New market trends

After several years of strong growth, the global market for professional skin care products showed signs of fatigue in 2009. While Europe and the United States posted substantial declines, the exception to this trend came from the BRIC [1] markets spearheaded by Brazil, which posted growth of 11.1%, according to recently released study Professional Skin Care 2009 Global Series: Market Analysis and Opportunities from consulting and research firm Kline & Company. The report focuses on product categories and brands sold in professional outlets such as spas and salons, dermatologists’ and plastic surgeons’ offices, and beauty institutes. It also captures sales for professional brands through traditional retail outlets.

The recession’s impact in Europe and the United States resulted in a change in spending patterns, a decline in the frequency of visits to spas and physician’s offices, and a shift to lower-priced brands,” notes Karen Doskow, Industry Manager at Kline. “But even in the face of a gloomy economy, industry leaders fought back with a healthy flow of new product launches, many of which targeted the anti-aging segment.”

Proven results required

Professional skin care marketers acknowledged the need to diversify, segment, and innovate their offerings in order to cater to a change in demand for the products that are preventative or that are proven to help reverse signs of ageing,” Ms Doskow further explains. “Products that were unique, multi-tasking, or offering dual benefits certainly stood out for the recession-stricken consumer.

According to Kline, marketers of professional skin care products must capitalize on the latest scientific findings and innovations in ingredient research that help their products, to some extent, compare to results of cosmetic treatments performed by medical professionals. “As consumers extend the time between in-office procedures, new products completing or replacing cosmetic procedures will grow in importance.” Products such as Babor’s Skinovage Nanocell Age Protective Cream Serum, Germaine de Capuccini’s Time Lift Timexpert Rides X or Skinceuticals’ Retexturing Activator are examples of professional skin care products competing with in-office treatments.

Regional market diversity

Anti-ageing products account for 41.1% in the United States and nearly 50% of sales in Europe and Brazil, says the report.

Responding to consumer needs, the dynamism of each product category varies on a worldwide basis; skin whitening is a number one concern for marketers in China and Japan, and anti-cellulite treatments are a top priority in Europe or Brazil.

Regional diversity also occurs in channel sales. In Brazil, the spas channel posted a whopping 86.2% gain. In Europe and the United States, the medical care providers channel enjoyed the highest growth.

The direct sales channel in the U.S. professional market posted an incredible 10% increase, making it a top trend for the year. In this channel, marketers took charge of building relationships directly with customers through podcasts, and YouTube clips. Incorporating social media outlets into their marketing strategy has become standard practice in recent years. This, in turn, is quickly becoming a dominant way to reinforce brand imaging and promote new products.

Better times ahead

According to Kline’s FutureView forecasting model, brighter days are ahead for this industry. As an example, the professional skin care market for the United States is predicted to grow by a CAGR [2] of 5.6% through 2014, or if exceptional conditions prevail, the market could grow as high as 11.3% a year.