TAGS: Skin Care
According to Grand View Research, the global DNA-based skin care products market size is to be valued at USD 9.87 billion by 2028 and is expected to grow at a compound annual growth rate (CAGR) of 6.6% during the forecast period.
The beauty and personal care industry has witnessed steady growth with rising consumer spending. This trend is particularly true for the millennial population segment, which is fueled by the desire to slow down signs of aging.
Aggressive advertising and promotional campaigns by niche and large players have also played a significant role in influencing consumer behavior. With the increasing inclination and ability to spend on beauty and cosmetic solutions, the market will continue to grow. Everyone's skin is different, so instead of a generic approach from over-the-counter items, they need a regimen that is tailored to their own needs. Consumers are now being targeted more directly by skincare specialists, who are prescribing a customized range of products.
Market Trends
The Skin 360 Face Scanner app from Neutrogena identifies over two thousand face features in order to recommend goods to users. Quizzes are used by brands like Vitruvi and The Buff to analyze a customer's present conditions and skincare goals based on a guided self-assessment. To determine a client's need for their products, Atolla performs a pH skin test to analyze moisture levels, oil percentages, UV exposure, and humidity levels. Skintelli's tailored skincare technique includes an epigenetic test that examines the DNA methylation gene.
E-commerce retail channels play a crucial role in the distribution of DNA-based skincare products as they produce a significant portion of market revenue. Consumers may browse millions of products in one location without having to physically visit retail stores thanks to online sales platforms. Because of the increased popularity of social media sites, there has been an increase in skincare advertising on these platforms, which are visually appealing. Influencer marketing has experienced significant growth in recent years, and the skincare industry is particularly well-positioned to benefit from this trend.
Constant advances in genomics, as well as infrastructure development and higher awareness of these products, are some of the primary drivers of market growth. Furthermore, individuals are spending more money on wellness goods, and their natural desire to look youthful is projected to drive the market growth and demand for DNA-based skincare products. People's lifestyles have changed significantly in comparison to their counterparts in the past.
Many market firms are releasing customized items that respond to the demands of various skin types. Furthermore, these replacements are frequently less expensive than DNA-based skincare products, providing a significant obstacle to the growth and demand for such goods. Companies that provide replacements have a presence both offline and online making it easier for consumers to acquire these items.
People's purchasing power has increased significantly, particularly in the metropolitan areas in developed and developing countries. Extreme climate conditions in the Middle East and Africa, are some of the key causes influencing the usage of cosmetic items in the population. Concerns for attractiveness and appearance among the working population have increased the popularity of DNA-based beauty products. Customers are concerned about the overuse of parabens and prefer paraben-free components in their skincare products. All of this creates an opportunity for companies to develop DNA-based skincare products.
Product Insights
In terms of value, creams dominated the market with a share of over 50.0% in 2020. As the formulation comprises high-tech pharmaceutical active components, DNA-based skincare creams are touted as more than just aesthetic or cosmetic goods. They claim to preserve and even improve the skin's function.
As indicated by a slew of recent brand launches, new packaging and ingredient advances have trickled down into the market. For example, EpigenCare Inc., a consumer epigenetics biotechnology firm, has developed a new Standard tier of its Skintelli tailored skincare test. The product, which is a direct-to-consumer DNA test, examines an individual's current skin quality using epigenetic mechanisms like DNA methylation.
Consumers may now participate in the development of their own perfect products due to breakthrough data capabilities and technology, making the purchasing decision much easier. Consumers value the luxury of being able to select things that they believe will best help them reach their aesthetic goals, and product customization options and personalized services make their lives easier by reducing difficulties during the purchasing process.
Distribution Channel Insights
The offline distribution channel led the market and held a revenue share of over 65.0% in 2020. The growth in offline sales is fueled by a high preference among consumers for testing their genes at health and wellness clinics rather than doing the same using at-home kits. Consumers believe that tests done through professionals are more accurate and therefore, the products they recommend provide more beneficial results. Quality DNA-based skincare products are now available in specialty stores, clinics, convenience stores, and medical stores and this has significantly contributed to offline sales. Moreover, minimum waiting time for orders and services has worked in favor of the offline segment.
In DNA-based skin care products, the internet category is the fastest expanding. The pandemic has accelerated the shift in consumer behavior, with the increased adoption of do-it-yourself (DIY) content and an increase in online sales of beauty items. The trend is being driven by the younger workforce, internet penetration, and greater per capita consumption.
The rise of the online category can be ascribed to technical improvements and the increasing importance given to online platforms for purchasing skincare products, particularly by consumers looking for bargains. The main target demographic for online platforms is customers who are comfortable purchasing things without physically inspecting them. To boost product sales and profit margins, most manufacturers have turned to the direct sales approach.
Regional Insights
In 2020, North America held the largest share more than 35.0%. Consumer-driven, sustainable, and clean ingredient compositions are becoming increasingly popular in the cosmetics sector. With so many variables at play and so many established brands, the market for skincare products appears to be crowded. The U.S. economy is well-developed, with the world's second-highest purchasing power parity. These characteristics are critical to the country's progress in the market for DNA-based skincare products. The high willingness of consumers to pay for personalized skincare has a positive impact on market growth.
As emerging markets gain purchasing power and become more globalized, multinational corporations may see opportunities to enter provided they bring higher-quality items than those offered domestically. In 2020, Asia Pacific and North America collectively accounted for more than half of the revenue share in the market. Moreover, consumers in the U.S. and Canada prefer prominent e-commerce companies like Amazon and Sephora to buy skincare products as these platforms offer the convenience of free home delivery and an easy return policy.
Source: Grand View Research
