Anti-aging Skincare - US - February 2011

SCOPE AND THEMES
What you need to know
Definition
Data sources and methodology
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
FDMx sales decelerate as the economy continues to lag
Poor economy, professional services, anti-aging beverages threaten sales
Consumer confidence has yet to recover
Unemployment remains high
Household incomes drop
Professional procedures threaten the over-the-counter anti-aging market
Anti-aging beverages also pose a threat
Facial anti-aging comprises the vast majority of FDMx sales
Drug stores lead FDMx market
Women are the primary buyers, but men and Hispanics also play a role
Women more likely to use moisturizers than men
Fewer men use moisturizers than women, but men show steady usage
Hispanics grow rapidly, wielding $1 trillion in spending power
Three companies lead the FDMx market, but private label grows most
Brand marketing turns to science, professional-level results
The anti-aging skincare consumer
Usage and purchases
Brand usage
Usage frequency
Top anti-aging concerns
Age prevention and reversal
Attitudes toward anti-aging skincare products
Impact of race/Hispanic origin
INSIGHTS AND OPPORTUNITIES
Beating BOTOX
New delivery methods
Getting started earlier
INSPIRE INSIGHTS
Trend: Perfecting the Details
MARKET SIZE AND FORECAST
Key points
Sluggish economy causes sales to sag
Brands seek to position products as natural, even necessary
Anti-aging skincare market size and forecast
Figure 1: Total U.S. FDMx sales and forecast of anti-aging skincare products, at current prices, 2005-15
Figure 2: Total U.S. FDMx sales and forecast of anti-aging skincare products, at inflation-adjusted prices, 2005-15
Fan-chart forecast
Figure 3: Fan chart forecast of anti-aging skincare products, 2005-15
Walmart sales
MARKET DRIVERS
Women much more likely than men to use moisturizers
Figure 4: Use of moisturizers/creams/lotions, by gender and female age, July 2009–September 2010
Figure 5: U.S. population, by age, 2006-16
Fewer men than women use moisturizers, but usage remains steady
Figure 6: U.S. male population, by age, 2006-16
Hispanics will play an increasing role in the market in coming years
Hispanic spending power reaches $1 trillion and counting
Figure 7: Actions taken to prevent or reverse signs of aging among Hispanics, November 2009 vs. October 2010
Figure 8: U.S. population by race and Hispanic origin, 2006-16
Consumer confidence remains shaky
Figure 9: U.S. consumer sentiment, 2002-10
High unemployment may translate to fewer replacement cycles
Figure 10: U.S. annual unemployment rate, 2002-10
Household incomes decline
Figure 11: Median household income in inflation-adjusted dollars, 1998-2008
Half of American households earn less than $50K
Figure 12: Household income distribution, 2009
COMPETITIVE CONTEXT
Professional procedures compete for OTC anti-aging sales
Cosmetic surgery
Other procedures
Anti-aging beverages continue to make inroads
SEGMENT PERFORMANCE
Key points
The face is the path to looking young
Body anti-aging has yet to take off
FDMx sales of anti-aging skincare products by segment
Figure 13: U.S. sales of FDMx anti-aging skincare products at current prices, by segment, 2005-15
SEGMENT PERFORMANCE—FACIAL ANTI-AGING
Key points
FDMx sales of facial products decelerate
FDMx sales and forecast of facial anti-aging skincare products
Figure 14: U.S. FDMx sales of facial anti-aging skincare products, 2005-15
SEGMENT PERFORMANCE—BODY ANTI-AGING
Key points
Body anti-aging lags far behind facial, drops sales in 2010 (est.)
Sales and forecast of body anti-aging skincare products
Figure 15: U.S. FDMx sales of body anti-aging skincare products, 2005-15
RETAIL CHANNELS
Key points
Drug stores lead, but other FDMx stores increase sales more
Channel sales
Figure 16: U.S. FDMx sales of anti-aging skincare products, by channel, at current prices, 2009 and 2010
RETAIL CHANNELS—DRUG STORES
Key points
Drug store growth is slack in 2010
Drug channel sales of anti-aging skincare products
Figure 17: U.S. FDMx sales of anti-aging skincare products at drug channels, 2005-10
RETAIL CHANNELS—OTHER FDMX
Key points
Other FDMx channels surge in the wake of the recession
Other FDMx sales of anti-aging skincare products
Figure 18: U.S. FDMx sales of anti-aging skincare products at other FDMx channels, at current prices, 2005-10
LEADING COMPANIES
Key points
FDMx market led by three top companies
Private label growth is a sign of the times
Leading FDMx anti-aging skincare companies
Figure 19: Leading FDMx anti-aging skincare companies, 2009-10.
BRAND SHARE—FACIAL ANTI-AGING
Key points
Olay brands help P&G grow
L’Oréal drops as key brands decline
J&J increases FDMx sales with Neutrogena Ageless Intensives
Private label growth outpaces national brands
Figure 20: U.S. FDMx brand sales of facial anti-aging skincare products, 2009 vs. 2010.
BRAND SHARE—BODY ANTI-AGING
Key points
P&G increases its lead in the body segment
Lansinoh corners breastfeeding niche
Other brands decline as private label gains somewhat
Figure 21: U.S. FDMx brand sales of body anti-aging skincare products, 2009 vs. 2010.
INNOVATIONS AND INNOVATORS
Organic/natural
Raw Essentials by Carol Alt: Night Time Anti-aging Repairing Face Cream
Bottega Verde Linea Bioecologica: Bioeco Face Day Cream
Farmaesthetics: Complexion Conserve Serum
Naturopathica: Age Defense Plant Stem Cell Serum
Sun protection
Estée Lauder DayWear: Sheer Tint Release Advanced Multi-Protection Anti-Oxidant Moisturizer SPF 15
Sephora Anti-Age: Age Defy Moisture Cream SPF 15
Exotic ingredients
Biotherm Source Thérapie 7: Skin Perfection Catalyzing Serum
H2O+ Waterwhite Advanced: Brightening Toner
Sue Devitt Microquatic Marine Crystal Collagen: Masque
MARKETING STRATEGIES
 OVERVIEW
Olay
Figure 22: Brand analysis of Olay, 2011
Olay web advertising
Olay Regenerist Serum TV ad
Figure 23: Olay Regenerist Serum television ad, 2010
Olay Total Effects 7x TV ad
Figure 24: Olay Total Effects 7x television ad, 2010
L’Oréal
Figure 25: Brand analysis of L’Oréal, 2011
L’Oréal web advertising
L’Oréal Advanced Revitalift Deep-Set Wrinkle Repair TV ad
Figure 26: L’Oréal Advanced Revitalift Deep-Set Wrinkle Repair television ad, 2010
L’Oréal Collagen Micro-Pulse Eye TV ad
Figure 27: L’Oréal Collagen Micro-Pulse Eye television ad, 2010
Neutrogena
Figure 28: Brand analysis of Neutrogena, 2011
Neutrogena web advertising
Neutrogena Anti-Wrinkle Moisturizer TV ad
Figure 29: Neutrogena Anti-Wrinkle Moisturizer television ad, 2010
Neutrogena Clinical TV ad
Figure 30: Neutrogena Clinical television ad, 2010
USAGE AND PURCHASES
Key points
More than six in 10 use moisturizers, women much more than men
Figure 31: Use of moisturizers/creams/lotions, by gender, July 2009–September 2010
Usage is relatively constant after age 24
Figure 32: Use of moisturizers/creams/lotions, by age, July 2009–September 2010
Roughly a quarter use anti-aging facial skincare
Figure 33: Properties of anti-aging skincare products bought and used, by gender, October 2010
Use of anti-aging facial skincare products highest among those aged 25-54
Figure 34: Properties of anti-aging skincare products bought and used, by age, October 2010
Use of anti-aging facial skincare increases with household income
Figure 35: Properties of anti-aging skincare products bought and used, by HH income, October 2010
With moisturizers, most use lotion, less than half use cream
Figure 36: Types of moisturizers/creams/lotions used, by gender, July 2009–September 2010
More than one in four use anti-aging forms of moisturizers
Figure 37: Forms of moisturizers/creams/lotions used, by gender, July 2009–September 2010
Use of anti-aging skincare increases with age, drops off among seniors
Figure 38: Forms of moisturizers/creams/lotions used, by age, July 2009–September 2010
Use of anti-aging highest among those with household income of $50K+
Figure 39: Forms of moisturizers/creams/lotions used, by HH income, July 2009–September 2010
BRAND USAGE
Key points
Vaseline, Olay top list of brands used
Figure 40: Brands of moisturizers/creams/lotions used, by gender, July 2009–September 2010
Older respondents more likely to use Olay
Figure 41: Brands of moisturizers/creams/lotions used, by age, July 2009–September 2010
USAGE FREQUENCY
Key points
Most report using facial moisturizers daily or more
Figure 42: Usage frequency of facial moisturizers/creams/lotions, by gender, July 2009–September 2010
Daily use of facial moisturizers increases with age
Figure 43: Usage frequency of facial moisturizers/creams/lotions, by age, July 2009–September 2010
Daily use of facial moisturizers increases with household income
Figure 44: Usage frequency of facial moisturizers/creams/lotions, by HH income, July 2009–September 2010
Most use body moisturizers daily or more
Figure 45: Usage frequency of body moisturizers/creams/lotions, by gender, July 2009–September 2010
Daily use of body moisturizers increases with age
Figure 46: Usage frequency of body moisturizers/creams/lotions, by age, July 2009–September 2010
Most report using anti-aging products every day
Figure 47: Usage frequency of anti-aging skincare products, by gender, October 2010
TOP ANTI-AGING CONCERNS
Key points
Fine lines/wrinkles, dry skin top anti-aging concerns
Figure 48: Top concerns regarding aging, by gender, October 2010
Top aging concerns vary depending on age
Figure 49: Top concerns regarding aging, by age, October 2010
Face, eye area top list of crucial body areas
Figure 50: Top aging concerns for areas of the body, by gender, October 2010
Senior respondents less concerned about face, more about neck/jowls
Figure 51: Top aging concerns for areas of the body, by age, October 2010
AGE PREVENTION AND REVERSAL
Key points
Anti-aging products used more than other means to prevent/reverse aging
Figure 52: Actions taken to prevent or reverse signs of aging, by gender, October 2010
Using anti-aging products vs. taking other steps varies by age
Figure 53: Actions taken to prevent or reverse signs of aging, by age, October 2010
Use of anti-aging products to prevent/reverse aging rises with household income
Figure 54: Actions taken to prevent or reverse signs of aging, by HH income, October 2010
ATTITUDES TOWARD ANTI-AGING SKINCARE PRODUCTS
Key points
Most agree that diet and lifestyle are the most important aging factors
Figure 55: Attitudes toward the facial aging process, by gender, October 2010
Those aged 25-44 most likely to agree that anti-aging should start early
Figure 56: Attitudes toward the facial aging process, by age, October 2010
Most say anti-aging usage begins with the signs of aging
Figure 57: Attitudes toward the age at which consumers should begin buying anti-aging products, by gender, October 2010
Those aged 18-34 most likely to say anti-aging begins at age 25 onward
Figure 58: Attitudes toward the age at which consumers should begin buying anti-aging products, by age, October 2010
IMPACT OF RACE/HISPANIC ORIGIN
Key points
Blacks and Asians most likely to use moisturizers/creams/lotions
Figure 59: Use of moisturizers/creams/lotions, by race/Hispanic origin, July 2009–September 2010
Asians most likely to use a range of anti-aging products
Figure 60: Properties of anti-aging skincare products bought and used, by race/Hispanic origin, October 2010
Blacks most likely to use lotions and oils
Figure 61: Types of moisturizers/creams/lotions used, by race/Hispanic origin, July 2009–September 2010
Blacks use sunscreen products least often
Figure 62: Forms of moisturizers/creams/lotions used, by race/Hispanic origin, July 2009–September 2010
Blacks more likely than other ethnicities to use Vaseline, Jergens, J&J
Figure 63: Brands of moisturizers/creams/lotions used, by race/Hispanic origin, July 2009–September 2010
Asians report most frequent facial skincare usage
Figure 64: Usage frequency of facial moisturizers/creams/lotions, by race/Hispanic origin, July 2009–September 2010
Blacks report most frequent body skincare usage
Figure 65: Usage frequency of body moisturizers/creams/lotions, by Race/Hispanic origin, July 2009–September 2010
Blacks and Asians report most concern over a range of skincare issues
Figure 66: Top concerns regarding aging, by race/Hispanic origin, October 2010
Blacks are the least likely to endorse sunscreen, early anti-aging products
Figure 67: Attitudes toward the facial aging process, by race/Hispanic origin, October 2010
CLUSTER ANALYSIS
Geneticists
Demographics
Characteristics
Opportunity
Liners
Demographics
Characteristics
Opportunity
Initiators
Demographics
Characteristics
Opportunity
Cluster characteristics
Figure 68: Anti-aging clusters, October 2010
Figure 69: Top concerns regarding aging by anti-aging clusters, October 2010
Figure 70: Properties of anti-aging skincare products bought and used by anti-aging clusters, October 2010
Figure 71: Actions taken to prevent the signs of aging by anti-aging clusters, October 2010
Figure 72: Actions taken to reverse signs of aging, by anti-aging clusters, October 2010
Figure 73: Attitudes toward the facial aging process, by anti-aging clusters, October 2010
Cluster demographics
Figure 74: Anti-aging clusters, by gender, October 2010
Figure 75: Anti-aging clusters, by age group, October 2010
Figure 76: Anti-aging clusters, by household income, October 2010
Figure 77: Anti-aging clusters, by race, October 2010
Figure 78: Anti-aging clusters, by Hispanic origin, October 2010
Cluster methodology
CUSTOM CONSUMER GROUPS
Key points
Figure 79: Top concerns regarding aging, by marital status, October 2010
Married respondents/those living with someone most likely to use anti-aging products
Figure 80: Actions taken to prevent or reverse signs of aging, by marital status, October 2010
IRI/BUILDERS—KEY HOUSEHOLD PURCHASE MEASURES
 FACIAL ANTI-AGING SKINCARE
Consumer insights on key purchase measures—facial anti-aging
Brand map
Figure 81: Brand map, selected brands of facial anti-aging buying rate, by household penetration, 2010*
Brand leader characteristics
Key purchase measures
Figure 82: Key purchase measures for the top brands of facial anti-aging, by household penetration, 2010*
APPENDIX—OTHER USEFUL CONSUMER TABLES
Top anti-aging concerns
Figure 83: Top concerns regarding aging, by HH income, October 2010
Figure 84: Top aging concerns for areas of the body, by HH income, October 2010
Attitudes toward anti-aging skincare products
Figure 85: Attitudes toward the facial aging process, by HH income, October 2010
Figure 86: Attitudes toward the age at which consumers should begin buying anti-aging products, by HH income, October 2010
Impact of race/Hispanic origin
Figure 87: Actions taken to prevent or reverse signs of aging, by race/Hispanic origin, October 2010
APPENDIX—TRADE ASSOCIATIONS