U.S. Cosmeceuticals Market Size, Share & COVID-19 Impact Analysis, By Product Type [Skin Care (Anti-aging, Skin Whitening, Sun Protection, Professional Skincare, Anti-acne, and Others), Hair Care (Hair Growth, Anti-Dandruff, and Others), Injectable (Botulinum Toxin, Dermal Fillers, and Others), and Others (Lip Care, Tooth Whitening, Anti-Cellulite/Body Slimming Preparations, and Others)], By Distribution Channel (Pharmacy/Drug Stores, Online Stores, and Others), and Country Forecast, 2023-2030

The U.S. cosmeceuticals market size was worth USD 12.16 billion in 2022 and is projected to grow at a CAGR of 8.0% during the forecast period.

Cosmeceuticals are cosmetics with bioactive ingredients offering medicinal benefits. These products treat various dermatological conditions such as acne, large skin pores, cellulite, hyperpigmentation, and others. The increasing prevalence of skin and hair problems and rising awareness about the efficacy of these products have been fueling the market growth.

• For instance, as per data published by the American Academy of Dermatology Association, acne is the most common skin problem, affecting around 50.0 million Americans each year.

The COVID-19 outbreak had a negative impact on the market in 2020. This was due to the decline in the number of patients visiting the dermatologist and the limited availability of these products due to supply chain disruption.

LATEST TRENDS

Increasing Mergers and Acquisitions by Market Players to Enhance their Product Portfolio

The rising awareness about the risk factors associated with the use of products with chemical ingredients has fueled the demand for alternate safer natural products among the U.S. population. Moreover, major industry players have been focusing on strengthening their positions in the market through inorganic growth strategies and focusing on mergers and acquisitions. 

• For instance, in May 2021, The Estee Lauder Companies Inc., the U.S. based company, acquired 76.0% of the Deciem Beauty Group Inc., a Canada-based developer of cosmeceuticals. This acquisition enhanced the company’s product portfolio for cosmeceuticals in the U.S. and Canada.

DRIVING FACTORS

Increasing Demand for Cosmeceuticals and New Product Launches to Fuel the Market Growth

The increasing awareness about skincare and haircare as part of good health has increased the demand for cosmeceuticals such as anti-aging creams, hair fall control serums, sunscreen, and others. Market players have increased their focus on commercializing new products to fuel this rising demand.

• In September 2022, Estée Lauder Companies Inc. and BALMAIN entered a strategic collaboration to develop, manufacture, and commercialize beauty products under BALMAIN BEAUTY.

The rising awareness about these products and increasing market players’ focus on new product launches has been fueling the U.S. cosmeceuticals market growth.

According to estimates, around 81.5 million individuals in the U.S. were suffering from hair loss in 2022. This included 62.5% of men and 37.5% of women. Moreover, around 24.7 million individuals suffered from atopic dermatitis in the U.S. in 2022, which accounted for 7.3% of the total U.S. population.

RESTRAINING FACTORS

Increasing Cost of Cosmeceutical Products May Limit the Market Growth

The demand for cosmeceuticals among the population has been increasing significantly. However, the high cost of many branded cosmeceutical products has been limiting their adoption among the population.

• For instance, facial serums offered by SkinCeuticals, a cosmeceutical brand of L’Oréal, can cost somewhere between USD 78.0 and USD 182.0. However, the facial serums offered by Garnier LLC, a cosmetics brand of L’Oréal, can cost around USD 22.0.

Due to such high costs, individuals often go for cosmetic products, which are cheaper than cosmeceuticals. This factor negatively impacts the product adoption and is limiting the market growth.  

SEGMENTATION

By Product Type Analysis

Based on product type, the U.S. market is segmented into skincare, haircare, injectables, and others. The skincare segment dominated the market in 2022. The increasing prevalence of skin diseases such as acne, psoriasis, and others has been fueling the segment’s growth.

• As per data published by the National Centers for Plant Biotechnology in 2021, the prevalence of psoriasis in the U.S. population aged 20 and above was around 3.0%. 

Moreover, under the skincare segment, the anti-aging sub-segment accounted for a significant market share in 2022. The growth of the segment is attributed to the increasing geriatric population in the country and rising awareness about products that effectively reduce signs of aging, such as wrinkles, hyperpigmentation, and others.

By Distribution Channel Analysis

On the basis of distribution channel, the market is segmented into pharmacy/drug stores, online channels, and others.

The pharmacy/drug stores segment dominated the market in 2022. The easy availability of the cosmeceutical products along with the discounts offered by the retail stores are responsible for the segment’s dominance.

The online stores segment is expected to grow at a significant CAGR during the forecast period. The growth of the segment is attributed to the rising emphasis of market players on increasing the accessibility of their products to the population through e-commerce platforms. Moreover, the offers provided by the online websites on these products and the availability of a variety of options compared to the offline stores attract more customers, thereby fueling the market growth. 

KEY INDUSTRY PLAYERS

Market players such as L’Oréal, Unilever, Procter & Gamble, Estée Lauder Companies Inc., and Shiseido Company Limited accounted for a significant U.S. cosmeceuticals market share in 2022. The growth of these key players in the market is attributed to their emphasis on partnerships and collaborations to strengthen their position in the market.

• In May 2021, Shiseido Company Limited and Accenture established a joint venture to provide digital marketing and digital IT services to the Shiseido Company.

Other players in the market include companies such as Beiersdorf, AVON, and AbbVie Inc. These players have increased their focus on offering over-the-counter (OTC) products to expand their offerings.

LIST OF KEY COMPANIES PROFILED:

• L’Oréal (France)


• Estée Lauder Companies Inc. (U.S.)


• Beiersdorf (Germany)


• Shiseido Company Limited (Japan)


• Procter and Gamble (U.S.)


• Elementis Plc (U.S.)


• Avon (U.K.)


• Allergan (U.S.)


• BASF SE (Germany)


• Croda International Plc (U.K.)


• Unilever (U.K.)


• Coty Inc. (U.S.)


• Johnson & Johnson Services, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• April 2023 – Estée Lauder Companies Inc. completed the acquisition of TOM FORD, the U.S.-based luxury brand company. The acquisition enhanced the company’s skincare portfolio with the addition of TOM FORD’s product offerings.


• September 2022 – L’Oréal acquired Skinbetter Science, the America-based skincare brand, to enhance its product offerings in the North American region.


• February 2021 – Beiersdorf launched O.W.N., a face care brand, with an aim to strengthen its product portfolio.

REPORT COVERAGE

The U.S. cosmeceuticals market analysis report provides a detailed analysis of the market. The report includes market segmentation, key points such as pipeline analysis, and the product portfolio of the key players operating in the U.S. market. Additionally, it includes the adoption of skincare and haircare products in the U.S., new product launches, key industry developments such as mergers, collaborations, acquisitions, and the impact of COVID-19 pandemic on the market. Besides this, the report offers insights into the market trends and highlights key industry dynamics. In addition to the aforementioned factors, it encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation