This document summarizes trends in the skincare industry as reported in December 2013. It identifies key trends such as a focus on health and wellness with products promoting anti-aging benefits. It also notes a trend toward easy to use and affordable products that are multifunctional. Emerging markets are seen as an opportunity but brands need to adopt localized or "glocal" strategies to appeal to different consumer preferences in places like China, Brazil, and other regions.

1. Consumer Insight
Consumer and Innovation
Trends in Skincare
Body care, face care, hand care, sun care, make-up
removers, and depilatories
Category Series. Published December 2013

2. Meet the Authors
2
Ramaa Chipalkatti, Senior Analyst
I am a Senior Analyst in the Consumer Insights
team, with a keen interest in consumer trends
and innovation across all FMCG areas: food
and drink, personal care, and household care.
Since joining Datamonitor in early 2012, I have
authored a number of short- and long-form
reports on a diverse range of topics, including
innovations in cereal products, cheese, sauces,
and household cleaning, as well as reports with
a consumer trends focus such as on-the-go
trends and the evolution of cruelty-free claims. I
am also involved in the design of Datamonitor's
primary Consumer Survey research and have
presented at international personal care
conferences such as In-Cosmetics and Beyond
Beauty, both in Paris, 2013.
Jamie Mills, Associate Analyst
I joined Datamonitor in 2012 as an Associate
Researcher after graduating from the
University of Manchester with a degree in
European Studies and French, and became
an Associate Analyst in 2013. While working
at Datamonitor Consumer, I have carried out
detailed research over FMCG markets on a
global scale as well as offering in-depth
analysis and opinion on emerging trends and
new innovations. My particular areas of
interest lie in the impact of consumer trends
on market growth, country-specific profiles of
consumers, and the future development of the
FMCG industry in emerging economies.

3. Contents
1. Introduction
• Coverage snapshot
• Market snapshot
• Innovation snapshot
• Trend snapshot (incl. TrendSights framework)
2. Health & Wellness
• SWOT analysis and overview
• Non-invasive anti-aging
• Disease management
• Natural ingredients
• Functional benefits
3. Easy & Affordable
• SWOT analysis and overview
• Multifunctional skincare
• On-The-Go
• Easy to use
4. Sensory & Indulgence
• SWOT analysis and overview
• Fruit inspirations
• Novel ingredients
• Luxury and premium
• Nutricosmetics
3
5. Individualism & Expression
• SWOT analysis and overview
• Right-for-me
• Life-stage targeting
• Social acceptance
• Child-friendly
6. Sustainability & Ethics
• SWOT analysis and overview
• Environmentally friendly
• Organic and fair trade
7. Evolving Landscapes
• SWOT analysis and overview
• Emerging market opportunities
• "Bite-size" sachets
8. Comfort & Uncertainty
• SWOT analysis and overview
• Endorsements
• Home salons
9. Smart & Connected
• SWOT analysis and overview
• Revolutionary technology
• Targeting tech users
• Online shopping
10. Conclusions
11. Appendix
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4. Health & Wellness
Source: [1] Datamonitor Consumer Survey 2011, *Datamonitor Product Launch Analytics4
Anti-aging claims remain the most popular among skincare products to address ongoing consumer
desire to look younger for longer
Consumers in general are becoming increasingly appearance-conscious, particularly with the growing
popularity of social networks driving a "visual culture." Consumer demand for anti-aging products remains
strong – driven by a desire among the baby-boomer generation to look younger than their actual age, as well
as the "fear of growing old" mindset among the youth. On average, over six in 10 consumers globally1 (51% of
male consumers, 72% of female consumers) say that they are concerned about the appearance of fine lines
and wrinkles. However, more than half of these concerned consumers1 (55%) say they do not buy any
products to address these issues. A significant opportunity exists in enticing these consumers with innovative
anti-aging skincare products or multifunctional products that incorporate anti-aging benefits as well.
Global: consumers concerned about wrinkles and
appearance of fine lines, by age, 20111
Global: consumers who are concerned about wrinkles and
appearance of fine lines and do/do not purchase products to
address these issues, by age (%), 20111
Top five claims
on skincare
products, 2012*
Anti-aging
Private label
Natural
No parabens
Organic
Overview Non-invasive anti-aging Disease management Natural ingredients Functional benefits

5. Easy & Affordable
Source: Datamonitor's Product Launch Analytics5
Overview Multifunctional skincare On-the-go Easy to use
Innovation in multifunctional products is becoming more diverse to target a variety of consumer needs
One Night Tanned
Instant Beach-Bronze
Buttergel by Soap &
Glory – Using Tanwrap
technology, the product
features shea and illipe
butters and "conditions,
moisturizes and bronzes,
leaving skin all-at-once
beachy beautiful!"
Regard Divin by
L'Occitane – A
multifunctional and anti-
aging eye cream that is
designed to help
smooth lines and firm
fragile areas, reduce
dark circles and
puffiness, and enhance
radiance.
Intensive Overnight
Repair by
Hydroxatone – "A rich,
decadent, multi-
functional anti-aging
night treatment created
to work at night to help
optimize/support skin's
own repair process and
improve skin's strength,
resiliency and volume."
Natural Honey Elixir
of Youth body lotion
by Colomer Beauty &
Professional Products
S.L. – Featuring "7-in-
1" benefits, claimed to
hydrate, nourish,
soften, smooth, tone,
brighten, and give
elasticity to the skin.
Balea Men, Wake Up Call
wash and shave gel by
DM-Drogerie Markt – The
product offers a "2 in 1
revitalizing cleansing gel
and shaving gel," providing
an "intensively nourishing
and moisturizing power
formula with provitamin
B5."

6. Evolving Landscapes
Source: [1] Datamonitor Consumer Survey 20136
Overview Emerging market opportunities "Bite-size" sachets
Adopting a "glocal" strategy is especially important for global beauty brands to appeal to consumers in emerging markets
The essence of a successful "glocal" (global, yet local) strategy is recognizing that consumer needs and preferences vary widely across
different geographical regions. Brands formulated for Caucasian skin, for example, or different climatic or environmental conditions, will
be less effective on Chinese skin and unsuited to the extreme temperatures or pollution levels of Chinese cities. Offering consumers
tailored, targeted products therefore demands a shift away from a "one size fits all" approach. Results from Datamonitor's Consumer
Survey highlight some of these local preferences. For example, 71% of Chinese consumers say that anti-aging benefits are high priority
or essential benefits of skincare products, compared to only 41% of American consumers. Chinese consumers also place greater
emphasis on "natural"/organic ingredients compared to American consumers. Consumers in different regions also attribute different
levels of priority to sun protection benefits. In a tropical country such as Brazil, which has extended summer periods, consumers are
keen on sunbathing and showing a tanned skin. However, they are also increasingly health-conscious and therefore more willing to
wear sun protection formulas that prevent their skin from sun effects such as cancer and early aging. It is important that international
brands understand and address these cultural and regional nuances through specially formulated product variants that are exclusive to
the local market.
US, China: skincare shoppers who consider these skincare
product benefits to be high priority / essential (%), 2013 1
Brazil, rest of world: skincare shoppers who prioritize sun
protection benefits in skincare products (%), 20131
80% 62%