Dermocosmetics Market Trends

Growth Drivers

• Product innovation and research: A significant propelling growth factor within the dermocosmetics market is the consumers who are increasingly seeking targeted solutions for specific skin concerns. Thus, companies are compelled to research and develop advanced formulations that address these needs. For instance, in May 2022, Kim Kardashian launched SKKN BY KIM in collaboration with Coty Inc. SKKN BY KIM is a clinically proven skincare solution that helps the skin to support its natural abilities and revitalize the complexion. In addition, the integration of emerging cutting-edge technologies of skincare gives the brands some edge over their competitors, therefore, the expansion in markets is highly facilitated.

• Rising demand for personalized products: Rising demand for individualized products would also lead to a continued growth momentum for the dermocosmetics market, which will signal mass personalization in consumer markets. For instance, in July 2024, Kosé teamed up with I Peace, Inc. and Reju, Inc. to create customized beauty products that include iPSF. It has an induced pluripotent stem [iPS] cell extract from customers' blood-drawn cells. This process will allegedly fine-tune dosages and textures for each consumer. This has made companies adopt advanced technologies to formulate customized compositions that enhance the efficiency and satisfaction of their products.

Challenges

• Consumer expectations and trends: A crucial hurdle for brands to stay relevant in the rapidly evolving dermocosmetics market is consumer expectations and dynamic trends. More informed and discerning consumers look for products that bring efficacy but also meet some of their values, such as sustainability, ethical sourcing, and transparency in ingredient formulation. This shift requires companies to invest in research and development to innovate and adapt their offerings, and also to enhance their marketing strategies in communicating the benefits and integrity of their products. Therefore, being in tune with these dynamic consumer preferences it seems complex for brands looking to build loyalty and grow in a crowded marketplace.
• Ingredient sourcing and supply chain issues: The strict quality controls during the sourcing of raw materials for naturally derived products while applying environmentally friendly practices toward effectiveness and safety is a challenge in the dermocosmetics market. Moreover, the global supply chain causes vulnerability in terms of availability fluctuation and pricing variation, legal compliance, and ethical sourcing. As consumer discernment towards ingredient transparency and sustainability continues to be an issue, dermocosmetic companies find it difficult to make it through these vulnerabilities to hold onto competitive advantage while respecting the industry standard and meeting the expectations of consumers.