Though cosmeceutical sales suffered during the recession, their “little luxury” appeal and ability to deliver curative, cosmetic and preventative benefits at an affordable cost is contributing to a market rebound amounting to 2% growth in 2010 and 4% growth in 2011, according to a new report from Reportlinker.com (www.reportlinker.com). This upswing puts United States retail sales of cosmeceuticals at $9.7 billion in 2011, with ongoing annual sales gains expected to boost the market to $11.7 billion by 2016.
According to the new report--“Cosmeceuticals in the U.S.”--younger generations have grown up immersed in marketing messages making them both appearance-oriented and aware of the importance of preventive healthcare. As a result, new marketing prospects are opening up at the younger end of the age spectrum, even as aging Boomers open their wallets ever wider to stave off the cosmetic toll of aging. Still, cosmeceutical marketers may take nothing for granted. Given ongoing budget constraints, shoppers expect the cosmeceuticals they buy to perform, and the faster the better. In addition, with the upper end of the market rebounding the fastest, opportunity is greatest for premium mass-market and specialty or prestige channel products, expressing pent-up post recession demand.
Key data sources included Experian Simmons Market Research Bureau national consumer surveys, covering category and brand usage levels and demographic patterns, and Information Resources, Inc. InfoScan Reviews, quantifying cosmeceuticals marketer and brand shares at the mass-market level across the three product categories. The research was conducted online in March 2012.