COUNTRY HIGHLIGHTS
US – although it has slowed overall, says Anna Mayo, VP, Content and Strategy, Beauty, at Nielsen. “It’s hard to increase consumption forever, so after two years of really strong growth to be still growing even at a lower rate is really promising for facial skin care,” she says, noting particularly strong growth in eye care and facial treatments, up 21.3% and 34.6% respectively in dollar growth. Figures from The NPD Group reveal 12% growth in prestige skin care for 2022, with body care products outpacing facial products three-fold. Across both facial and body care, trending ingredients continue to drive growth, with the top five by search volume including vitamin C, retinol, hyaluronic acid, niacinamide and collagen, according to Nielsen. Microbiome claims are still an emerging segment in skin care, accounting for 8% of products, but this is growing by 1637%. La Roche-Posay, which was the fastest growing skin care brand in 2022, with 46% dollar growth and 48% unit sales growth, is a particularly strong player in microbiome research and product development. Last year, the brand relaunched its Lipikar AP+M Triple Repair Moisturising Cream with an enhanced formula featuring new microbiome technology and also launched Cicaplast Spray B5, a skin barrier repair for damaged, uncomfortable or irritated skin. Meanwhile, celebrity brands continue to make a splash in facial skin care, with sales exceeding $720m and up 37% year-on-year according to Nielsen (52 weeks ending 13 August 2022), with Florence by Mills and JLo Beauty proving particularly popular. It was also a big year for new celebrity launches with Kim Kardashian’s SKKN by Kim, Hailey Beiber’s Rhode, Scarlett Johansson’s The Outset, Brad Pitt’s Le Domaine Skincare and Winnie Harlow’s Cay Skin entering the space.
CHINA
Due to weakened consumption power resulting from the resurgence of Covid cases, the
world’s largest skin care market has had a troubled past year, with a lower growth rate than both 2021 and 2020. According to data from Alibaba, the skin care sector saw a 3.6% decline on its e-commerce division Tmall Taobao. Nevertheless, Elena Gatti, Managing Director of Azoya Europe, says that, when it came to the all-important Singles Day event last year, “even though mainstream e-commerce platforms kept a low key to releasing
US SKIN CARE SEGMENT GROWTH, 2021-22
La Roche-Posay was the fastest growing skin care brand in the US last year, according to NielsenIQ
Eye skin care Facial treatments
% $ growth % unit growth +21.3 +34.6
+25.1 +29.0
52 w/e 10 August 2022. Source: NielsenIQ Omnishopper
precise sales figures, we observed that consumer demand for skin care products remained strong.” And there have certainly been some winners,
with L’Oréal Group recording double-digit growth online in China in its 2022 results, and Tmall Global recording significant growth in Gross Merchandise Volume (GMV) among new global brands on the platform. “One of the key factors driving their success is that brands discover a unique product market fit in China, including identifying and fulfilling customers’ unmet demands and teasing out the target customer precisely,” says Gatti. The Honest Company made its debut in China last year on Tmall Global with beauty accelerator SuperOrdinary, noting that distribution in the market would allow the brand to bring its consumer products to a new, untapped audience. “Chinese consumers are eager to discover and integrate new clean beauty formulations into their daily routines,” said Tony Shan, Head of Tmall Global, Americas, at Alibaba Group, at the time of launch. The brand offers a selection of its most popular skin care products including Hydrogel Cream, Calm + Porefect Serum and Honestly Bright Eyes Tinted Eye Cream.
Gazzi notes that consumers are also paying more attention to skin health, as they are to both physical health and wellbeing. “The pandemic has fostered overall awareness of self care and shifted the focus to skin care products,” explains Gazzi. And even though the luxury industry was hit hard in the fourth quarter of 2022 in China, she adds: “the good news is that they are seeing a recovery from the Chinese New Year holiday.” New launches in the prestige skin care segment could now stand a better chance of flourishing, such as Clarins’ new premium range Precious, which launched in China in September to a reportedly successful start. However, ‘skinimalism’ is also a growing trend in China as it is elsewhere and this could continue to influence the demands of Chinese beauty consumers to look for offerings that satisfy multiple skin care needs in only one or two products, says Gatti: “They are concerned that using too many products with different efficiency can burden their skin”
ACTION POINTS
We are seeing a lot of retailers diversifying their skin care offer and integrating smaller brands and pharmacy brands, and this will continue. Mathilde Lion, Executive Director, Global Client Development, The NPD Group
The luxury skin care consumer is now comfortable shopping across multiple channels, having grown accustomed to buying online during the pandemic lockdowns. Luxury brands need to have an omnichannel strategy at the forefront of their minds. Simon Murray, Senior Brand Manager, The Red Tree
cosmeticsbusiness.com
March 2023 cosmetics business 17
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