MARKET ANALYSIS

Supported by statistics from Mintel, the skincare market is proven to be significantly growing year on year. While the market continues to grow, it is a market that is incredibly saturated, with a large number of brands competing against each other for consumers. As skincare is something that is very subjective and personal, it is difficult to pinpoint the factors of growth for the big contenders.

As YourGoodSkin is a very young, small brand, it has a minuscule section of the skincare market. According to GlobalData, Boots retained its position as market leader in 2017, in the UK Health and Beauty market, with a 20.5% share of the market. However, this is being challenged by the use of online purchasing, with brands such as Amazon providing a wide selection of product.

The women’s facial skincare category showed strong value growth in 2017, increasing by 4% to reach £1.15 billion, boosted by increasing penetration of skincare products (Mintel, 2018).

The category is expected to continue showing growth, in the best-case growing by 26% from an estimated £1.18 billion in 2018 to £1.49 billion in 2023, or in the worse-case growing by 4% to £1.23 billion. Mintel estimates the category to rise by 15% to £1.36 billion by 2023 however, driven by GDP and the population of women aged 16-54 (Mintel, 2018).

CONSUMER & INDUSTRY TRENDS

MACRO

The current Macro trends that apply to YourGoodSkin would be technology, sustainability and athleisure. Technology within the skincare industry is something that is becoming more sort after, and its effective usage is desired amongst competitors within the market. However, YourGoodSkin hasn't yet explored this trend. If they were to create products that combine technology into their range, it would help get a step ahead of competitors. Sustainability is also a trend that YourGoodSkin need to be aware of when creating any products, as ‘66 percent of global consumers are willing to pay more for sustainable goods’ - Neilson 2015. Therefore creating a product that is sustainable is going to appeal to YourGoodSkin’s consumer. Athleisure is the last trend explored and is also something that is changing the skincare industry. This started from within fashion and has over spilled into the skincare market causing a rise of consumers wanting to look good in the gym. There is still a gap in the market when it comes to athleisure in the skincare industry, which is why it would be a main focus for YourGoodSkin and will create a strong unique selling point.