The Rise of Cosmeceuticals, "Naturaceuticals" and "Botaniceuticals"

In the United Kingdom, most people have a healthy dose of cynicism when it comes to cosmeceuticals, especially the over 45 set who have been unable to get rid of their wrinkles. The United States is likely to paint a similar picture. This demonstrates the need for cosmeceutical manufacturers to offer realistic solutions to reduce brand switching and build brand loyalty. Paying more for cosmeceuticals is not just about getting results, but also about boosting self-image. Brand credentials, packaging, formulation and price all play a part.

As the term “cosmeceuticals” becomes a household name, more mainstream cosmetic brands such as L'Oréal Dermo-Expertise are moving into the cosmeceutical arena; and vice versa, niche cosmeceutical brands are appearing into mainstream markets. For example, Freeze 24-7 launched into CVS at the start of the year. The increased competition in the mass market is placing greater pressure on established cosmeceuticals manufacturers to unveil new ingredients and technologies to keep their products more competitive with the mass market brands.

A Natural Course of Action

Cosmeceutical launches are typically formulated with higher concentrations of scientific ingredients, such as complex peptides, retinol, hyaluronic acid, GABA, SNAP-7 and DMAE. However, in line with growing consumer demand for natural and organic beauty products, cosmeceuticals are increasingly drawing from the properties of natural ingredients to keep up with these trends. The term “naturaceuticals” has now been coined and the recent Blue Lagoon Skincare is just one example. “Botaniceuticals” created by Evolution Skin Therapy is another term for this blurring the line between natural and cosmeceutical. As a testament to the demand for “natural” in the last year, almost two of three cosmeceutical launches claimed to contain botanical or herbal ingredients--this has become a common claim in new beauty launches.

The Next Generation

In 2007, one in every 13 U.S. cosmeceutical launches claimed to be organic, such as Herb Walk's Le Vin brand; however, there were not any launches that could claim to be 100-percent natural. This highlights the direction in which the cosmeceuticals sub-category could develop, and Mintel expects to see more naturaceuticals and botaniceuticals launches in the coming 12 months.

In France, Mintel recorded the launch of a cosmeceutical brand with the ethical “free-from” positioning. NovExpert claims to have eliminated more than 1,600 ingredients before the final formulation for its Crème Riche Anti-Rides was found. This also presents an avenue for growth for the U.S. cosmeceuticals market.

Additionally the wider cosmetics and toiletries market is seeing a growing number of launches such as Elaÿs Precious Natural Concentrate that are tapping into consumer demand for protection from stress, pollution and environments elements. This has not been a typical focus point for cosmeceutical brands, but given their advanced technologies and unique ingredients, developing protective products could open up a wider range of development opportunities for this sector. 

Alexandra Richmond is senior beauty and personal care analyst at Mintel. Alexandra has four years experience of tracking and analyzing trends within the beauty and personal care industry. Based in London, Alexandra is responsible for publishing health and beauty reports for the Market Intelligence series and editorial content for Mintel's Beauty and Personal Care site.