Cosmeceutical trends and technologies presentation

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Cosmeceutical

Cosmeceutical term created in 1990s from cosm(etic) + (pharma)ceutic

It’s a cosmetic product claimed to have medicinal or drug-like benefits.

Examples: Anti-aging creams, serums, Moisturizers etc.

These are marketed as cosmetics, but contain biologically active ingredients.

Majority of cosmeceutical products are not subjected to review and approval process

Fastest growing segment of Cosmetics & Personal Care.

Need for Cosmeceutical

Products work at cellular level and treat imperfections

Avoid harsh chemicals associated with cosmetic products

Effectively counter the effect of changing environmental conditions

Single product can be used for multiple purposes

Cost effective alternate to cosmetic surgery Ability to resolve the cause rather than

covering

Cosmeceutical in Cosmetics

Market Penetration (2015 & 2020)

Cosmeceutical penetration expected to grow 30% by 2020

Cosmeceutical

Cosmetics

87%

13%

Cosmeceutical

Cosmetics

83%

17%

Application Areas

Skin care is expected to maintain its dominance in near future

Injectable fastest growing segment Female segment accounts for 85% of

total market The male segment is witnessing a rapid

growth Players launching men products Physician dispensed cosmeceutical are

gaining popularity Asian countries expected to witness the

highest growth

2015f

Others

Injectables

Hair Care Skin Care

14%

5%

21%

60%

Skin Care Cosmeceutical Market

Anti-aging cosmeceutical are the star performers

Sun protection and anti acne other widely used products

The 35+ age group a major opportunity

BB and CC creams are the latest trend

Use of technologically sophisticated ingredients growing

In Asia, skin whitening products posses huge opportunity

China and India focal point for growth

By Application (2015e)

Skin Whitening

Sun Protection

Professional Skin Care

Anti - AcneOthers

Anti Aging41%

17%

16%

14%

9%

3%

Market (Billion US$)

CAGR 8%

2015e 2020f

25

37

Developed region major market for hair growth

Anti Dandruff is the fasted growing segment

High demand of hair care products from men

Active ingredients based products being launched

Emerging economies are the focal point for growth

Hair Care Cosmeceutical Market


Anti - Dandruff

Others

Hair Growth

52%40%

8%


CAGR 8%

2015e 2020f

6

9

Injectable Cosmeceutical Market

Botox most widely used botulinum toxin Dermal fillers segment fastest growing Affluent section is the major user of dermal

fillers

Hyaluronic acid (HA) based fillers are most extensively used

Solid HA filler an advanced version Other dermal filler materials -

Collagen and Calcium hydroxylapatite


DermalFillers

Others

BotulinumToxin

65%

23%

12%


CAGR 10%

2015e 2020f

2

3

• Lip balms, most widely used lip care product

• Tooth whitening highest growing segment

• Aging population major consumer of anti cellulite products

• Launch of low priced products in Asian regions

• The Asian countries focal point for growth

Others Cosmeceutical Market


Others

Anti-Cellulite/Body Slimming

Preparations ToothWhitening

Lip Care30%32%

10% 28%


CAGR 9%

2015e 2020f

8

13

Cosmeceutical Market: Regions

Asia Pacific is the largest market Rising disposable income major factor

for the growth of Asia Pacific market Anti agers and skin whitening high

growth segments in Asia Pacific market

Players investing in emerging economies

North America and Europe are expected to witness moderate growth.

Anti agers are leading the North American and European market

2020f

AsiaPacific

Rest of the World

NorthAmerica

Europe

24%

13%57%

6%

2015e

AsiaPacific

Rest of the World

NorthAmerica

Europe

29%

16%

49%

6%

North America Cosmeceutical Market

Anti-aging skin care segment is the largest market

New Trend- Genomic enabled ingredients Increasing demand high performance

multi-functionality products

New and improved Hyaluronic acid (HA) based products present in market

Non HA source based fillers are the new products in the market

By Country (2015e)

US

Others

94%

6%


CAGR 5%

2015e 2020f

12

15

Europe Cosmeceutical Market

Prime target for cosmeceutical manufacturers

Incessant launch of new products - Less stringent regulations

Foreign players entering the market

Skin care is the largest segment of the market

45-54 age group major consumers in Spain and Italy

Germany is likely to witness a rise in the demand by people in the 55-64 yrs age-group

By Country (2015e)

France

GermanyItaly

UK

SpainOthers

29%

22%20%

17%

10%

2%


CAGR 4%

2015e 2020f

7

8

Asia Pacific Cosmeceutical Market

Skin care is the major segment Injectable segment is the fastest

growing High demand for herbal and less

expensive cosmeceutical

30 + age group women- Major consumer of skin care cosmeceutical

The growth of the market will be focused on India and China

India is becoming a hub for cosmeceutical based clinical studies in South East Asia

By Country (2015e)

Rest of the Asia

India

China

Japan40%

30%

16%

14%


CAGR 11%

2015e 2020f

20

35

Rest of the World Cosmeceutical Market

Latin America especially Brazil is the major market

Brazil is the third largest consumer market for cosmetics and other products related to beauty

Hair care is the largest segment in Latin America

Skin care products are extensively used in African countries

High demand for natural and low priced products in the market

Foreign players are focusing on RoW market


CAGR 10%

2015e 2020f

2

4

Market Influencing Factors

High

Low HighPositive Impact

Nega

tive

Impa

ct

Counterfeit Products

High Cost

Lax Regulations

Emerging Countries

Ageing Population

Research Breakthroughs

Future Outlook

Use of plant stem cell technology in anti aging products, a new trend in the market

Use of active ingredients is another trend witnessed by the market

Increasing usage of cosmeceutical by men segment will contribute to the growth of the market

Most of the cosmetic or personal care players are sifting towards cosmeceutical

The Asian markets dominated by domestic players

In Asia, especially China, pharmaceutical companies are shifting towards cosmeceutical industry


CAGR 9%

2015e 2020f

41

62

Key Take Away

Anti-agers in skin care segment will remain the main profit churner

Solid HA based and non-HA sources based fillers dermal fillers will be a new opportunity for the market

Stem cells and nanomaterials are revolutionizing the cosmeceutical market

Demand of active and sophisticated ingredients rising rapidly

India ,China, and Brazil are the growth hotspots

Skin whitening products to offer significant growth opportunity in Asia Pacific

Anti acne products posed to witness high demand in the US and Europe

Natural/ herbal cosmeceutical opening up a new avenue in the Chinese market

Hair growth products will have high demand in developed regions

Global Cosmeceuticals Market Outlook 2020Publish Date: Dec 2015

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