products, February 2017
MARKET FACTORS 
Population growth trends alter facial skincare landscape
Figure 18: Population by age, 2012-22
Hispanics over index for usage, but are value-oriented
Figure 19: Select benefits of skincare products – Any agree (net)*, by all, Hispanic, and Black, February 2017
Strong consumer confidence bodes well for higher priced offerings
Figure 20: Consumer sentiment index, January 2007-December 2016
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Market leaders struggle as middle players stay on-trend
Familiar ingredients, dermatologist brands, and single-use masks thrive
Men’s facial skincare, EOS, and private-label lag behind
Science meets natural, formats continue to evolve
COMPANY AND BRAND SALES OF FACIAL SKINCARE AND ANTI-AGING
Market leaders J&J and P&G struggle to maintain share
Sales of facial skincare and anti-aging by company
Figure 21: MULO sales of facial skincare and anti-aging, by leading companies, rolling 52 weeks 2016 and 2017
WHAT’S WORKING?
Cleansers touting familiar ingredients thrive
Figure 22: MULO sales of select natural skincare offerings, 52-week review period ending Jan. 27, 2017
Dermatologist brands continue to build momentum
Figure 23: Cetaphil Gentle Skin Cleanser | Commercial, 2017
Figure 24: The Next Generation of Healing Ointment, 2016
Figure 25: MULO sales of select dermatologist facial skincare products, 52-week review period ending Jan. 27, 2017
Single-use masks, sheet masks benefit from ease of use
Figure 26: MULO sales of select single use masks, 52-week review period ending Jan. 27, 2017
For lip balm, consumers turn back to staples
Figure 27: MULO sales of select lip balm products, 52-week review period ending Jan. 27, 2017
WHAT’S STRUGGLING?
EOS lip balms – A fleeting fad?
Figure 28: MULO sales for EOS lip balms, rolling 52-weeks 2016 and 2017
Men’s facial skincare products fail to keep pace
Figure 29: MULO sales for select men’s skincare products, rolling 52-weeks 2016 and 2017
Private label sales trends influence segment performance
Figure 30: MULO sales for private label facial cleansers and facial moisturizers, rolling 52-weeks 2016 and 2017
WHAT’S NEXT?
Blurring between “natural” and science
Korean skincare inspires a slew of new product formats
Skincare positioned as a way to boost overall health and wellness
THE CONSUMER – WHAT YOU NEED TO KNOW 
Staples experience widespread use, specialty products reach niche audience
Most products are used on an as-needed basis, slowing sales
Natural brands commonly used, consumers adding steps to skincare routines
Attitudes toward natural skincare products are generally positive
Essences recognized for hydration, lack of awareness still exists
Lip balms primarily functional, added benefits can set products apart
USAGE OF FACIAL CLEANSERS
Facial cleansers experience widespread use
Figure 31: Facial cleanser usage – Any use (net)*, February 2017
Younger adults, women drive facial cleanser usage
Figure 32: Facial cleanser usage– Any use (net)*, by gender and age, February 2017
Young, affluent consumers over index across formats
Figure 33: Facial cleanser usage – Any use (net)*, by age and income, February 2017
Hispanics are key facial cleanser users
Figure 34: Facial cleanser usage – Any use (net)*, by race/Hispanic origin, February 2017
USAGE OF FACIAL MOISTURIZERS AND SPECIALTY PRODUCTS
Lip balm, moisturizers experience moderate usage
Specialty products reach niche audiences due to discretionary nature
Figure 35: Facial moisturizers and specialty products usage – Any use (net)*, February 2017
Younger women most engaged in skincare market
Figure 36: Facial moisturizers and specialty products usage – Any use (net)*, by gender and age, February 2017
Hispanics report strong usage, Black adults under index
Figure 37: Facial moisturizers and specialty products usage – Any use (net)*, by race/Hispanic origin, February 2017
SKINCARE ROUTINES
Younger women, Hispanics use more products
Figure 38: Product usage repertoire, by gender and age and race/Hispanic origin, February 2017
Moisturizers, cleansers used in the morning, anti-aging associated with evening
Figure 39: Product usage, by morning and evening routines, February 2017
Many products used on an “as needed” basis
Figure 40: Product usage, by as needed/occasional, February 2017
SKINCARE BEHAVIORS
Natural products used more widely than premium, direct sales
Figure 41: Skincare behaviors – Brand types used, February 2017
Beauty from within going mainstream, steps added to skincare routines
Consumers hesitate to ask for advice from professionals
Figure 42: Skincare behaviors, February 2017
Younger women adding skincare steps, skipping make-up
Figure 43: Select skincare behaviors, by age, February 2017
Hispanics more likely to conduct skincare research
Figure 44: Select skincare behaviors, by all, Hispanic origin, and Black, February 2017
Natural beauties take holistic approach toward skincare
Figure 45: Select skincare behaviors, by beauty segment, February 2017
ATTITUDES TOWARD NATURAL SKINCARE
Consumers hold generally positive views toward natural skincare
Natural offerings benefit from efficacy-related benefits
Belief that natural means pricey can hold natural brands back
Figure 46: Attitudes toward natural skincare, February 2017
Younger women see natural as being healthier and better for skin
Figure 47: Select attitudes toward natural skincare, by gender and age, February 2017
Hispanics hold positive views of natural, but may not be purchasing
Figure 48: Select attitudes toward natural skincare, by all, Hispanic origin, and Black, February 2017
Efficacy of natural products appeals to Frustrated but Engaged shoppers
Figure 49: Attitudes toward natural skincare, by segment, February 2017
BENEFITS OF ESSENCES
Essences recognized for hydration, ease of use
One third of consumers don’t know much about essences
Perceptions that essences are expensive, for occasional use are a challenge
Figure 50: Benefits of essences, February 2017
Younger, affluent adults more familiar with essences
Figure 51: Select benefits of essences, by age and income, February 2017
Black and Hispanic adults more likely to recognize benefits of essences
Figure 52: Select benefits of essences, by Hispanic origin and Black, February 2017
ATTITUDES TOWARD LIP BALM
Lip balms used during winter and as-needed, slowing segment growth
Added benefits can set products apart
Figure 53: Attitudes toward lip balm, February 2017
Natural offerings, fun packaging appeal to younger adults
Figure 54: Attitudes toward lip balm, by gender and age, February 2017
Added benefits stand out for Hispanic consumers
Figure 55: Attitudes toward lip balm, by all, Hispanic, and Black, February 2017
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
APPENDIX – THE MARKET 
Figure 56: Total US sales and forecast of facial skincare and anti-aging, at inflation-adjusted prices, 2011-21
Figure 57: Total US retail sales and forecast of facial skincare and anti-aging, by segment, at current prices, 2011-21
Figure 58: Total US retail sales of facial skincare and anti-aging, by channel, at current prices, 2011-16
Figure 59: Population by race and Hispanic origin, percent change, 2017-22
APPENDIX – KEY PLAYERS 
Figure 60: MULO sales of anti-aging skincare, by leading companies and brands, rolling 52 weeks 2016 and 2017
Figure 61: MULO sales of facial cleansers, by leading companies and brands, rolling 52 weeks 2016 and 2017
Figure 62: MULO sales of facial moisturizers, by leading companies and brands, rolling 52 weeks 2016 and 2017
Figure 63: MULO sales of acne treatment, by leading companies and brands, rolling 52 weeks 2016 and 2017
Figure 64: MULO sales of fade/bleach, by leading companies and brands, rolling 52 weeks 2016 and 2017
Figure 65: MULO sales of lip treatment, by leading companies and brands, rolling 52 weeks 2016 and 2017
APPENDIX – THE CONSUMER
Figure 66: Types of facial cleansers/toners used, October 2011-November 2016
Figure 67: Types of facial cleansers/toners used, by select demographics, October 2015-November 2016
Figure 68: Brands of facial cleansers/toners used, October 2011-November 2016