In 2013, the global professional skin care market performed at its best, posting moderate growth to reach almost $6 billion. Findings from our recently published Professional Skin Care Global Series: Market Analysis and Opportunities reveal that among the reasons behind this growth are solid gains in four emerging markets representing gems of opportunities for beauty marketers – Indonesia, Thailand, Poland, and Russia.
An improved level of treatment services and equipment used by skin care professionals, as well as rising disposable income, leads to consumers flocking to the professional sector for treatment of their skin care concerns.
Estimated at nearly $100 million each and posting double-digit gains in 2013, Indonesia and Thailand are among the exciting countries for professional skin care companies to evaluate. While in Indonesia the demand is driven by consumers accustomed to visiting medical care providers and consequently purchasing professional skin care products, the key growth drivers in Thailand are increasing awareness about the efficacy of professional products, new and innovative product introductions, and a rise in luxury spending.
The medical care providers channel is the largest channel of distribution and posts the strongest growth in 2013, in both Thailand and Indonesia. The number of physicians providing skin care treatments and dispensing products is increasing agilely, creating a favorable environment for beauty marketers. While the professional skin care market in these two countries is primarily dominated by local brands, Kline sees the future of these markets full of potential.
Within Europe, Poland is one of the fastest growing markets driven by a significantly improved quality of service offered by professional outlets. While beauty institutes and salons is the largest channel of distribution in Poland, spas and medical care providers is the fastest growing. Stronger concerns over skin aging signs, new facilities and an increasing consumer’s interest in aesthetic procedures are all driving the growth within this promising European market.
Russia is another market witnessing strong growth over the past several years. In preparation for the Winter Olympic Games of 2014 and the upcoming FIFA World Cup in 2018, local economies in southern Russia have been developing rapidly. A number of professional outlets, especially hotel spas and medical spas, have been opening recently as Russian consumers, more open to luxury goods, are increasingly interested in the professional skin care services and spa culture. Similar to Poland, beauty institutes and salons is the largest channel of distribution in Russia and the strongest growth has been recorded by spas and medical care providers. Unlike in all previously mentioned markets, the fairly fragmented professional skin care market in Russia is dominated by foreign brands.
What does the future of these markets look like? Where are the pockets of opportunities? What are the growth drivers in each market? Kline has recently published Professional Skin Care Global Series: Market Analysis and Opportunities, a report focusing on its size and growth, key changes in distribution, as well as competitive landscape and new product trends. To request a sample of this report or simply find out more, please contact our team.
Insights by Pierrick Dutton (Project Lead – Consumer Products Practice), written by Marcela Chifu (Marketing Coordinator)