Nature of skin care makes it unique

Chain Drug Review, March 28, 2005

NEW YORK -- Skin care is a category like no other in the chain drug store beauty mix.

Multifaceted and mature, it has evolved into one of the most high-profile and competitive categories in the industry, providing strong sales and generating steady traffic.

The reason for this, retailers and suppliers say, is simple: Aging baby boomers demand products that improve their appearance and make them look more youthful, and a steady stream of new and innovative formulas that help deliver those benefits continues to pour into the market.

Invariably, almost every breakthrough in the skin care category makes its debut in the facial segment, the largest and fastest-growing sector of the overall market. Market researchers note that more innovation takes place in skin care than in any other consumer product category, with nearly a fifth of all new product introductions in the mass market coming in facial skin care.

Still, sales data from Information Resources Inc. suggests that some sections of facial care are performing better than others.

Drug store sales of antiaging formulas, for instance, shot up more than 23% for the latest period (the 12 months ending February 20).

Conversely, sales of facial cleansers and moisturizers each inched ahead 1.2%, while fade and bleach creams dipped 0.1%.

As baby boomers reach middle age, the effects of their advancing years can clearly be seen on their faces. It is no wonder, then, that the antiaging segment of the skin care category is the one with the greatest momentum.

Of the 15 best-selling antiaging face brands in drug stores, only three showed a decline in volume. Of the 12 others, nine experienced double-digit sales gains.

By contrast, seven facial moisturizers saw their sales fall during the latest period, and of those that increased only four went up more than 10%.

Facial cleansers did not fare any better, with eight of the top 15 brands declining (five by 10% or more).