Israel's beauty market: innovative cosmetic products and ingredients

By Liana Naim & Miriam Oron

- Last updated on GMT

Israel's beauty market: innovative cosmetic products and ingredients
In this series, we take a look at five major trends defining the beauty market in Israel: personalisation, anti-ageing, beauty supplements, the environment and safety, and natural ingredients.

Here, we introduce a market overview of the Israeli beauty scene, what’s driving innovation and why.

The authors of this guest series are:

Liana Naim​, who specializes in identifying, establishing and accompanying collaborations between international pharmaceutical/cosmetic companies and leading Israeli academic investigators. A professional scouter in the field of personal care working with global companies and expert for the Israeli market.

Miriam Oron​, who is a sole proprietor of a consulting business in the field of skin research, clinical trials and cosmetic and dermocosmetic product development. She also develops consumer and clinical Decision Support Systems that are based on skin analysis. 

Israel: overview

Israel is home to innovative technologies in many fields.  It is a well-known hub for biotech, agriculture and agri-tech, medicine, digital health applications, high tech applications, cyber and military technologies, water treatment and desalination.  

Israeli consumers are among the first and most enthusiastic users of apps and online digital media.

This trait has great impact on business models that need to rapidly adapt to this new environment, and on the products being developed.  

The cosmetic industry in Israel is constantly being overlooked, despite its leading role in products and technological innovations.  

Some of these include visual fragrance for body art, encapsulation of organic sun filters, special skin delivery systems, personalized skin care products and digital apps supporting consumers’ decisions.

R&D investment a focus

Israeli manufacturers have always invested heavily in R&D, enabling them to meet market demands for innovative products that adhere to stringent scientific and quality control standards. At 4.5 percent of GDP, Israel has the world’s highest R&D investment ratio, over twice the OECD average of 2.2 percent. The local cosmetics industry is expected to grow by 4.3% in the coming years, higher than other industries.

Israel is a small economy with about 13 million consumers.  Thanks to its vast economic relations, trading with North and South America, East and Western Europe, Asia and Oceania, the local cosmetic market resonates with the global trends.  In 2017 3.6 million tourists entered Israel and we expect 4 million in 2018​.  

Dead Sea and local plants based cosmetics are products of interest for tourists and supply an additional interchange of ideas between the local and international market.   

In addition to the global exposure and awareness, the multicultural and poly-ethnic nature of its population gives rise to many cosmetic styles and technologies.

In this guest article series, we will detail some exciting innovative patented cosmetic technologies that were developed in Israel, categorized per innovative trends in the global industry.

The trends are:

  • Personalisation
  • The environment and safety
  • Natural ingredients
  • Beauty supplements
  • Anti-ageing

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