April 15, 2024

Ageless Beauty: Harnessing the Power of Cosmeceuticals for Anti-Aging

Cosmeceuticals are cosmetic products that deliver pharmaceutical-like benefits, containing ingredients with medicinal properties. They help address various skin, hair and nail conditions and care with functional ingredients beyond basic moisturizing and cleansing effects.

The global cosmeceutical market was valued at US$ 76,875.0 Mn in 2022 and is forecast to reach a value of US$ 153,318.7 Mn by 2030 at a CAGR of 9.02% between 2023 and 2030.

Market Dynamics:

The global Cosmeceuticals Market is witnessing high growth owing to the growing concerns regarding skin care and rise in use of protective cosmetic products. Furthermore, increasing demand for multi-functional anti-aging cosmetic products is also contributing to the market growth. Manufacturers are focusing on developing advanced cosmetic formulations with anti-aging ingredients like peptides, retinol, and antioxidants as aging is a primary concern among consumers. The launch of customized skin care ranges developed through technological innovations like artificial intelligence is further expected to drive the market growth during the forecast period.

Rising Demand for Anti-aging and Anti-wrinkle Products is Driving Growth in the Cosmeceuticals Market

The global population is getting older and more conscious about aging signs like wrinkles, dark spots and fine lines. According to a report by United Nations, the number of people over 60 years is projected to double by 2050 and more than triple by 2100. To combat aging signs, consumers are increasingly using anti-aging cosmeceutical products like serums, creams and gels containing ingredients like retinol, hyaluronic acid and peptides. Major cosmeceutical brands are launching innovative anti-aging product ranges targeting specific aging concerns. Growing popularity of Korean skincare routines among millennials that emphasize multi-step anti-aging rituals is also fueling sales of anti-aging cosmeceuticals.

Stringent Regulations on New Product Approvals Can Impact Growth

Unlike conventional cosmetics, cosmeceuticals products containing claims of therapeutic benefits are classified as drugs under regulatory frameworks of countries. They have to undergo rigorous clinical testing and evaluation process to prove their efficacy and safety before approvals. For example, in the US, cosmeceuticals are regulated by FDA and need an approved New Drug Application or an over-the-counter drug monograph before marketing. The approval process is complex and expensive. Any changes to product formulations also need re-approval. Stringent regulations extend the time taken to launch new cosmeceutical products in markets like the US and delay their revenue generation compared to regions with lenient norms like Japan, South Korea and European countries to an extent. Excessive documentation and compliance requirements also increase the cost of operations.

Expanding E-commerce and Direct-to-Consumer Sales Present Growth Opportunities

The cosmeceuticals market is poised to gain from the rapid growth of e-commerce and direct-to-consumer business models. During the COVID-19 pandemic, e-commerce emerged as the preferred shopping channel for consumers. Major cosmeceutical brands are actively enhancing their DTC capabilities through company owned websites and popular third party platforms. E-commerce allows brands to target a wider consumer base, launch exclusive product ranges and offer customized virtual consultation. GlobalData estimates the US DTC skincare market to cross $25 billion by 2023. Emerging Asian markets like India also offer lucrative opportunities for online Cosmeceuticals sales given the tech-savvy young population and growing demand for premium skincare. Customized subscription and auto-replenishment programs can boost consumer loyalty and repeat purchases.

Growing Popularity of Natural and Clean Label Cosmeceuticals

Consumers are increasingly demanding natural, sustainable and clean label products free from harsh chemicals, parabens, sulfates, phthalates and other questionable ingredients. They are also conscious about packaging materials and efforts by brands towards reducing environmental footprint. This trend is a major driver for brands to shift focus towards natural cosmeceutical ingredients derived from plants, herbs and essential oils with proven skin benefits. Brands are emphasizing natural positioning through plant-based formulations, minimal processing and transparent ‘clean’ claims on packaging. The proliferation of cruelty-free beauty brands and vegan cosmeceutical product ranges also aligns well with this growing trends. Major retailers like Sephora and Ulta are expanding their selection of natural cosmeceuticals to tap demand.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it