The U.S. body care market reached estimated sales of $2.2 billion in 2006 at current prices, including estimates for Wal-Mart and premium channels—an increase of 10% from 2004 sales of $2 billion. The market has steadily grown between 2001 and 2006, although much of the growth has come from unexpected channels in recent years. It was previously predicted throughout the industry that premium retailers would continue to erode sales at mass channels, and that sales through high-end department stores, specialty shops, and online retailers, selling specialty products at higher price points, would be the cornerstone of this market. However, during mid-2005 a slow migration of premium products to food, drug and mass merchandiser (FDM) shelves began to accelerate rapidly due to consumer demand. The result is a wide variety of premium-style products available almost ubiquitously, so that between 2004 and 2006 substantial growth came from the mass segment. Premium channels continue to grow as well, but are losing share to the mass segment.

Among both segments, the drivers to growth include consumers who want to ward off the visible effects of aging, interest in natural or active ingredients, and a growing interest in personal health and wellness.

The market is bolstered by numerous product introductions, each touting innovation or a scientific positioning. Although new product introductions have slowed considerably in 2005 compared to 2004, many anti-aging, herbal/botanical, pampering, self-tanning, or other new products have helped keep the industry moving forward, although in some cases to the detriment of sales of older products.

The core customers for body care products remain aging consumers and women, although ethnic consumers, men, and teens represent viable demographics, provided marketers can keep pace with their specific skincare needs and wants. Close to two thirds of adults use moisturizers, and over half of teens use them. Asians, blacks, and Hispanics all report above-average penetration. Regular moisturizers in lotion form remain the most popular, but the constant flow of new formulations, sunscreen and sensitive skin products are also making inroads.

The future of the market appears strong, especially as consumers seeking specialized products, particularly those promising some anti-aging effect, will be able to find them at everyday retail destinations at more affordable prices, and as ethnic populations grow and manufacturers cater to their needs even more specifically. The proliferation of spas in the U.S. may begin to contain more skincare elements, but Mintel believes it is too early to tell if this development will positively or negatively affect the market.