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

Cosmeceuticals remain a fast-growing sector within the cosmetics market. The number of cosmeceutical launches in the United States grew 160 percent between 2005 and 2007. Although the term “cosmeceutical” is still not recognized by the leading industry trade organizations, it continues to attract numerous new companies such as Herb Walk, SalonTea and Dermelect Cosmeceuticals, and there is no sign of slowing down. This year is on track to exceed the number of launches from 2007, with 17 times more new launches in the first half of 2008 compared to the first half of 2007.

Many cosmeceutical companies are backed by doctors, dermatologists and surgeons who lend considerable weight and credibility to performance claims. Others are smaller niche brands with limited or selective distribution.

The Appeal of Cosmeceuticals

Almost 13 percent of Americans are estimated to be over the age of 65 in 2007. These Baby Boomers have an unquenchable thirst for technologically-driven products that promise to ward off visible signs of aging and provide younger looking skin. For this age group, the frontline of the battle against aging is the face. As a result, almost three in 10 cosmeceutical launches in 2007 targeted the face and neck. U.S. anti-aging products for the body have kept pace with facial items in terms of growth and value sales despite far fewer product launches.

Almost two of every three U.S. cosmeceutical launches in the past 12 months claim to have anti-aging properties. This segment is particularly important as Baby Boomers work to ward off signs of aging, such as fine lines, wrinkles, age spots, discoloration and sagging skin. Skin care brands are targeting the over 35 set with innovative cosmeceutical formulations that specifically address wrinkles and crow’s feet, which are universal concerns among those over 35. Moreover, these consumers are more concerned about these conditions when they occur on the face and less so on the rest of the body, such as on the stomach or hands.

On the other hand, consumers over 45 years are more aware of age spots, varicose veins and receding gums. These are individual and very specific concerns, which have been tackled by a number of highly specialized cosmeceuticals such as Medik8 Solutions' Age Spot Fading Formula, and Biotone's Spa Facial Therapy MicroRefiner (for spider veins).

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