Skin care industry in the US

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SKIN CARE IN THE US 26 May 2011

HEADLINES Skin care sales grow 2% in 2010 to reach US$10.1 billion Premium skin care outperforms mass, with 7% current value growth in 2010 Nourishers/anti-agers most dynamic with 5% value growth in 2010 Unit prices increase slightly in 2010 Johnson & Johnson Consumer Products Inc leads skin care sales with 13% value share Skin care sales to grow 5% in constant value terms over forecast period

COMPETITIVE LANDSCAPE Johnson & Johnson Consumer Products Inc led US skin care in 2010 with a 13% value share, down slightly from 2009. Its Neutrogena brand is the number one skin care brand with a value share of 7% in 2010. The company is particularly strong in acne treatments where it held a 28% value share for second place through its Neutrogena and Neutrogena Skin id lines. Neutrogena has long been marketed toward young women through advertisements starring young celebrities such as Hayden Panettiere and Vanessa Hudgens. The company’s Aveeno brand is ranked number nine in skin care and marketed as a “natural” line with clinically-proven skin care benefits. Estée Lauder Co saw the greatest share gain in 2010. The company added half a percentage point to reach over 12% in 2010. The firm’s position is tied to its leadership of the premium skin care category, where it held a 44% value share in 2010. Estée Lauder views skin care as its most strategically important category. The company’s success was driven by its well-established brand portfolio, notably Clinique and Estée Lauder. In times of economic uncertainty, the prestige shopper was drawn to these well-known and trusted brands. Clinique, the second-largest skin care brand and the largest premium skin care brand, had a standout year in 2010. New product innovation allowed Clinique to increase its value share from 6% in 2009 to nearly 7% in 2010. Clinique Even Better Clinical Dark Spot Corrector and Clinique Repairwear Laser Focus Wrinkle & UV Damage Corrector were standout launches. The company is promoting the great value offered by Clinique through signage at department store counters with pricing information. Clinique is priced at the low end of the

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premium skin care segment with its Laser Focus serum priced at only US$44.50 for a 1fl oz. bottle. The company’s flagship EstÊe Lauder brand was the number five skin care brand at the end of the review period, and the second-placed premium skin care brand.

Š Euromonitor International 2011

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NATIONAL BRAND OWNERS AND THEIR BRANDS Company Name (NBO)

Brand (GBO)

Alberto-Culver Co

Noxzema (Alberto-Culver Co), St Ives Swiss Formula (Alberto-Culver Co)

Amway Corp

Artistry (Amway Corp), Body Series (Amway Corp)

Avon Products Inc

Avon (Avon Products Inc), Avon Basics (Avon Products Inc), Avon Moisture Therapy (Avon Products Inc), Avon Naturals (Avon Products Inc), Avon Renew/Anew (Avon Products Inc), Avon Skin So Soft (Avon Products Inc), Avon Solutions (Avon Products Inc), Clearskin (Avon Products Inc)

Beauticontrol Cosmetics Inc

BeautiControl (Tupperware Brands Corp)

Beiersdorf Inc

Eucerin (Beiersdorf AG), Nivea A Kiss of (Beiersdorf AG), Nivea Body (Beiersdorf AG), Nivea for Men (Beiersdorf AG)

Blistex Inc

Blistex (Blistex Inc), Stridex (Blistex Inc)

Body Shop Inc

The Body Shop (L'Oréal Groupe)

Boots Healthcare USA Inc

Clearasil (Reckitt Benckiser Plc)

Burt's Bees Inc

Burt's Bees (Clorox Co, The)

Carma Laboratories Inc

Carmex (Carmax Laboratories, Inc)

Chanel USA Inc

Chanel Précision (Chanel SA)

Clarins SA

Clarins (Clarins SA)

CVS Caremark Inc

CVS (Private Label)

Elizabeth Arden Co

Elizabeth Arden (Elizabeth Arden Inc), Prevage (Allergan Inc)

Estée Lauder Cos Inc

Clinique (Estée Lauder Cos Inc), Estée Lauder (Estée Lauder Cos Inc), Origins (Estée Lauder Cos Inc), Prescriptives (Estée Lauder Cos Inc)

Guthy-Renker Corp

Proactiv (Guthy-Renker Corp)

Jafra Cosmetics International Inc

Jafra (Vorwerk & Co KG)

Johnson & Johnson Consumer Products Inc

Aveeno (Johnson & Johnson Inc), Clean & Clear (Johnson & Johnson Inc), Lubriderm (Johnson & Johnson Inc), Neutrogena (Johnson & Johnson Inc), Purpose (Johnson & Johnson Inc), RoC (Johnson & Johnson Inc)

Kao Brands Co

Bioré (Kao Corp), Curel (Kao Corp), Jergens (Kao Corp)

Klein-Becker USA

StriVectin-SD (Klein-Becker USA)

L'Oréal USA Inc

Biotherm (L'Oréal Groupe), Cetaphil (Galderma SA), Garnier Nutritioniste (L'Oréal Groupe), L'Oréal Dermo-Expertise (L'Oréal Groupe), La Roche-Posay (L'Oréal Groupe), Lancôme (L'Oréal Groupe)

Limited Brands Inc

Bath & Body Works (Limited Brands Inc), Victoria's Secret (Limited Brands Inc)

LVMH Perfums & Cosmetics USA Inc

Dior (LVMH Moët Hennessy Louis Vuitton)

Mary Kay Inc

Mary Kay (Mary Kay Inc)

Mentholatum Co Inc, The

Mentholatum Natural Ice (Rohto Pharmaceutical Co Ltd), Oxy (Rohto Pharmaceutical Co Ltd), Softlips (Rohto Pharmaceutical Co Ltd)

Nu Skin Enterprises Inc

Nu Skin (Nu Skin Enterprises Inc)

Other Private Label

Other Private Label (Private Label)

Procter & Gamble Co, The

Olay (Procter & Gamble Co, The), Olay Age Defying (Procter & Gamble Co, The), Olay Daily Facials (Procter & Gamble Co, The), Olay Definity (Procter & Gamble Co, The), Olay Pro-X (Procter &

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Company Name (NBO)

Brand (GBO) Gamble Co, The), Olay Regenerist (Procter & Gamble Co, The), Olay Total Effects (Procter & Gamble Co, The)

Revlon Inc

Revlon (Revlon Inc)

Shiseido Cosmetics (America) Ltd

Shiseido (Shiseido Co Ltd)

Stiefel Laboratories Inc

PanOxyl (GlaxoSmithKline Plc)

Target Corp

Target (Private Label)

Unilever Home & Personal Care USA

Dove (Unilever Group), Pond's (Unilever Group), Suave (Unilever Group), Vaseline (Unilever Group)

University Medical Products

AcneFree (University Medical Products)

Wal-Mart Stores Inc

Wal-Mart (Private Label)

Walgreen Co

Walgreens (Private Label)

Wyeth Consumer Healthcare Inc

ChapStick (Wyeth)

Yves Rocher SA

Yves Rocher (Yves Rocher SA)

Source: Passport by Euromonitor International

FORECAST

DEFINITIONS AND METHODOLOGY Skin Care This is the aggregation of facial care, body care and hand care. Methodology This report is derived from Euromonitor International’s Passport information system. Industry research is carried out by a global team of more than 600 in-country analysts and is based on a core set of research techniques: National-level desk research, company research and analysis, store checking, trade interviewing with national players and market analysis

Š Euromonitor International 2011

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International-level desk research, multinational company research and analysis, trade interviewing with international players and market analysis

Š Euromonitor International 2011

www.euromonitor.com


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