Issue 21
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Category		Title		Reference
Market Reports		The Facial Skin Care Market

Facial skin care products in Europe 1997/98

The facial skin care market has been enjoying growth across the big 5 markets (France, Germany, Italy, Spain and Great Britain). According to Taylor Nelson Sofres European Toiletries and Cosmetics Database the top 5 facial skin care brands in these 5 EC countries are Nivea, Yves Rocher, Oil of Olay, Avon und Plénitude. In comparison with the previous years, when sales increases had been mainly boosted by moisturisers, growth in the year 1998 is mainly attributed to the developments of innovative products in the cleansing category, namely cosmetic tissues and deep cleansing patches. Over the next few years rapid growth is likely to continue as there is a large potential for new developments. In the moisturiser category, key ingredients incorporated in new formulas included vitamins and enzymes.

Market for facial skin care products in France

According to ECM calculations from the figures provided by the French trade association Fédération des Industries de la Parfumerie (FIP), the French facial skin care market was static in 1997 at FF 8.8 bn on a retail basis. Industry sources reveal that in the year to November 1998 overall mass market facial skin care values grew by 9 percent to FF 1.8 bn. In 1999 value sales are forecast to put on 5 percent and volume turnover is expected to grow by 4 percent. Of total sales for the year to November 1998, cleansing and toning products accounted for 44 percent by value and moisturisers took the remaining 56 percent.

France - The shares of the 44 percent held by cleaning products are as follows:
cleansing milks	13,5 percent
Lotions and tonics	9,5 percent
Eye makeup removers	8,5 percent
Facial washes	4,0 percent
Exfoliants	2,5 percent
Masks	2,5 percent
Patches	3,0 percent
Cosmetic tissues	over 1,0 percent
Source: ECM from industry estimates

Over the last years, Beiersdorf and Schwarzkopf & Henkel Cosmetics launched a number of new products on the French market. Nivea Visage Kao bioré Clear Up Strips are an example of the successful innovative products for deep pore cleansing.

The overall French mass skin care market is dominated by the following multinationals:
Beiersdorf	Nivea	33,5 percent
		(value share)
L´Oréal	Plénitude	20,0 percent
	Synergie (laboratoires Garnier)	5,0 percent
	Vittel (La Scad)	4,0 percent
	Andere	3,5 percent
Schwarzkopf & Henkel Cosmetics:
	Standard	11,5 percent
	Reactivance	1,5 percent
	General purpose	0,5 percent
Reckitt & Colman*:	Barbara Gould	6,5 percent
Procter & Gamble:	Oil of Olay	5,0 percent
Elida Fabergé / Unilever	Ponds	1,5 percent
* The Barbara Gould brand has been sold to Carter-Wallace.
Source: ECM from industry estimates

Schwarzkopf & Henkel Cosmetics introduced Diadermine Lingettes Démaquillantes Visages, cosmetic tissues which are said to make cleansing the face more simple, quicker, more pleasant and more hygienic.

Market for facial skin care products in Germany

According to IRI/GfK Retail Services in Nuremberg, Germany the German facial skin care market totalled DM 1.2 bn in the November 1997 to October 1998 period. This represents 99.5 mn units by sales volume. In the May to October 1998 period the market total is estimated at DM 584.9 mn, an increase of 5.1 percent compared to the same period the previous year. Moisturisers claimed 71.4 percent of the total market value (day creams: 34.6 percent, specialist moisturising products: 36.9 percent), while cleansers (excluding eye makeup removers) accounted for 28.6 percent (daily cleansers: 21.3 percent, specialist cleansers: 7.2 percent). The chart represents the share of mass cleansers for the 1997 period.

IRI/GfK Retail Services suggests that overall sales of facial skin care products totalled 49.9 mn units in the May to October 1998 period, an increase of 8.9 percent compared to the same period the previous year. The overriding trend emerging from the IRI/GfK figures is that cleansing products are currently the key growth drivers, both in value and volume terms. Cleansers (excluding eye makeup removers) saw value growth of 21 percent in the May to October 1998 period compared with the same period the previous year. Daily cleansers put on 9.8 percent, whilst specialist cleansers saw sales climb 73.9 percent. In the highly innovative sector of specialist cleansers, deep cleansing strips enjoyed an 87.6 percent sales increase and cleansing masks grew by 9 percent. In the daily cleansers sector, wash gels/creams enjoyed a growth by 22.1 percent, toners 3.2 percent, while cleansing milks suffered a 2.2 percent decline in value sales.

Overall the moisturisers market saw sales fall by 0.2 percent in value terms in the May to October 1998 period, by volume sales grew by 1.3 percent. Innovative products were introduced on this mass market as well such as Ausgleichende Creme und Sensitiv Creme of the Bebe range (Johnson & Johnson), containing vitamin E for the protection of the skin.

By manufacturer the overall facial skin care market was led by Beiersdorf in 1997 with a value share slightly over 20.5 percent, contributed by its Nivea Visage and Nivea Vital brands. Procter & Gamble followed, claiming just over 16 percent and L’Oréal with almost 15.5 percent.

Reference

European Cosmetic Markets 16, No. 2 (February 1999) 57-76, Wilmington Publishing Ltd.; Tel. +44-20-7549-8626, Fax +44-20-7549-8622