Dallas, Texas (PRWEB) March 02, 2013
The global cosmeceuticals market was estimated to be worth $30.9 billion in 2011 with the top five European countries accounting for approximately 65% of overall revenues. Global refers to the seven most developed markets: the US; the top five European countries, namely the UK, France, Germany, Italy and Spain; and Japan. The market grew at a Compound Annual Growth Rate (CAGR) of 3.6% from $24.1 billion in 2004 to $30.9 billion in 2011 and is expected to reach $42.4 billion by 2018 at a CAGR of 4.6%. The industry has three major categories: skin care, hair care, and others. The skin care segment accounts for the largest share of the market with 43%. As it is dominated by anti-aging products it is expected to contribute significantly to future market growth owing to the aging populations in the top seven developed markets.
Cosmeceuticals Industry Dominated by a Few Large Players with High-Performance Brands
The market is dominated by a small number of large players; their success is driven by building big brands through access to large marketing budgets. However, the cosmeceuticals market has demand for both mass-market and premium products, prompting even these large players to showcase brands in both product ranges. Although the premium product segment declined during the recession in 2008 and 2009, it picked up by 2011 with premium brands. With an aging population and increasing consumer awareness, demand for high-quality, innovative and premium-priced cosmeceutical products are increasing in the top seven global markets. Demand is further boosted by increasing urbanization and affordability in emerging markets such as Latin America, China and India. The per-capita disposable income is steadily increasing in these economies, making it a lucrative growth target for the cosmetics industry.
The Term "Cosmeceuticals" is Not Recognized by Regulatory Agencies
The term "cosmeceuticals" is applied to products that are intended for skin, hair or sun care and involve an active ingredient that aims to alter physiological function in order to achieve the intended results. Although the term is not recognized by the US Food and Drug Administration (FDA) or by the European Medicines Agency (EMA), it has been widely adopted by the cosmetics industry, which is rapidly expanding in spite of global economic woes in recent years. In the US, products that can be put in both the cosmetics and drugs category, such as cosmetic products with active ingredients which claim therapeutic use, require New Drug Application (NDA) approval or must comply with the appropriate monograph for an Over-the-Counter (OTC) drug. Moreover, the FDA also has specific guidelines for Good Manufacturing Practice (GMP) for cosmetics. In Europe, EMA guidelines place a clear demarcation between drugs and cosmetics, whereby a cosmetic is a product that is to be applied topically with an intended cosmetic function and products cannot fall under both categories, unlike in the US. Among major markets, Japans Ministry of Health, Labor and Welfare (MHLW) classify cosmetic products with drug-like benefits as quasi-drugs and require prior marketing approval.
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