According to Companies & Markets, the European skin care market is forecast to increase at a compound annual growth rate (CAGR) of 2.8 per cent over the next five years, increasing from total revenues of $26 billion in 2012, to a value of $29.8 billion by the end of 2017.
“Growth in volume sales has come from a widening of the consumer base, particularly with the reunification of Germany to include the East German Lander, and an increase in multiple purchases,” says the report.
The market is seeing a rise in demand for anti-ageing products as consumers bid to keep young looking skin.
One of the key drivers is the increasingly sophisticated formulations used in the manufacture of skin care products, which have met with positive consumer reaction overall and suggest that, with continued technological innovation, growth can be sustained.
According to C&M, skin care makes up about 27 per cent of the total cosmetic industry and of all the cosmetics categories, skin care products can be some of the most expensive with 2 ounces of product routinely selling for upwards of €200.
“Women do not mind spending big bucks to keep their skin looking young,” it claims.
“The rise in share of the population accounted for by the over 50s will ensure increased demand for anti-ageing ranges in particular.”
Country by country
The largest European market for skin care is France, with a 31 per cent share of the total expenditure in 2010.
Germany ranks as the second largest spending nation with a 27 per cent share in 2010, followed by Italy, accounting for 15 per cent of the market.
The market in Europe is now largely dominated by a handful of large international suppliers, mostly European and American.