Skin Lightening Products Market Outlook & Key Findings
- The global skin lightening products market is exhibiting growth at a CAGR of 8% over 2020-2030
- According to Future Market Insights (FMI), Tier 1 & Tier 2 companies account for more than 45% revenue share of the market
- Latin America, South Asia, and the Middle East & Africa will record a sales uptick of skin lightening products
- Demand for premium skin lightening products expected to be high in Europe and North America backed by high spending power of consumers
- Skin lightening products market will witness sales uptick via e-retailing
Increasing Focus on Skincare Concerns to Spur the Adoption of Skin Lightening Products
Globally, the incidence of skin related concerns such as melisma has spurred. Topical therapies along with minimally invasive surgeries are have become increasingly popular for the treatment of melasma and other skin related issues. However, the latter being expensive, a larger consumer base is adopting topical therapies for the treatment of hyperpigmentation.
Topical therapies including medically prescribed and over-the-counter medications such as creams, lotions, gels, serums, and other products have risen in popularity as well. Higher focus on advertising and educating consumers about various skin related problems and methods of treating it will surge sales of skincare products. This will also give tailwinds to the sales witnessed in the skin lightening products market.
Skin conditions such as melisma can lead to discoloration of skin or leave dark patchy spots. It is common among consumers to look for skin lightening products to treat their skin conditions. Melasma affected around 5 million individuals in the U.S. in 2019. The worldwide prevalence of melasma is unknown, however, the higher prevalence of melasma is likely to impel consumers spend on skin lightening products.
Brands Containing Natural Ingredients are Likely to be Trusted More by Consumers
Besides high demand for various skincare products. FMI however observes a higher inclination for products containing natural ingredients. This shifting preference has resulted from rising awareness among consumers. They are looking for skin lightening products for spot correction, getting rid of skin tan, and various other reasons. These products are also available in different formulations and ingredients.
A plethora of factors are responsible for growth witnessed across various segments. For instance, anticipated shift in consumer preference in favor of more natural ingredients will strain sales witnessed in synthetic category. Resultantly, skin lightening products containing natural ingredients will gain 150 – 200 bps between 2020 and 2030.
This change in preference is substantiated by various studies and market surveys. In Canada, for instance, Meladerm Cream has received positive peer reviews and. It uses 100% natural ingredients, is available only online, has no HYDROQUINONE, and comes at an affordable price. The brand also makes skin lightening products and has been successful in gaining trust among consumers in the country.
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COVID-19 Impact will Alter How the Market Functions
The beauty and personal care industry has been significantly affected in the wake of COVID-19 pandemic. However, the impact of the ongoing pandemic crisis is not as severe in comparison to other industry. While consumers are cutting down their discretionary spending, the beauty industry is witnessing behavioral shift among them in favor of safe and reliable products.
Consumers in the skin lightening products market too are expected to embrace this trend. They are likely to opt for brands that they believe have lower risk of contamination and extended shelf-life to help them ration their supplies.
Besides this, key market players are focusing on improving their ecommerce presence to strengthen their supply lines. Some of them have taken their strategies a couple of notches high, offering at-home wellness products to consumers.
Key Players are Focusing on Capacity Expansion to Gain Impetus
Over the last few years, big cosmetic and personal care manufacturing companies have been investing in the expansion of their production capacity. They are especially focusing on the launch of skin lightening products with simple and cost-effective ingredients.
For example, Canada-based company called Sirona Biochem has , subjected its skin lightening compound, SBM-TFC-1067, for extra safety and efficacy testing, which will help the company bring its compound close to a licensing deal. This will allow the usage of the ingredients into a number of skin lightening formulations across markets such as Asia Pacific, Europe, and North America.
Market Players to Seek Out Opportunities in Ecommerce to Stay Relevant Despite Evolving Consumer Behavior
Given the conditioning of modern consumers, they hold better convenience and consumer services on top priority. Leading brands are therefore focusing on improving their online presence via e-retailing.
According to The Latin America Institute of Electronic Commerce, a regional non-profit organization that develops and supports the digital economy in different countries in Latin America, they ranked in the 2nd place for the ‘cosmetics and perfumes’ category in Brazil’s e-Commerce market.
Amid the ongoing pandemic crisis, more brands are fostering their online presence. With lockdown orders sweeping across nations market players are seeking out alternate methods of maintaining sales volume. Even after governments ease lockdown orders, consumers are likelier to avoid public places while continue shopping essential items via online platforms.
Driven by aforementioned trend, brands such as Olay, Clarins, and Murad among several others are toiling to maintain a strong and glamorous online presence. They are leveraging various channels of promotion to this. Many are roping in popular influencers to endorse their products, thus, ensuring they get to reach their prospective buyers.
Their rigorous efforts will bode well for the skin lightening products market enabling it to stay afloat despite ongoing restrictions. FMI sees this trend to have a long term effect on consumer behavior. Ecommerce is already a popular medium and current scenario has demonstrated its prowess in keeping consumers engaged.
High Levels of Mercury Additions in Skin Lightening Products Being Re-called
A skin whitening drug, Crema Piel De Seda (Silky Skin Cream), was recalled from the U.S. market, which is a company from Mexico (Viansilk). This cream is branded in Spanish, and is commercialized in the U.S. among the Latino community. Because of the possibility of mercury poisoning, the US FDA has warned consumers against purchasing this cream. Thus, restriction on use of mercury in skin lightening products are challenging growth of conventional manufacturers in the market.
Skin Lightening Products Market: Region-wise Analysis
Chemicals present in skincare product can have harmful reactions and side effects. An increasing number of market players are therefore replacing synthetic ingredients for natural and organic alternatives to suit changing consumer preferences.
Rapid change in consumer behavior is witnessed in the last couple of years. They are embracing organic ways of skincare, subsequently compelling market players to rethink their production strategies. Similar trend is observed among consumers in the Middle East and Africa as they demonstrate higher preference for natural skin care products.
Thanks to the ubiquity of natural ingredients such as rose, olive oil, coconut oil, and others, manufacturers in the Middle East were able to transition as per changing consumer preferences. Growth witnessed in the market is also enabled by high prevalence of awareness in the United Arab Emirates.
However, globally Europe holds dominance in the skin lightening products market due to presence of several leading players in the region. In North America the market will witness higher focus on investment among key players.
East Asia and South Asia markets are exhibiting lucrative prospects driven by high demand among consumers and increasing number of saloons and spas in these regions. Retail MEA and Latin America are aiding the rapid growth of skin lightening products market in these regions.
Leading Players in Skin Lightening Products Market
Key players operating in the market are focusing on product innovation, premiumization and development of organic skin lightening products to compete the global markets. Also, they are seeking out opportunities in untapped markets through increasing acquisition and partnership. Some of the key players in the skin lightening products market are:
- L'Oréal S.A.
- Beiersdorf AG
- Unilever PLC.
- Procter & Gamble Company
- Shiseido Company
- Himalaya Global Holdings Limited.
- Lotus Herbals Private Limited
Skin Lightening Products: The Way Forward
The rising cases of dermatologic concerns have fuelled the demand for skin lightening products. Surging sales witnessed in the market is often associated with fondness for lighter skin tones, still prevalent in under-developed pockets rooted since ancient times. Developed markets as well are not oblivious to skin lightening products.
The phenomenon led to the dominance of markets across Asia. The active involvement of several consumers in seeking advanced skin lightening products continued to give impetus to the market. However, the trend is slowly changing.
Campaigns against brands circulating dogmatic advertisements about their products and brandishing dark skin tones however have caused a shift in consumer behavior. They are slowly moving away from products making fairness claims. However, the demand for skin lightening creams and gels that will help them get rid of tan or dark patchy skins continues to thrive.
This would create incremental opportunities for the market in the near future. FMI foresees the multi-billion dollar market to expand further with the entry of several new brands offering organic solutions to popular skin woes.
- Lotions and Creams
- Serum and Toner
By End Use
- Natural/ Herbal
By Price Range
- Specialty Outlets
- Convenience Stores
- Beauty Stores
- North America
- Latin America
- East Asia
- South Asia