Beauty Industry

U.S. Skincare Expected To Grow to $7 Billion by 2010

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By: Jamie Matusow

Editor-in-Chief

Promises of diminished lines, a smoother, younger-looking healthful glow, and a clearer complexion are paying off big for manufacturers of skincare products, which racked up an expected $5.8 billion in sales in 2006, according to Skincare Products in the U.S, a year- end market research study from Packaged Facts. Packaged Facts projects that sales of moisturizers, cleansers, hand and body lotions, and anti-aging skin products will top $7 billion by 2010, led by anti-aging products, which are expected to retain double-digit growth rates in the next several years. Packaged Facts anticipates anti-aging’s compound annual growth rate to be 11.3% through 2010. All other skincare segments are expected to see similar healthy growth, with the exception of facial cleansers, which should remain relatively flat. While prestige products have suffered fallout from department store mergers and closings, sales are expected to recover. Additionally, higher- priced, higher-quality mass-market products (often referred to as “masstige”) and increased mass-market distribution of prestige products will continue to stimulate market growth. Highly functional product promises, such as protection, prevention, deep cleansing, or regeneration, combined with natural and organic ingredients are also ideally poised to fuel dollar growth. “Marketers and retailers have done an excellent job of repositioning products based on need and catering to a wider audience including teens, twenty-somethings, and men,” notes Don Montuori, the publisher of Packaged Facts. “Rebranding has paid off in several instances and positioning products in a more cosmeceutical fashion has fueled market growth and will continue to do so in the next several years as consumers buy into the promise of better looking skin.”

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