Prestige skin care is experiencing strong growth as a result of professional treatment-inspired product innovation, ingredient-forward SKUs featuring super-powered vitamin C and prejuvenating peptides, holistic claims encompassing stress and sleep concerns, responsible Gen-Alpha-facing marketing, and more. Here, we break down the brand opportunities, emerging ingredient technologies and consumer profiles, and other core drivers marketing and R&D teams can leverage to win in a growing, but highly competitive market.
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Prestige skin care is experiencing strong growth as a result of professional treatment-inspired product innovation, ingredient-forward SKUs featuring super-powered vitamin C and prejuvenating peptides, holistic claims encompassing stress and sleep concerns, responsible Gen-Alpha-facing marketing, and more. Here, we break down the brand opportunities, emerging ingredient technologies and consumer profiles, and other core drivers marketing and R&D teams can leverage to win in a growing, but highly competitive market.
Mass & Prestige Skin Care Sales Diverge
U.S. prestige skin care dollar sales increased 10% in Q1 2024, per Circana, while mass skin care grew just 4%a.
Notably, the number of prestige buyers, their average spend and purchase frequency all increased.
SeaCliff has developed a range of custom packaging-integrated beauty tools to “complement and elevate” at-home cosmetic topical treatments. These tools feature phototherapy, RF, microcurrent and other FDA-approved technologies allowing brands to, in combination with efficacious formulas, allow consumers to optimize their results at home.SeaCliff Beauty
Undeniably, lower-income shoppers, who lean toward mass beauty, are either trading down on products or delaying purchases they may view as purely elective. This is not an issue facing counterparts in upper income households (more on that in a moment).
So, beyond economic challenges, what’s behind prestige skin care’s dominance and where are the growth opportunities?
Body Sprays Dominate Skin Care
Body spray was the top gainer in the skin care category in Q1 2024 overall, with sales nearly tripling since the same period 2023.
This mirrors a 24% year-over-year increase in online searches for skin care body sprays and mists as of April 2024.
This growth aligns with a similar rise in fragrance body sprays, a segment that nearly tripled in 2023.
In March 2024, Circana’s Jacquelyn Wenskus reportedb, “Although consumers are trading up to pricier fragrance products, they are simultaneously spending more on lower-priced alternatives sold in prestige retailers that offer similar benefits. This polarization is evident in the growth of prestige body sprays … The average price of body spray is under $25, which is a fraction of the cost of a traditional fragrance bottle.”
The Power of Clinical Serums
Meanwhile, face serums were the second-strongest grower in the skin care category in Q1, driven by clinical brand launches. This result reflects a general rise in clinical, expert-backed brandsc, a trend that continues from 2023.
Recent launches in the facial serum category include The Ordinary’s Niacinamide 10% + Zinc 1% Oil Control Serum, Youth To The People’s Superfood Skin Drip Smooth + Glow Barrier Serum with Kale + Niacinamide, Dr. Jart+’s Brightamin Brightening Serum with Niacinamide and Vitamin C, and Kinship’s Dreamwave 2% Bio-Retinoid Complex Overnight Serum.
Approaching Gen Alpha Responsibly
Nascent beauty shoppers are a massive prestige skin care market opportunity, but shepherding kids into the beauty space requires ethical practices.
“Millennials are the most engaged generation when it comes to skin care,” Circana’s Jennifer Famiano reportedd in May 2024. In particular, households with incomes above $100,000 and with children in the household have boosted their skin care spend by 10% and purchase frequency by 15% in the first two months of 2024.
Forty-four percent of all U.S. adults with children of any age had purchased skin care, perfume, makeup and/or hair care in the previous three months. However, 46% of parents with children ages 6-11 had purchased skin care in the previous three months, reflecting higher engagement.Prostock-studio at Adobe Stock
In April 2024, CivicScience dug into consumer datae to decode Gen Alpha’s impact on beauty. While the firm will not survey individuals younger than 13, it was able to compare parents of children aged 6-11 to the parents of older generations (similar to Circana’s methodology).
Household comparisons are striking. Forty-four percent of all U.S. adults with children of any age had purchased skin care, perfume, makeup and/or hair care in the previous three months. However, 46% of parents with children ages 6-11 had purchased skin care in the previous three months, reflecting higher engagement.
As reflected in Famiano’s analysis, CivicScience found that Gen Alpha households are 6% more brand-sensitive than their peers and often engage in categories more than their counterparts.
Their favorite skin-oriented brands included Sol de Janeiro, Rare Beauty, Drunk Elephant, Bubble, Glow Recipe and Summer Fridays. CivicScience added, "[I]t’s worth noting that parents with younger children (aged 6-11) are more likely to have purchased from all the brands surveyed (except Summer Fridays) than parents with Gen Z tweens and teens (ages 12-17)."
However, Famiano signaled a need for industry responsibility, concluding her analysis by saying, “Developing appropriate products, continued education and positive engagement will be necessary focus areas.”
Famiano reflected well-founded concerns about very young consumers adopting, for instance, high-intensity skin care featuring harsh ingredients that are inappropriate (and unnecessary) for young skin.
Earlier this year, Swedish retailer Apotek Hjärtat made headlines for refusing to sell anti-aging products to those younger than 15, reflecting growing anxieties about the “Sephora kid” effect.
Then, in May 2024, California’s legislature put forth rulemaking to “prohibit the sale or delivery to a person under 13 years of age of an over-the-counter skin care product or cosmetic product advertised to address skin aging that contains vitamin A or its derivatives or an alpha hydroxy acid [AHA], and would require an entity that conducts business in California to take specified any of several specified actions to ensure that the purchaser of an above-described product is not under 13 years of age.”
Key ingredients under the regulation would include AHA and vitamin A, as mentioned, as well as retinoids and retinol, glycolic acid, ascorbic acid (vitamin C), citric acid, and other related materials.
Moving forward, skin care brands will need to focus on positive messaging to emerging consumers while avoiding popularizing inappropriate and harsh products for developing skin.
The Intersection of Skin & Wellness: Stress x Sleep x Care
Clarins’ New Multi-Active day and night range (launched in March 2024) was formulated to address premature aging associated with stress and lack of sleep and to restore a youthful radiance, per the brand.Clarins
Skin care has long been associated with self-care, even before that term came into popular usage, and has long been a key component of overnight rituals.
But a new generation of research, brands, ingredients and products are taking the intersection of skin wellness and well-being to new levels.
“Stress levels are … at an all-time high, prompting consumers to seek integrative solutions that address both their physical and mental health simultaneously,” says Michelle Chavez, vice president of innovation, Accupac/Cobalt Labs.
As a result, she explains, “Beauty products will innovate with ingredients that target specific wellness needs. Formulations will feature adaptogens, renowned for their stress-relieving and balancing properties.”
Adaptogenic, stress-mitigating beauty SKUs on the market include Moon Juice’s ingestible Brain Dust Adaptogens for Focus, Provence Beauty’s No Baggage Adaptogen Eye Cream, Florence by Mills’ Surfing Under The Eyes Hydrating Treatment Gel Pads and Undefined Beauty’s R&R Sun Crème SPF 50 Moisturizer.
But adaptogens aren’t the only stress-focused strategy on the market. For instance, Clarins’ New Multi-Active day and night range (launched in March 2024) was formulated to address premature aging associated with stress and lack of sleep and to restore a youthful radiance, per the brand.
“Stress levels are … at an all-time high, prompting consumers to seek integrative solutions that address both their physical and mental health simultaneously,” says Michelle Chavez, vice president of innovation, Accupac/Cobalt Labs.Valerii Apetroaiei at Adobe Stock
Other key materials include organic teasel extract to boost the skin’s glow, organic strawberry tree fruit extract for tightened pores and boosted glow; moisturizing and plumping betaine; a tetrapeptide to firm the skin overnight (night cream); and Clarins’ anti-pollution/-blue light complex featuring organic white horehound, Furcellaria algae and nipplewort extracts.
Meanwhile, says Chavez, “Sleep, a cornerstone of both physical and mental well-being, will take center stage [in skin care], with product launches focusing on optimizing natural biorhythms to promote restorative, reparative sleep and improve mood. Sleep is fundamental to ensure all the processes of our body are working as they should. It will be tracked, hacked and optimized. Products will also utilize magnesium for its calming effects and melatonin to help promote deeper, more restful sleep. Products will sync with our natural circadian rhythms and expand across the categories with more launches for hair care, body care, lash care, lip care and even fragrance to repair, reset and refresh overnight.”
Brands playing in this space include circadian-focused launches like Indeed Labs’ In-Circadian Night Mask with Polyglutamic Acid, Andalou Naturals’ Age Defying Rejuvenating Plant Based Retinol Alternative Sleeping Mask, and The Golden Rule’s Retinoid/Retinol Serum. Meanwhile, launches featuring sleep-focused materials include Lemme Sleep’s Sleep Tight Gummies, The Good Patch’s Nite Nite Hemp-Infused Wellness Patch, Moon Juice’s Magnesi-Om Sleep and Relaxation Supplement, Pacifica’s Wake Up Beautiful Retinoid Eye Cream, and Dr Teal’s Soothe & Sleep with Lavender Pure Epsom Salt Soaking Solution.
“The connection between mental and physical health will be further explored, with psychodermatology and neuro beauty delving into how emotions impact skin health and aging, harnessing the power of mood-boosting ingredients like nootropics,” says Chavez. “Meanwhile, nutrient-dense formulations containing vitamins, minerals and micronutrients will nourish the skin while supporting overall wellness.”
Chavez concludes, “Formats will evolve to enhance the sensory experience, with luxurious and indulgent textures, while ingredients like adaptogens, essential oils and micronutrients will offer functional benefits beyond traditional skin care and supportive of restorative sleep and body balance. Ultimately, the goal of these innovations is to empower individuals to live better, longer, and more fulfilling lives by prioritizing their wellbeing in every aspect of their daily and nightly routine.”
Accupac’s development department, Cobalt Labs, recently created a proof-of-concept for wellness-focused skin care, a Lavender Intensive Sleeping Lip Mask. The formulation was designed to repair and protect the lips for smoother, softer skin. The mask comprises PHA, shea butter, ceramides and hyaluronic acid for hydration and skin barrier support.
Bio-Botanica, meanwhile, has tackled another growing wellness x skin care opportunity: menopause. The company recently developed a concept formulation, Anti-aging Cream with Puresterol and Superfruit Blend, which takes a multifunctional approach to menopausal care.Anna Zhuk at Adobe Stock
The formulation comprised Bio-Botanica's Puresterol, a standardized Pueraria mirifica extract featuring isoflavonoids (20 mg/100 g) and miroestrol (300 mcg/100 g).
Miroestrol reportedly relieves menopausal symptoms, including collagenase activity, which can break down collagen and elastin, potentially leading to wrinkle formation.
It also is said to improve the appearance of hair and boost "overall vitality."
Meanwhile, the cream's Superfruit Blend features goji, acai, noni, pomegranate, mangosteen, coffee seed and green tea leaf.
Combined, the blend provides an antioxidant boost to the skin.
The formulation reportedly diminishes the depth of crow's feet, among other benefits, per Bio-Botanica.
The Professional-Consumer Skin Care Feedback Loop
Cost-effective treatments such as the use of lasers can address multiple concerns simultaneously for a comparatively low price.Mariakray at Adobe Stock
For instance, Swaroop notes that the rise of sophisticated diagnostics, which can be used in tandem with topical products (or even generate product recommendations), has created more targeted consumer experiences. In addition, shoppers in both the medical and mainstream skin care space increasingly seek gentler anti-aging solutions—without sacrificing efficacy.
Gentle solutions have impacted shopper demands in acne care, another active-intensive skin care category.
“To effectively treat acne, formulations typically employ adjuvants alongside active ingredients like salicylic acid,” says Vince Gruber, Ph.D., of Vantage Personal Care & Beauty. “These ancillary ingredients help formulations where more than just acne is considered as in the case of sensitive skin.”
“To effectively treat acne, formulations typically employ adjuvants alongside active ingredients like salicylic acid,” says Vince Gruber, Ph.D., of Vantage Personal Care & Beauty. “These ancillary ingredients help formulations where more than just acne is considered as in the case of sensitive skin.”SHOTPRIME STUDIO at Adobe Stock
To address these issues, Vantage developed Curazelic 44 (INCI: azelaic acid (and) cocamidopropyl dimethylamine), a “presolubilzed form of azelaic acid that works synergistically with active ingredients like salicylic acid to improve the formula’s overall efficacy,” per Gruber, thereby “helping to counteract the irritating and drying influences salicylic acid has on the skin.”
TaikiUSA's Moisturizing Belly Mask treatment was created to reduce the appearance of stretch marks and improve firmness.TaikiUSA
"As an easier-to-use form of azelaic acid, Curazelic 44 remains stable throughout the shelf life of the product, remaining clear where other ingredients create a yellowish appearance in a cream or serum," adds Beto Pino, vice president, technical marketing and innovation, personal care, at Vantage Specialty Chemicals. "Additionally, Curazelic 44 can easily be incorporated into formulations 'as is' without an extra dispersion step and is the only azelaic acid ingredient available on the market in liquid form."
Pino adds, "With nearly all generations, including Gen X, millennials and Gen Z, citing acne as a main concern in our 2,500-person consumer study, addressing acne is a targeted, multi-step process that must consider the consumer’s skin needs holistically."
Per Gruber, "[A]cne/breakouts are the third largest concern among all generations included in [the] concept survey."
Beto notes, "Our goal is to develop solutions that balance effectiveness in formulation as well as nurture the skin. We have developed a complete skin regimen that includes cleansing, treating, nourishing, and correcting by using ingredients that are gentle yet efficacious. This strategy increases the chance of repeated use to achieve clear skin quickly and for an extended period.”
Meanwhile, Swaroop concludes his analysis by arguing that brands seeking to meet consumer demands in the medically dispensed skin care space must tap into diagnostics and data-driven insights, while offering education on dermatological principles and ingredients.
TaikiUSA has developed a new microneedle lip patch formulated with cutting-edge ingredients that is designed to provide a non-invasive and revitalizing solution to achieve a plumper pout.TaikiUSA
“Consumers are looking for safer, cost-effective DIY treatments that mimic the effects of professional treatments,” says Siti Kahlid, president and CEO of TaikiUSA. “To meet this demand, TaikiUSA has developed a new microneedle lip patch formulated with cutting-edge ingredients that is designed to provide a non-invasive and revitalizing solution to achieve a plumper pout.”
TaikiUSA’s Pro-Aging & Plumping Microneedle Patch contains dissolvable microneedles that gently penetrate the skin, per the manufacturer, enhancing ingredient absorption.
Kahlid notes, “The advanced formula stimulates blood flow, creating a plumping effect, aids in collagen production, and diminishes the appearance of fine lines and wrinkles.”
She adds, “Skin care beyond the face (body care) and, more specifically, feminine wellness treatments are becoming more popular among consumers. To keep up with the demand, TaikiUSA has developed a feminine wellness collection that includes masks, patches and wet wipes. The collection is formulated with science-backed ingredients that meet retailer clean standards and restore skin in the most intimate areas. Our hydrogel patches and masks are specifically designed to stay put once applied and enhance the natural beauty of the feminine form, targeting the buttocks, breasts and belly. This collection offers a non-invasive approach to enhancing natural beauty.”
TaikiUSA’s hydrogel Booty Booster Sculpting Patch is designed to promote firmness, reduce the look of cellulite and increase hydration.TaikiUSA
Finally, the Moisturizing Belly Mask treatment was created to reduce the appearance of stretch marks and improve firmness.
Elsewhere, SeaCliff Beauty has developed a range of custom packaging-integrated beauty tools to “complement and elevate” at-home cosmetic topical treatments.
SeaCliff has developed a range of custom packaging-integrated beauty tools to “complement and elevate” at-home cosmetic topical treatments. These tools feature phototherapy, RF, microcurrent and other FDA-approved technologies allowing brands to, in combination with efficacious formulas, allow consumers to optimize their results at home.SeaCliff Beauty
SeaCliff Beauty’s beauty devices are integrated directly into packaging for seamless application, per the company.
Brands can also pair the solutions with apps to, for instance, remind consumers when it’s time for formulas to be replenished or select tool modalities based on personalized needs.
As these examples show, the lines between consumers’ at-home experience and professional beauty treatments are blurring, offering opportunities for both channels.
Ingredient-forward Skin Care Innovation
In an age of clinical, expert-backed brands and a consumer obsession around efficacy, ingredients mean more than ever.
Among the skin care ingredients with the highest total U.S. online searches, according to a Spate x Grant Industries report from April 2024, are:
- hyaluronic and glycolic acid;
- tretinoin, snail mucin (also among the fastest-growing ingredient keywords), salicylic acid;
- castor oil;
- and ceramides.
Among the fastest-growing ingredient search terms are phenols (reflecting interest in peels), maracuja (popularized by Tarte and others), heartleaf and red bean (both inspired by K-beauty), plum oil (popularized by Le Prunier), kojic acid (reflecting melasma worries), rice water (a “glass skin” favorite), and salt water (often associated with skin-friendly cleansers).
Here, we looked at how a few of the top-trending ingredients are manifesting in new technologies, concepts and launches.
Vitamin C Inspiration
“We’ve found our clients are loving vitamin C, bakuchiol, niacinamide and tranexamic acid lately,” says Samantha Burd of contract manufacturer Lady Burd Cosmetics.
That’s no surprise given that, per the Spate x Grant Industries report, vitamin C and niacinamide, respectively, generate 736.3K and 178.7K monthly online searches in the United States.
TaikiUSA has taken inspiration from the popularity of vitamin C, but with a twist. Its Bōshi Beauty Inc. has unveiled its new Vitamin C Nano Drop Antioxidant Power technology, which reportedly boosts the stability and efficacy of vitamin C.
TaikiUSA has also taken inspiration from the popularity of vitamin C, but with a twist. Its Bōshi Beauty Inc. has unveiled its new Vitamin C Nano Drop Antioxidant Power technology, which reportedly boosts the stability and efficacy of vitamin C.
The Bōshi technology comprises nanofiber layers that protect vitamin C from degradation, resulting in antioxidant activity that is 4x more powerful than a traditional vitamin C serum, according to initial DPPH assay results cited by TaikiUSA/Bōshi. All Bōshi Nano Drops can be customized with different formulas, shapes and packaging.
Prejuvenating Peptides
The Spate x Grant Industries report cited earlier also found that monthly online U.S. searches for peptides had grown more than 20% year-over-year, totaling 92.3K. Polypeptide searches spiked even more drastically, growing 160.1% year-over-year to a still modest 12.6K. No doubt these technologies have captured the public’s attention.
Recent peptide launches include LipoTrue’s SP[AI]3 for acne-prone skin; Clariant’s retinol alternative CycloRetin, which comprises the cyclic peptide heterophyllin B; and Lubrizol Life Science’s scalp microbiome-balancing Fensebiome.
Allison Garlet, marketing manager bioactives at BASF, notes that Gen Z’s interest in preventative beauty, or prejuvenation, encourages the adoption of “science-first” approaches. So too does the rising interest in general in skin and hair longevity.
“Peptides are sensible ingredients to answer these trends,” says Garlet, “as they are known to consumers as high-performing ingredients with proven benefits … These proteins are the foundations of your skin and are responsible for its texture, strength and resilience. Without peptides, skin is less intact, which can lead to a loss of firmness, the appearance of wrinkles, a change in texture and less ‘bounce.’”
Peptides allow beauty brands to help consumers “bio-hack” the skin, Garlet explains, thereby “supporting longevity and encouraging skin to look and act younger.” These materials’ benefits support product claims for anti-aging, soothing, radiance-boosting, hydration and more.
Among the peptides released by BASF are Replexium, a skin-bioavailable complex of two synthetic peptides that addresses the appearance of wrinkles and fine lines, as well as Peptovitae Matrix, a biomimetic synthetic peptide encapsulated in a double-layered liposome for improved skin bioavailability to visibly lift the skin while rendering it more supple-looking by supporting the skin’s own healthy collagen and elastin levels. Peptovitae Matrix can also reportedly protect against oxidative stress to counteract premature aging.
Other peptide tech from the company includes Proteasyl, a polypeptidic ingredient that acts as a protease inhibitor that defends against aging conditions while improving elasticity and tone, as well as soothing and hydrating PeptAide4.0, which reduces dryness, comforts irritated skin and supports firm skin.
Skin Care’s Premiumized Opportunity
From wellness-oriented launches to high-efficacy technical ingredients, the skin care sector has ample opportunity to continue growth in the prestige space. With Gen Alpha already familiarizing itself with more premium brands, the future looks bright.
FOOTNOTE
aThat was enough to make skin care the mass sector’s fastest-growing category in Q1 2024; www.circana.com/solutions/complete-beauty/
bwww.circana.com/intelligence/blog/2024/splurge-and-save-the-fragrance-edition/
dwww.circana.com/intelligence/blog/2024/gen-alphas-skincare-effect/
ehttps://civicscience.com/how-gen-alphas-parents-are-shaping-the-beauty-industry/
gwww.spate.nyc/top-rising-ingredients-report
