Report

The market for skincare is expanding more quickly than any other area of the beauty industry. It is a thriving industry encompassing various products and treatments designed to improve and maintain the health and appearance of the skin. The United States Skin Care Market was valued at USD 16.38 billion in 2022 and is anticipated to reach to USD 21.91 billion by 2030. The market is projected to witness a CAGR of 3.7% for the forecast period between 2023 and 2030. Rising demand for health promoting products, widespread consumer interest in routine skincare treatments, social media influence coupled with increasing adoption of personalized beauty products are the major factors propelling the market growth of skin care products in United States.
Consumer preferences in the skincare market have been shifting in recent years. There is a growing demand for natural and organic products, cruelty-free and vegan formulations, clean beauty options, and sustainability. Consumers are also increasingly interested in personalized skincare solutions, seeking products that are tailored to their specific skin concerns, skin types, and demographics. Skincare products formulated with natural ingredients are gaining traction and encouraging the manufacturers to introduce new products in lined with the ongoing trend.
Rising Popularity of Niacinamide and Rice Creams
Consumers are increasingly looking for ingredients in beauty products rather than brands. Customers are using this new information and directly looking for ingredients, as DIY skincare solutions and skincare information, in general, have become very common. Many brands have discovered that by focusing on ingredients, they can appeal to both, the novices looking for straightforward solutions, and the beauty enthusiasts focusing on single-ingredient products. Brands have been embracing these societal shifts. Niacinamide, a skincare ingredient that improves complexion, is one of many that are increasingly being bought, discussed online, and searched for. Similarly, another ingredient recent gaining popularity in the States is rice. Rice is the single largest source of calories on earth and is a staple in both wealthy and impoverished nations. It is also a component of the increasingly well-liked rice-based facial creams.
Government Regulations
Other than colour additives, the law does not mandate that cosmetic products and ingredients receive FDA approval prior to being put on the market, but there are laws and regulations that apply to cosmetics sold in interstate commerce. The Federal Food, Drug, and Cosmetic Act (FD&C Act) and the Fair Packaging and Labelling Act (FPLA) are the two most significant laws governing cosmetics sold in the US. These laws give the FDA the power to regulate cosmetics. The regulations aim to prevent the use of harmful or potentially toxic substances in skincare products. Skincare products are subject to labeling requirements to provide consumers with accurate and relevant information. Government regulations typically specify the mandatory labeling elements, including product name, ingredients list, net quantity, warnings, and directions for use. Labels must comply with specific format and font size requirements to ensure clarity and consumer understanding. Unlawful cosmetics may be subject to seizure .
Rise of K-Beauty and J-Beauty
There is an increased popularity and influence of Korean beauty and Japanese beauty trends and products worldwide, including in the United States. While K-beauty skincare routines often involve multiple steps, including cleansing, toning, moisturizing, and targeted treatments like sheet masks, serums, and essences, Japanese skincare routines emphasize simplicity and efficacy, often consisting of fewer steps. Social media platforms, particularly Instagram and YouTube, have played a significant role in popularizing K-beauty and J-beauty trends. Beauty influencers, skincare enthusiasts, and online communities share their experiences, reviews, and recommendations, generating interest and curiosity about these beauty cultures. K-beauty and J-beauty promote skincare as a self-care ritual. The step-by-step routines and emphasis on taking time for skincare contribute to a sense of indulgence and relaxation among the Americans. Popular J-beauty brands include Shiseido, SK-II, Hada Labo, and Muji. Some popular K-beauty brands include Laneige, COSRX, Innisfree, and Etude House.
Clean Beauty Emergence
Clean beauty focuses on avoiding potentially harmful or toxic substances commonly found in conventional beauty products. Consumers are becoming more aware of the potential health risks associated with certain ingredients commonly found in skincare and cosmetic products. They are actively seeking alternatives that are free from potentially harmful substances such as parabens, sulfates, phthalates, formaldehyde, and synthetic fragrances. Clean beauty places a strong emphasis on transparency and ingredient disclosure, with clear and easily understandable ingredient lists, allowing consumers to make informed choices about the products they use on their skin.
Clean beauty also aligns with consumers' growing environmental consciousness, as there is a desire for products that are sustainably sourced, cruelty-free, and packaged using eco-friendly materials. However, it's important to note that the term "clean beauty" can be subjective and lacks standardized definitions or regulations. Consumers are encouraged to research and educate themselves about the brands and products they choose to ensure that they align with their personal values and preferences. Considering this emerging concept, a clean beauty brand, Justhuman, launched simultaneously in India and Unites States in the year 2023, with a vision to create neurocosmetics.
Impact of COVID-19
The COVID-19 pandemic has improved the skin care regimen of people. More people are washing or moisturising, and one-third have increased the number of products they use in their routine. With COVID-19's side effects, such as spending more time at home, self-care has received a lot of attention, and skin care has benefited. Due to lockdown and the ensuing restrictions, consumer spending has changed significantly. The most notable increase was in the use of common items like cleansers and moisturisers as well as treatments like exfoliators, scrubs, and masks.
The industry faced challenges too, with disrupted supply chains, delays in production, and transportation restrictions. This resulted in shortages of certain products and ingredients, as well as delays in new product launches. Amid the pandemic itself, Kendo Holdings, Inc. owned Fenty Beauty, launched its range of skin care products officially, Fenty Skin on July31, 2020 and received a great response from the public .
Key Players Landscape and Outlook
The skincare industry comprises various key players that drive innovation, set trends, and compete for market share. Some prominent key players in the skincare industry in United States are L'Oreal USA, Inc., The Procter & Gamble Company, The Estee Lauder Companies and Beiersdorf, Inc. The skincare industry landscape is highly competitive, with established players facing competition from emerging and indie brands. Consumer preferences, such as clean beauty, sustainability, and personalized skincare, have influenced the industry, driving companies to adapt their strategies and product offerings. For example, Proven Skincare, a US based brand creates a custom kit for morning and night routine after conducting a three-minute PROVEN Skin Genome Quiz. The custom kit offered by the company may last for 6-8 weeks.
E-commerce and digital platforms have become vital channels for reaching consumers and building brand presence. The landscape of the skincare industry is dynamic and subject to change. The success and outlook of key players can vary based on market trends, consumer preferences, and external factors. Staying agile, innovative, and responsive to evolving consumer needs are crucial for maintaining a strong position in the skincare market.

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