Prescriptive’s Dermapolish Kit carries the PX logo in red to underscore its intensity.

Cosmeceutical is a hot buzz word in today’s beauty business. Entered in the Internet search engine Yahoo, it elicits 109,000 sites that have something to say or sell related to the term.

The U.S. Food and Drug Administration does not recognize cosmeceuticals as a product type. On the Website www.cfsan.fda.gov/~dms/cos-217.html, it states, “The cosmetic industry uses this word to refer to cosmetic products that have medicinal or drug-like benefits.” The FDA then explains, “The Food, Drug, and Cosmetic Act defines drugs as those products that cure, treat, mitigate or prevent disease or that affect the structure or function of the human body. While drugs are subject to a review and approval process by FDA, cosmetics are not approved by FDA prior to sale. If a product has drug properties, it must be approved as a drug.”

No wonder then that while many marketers of color cosmetics, skin care, personal care and anti-aging products are launching products that could be called “cosmeceuticals,” many are careful to represent those products as cosmetics or skin care. Others, primarily dermatologists or others promising to have science on their side, have created skin care brands to address the signs of aging, acne and other concerns and are happy to call their products “cosmeceuticals.”

By Any Name, A Growth Category
In its study, The U.S. Cosmeceuticals Market, published in January 2005, Packaged Facts/MarketResearch.com Inc., with offices in New York and Rockville, MD, tallied $12.4 billion in retail and salon sales of “consumer skin care, hair care, and makeup products that beautify as they address health problems or concerns.”

Cosmeceuticals, along with clinical/spa, alternative and makeup artists/salon brands are a group of beauty products that Port Washington, NY-based NPD Beauty, a division of the NPD Group, said will “continue to experience explosive growth. In 2001, these brands represented only 7% of the market and by 2004, they expanded their reach to represent 18% of the prestige skin care market (skin care products sold in U.S. department stores only), NPD reported. “The niche growth is led by cosmeceuticals (doctor brands) which increased 92% in 2004 from 2003…”

The Freedonia Group, Cleveland, OH, expects the U.S. demand for cosmeceutical products to increase 11% a year reaching a value in manufacturers sales of $7 billion in 2008, “propelled by a stream of new and technologically advanced product introductions offering age-defying and other appearance-enhancing benefits for an aging population.”

Published in November, 2004, Freedonia’s study, Cosmeceuticals to 2008, reported that skin care products will account for over 60% of the market in 2008, with more than half of those products touting anti-aging benefits. In that same overall category, professional products are expected to grow the most, with annual gains nearing 16% in 2008.

Traditional Beauty Marketer ELC Balances Prestige and Practical Packaging Elements
“Cosmeceutical” is not a term the Estée Lauder Companies uses to describe the treatment, skin care or added benefit products in any of its many brands.

For example, Prescriptives is careful to make only cosmetic claims for its products, according to Elana Drell Szyfer, vice president of global marketing for Prescriptives. “We deal in the world of what happens on the surface (of the skin),” stated Drell Szyfer.

That said, for the past two years, Prescriptives has had a working relationship with Dr. Karyn Grossman, a practicing dermatologist in New York and Los Angeles. “We work with her in terms of product development and research for skin care products,” Drell Szyfer said, adding that several of those products have become sales leaders for the brand and Dr. Grossman is now working on new foundation products for Prescriptives as well.

Estée Lauder recently introduced Hydra Complete Multi-Level Moisture Eye Gel Créme in packaging that reflects the brand’s luxury image rather than a cosmeceutical connection.

Packaging’s Two Primary Roles
“There are two parts to every package,” said Drell Szyfer, “the strategic element, which must appeal and communicate to consumers, and the technical element (how the package performs). We design the look of the package to convey seriousness, the clinical nature of the product and its high performance.”

Prescriptives balances the dual demands of reflecting a prestige brand as well as the serious treatment characteristics of its skin care products. “We still sell in an upscale department store and the packaging has to be consistent with the brand, but we’ve made the packaging sleek with straight forward shapes and incorporated a lot of silver accents to communicate serious skin care,” she explained.

Those Prescriptives skin care products that have been developed with Dr. Grossman are distinguished by the brand’s PX logo appearing in red on a silver package. “It identifies the intensity of performance of the formulas,” said Drell Szyfer, who added, “there are new launches happening in 2006 that will be unique in formulation and packaging.”

Engineering Solves Technical Problems
When it comes to the technical side of packaging, there are different concerns, according to George Kress, vice president of Estée Lauder Companies corporate package innovation group. “Part of the challenge is to find the right packaging materials for new treatment products with ingredients that are more sensitive to light, air and other types of contamination,” Kress said. “Often, they also need a special delivery system. If an ideal dose is known, then we must design a delivery system that will dispense that exact amount.”

“We’re also finding ways to deliver the formulas ‘fresh,’ by using dual dispensers that only combine ingredients as the product leaves the package,” Kress noted. “And we’re using various airtight containers and airbackless pumps.”

ELC calls on its suppliers to help solve these sorts of packaging challenges. Kress said, “We give them a heads-up that we’ll need a certain type of component. They can draw from other industries that they serve and often have the solution. Of course, we need to meet a budget as well.”

Murad’s Essential C line is presented in packaging with a pharma-look—clean, tailored, primarily white—with color coded accents that denote treatment for specific concerns.

Murad Fine Tunes Packaging with Color
Howard Murad, M.D., is a board-certified dermatologist with a practice in El Segundo, CA, a trained pharmacist, and associate clinical professor of Dermatology at UCLA. Dr. Murad was one of the first dermatologists to launch his own line of skin care products in 1989.

Murad is sold through specialty stores including Sephora and Ulta, its website www.murad.com and spas and salons, according to Hilarie Murad, vice president of marketing and creative services and daughter of the founder. The company has successfully reached consumers through infomercials, which are aired on a variety of cable television channels. “The 30-minute infomercials are a good way to explain our products, which do require education about skin and how the products work,” said Murad.

In the past year, the company has continued to fine-tune its packaging with some creative changes. “We have changed the information on the front of the cartons to be bullet points and strengthened the identity of each line by color coding (the bars that appear on each package).” Anti-aging products carry a silver bar, sun damage is distinguished with orange and acne products are marked with bright blue.

The latest products from Murad include diet supplement kits for specific concerns (cellulite and stretch marks, sun protection and damage, and anti-aging) that are packaged in cartons consistent with the styling of the line. Murad noted that graphics on the cartons educate the consumer as well as underscore the clinical aspects of the product.

The company has also developed icons to emphasize and identify certain lines. A pomegranate logo has been created for the sun care line to identify the products with the strong antioxidants contained in that fruit. The silhouette of a body is pictured on the packaging of the cellulite line.

Murad takes advantage of the latest developments in packaging technology. CitySkin Detox Treatment, developed to counter the damage encountered in urban environments, is packaged in a white airless dispenser container. Murad explained, “We choose airless packaging often because, when a product is a certain viscosity, it’s the best way to get all the product out of the container and also keep the formula as pure as possible.”

Dr. Perricone opts for styling that connotes science and efficacy of contents. White labels and amber bottles reflect serious science.

Celebrity Doctor Chooses No-Frills Packaging
Nicholas Perricone, M.D., is a board-certified clinical and research dermatologist. He is the author of three New York Times #1 best sellers and is the focus of a series of award-winning Public Television specials airing nationally on PBS-TV. Dr. Perricone is also a popular guest on national television, including the Oprah Winfrey Show, the Today Show, 20/20, and many others. He’s also has been featured in the New York Times, the Wall Street Journal, Vogue and other magazines and newspapers.

Asked about the greatest challenge in developing products in the cosmeceuticals category, Dr. Perricone said, “The largest challenge is overcoming the reputation of the cosmetic industry, which has a 100-year tradition of selling products that are based on marketing and not science therefore the prejudice of the consumer is one of disbelief and rightly so!”

Dr. Perricone noted that he created the package design for his line of cosmeceuticals “to connote the science and efficacy of the contents.” He chose white and dark brown to indicate the seriousness of the treatment.

Perricone’s latest treatment product is based on Neuropeptide technology and uses the brand’s standard packaging. He added, that while so far the line does not use any high-tech packaging because there has been no need for it, “however this may be utilized in the near future with ongoing product development.”

Dr. Hauschka also chooses packaging with a medical look—lots of white with accent colors for particular groups of product.

Dr. Hauschka Stresses Clean and Natural
Named as one of the prestige brands to watch by Packaged Facts in its 2005 study, Dr. Hauschka Skin Care is manufactured and marketed by WALA, a company founded by Dr Rudolf Hauschka in 1955 in Eckwalden/Bad Boll, Germany. The brand stresses a natural ingredient approach to healthy and beautiful skin. In the U.S., Dr. Hauschka products are available in select department and specialty stores as well as some salons and spas.

The term ‘cosmeceutical’ also elicits concern from Sebastian Parsons, chief executive of Dr. Hauschka UK, who cautioned, “Cosmeceuticals is a new buzz word, and the consumer should be very wary of it as it is very badly defined and not controlled yet.”

Packaging for Dr. Hauschka’s product range is designed to be a coherent whole, according to Parsons. “We only subdivide between face, body, hair, etc. However all our products have a medical (anthroposophical) background and that is reflected in the large areas of white used on the boxes,” he explained.

The use of color on the packaging is limited to allow the white to make a more striking impression. Parsons added, “We like the fresh and clean and natural look that this gives.”

Emphasizing the medicinal nature of some of the Hauschka line, Parsons noted that the company uses glass ampoules which are filled in a sterile plant—a high tech, but not new, technology. The ampoules are used for the Rhythmical Conditioners, considered to be the lines most powerful treatment products, according to Parson. “Glass is a very stable substance that does not interact with the product at all. Packaged in a sterile environment the ingredient is absolutely pure and completely protected in its ampoule,” he stressed.

Osmotics Enlists Academia For Access to Latest Research
Steven and Francine Porter founded Osmotics Corp. in August of 1993. Since inception, the founders’ goal has been to become the world’s premiere skin care company by providing “a new level of real results in cosmeceutical and dermaceutical skin care treatments.”

Realizing that creating truly innovative, efficacious products from scratch would require huge investments in research and development, the fledgling company decided to use an alternate route, according to Francine Porter, president of Osmotics.

Porter explained that for the past ten years, the company has reached out to leading university medical centers and renowned scientists around the world to utilize the latest breakthroughs and most advanced thinking in developing truly effective products. “These unique formulations (Osmotics’ line) feature proven technologies and patented compounds from the biopharmaceutical and biotechnological fields. All product claims have been validated through independent clinical testing, a first in this industry,” she noted. But, marketing cosmeceuticals is a balancing act because if a marketer makes claims beyond the FDA’s guidelines, the product will be considered a drug and be subject to FDA’s drug regulations, according to Porter. “We give the consumer access to the clinical data that backs up our products, but we think there should be a middle ground between cosmetics and drugs. The cosmeceuticals industry could form a self-regulating body that could set standards and police itself, so that the FDA would not have to get involved.”

Osmotics is refreshing its packaging, including a redesigned logo, new cartons that focus on consumer education, and airless pumps for many products. The design work has been done inhouse. “The cartons will now have bullet points on one side so the shopper can read exactly what it’s for and how to use it. Another side refers to our scientific advisory panel. The overall look is somewhat luxury with a clinical message that isn’t intimidating,” Porter said.

The new primary containers are a subtle pearlized white or frosted white with metallic plum and silver accents. Blue Copper 5, one of Osmotics most successful products, features metallic blue caps on frosted white jars. Porter stressed, “We have changed the jars from glass to a high-end frosted plastic and are using airless pumps for other products. The cleansers, which are packaged in tubes, have a tamper-evident seal. We want to communicate ‘cosmeceutical,’ but have taken a sophisticated product and made it accessible to the consumer, because there is so much confusion in the market today.”

Osmotics launched with Saks in 1995, and is now also sold at Nordstorm, Lord & Taylor and Sephora, some spas and boutiques and at www.osmotics.com. The company has recently formed a new pharmeceuticals business, OPI (Osmotics Pharma Inc.).

Nu Skin’s Tru Face Essence consists of precise dose gel caps in a frosted jar for a prestige look.

Nu Skin Emphasizes Ingredients
Nu Skin Enterprises Inc., based in Provo, UT, is a direct selling company operating in more than 30 countries throughout the Americas, the Asia Pacific region and Europe. Its Nu Skin Division markets more than 100 products including face and body care, hair care, oral care and cosmetics. It works with “renowned scientists and industry experts to combine the best of science and nature in creating its innovative, premium quality products,” according to Nu Skin.

“Nu Skin is committed to marketing products that contain beneficial, innovative ingredients,” said Courtney Wingnet, director of product marketing for the company. “As part of this commitment, we invest the bulk of our cost of goods in the formula as opposed to the package. This is a luxury Nu Skin can afford because we do not compete on the retail shelf for attention; instead we rely on our highly trained distributor force to educate the consumer on the benefits of our products,” Wingnet explained.

Still, package design is carefully considered. Nu Skin uses colors to subtly communicate the end benefit of a product offering and to communicate the positioning and prestige of the line. Colors such as platinum and blue are used on the daily skin care and treatment products to communicate innovation, science and sophistication, according to Wingnet. Nu Skin 180, the anti-aging product line, uses medicinal colors to communicate the clinical nature of the benefits the line offers. Wingnet added, “Nu Skin TriPhasic White, the skin brightening line, features an iridescent coating on all product packages to communicate the end benefit of increased skin luminosity and brightness.”

Nu Skin incorporates the latest packaging technologies where appropriate for its products. Nutriol Hair Fitness Treatment requires a bi-phase delivery system that releases minerals into the solution when ready for use to maintain maximum freshness and potency, according to Wingnet. “We achieve this by using the closure to release the powder into the liquid at the time of use.”

She pointed out that Clear Action Cleanser, featuring a post-foaming cleanser, uses a pressurized dispensing system that keeps the product from out-gassing and preserves an aesthetically pleasing form.
Nu Skin recently introduced Tru Face Essence, a treatment product said to restore skin definition and firmness. Wingnet noted, it “is meter dosed in gel capsules for maximum efficacy. This product is packaged in a frosted glass jar with a platinum lid to communicate the prestige of and positioning of the product.”

Clinique Partners with Weill Cornell Medical College To Establish The Clinique Skin Wellness Center An artist’s rendering of the the Clinique Wellness Center, scheduled to be open in the fall of 2006. Established in 1968 by Estée Lauder in collaboration with Dr. Norman Orentreich, a high-profile Manhattan dermatologist, the Clinique brand has always had a tradition of serious skin care products. Since the beginning, Clinique has been committed to ongoing scientific research in the area of skin biology. It has also supported medical and health professionals through sponsored symposia and maintains close relationships with dermatologists around the world, according to the company. On March 16, a new venture with the Department of Dermatology at Weill Cornell Medical College was announced that will further Clinique’s tradition of serious dedication to healthy skin. Clinique Laboratories Inc. is establishing a new dermatology center, The Clinique Skin Wellness Center at Weill Cornell, for both clinical and research dermatology that is scheduled to open in fall 2006. The Center is part of the Initiative for Dermatology, a campaign to lead the revolution in dermatologic care for Weill Cornell Medical College. This is the first time a leading cosmetic brand and a prestigious medical institution such as Weill Cornell have collaborated on an initiative that addresses skin wellness from both the clinical and research perspectives. “We want to express our sincere gratitude to Clinique for their generosity and support of our Dermatology Department that will ultimately lead to the establishment of a world-class skin wellness center,” said Antonio M. Gotto, Jr., M.D., Stephen and Suzanne Weiss Dean of Weill Cornell Medical College. “This unique collaboration will allow us to continue to fulfill our mission of excellence in medical research, education, and patient care.” Philip Shearer, global president of Clinique, said, “A commitment to aligning with the cutting-edge of dermatological science is what has always set Clinique apart from other brands. The Clinique Skin Wellness Center at Weill Cornell embodies the best of dermatology with the best in over-the-counter skin care. When Clinique was founded 37 years ago with a single dermatologist, it was groundbreaking. Today, to pursue the next level of excellence in skin care, collaboration with a leading clinical and research institution such as Weill Cornell Medical College is essential.” The Center will be directed by Dr. Richard Granstein, chairman of the Department of Dermatology at Weill Cornell and will include state-of-the-art patient treatment rooms, a patient waiting room, and an information center which will allow consumers access to the latest information on skin wellness via Clinique-sponsored computer terminals. Clinique will also supply handout materials in laymen’s language about the latest medical opinions on diagnosing and treating common skin conditions at the center. An ongoing program of scientific research will include the establishment of a Clinique Clinical Scholar as well as jointly sponsored research. The program will also include outreach to local communities with forums on skin wellness, an annual scientific symposium for dermatologists and other health professionals, and educational programs for patients and health professionals.

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