Growing niche, Asian-led innovation, emerging electronic devices and other key skin care trends lie at the heart of a recent analysis by Euromonitor's Nicole Tyrimou.
Niche Brands & Segments
Tyrimou notes that a range of companies have recently acquired niche offerings, including Unilever's purchase of REN, L'Oreal's purchase of Magic Holdings, and Estée Lauder’s acquisitions of GlamGlow and Rodin Olio Lusso.
The analysis also notes that oils and face masks offer further growth opportunities, with masks growing at a CAGR of 6% through 2018, compared to the overall skin care category's 4% CAGR.
Tyrimou adds, "With face masks in China alone expected to add another $1.2 billion to its value by 2018, acquisitions and innovation are expected to intensify."
The Rodion Olio Lusso and other acquisitions show the popularity of facial oils, the analysis explains: "Oils are expected to continue to dominate skin care innovation not only as a format or ingredient but also as an extra product to be added to one’s skin care regime."
Asia, particularly Korea, will lead beauty innovation trends, according to the report. Lead insights include:
- Cruelty-free is on the rise
- "Novel concepts, products, formats and benefits" rule
- Hydration is a key benefit for the region
From augmented reality to diagnostic tools to electronic skin care devices, tech is hot.
"The rise of devices in skin care, from cleansing to anti-aging and electronic face masks, has shaken up both the competitive field and innovation in skin care," says Tyrimou. "Beauty companies have been introducing cleansers and lotions that work with the devices and can further enhance their efficacy."
Key examples in the intersection of tech and skin care include: