Facial Skincare - US - May 2012

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Market snapshot
Combating age is a priority
Johnson & Johnson leads six major players through FDMx
Drug chains offer brand selection but can’t compete with other channels
Marketing facial skincare relies on celebrity spokeswomen, performance
Penetration of specialized products has yet to reach the level of bar soap
Neutrogena is most used facial cleanser among respondents
Soap used daily more than any specialized facial skincare
Most want cleansing, hydration, protection from facial skincare products
More than four in 10 feel diet is a major factor in skincare
Most rely on family/friends for facial skincare product information
Asians most apt to use facial products; blacks most likely to be brand loyal
Teens more likely than adults to use facial cleansing/medicated products
INSIGHTS AND OPPORTUNITIES
Encouraging more use of eye care products
Customized facial skincare
INSPIRE INSIGHTS
Trend: Prove It
Trend: Brand Review
MARKET SIZE AND FORECAST
Key points
Women will continue to drive sales
Slow economic rebound hinders bigger sales gains
Hispanics represent a bright spot for future sales
Facial skincare products market size and forecast
Figure 1: Total U.S. retail sales and forecast of facial skincare products, at current prices, 2006-16
Figure 2: Total U.S. retail sales and forecast of facial skincare products, at inflation-adjusted prices, 2006-16
Fan chart forecast
Figure 3: U.S. sales and fan chart forecast of facial skincare products, at current prices, 2006-16
Walmart sales
MARKET DRIVERS
Key points
Women are driving sales
Figure 4: Usage of facial skincare products, by gender, October 2010-November 2011
Figure 5: U.S. female population, by age, 2011-16
The state of the economy is still impacting purchase habits
Unemployment/underemployment is still high
Figure 6: Unemployment, January 2007-March 2012
Consumer confidence fluctuates but remains low in 2012
Figure 7: University of Michigan’s index of consumer sentiment, 2006-(Q1)2012
Increased Hispanic population growth and spending power
Figure 8: Population, by race and Hispanic origin, 2006-16
COMPETITIVE CONTEXT
Soap is still king
Figure 9: Frequency of facial skincare products used, January 2012
SEGMENT PERFORMANCE
Key points
Combating age is a priority
Cleansers grow significantly but lack sufficient new product launches
Acne care sales uneven but improve with innovative formulas
Moisturizers struggle to maintain growth as more soaps offer hydration
Bleach is fading
Sales of facial skincare products by segment
Figure 10: Sales of selected facial skincare products at current prices, by segment, 2006-16
SEGMENT PERFORMANCE—FACIAL ANTI-AGING
Key points
Search for fountain of youth buoys sales
Sales and forecast of facial anti-aging products
Figure 11: Total sales and forecast of facial anti-aging products, at current prices, 2006-16
SEGMENT PERFORMANCE—FACIAL CLEANSERS
Key points
Lack of innovation stems potential for further growth
Sales and forecast of facial cleansers
Figure 12: Total sales and forecast of facial cleansers, at current prices, 2006-16
SEGMENT PERFORMANCE—ACNE TREATMENTS
Key points
Sales fluctuate but new products offer hope for growth
Sales and forecast of acne treatments
Figure 13: Total sales and forecast of acne treatments, at current prices, 2006-16
SEGMENT PERFORMANCE—FACIAL MOISTURIZERS
Key points
Moisturizers expected to grow as economy does
Sales and forecast of facial moisturizers
Figure 14: Total sales and forecast of facial moisturizers, at current prices, 2006-16
SEGMENT PERFORMANCE—FADE/BLEACH
Key point
Fade/bleach drops 12% in 2011
Sales and forecast of fade/bleach
Figure 15: Total sales and forecast of fade/bleach, at current prices, 2006-16
RETAIL CHANNELS
Key points
Drug stores outpaced by other channels
Food stores account for less than 10% of the market
Other channels, including mass, comprise more than 70% share
Channel sales of facial skincare products
Figure 16: U.S. sales of facial skincare products, by channel, at current prices, 2010 and 2011
RETAIL CHANNELS—DRUG STORES
Key points
Focus on health and beauty drives sales at drug chains
Drug store sales of facial skincare products
Figure 17: Drug store sales of facial skincare products, at current prices, 2006-11
RETAIL CHANNELS—SUPERMARKETS
Key points
Supermarket health and beauty care strategies are largely unchanged
Supermarket sales of facial skincare products
Figure 18: Drug store sales of facial skincare products, at current prices, 2006-11
RETAIL CHANNELS—OTHER CHANNELS
Key points
Other channels cover a wide range of consumer needs
Other channel sales of facial skincare products
Figure 19: Other channel sales of facial skincare products, at current prices, 2006-11
LEADING COMPANIES
Key points
Johnson & Johnson tops FDMx market
Procter & Gamble drops 7.2%
L'Oréal, Galderma, Unilever all increase FDMx sales
Private label outpaces top FDMx companies as shoppers seek value
Leading facial skincare products companies
Figure 20: Leading FDMx facial skincare product companies, 2011-12
BRAND SHARE—FACIAL ANTI-AGING PRODUCTS
Key points
P&G leads, but most Olay brands decline
L'Oréal grows; J&J declines
Private label shows strongest growth
Leading facial anti-aging products brands
Figure 21: Leading FDMx facial anti-aging products brands, 2011-12
BRAND SHARE—FACIAL CLEANSERS
Key points
J&J sees solid growth with top brands, new releases
P&G flatlines but Olay flagship cleanser surges with new look
Smaller companies see mixed FDMx sales results
Private label cleans up
Leading facial cleansers brands
Figure 22: Leading FDMx facial cleansers brands, 2011-12
BRAND SHARE—ACNE TREATMENTS
Key points
Neutrogena acne treatments help keep J&J on top
Neutrogena skiniD TV spot
Figure 23: Neutrogena skiniD television ad, 2011
Reckitt Benckiser, University Medical drop
Unilever increases sales with St. Ives and Noxzema
Private label again outpaces national brands
Leading acne treatment brands
Figure 24: Leading FDMx acne treatment brands, 2011-12
BRAND SHARE—FACIAL MOISTURIZERS
Key points
J&J grows most, sells most with Aveeno
P&G declines as Olay brands fail to keep pace
Unilever, L'Oréal, and Galderma comprise small share
Garnier Skin Renew Dark Spot Corrector TV spot
Figure 25: Garnier Skin Renew Dark Spot Corrector television ad, 2011
Leading facial moisturizer brands
Figure 26: Leading FDMx facial moisturizer brands, 2011-12
BRAND SHARE—FADE/BLEACH
Key points
Nearly all leading fade/bleach national brand companies decline
Private label increases but with $2 million in sales is a minor presence
Leading fade/bleach brands
Figure 27: Leading FDMx fade/bleach product brands, 2011-12
INNOVATIONS AND INNOVATORS
Men have skin, too
Natural/botanical
Sun protection is primary in facial skincare
BRANDS AND THE ADVERTISING LANDSCAPE
 OVERVIEW
L'Oréal
Figure 28: Brand analysis of L'Oréal, 2012
L'Oréal Age Perfect Hydra-Nutrition TV spot
Figure 29: L'Oréal Age Perfect Hydra-Nutrition television ad, 2011
Online initiatives
Print and other
Clearasil
Figure 30: Brand analysis of Clearasil, 2012
Clearasil PerfectaWash TV spot
Figure 31: Clearasil PrefectaWash television ad, 2012
Online initiatives
Print and other
Olay
Figure 32: Brand analysis of Olay, 2012
Olay Foaming Face Wash TV spot
Figure 33: Olay Foaming Face Wash television ad, 2011
Online initiatives
Print and other
USAGE AND PURCHASES
Key points
Nearly four in 10 use facial cleansing/medicated products or toners
Figure 34: Usage of facial skincare products, by gender, October 2010-November 2011
Usage decreases with age
Figure 35: Usage of facial skincare products, by age, October 2010-November 2011
A majority buy no eye care products
Figure 36: Eye care products purchased for specific conditions, by gender, January 2012
Age dictates purchases of certain products
Figure 37: Eye care products purchased for specific conditions, by age, January 2012
$100K+ most likely to buy eye care products
Figure 38: Eye care products purchased for specific conditions, by household income, January 2012
Most spend less than $10 on facial skincare items
Figure 39: Typical spend on facial skincare item, January 2012
BRANDS USED AND LEVEL OF BRAND LOYALTY
Key points
Neutrogena tops brands used among men and women
Figure 40: Facial cleansing brands used, by gender, October 2010-November 2011
Most respondents switch between facial skincare brands
Figure 41: Level of brand loyalty for facial skincare products, January 2012
Women more likely than men to switch between brands
Figure 42: Level of brand loyalty for facial skincare products, by gender, January 2012
35-44 more likely to switch between brands; 55-64 more likely brand loyal
Figure 43: Level of brand loyalty for facial skincare products, by age, January 2012
$25K or less least likely to switch between brands
Figure 44: Level of brand loyalty for facial skincare products, by household income, January 2012
FREQUENCY OF USE
Key points
Most use soap and water daily, followed by facial moisturizers
Figure 45: Frequency of facial skincare products used, by gender, January 2012
Daily use of soap and water increases with age
Figure 46: Frequency of facial skincare products used, by age, January 2012
DESIRED RESULTS OF FACIAL SKINCARE PRODUCTS
Key points
Most use facial skincare to clean, hydrate, and protect skin
Figure 47: Desired results of facial skincare products, by gender, January 2012
35+ most likely to use facial skincare for age-related reasons
Figure 48: Desired results of facial skincare products, by age, January 2012
ATTITUDES TOWARD FACIAL SKINCARE PRODUCTS
Key points
More than four in 10 say diet is very important for facial skincare
Figure 49: Attitudes toward use of facial skincare products, by gender, January 2012
Youth and age determine facial skincare attitudes
Figure 50: Attitudes toward use of facial skincare products, by age, January 2012
SOURCES FOR FACIAL SKINCARE INFORMATION
Key points
Most turn to friends/family for facial skincare information
Figure 51: Sources for facial skincare information, by gender, January 2012
55+ most likely to rely on no facial skincare information sources
Figure 52: Sources for facial skincare information, by age, January 2012
IMPACT OF RACE/HISPANIC ORIGIN
Key points
Asians most likely to use facial cleansers/medicated products
Figure 53: Usage of facial skincare products, by race/Hispanic origin, October 2010-November 2011
Hispanics/Asians most likely to buy a range of eye care products
Figure 54: Eye care products purchased for specific conditions, by race/Hispanic origin, January 2012
Blacks report most brand loyalty
Figure 55: Level of brand loyalty for facial skincare products, by race/Hispanic origin, January 2012
Blacks most concerned with cleansing, dry skin
Figure 56: Desired results of facial skincare products, by race/Hispanic origin, January 2012
Asians most likely to rely on a range of facial skincare information sources
Figure 57: Sources of facial skincare information, by race/Hispanic origin, January 2012
TEEN USAGE
Key points
More than half of teens use cleansing/medicated facial products
Figure 58: Use of facial cleansing, medicated products or toners, by gender, October 2010-November 2011
Teens use foaming face wash more than any other facial product
Figure 59: Use of facial cleansing and medicated products, by gender, October 2010-November 2011
Acne care is a top priority for teens
Figure 60: Use of facial cleansing and medicated products, by gender, October 2010-November 2011
Neutrogena, Clean & Clear top teens’ brand choices
Figure 61: Brands of facial cleansing and medicated products used, by gender, October 2010-November 2011
Teens use facial cleansers nearly every day
Figure 62: Usage frequency of facial skincare products, by gender, October 2010-November 2011
CUSTOM CONSUMER GROUPS
Key points
Lower education level tied to higher likelihood to watch TV ads
Figure 63: Sources of facial skincare information, by education, January 2012
Education level and attitudes toward facial skincare products
Figure 64: Attitudes toward use of facial skincare products, by education, January 2012
APPENDIX: OTHER USEFUL CONSUMER TABLES
Frequency of use
Figure 65: Frequency of facial skincare products used, by household income, January 2012
Desired results of facial skincare products
Figure 66: Desired results of facial skincare products, by household income, January 2012
Attitudes toward facial skincare products
Figure 67: Attitudes toward use of facial skincare products, by household income, January 2012
Sources for facial skincare information
Figure 68: Sources for facial skincare information, by household income, January 2012
Impact of race/Hispanic origin
Figure 69: Frequency of facial skincare products used, by race/Hispanic origin, January 2012
Figure 70: Attitudes toward use of facial skincare products, by race/Hispanic origin, January 2012
APPENDIX: GENDER AND AGE
Figure 71: Frequency of facial skincare products usage, by gender and age, January 2012
Figure 72: Eyecare products purchased for specific conditions, by gender and age, January 2012
Figure 73: Desired results of facial skincare products, by gender and age, January 2012
Figure 74: Level of brand loyalty for facial skincare products, by gender and age, January 2012
Figure 75: Sources of facial skincare information, by gender and age, January 2012
Figure 76: Attitudes toward use of facial skincare products, by gender and age, January 2012
APPENDIX: TRADE ASSOCIATIONS