After the very sizable demand in toothpaste, skin care is the next main application for plastic tubes. In comparison to toothpaste, skin care provides a larger range of possibilities in terms of product formulation, pack types and closures, allowing brand owners to differentiate their products in many ways. However, it also creates the need for brand owners to provide the right beauty product-pack combination, appropriate to consumers’ various profiles and requirements. Overall, while purchasing criteria remain focused on price in emerging markets, more developed markets show interest in more sophisticated products.

Squeezable plastic tubes: The accepted pack for toothpaste and skin care

In 2014, squeezable plastic tubes enjoyed another good year, with volumes up by 4% on 2013, thanks to toothpaste, which remains the lead application for plastic tubes in beauty, representing 63% of all tube sales. Skin care, the second largest category for plastic tubes, also contributed to this growth, with facial cleansers and facial moisturisers being the main applications.

Both toothpaste and skin care benefit from emerging markets changing their hygiene habits, driven by higher disposable incomes as well as an increasingly modern retail network. In the case of toothpaste, Indian consumers are shifting from traditional herbal products to toothpaste, underpinning the volume rise in plastic tubes. And as these trends continue, by 2019 demand for this pack in beauty is set to increase by an additional 4 billion units.

Globally, squeezable plastic tubes in skin care are forecast to post healthy growth, up by a CAGR of 5% over 2014-2019, with all regions set to benefit from rising demand. But the real champion of the category remains Asia Pacific, which is not only the largest region but also the fastest growing. China remains the leading market in 2014 but it is Indonesia that is expected to provide most robust growth prospects for tubes over 2014-2019, to meet the fast-growing consumer demand for facial cleansers and moisturisers, with moisturisers including skin-lightening properties being a further strong driver for growth.

Looking at the top ten markets for plastic tubes in skin care, emerging markets clearly dominate, including the BRIC countries (Brazil, Russia, India and China), Indonesia and Mexico. In these countries, brand owners’ strategy is to offer accessible pricing points to consumers, adapting their product and pack sizes accordingly. Japan, Germany, the US and France are amongst the leading markets but are expected to see slower growth due to maturity of demand, as there is already high penetration of skin care product usage.

Market maturity leads to value-added innovations

Globally, the top five skin care players account for a combined 30% of US$34 billion sales in 2014, with competition amongst them very strong. And to respond to the maturity of these markets, brand owners in developed economies employ a strategy for growth focused on adding product value, through combining multiple features as a cost-saving alternative or offering a more complex formulation targeting consumers’ specific skin requirements.
Examples of facial moisturisers offering multi functionalities include BB and CC creams, which continue to rise in number. Their success can be explained by the multiple benefits of the products, combining a foundation, a moisturiser and a sun protection product. These multiple benefits save time and are cost-effective for consumers. While facial moisturisers are largely available in glass or plastic containers, plastic tubes are benefiting from the popularity of BB and CC creams, which are typically available in that pack type.

Another way for brand owners to differentiate their offer is through packaging, particularly in specialist skin care products such as anti-aging. Premium and mid to premium brands offer more sophisticated lines to increase brand perception, as well unit price, such as Neutrogena with its Rapid Wrinkle Repair Serum or Diorsnow UV shield BB Cream, which are both available in a plastic tube including a spray pump.

It is up to brand owners to acknowledge consumers’ varying needs in order to avoid missing out on the many opportunities offered within skin care. The plastic tube, through its dispensing attributes, holds an important place in this development.