New York, NY (PRWEB) April 10, 2014
The Self-Tanning Product Manufacturing industry has strongly grown over the past five years, maintaining this growth amid the economic slowdown. Operators in this industry manufacture topical-application lotions and sprays that create the appearance of tanned skin without exposure to sunlight (i.e. sunless tans). According to IBISWorld Industry Analyst Sally Lerman, “Product innovation and improvements, growing consumer awareness about the negative health effects of UV (ultraviolet) tanning and increasing regulation for tanning salons are expected to support demand for self-tanning products.”
Large corporations, such as Kao Corp., and small producers alike have benefited from the rapidly rising popularity of self-tanners, and continue to respond to customer demand accordingly. Furthermore, established cosmetics producers have joined the industry, producing self-tanners and marketing them under well-known cosmetics brand names. As a result of higher demand, coupled with more industry entrants, revenue is anticipated to rise at an average annual rate of 15.3% to reach $763.4 million during the five years to 2014, including growth of 9.5% in 2014.
Consumer awareness of the harmful effects of UV-ray exposure is a major determinant of demand for the industry, which provides a tanning alternative that is advertised as healthier. Tanning is the skin's response to UV rays emitted by the sun and tanning lamps. Sustained use of tanning beds and tanning lamps can more than double the risk of cancer, according to a study from the Journal of the National Cancer Institute. “Additionally, frequent tanning can cause skin to age and wrinkle at a faster pace,” says Lerman. Consequently, in response to increasing health awareness, demand for sunless tanning has been growing over the past decade, which has led to more product innovation in the industry, thereby helping satisfy a wider range of consumers.
Over the next five years, the industry is anticipated to display robust growth, with continued US economic recovery boosting sales, particularly those of higher-priced products. While the industry's main competitor, the Tanning Salons industry (IBISWorld report 81219c), is expected to experience growth over the five years to 2019, sales of US-produced self-tanners are expected to increase. More products, intensified marketing efforts and continued expansion of small operators will contribute to this rapid growth.
This industry is highly fragmented. Many large, multinational corporations compete in this space; however, the availability of ingredients and an open online market have been conducive to rapid enterprise growth. Nonemployers make up a significant share of industry enterprises; however, they make up relatively little revenue per person. The largest manufacturer is Kao Corp.
For more information, visit IBISWorld’s Self-Tanning Product Manufacturing in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
The Self-Tanning Product Manufacturing industry manufactures topical-application lotions and ingestible pills that create the appearance of tanned skin without exposure to sunlight. Topical products usually work by applying dihydroxyacetone (DHA) to the surface of the skin, where dead skin cells react by changing color. The effect created by these products can last seven to 10 days.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.