Facial Skincare - US - 2021

OVERVIEW
What you need to know
This Report looks at the following areas
Definition
Market context
Economic and other assumptions
COVID-19: US context
EXECUTIVE SUMMARY 
Bring emotional benefits and holistic wellness into skincare
Reimagine wellness rituals for fast-paced lifestyles
Make the clinical skincare space more “fun” with unique product formats
Focus NPD on skin health and the microbiome
Ingestible products stand to resonate with Hispanic consumers
Sustainability will shape the future of skincare
Be an advocate for preservation
Bring transparency into the sustainability movement
Tap into skinimalism trends to denote sustainability and quality
Leverage recognizable and clinically backed ingredients to improve trust
Skincare is going back to the basics
Encourage trade-ups by proving product efficacy and safety
Increase repeat purchases by harnessing new technologies
An “ingredient-first” approach to shopping increases demand for transparency
Market overview
Impact of COVID-19 on facial skincare
Figure 1: Short-, medium- and long-term impact of COVID-19 on facial skincare, June 2021
THE MARKET – KEY TAKEAWAYS 
Momentum slows, but market continues to grow
Skincare experiences the “mask effect”
Prove value and results by harnessing new technologies
MARKET SIZE AND FORECAST 
Momentum slows, but market continues to grow
Figure 2: Total US sales and fan chart forecast of facial skincare products, at current prices, 2016-26
Figure 3: Total US retail sales and forecast of facial skincare and anti-aging products, at current prices, 2016-26
Impact of COVID-19 on facial skincare
SEGMENT PERFORMANCE 
Skincare experiences the “mask effect”
Will the future of anti-aging complement or compete with professional services?
Figure 4: Total US retail sales of facial skincare and anti-aging products, by segment, at current prices, 2019 and 2021
MARKET FACTORS 
Encourage trade-ups by proving product efficacy
Focus on sensory benefits to boost men’s participation
Figure 5: Repertoire of product usage, by men’s age group, March 2021
Prove value and results by harnessing new technologies
Pandemic-induced trading-down behaviors could continue long-term
COMPANIES AND BRANDS – KEY TAKEAWAYS 
Leading companies benefit from “expert” approval
Bring “fun” into the clinical skincare space with unique product formats
Highlight that recognizable ingredients denote safety
MARKET SHARE 
Leading companies benefit from “expert” approval
Figure 6: TikTok – Skincare by Hyram
Figure 7: Multi-outlet sales of facial skincare and anti-aging products, by leading companies, rolling 52 weeks 2020 and 2021
COMPETITIVE STRATEGIES
Bring “fun” into the clinical skincare space with unique product formats
Figure 8: Mintel GNPD – Starface and Peace Out Skincare
Brands are renovating offerings to meet new lifestyle needs
Makeup brands blur category lines with hybrid products…
Figure 9: Mintel GNPD – Kosas
…and skincare brands are expanding from the face to the body
Figure 10: Mintel GNPD – Summer Fridays
Tap into skinimalism trends to denote sustainability and quality
Figure 11: Mintel GNPD – Covey
MARKET OPPORTUNITIES 
Highlight recognizable ingredients to denote safety
Adjust communication strategies to align with key audiences’ desired results
Focus NPD on skin health and the microbiome
Figure 12: Mintel GNPD – Sunday Riley
Figure 13: Drunk Elephant – Microbiome vs. skin barrier
Sustainability will shape the future of skincare
Be an advocate for preservation
Bring transparency into the sustainability movement
Take Gen Z’s love of TikTok’s entertainment value to the next level for continued engagement
THE CONSUMER – KEY TAKEAWAYS 
Consumer segments defined by attitudes toward facial skincare
Position on-the-go products as micro-moments for self-care
Target innovation to serve both physical and mental health
Encourage trade-ups and boost repeat purchase rates by demonstrating and proving efficacy
Ingestible products stand to resonate with Hispanic consumers
Reduce confusion and build loyalty with customizable products
CONSUMER SEGMENTATION
Figure 14: Facial skincare segmentation, March 2021
Group 1: Skincare Specialists
Figure 15: Attitudes toward skincare, by skincare specialists, March 2021
Group 2: Passionate Pragmatists
Figure 16: Attitudes toward skincare, by passionate pragmatists, March 2021
Group 3: Functionalists
Figure 17: Attitudes toward skincare, by functionalists, March 2021
Group 4: Enthusiastic Experimenters
Figure 18: Attitudes toward skincare, by enthusiastic experimenters, March 2021
PRODUCT USAGE AND FREQUENCY 
Product staples benefit from strong usage
Figure 19: Product usage, March 2021
Women drive category growth
Figure 20: Product usage, by gender, March 2021
Shifting preferences among younger consumers give rise to new, eco-friendly formats
Figure 21: Dieux Skin – Forever Eye Mask
Figure 22: Experiment Beauty – Avant Guard
Biodegradable ampoules make single-use eco-friendly
Figure 23: Product usage, by age, March 2021
Products that match the results of professional services stand to resonate with Hispanic consumers
Figure 24: Select product usage, by race and Hispanic origin, March 2021
COVID-19 impacts product usage frequency
Figure 25: Product usage frequency, March 2021
REASONS FOR USING SKINCARE PRODUCTS MORE OR LESS
Target innovation to serve both physical and mental health
Figure 26: Reasons for using skincare products more often, March 2021
Expect conscious consumption and “skinimalism” trends to impact usage frequency post-pandemic
Figure 27: Experiment Beauty – Sustainability post
Figure 28: Reasons for using skincare products less often, March 2021
PURCHASE INFLUENCERS
Encourage trade-ups by demonstrating efficacy
Figure 29: Purchase influencers, March 2021
Highlight convenience to appeal to men
Figure 30: Purchase influencers, by gender, March 2021
Expect mass brands to tap into the menopause market
Figure 31: Purchase influencers, by age, March 2021
BENEFITS SOUGHT
Evolve “ingredient stories” into “formula stories”
What’s happening now and why are consumers purchasing based off ingredients?
What’s next?
Figure 32: Instagram post – Here’s what an INCI doesn’t tell you
Figure 33: Benefits sought, March 2021
Higher expectations from routines creates room for complementary ingestible products
Figure 34: Benefits sought, by race and Hispanic origin, March 2021
Expect the sun protection space to heat up
Figure 35: Benefits sought, by segmentation, March 2021
INTEREST IN SKINCARE TRENDS AND INNOVATIONS
Skin minimalism is driving interest in multipurpose products
What’s next for K-beauty?
Figure 36: Interest in skincare trends and innovations, March 2021
Reduce confusion and build loyalty with customizable products
Figure 37: Interest in skincare trends and innovations, by age, March 2021
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Forecast
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET
Figure 38: Total US retail sales and forecast of facial skincare and anti-aging products, at inflation-adjusted prices, 2016-26
Figure 39: Total US retail sales of facial skincare and anti-aging products, by segment, at current prices, 2019 and 2021
Figure 40: Total US retail sales of facial skincare and anti-aging products, by channel, at current prices, 2016-21
APPENDIX – COMPANIES AND BRANDS
Figure 41: Multi-outlet sales of facial anti-aging products, by leading companies and brands, rolling 52 weeks 2020 and 2021
Figure 42: Multi-outlet sales of facial cleansers, by leading companies and brands, rolling 52 weeks 2020 and 2021
Figure 43: Multi-outlet sales of facial moisturizers, by leading companies and brands, rolling 52 weeks 2020 and 2021
Figure 44: Multi-outlet sales of acne treatments, by leading companies and brands, rolling 52 weeks 2020 and 2021
Figure 45: Multi-outlet sales of lip balm, by leading companies and brands, rolling 52 weeks 2020 and 2021
APPENDIX – THE CONSUMER
Consumer segmentation factors
Figure 46: Attitudes toward skincare, March 2021