Acne Treatment Industry: New Products and Stable Demand for Acne Treatment Will Sustain Growth

Performance for the Acne Treatment Manufacturing OTC industry is looking clear over the next five years, according to the latest findings by IBISWorld, the nation’s largest publisher of industry research. From 2011 to 2016, revenue is forecast to rise at an average annual rate of 3.2% to $2.6 billion. This growth includes a projected increase of 2.7% during 2012. While the industry is in the mature stage of its life cycle, it will continue to witness a bevy of new product introductions, particularly products made from all-natural ingredients. Furthermore, companies are expected to increasingly formulate products that are aimed at adults with late-onset or persistent acne. However, the industry will face increased competition from alternative acne treatment remedies, which will moderate revenue growth.

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IBISWorld Market Research

IBISWorld Market Research

The acne treatment industry will benefit from improving economic conditions, as greater disposable income growth allows consumers to spend on higher-priced over-the-counter (OTC) items

Los Angeles, California (PRWEB) November 04, 2011

Performance for the Acne Treatment Manufacturing OTC industry is looking clear over the next five years, according to the latest findings by IBISWorld, the nation’s largest publisher of industry research. From 2011 to 2016, revenue is forecast to rise at an average annual rate of 3.2% to $2.6 billion. This growth includes a projected increase of 2.7% during 2012. While the industry is in the mature stage of its life cycle, it will continue to witness a bevy of new product introductions, particularly products made from all-natural ingredients. Furthermore, companies are expected to increasingly formulate products that are aimed at adults with late-onset or persistent acne. However, the industry will face increased competition from alternative acne treatment remedies, which will moderate revenue growth.

The Acne Treatment Manufacturing OTC industry has maintained strong growth over the past five years. From 2006 to 2011, revenue has grown unabated, and it is expected to expand at an average annual rate of 3.1% to $2.2 billion. Because acne-prone individuals consider treatment products a necessary expense, revenue continued to rise during the recession, though growth did slow as consumers switched to more inexpensive products. In addition, the increasing prevalence of adult-onset and persistent acne conditions has given rise to new targeted products. Furthermore, an expanding consumer base has contributed to revenue gains during the period. From 2010 to 2011, with modest economic improvements giving way to greater per capita disposable income growth, industry revenue is expected to increase 2.0%.

The Acne Treatment industry includes household brand names such as Neutrogena, Clean & Clear, Aveeno, Proactiv and Clearasil. Together, the top three companies, Johnson & Johnson, Guthy-Renker and Reckitt Benckiser, control an estimated 66.7% of the industry. While these companies have major brand presence in this competitive market, companies have continued to enter the industry lured by its stable demand and high profit margins. Over the five years to 2011, the number of industry manufacturers has increased at an estimated average annual rate of 1.6% to 53. Profit margins for the industry are relatively high, at 15.1% in 2011; however, margins have decreased slightly over the five-year period due largely to rising chemical input costs.

According to IBISWorld analyst, Caitlin Moldvay, the outlook looks clear for the industry. “From 2011 to 2016, industry revenue is projected to rise to $2.6 billion,” says Caitlin Moldvay. “The acne treatment industry will benefit from improving economic conditions, as greater disposable income growth allows consumers to spend on higher-priced over-the-counter (OTC) items.” Furthermore, companies are expected to increasingly develop product lines with all-natural ingredients, given changing consumer preferences. Still, the industry will face greater external competition from prescription acne products and laser treatments, as increasing private health insurance coverage and greater disposable income allows individuals to avail themselves to these treatments.

For more information, download the full report from IBISWorld on the Acne Treatment Industry

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