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Baby boomers drive cosmeceuticals growth

Demand for cosmeceutical products in the US is expected to increase 8.5 per cent per year to $5.1 billion in 2007, propelled by a stream of new and advanced age-defying product introductions, suggests a new report from the Freedonia Group.

The value of chemicals used in these appearance-enhancing products is expected to advance over 10 per cent per year to $1.4 billion in 2007, with gains spurred by the use of new and higher value-added active ingredients in product formulations.

The ‘Cosmeceuticals’ report also reveals that skin care products, including anti-ageing, acne and sun care products, will continue to dominate cosmeceutical product demand, accounting for nearly 60 per cent of the total in 2007.

But despite this projected healthy annual growth of 7.8 per cent, further gains will be restrained by fierce price competition among the large number of over-the-counter brands on the market.

Gains will be driven by a highly receptive, fast-expanding group of middle-aged consumers who want to prevent or redress visible damage to the skin caused by ageing, ultraviolet radiation and other environmental factors. Improved formulations and the passage of the relatively affluent baby boomer generation through middle age will promote the wide use of value-added age-defying products, explains the report.

Professional products are expected to experience the fastest growth among cosmeceutical products with annual gains exceeding 15 per cent. According to the study, advances will be led by Merck’s finasteride-based hair growth product propecia and Allergan’s wrinkle-fighting Botox, both of which enjoy the pricing flexibility of patent protection.

Other cosmeceutical chemicals expected to record double-digit gains include botanical extracts and enzymes, supported by consumer preferences for natural products and the development of more stable and better performing chemicals at a competitive price. Above-average growth is also forecast for smaller volume chemicals including coenzyme Q10 and hyaluronic acid dermal fillers.

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By K.S. Date 15-06-2004 Print this article




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