Regina Maiseviciute

Skin care globally is set to be worth some US $105 billion in 2013, with the category achieving a robust retail value CAGR of 6% over 2007-2013.

Facial care is the most important skin care category, accounting for 81% of total value sales. Despite the economic slowdown over the review period, facial care proved to be the driver of skin care’s success, for several reasons.

Asia Pacific and Latin America are key to the dynamic growth of facial care due to the growing financial ability of consumers in these regions, as well as more women being involved in the workforce and the development of retail distribution.

Polarization is also a very important driver in facial care, which is seeing the strong development of both economy and premium ranges, especially in the developed economies of Western Europe and North America.

During the economic slowdown, facial care was often treated as an affordable luxury, which led to a robust performance from premium ranges. At the same time, there continue to be many price-sensitive consumers, thus reinforcing the further growth and development of economy facial care ranges.

The Role of Packaging

Packaging plays an important role in the performance of the facial care category.

Packaging plays an important role in the performance of the facial care category as it serves as a tool to communicate a brand’s value and attract consumer attention. Product presentation through packaging format and design is very important.

On many product review sites and blogs, consumers talk about the packaging of various brands and judge products partially on their presentation. In 2013, global packaging demand in facial care is set to account for over 10 billion units, with China and Japan accounting for 29% of the total.

China leads the way with almost two billion units of packaging set to be used in facial care in 2013.

Glass packaging in facial care, and particularly within facial moisturizers, registered very dynamic growth over 2007-2013. This robust performance was associated with the premium-ization trend in beauty and personal care.

Compared with plastic, for example, glass offers a more premium positioning, being particularly suitable for premium facial moisturisers and anti-agers.

In 2013, premium anti-agers is set to register dynamic volume growth of 14%, mainly driven by the increasing popularity of products offering gene-repair functions and rejuvenation effects. Besides increasing demand, the continuous robust growth of anti-ageing products was also stimulated by rising manufacturer investment in research and development over the review period.

The brand owners of premium and luxury facial care pay a great deal of attention to packaging solutions and aesthetics. Features such as matt and tinted effects will be incorporated into glass packaging to give it a more upmarket positioning in China over the forecast period.

In Japan, the second biggest market for facial care packaging in the world in 2013, the situation is slightly different than in China.

The HDPE bottle is the preferred pack type for facial care in Japan. Facial care manufacturers are paying much attention to the ageing population and are seeking to create packs which will be convenient for older consumers to use.

For example, in 2012, Kanebo Cosmetics Inc launched a new Twanny branded facial moisturiser named “Time Refresher”. The plastic bottle for this product received awards due to the embossed design on the bottle, which is not only for aesthetic purposes but also aids grip. This design was employed to reflect the fact that consumers are ageing and a better grip on a cosmetic bottle can improve convenience, particularly for older consumers.

Packaging innovation in facial care in Japan is expected to focus on enhanced convenience over the forecast period. The focus is shifting from younger to older consumers, with the ageing population in mind, which will also impact design.

Manufacturers will be increasingly required to design products that facilitate usage among elderly consumers. Packaging manufacturers will also pay attention to providing access to the full contents of a pack, for example through the use of lotion pumps on HDPE bottles, which help to dispense a product more effectively.

ABOUT THE AUTHOR: Regina Maiseviciute is senior analyst, packaging, at Euromonitor International.

Maiseviciute joined the company in 2006, and is responsible for the in-depth ressearch and analysis of the global pacakging industry. She monitors key trends and issues within the packaging industry on a year-round basis, and is responsible for global market analysis, as well as highlighting key trends and developments, which provide detailed insight into corporate activity and the state of the packaging industry.