Today`s market needs :

ACTIVE COSMETIC
INGREDIENT TRENDS

Yogyakarta, September 2016

Jeder, der sich die
Fähigkeit erhält,
Schönes zu erkennen,
wird nie alt werden.
Franz Kafka

Date Title of presentation Page 2

Market Insights
Consumer Insights
Beauty and Personal Care Trends
Get ready for tomorrow with Evonik
Summary

Nutrition & Care Page 3

Market Insights
Consumer Insights
Beauty and Personal Care Trends
Get ready for tomorrow with Evonik
Summary

Nutrition & Care Page 4

Market Insights
Skin care, the king of beauty

Skin care market reached already in 2012

US 100 Billion

Anti-agers drive growth

• The anti-aging segment is one of the fastest
growing within the skin care category
• Global sales of anti-aging products are
expected to grow 26% from 2011- 2016
to reach US 28 Billion.
• Anti-ageing claims will permeate more
categories in the future.

Demand for anti-aging products is still growing on a global level.

Nutrition & Care Source: Euromonitor skin care ingredients; Beauty from the inside & out; Happi Page 5
 Market insights
Challenges and opportunities

• EU`s legislation
• REACH

• FDA rules
• Majority of
ethnic health • Chinese registration
and beauty • Quasi drug
products • Diverse market

• Widespread use
of aesthetic
treatments • Attractive market
• Political instability
• Demand for Halal cosmetics

Nutrition & Care Source: Happi May; Happi; SPC; SPC Asia; Euro Cosmetics Page 6
Market Insights
Consumer Insights
Beauty and Personal Care Trends
Get ready for tomorrow with Evonik
Summary

Nutrition & Care Page 7

Consumer Insights
Statements

72% 42%
of UK women are unhappy
seek products with
with the product claims and
multiple benefits.
promises
63%
under the age of 40 are willing to
pay more for socially responsible
products and services

31%
spent more time and money in
beauty products than in the past.

Nutrition & Care Source: Forsa-Umfrage im Auftrag der Gala; Beauty from the inside & out ; Happi ; SPC Page 8
Consumer Insights
Opportunities for actives

Cosmetic actives provide opportunities to gain

market share by…

…exciting …claims that …to explain

marketing help a product to a product
concepts stand out from through it`s
the crowd ingredients

Efficacy testing and claims substantiation are crucial

To be successful the consumer has to understand the

ingredients.
Keep the message transparent and simple!

Nutrition & Care Source: SPC Page 9

Consumer Insights
Connectivity

Facebook dominates social media for Avon leads with its widest usage
beauty and personal care brands. of Facebook
Social media is becoming more Clinique has the highest facebook
important to interact with consumers interaction rate.

Social media is a good tool to built transparent image trust and to collect
feedback.
Nutrition & Care Source: Euromonitor, Cosmopolitan Page 10
Market Insights
Consumer Insights
Beauty and Personal Care Trends
Get ready for tomorrow with Evonik
Summary

Nutrition & Care Page 11

Beauty and Personal Trends

Nu Naturals Man in the mirror Mood to order

Balance in selling safety Cosmetic procedures for Consumers are turning to

and efficacy. men may become more ingredients that provide
commonplace and emotional, not just
accepted. physical, benefits.

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Source: Mintel
Beauty and Personal Care Trends
Nu Naturals

• Focus on more sustainable products, production processes and

ingredients
• In prestige beauty “Nu Natural” harmoniously merges free from
positioning and sustainability claims with synthetic actives (peptides,
hyaluronic acid, ceramides, collagen, etc).

…harvested in a controlled
environment that does not
threaten the natural
resources and and contributes
to the construction of new
Products are manufactured using a combination of schools
renewable sources, such as wind energy and
earth-friendly practices

New dimension of natural, with less focused on certification and more on

results, efficacy, safety and sustainability
Nutrition & Care Source: Mintel, Evonik Page 13
Beauty and Personal Care Trends
Men in the mirror

• The demand of men`s beauty products is increasing globally

(2012 retail value 34.5 bn for grooming)

• A broad spectrum of tailor made products are already available.

Men`s grooming market will be more established.

Line extension is neccessary to compite within the market place.
Nutrition & Care Source: Mintel, Evonik´s consumer insights Page 14
Beauty and Personal Care Trends
Mood to order

• Consumers are turning to ingredients that provide emotional, not just

physical, benefits.
• Explore the effects newer plant extracts have on our neurotransmitters
and hormons.

…bergamot and peppermint which are said to help

…get in the mood for whatever the day might hold…
elevate mood and create sensations of well-
being…

Stress has a big impact on the appearance of the skin, therefore it is important
to take care of biological processes which have an influence on the mood
Nutrition & Care Source: Mintel Page 15
Beauty and Personal Care Trends
Ingredient level

Skin`s own
• Actives which occurs naturally in the skin
like amino acides, ceramides, vitamines etc.

All in one
• Multiple tested activities

Established actives for trendy formulation of

tomorrow
• Re-interpretation of classic components

Overall the search for new ingredients will

continue.

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Beauty and Personal Care Trends
What else?

We age and we are still beauty!

Bringing out your inner beauty. Multifunctional
Entry of BB creams in
other categories like hair
From anti-aging and body care
towards
healthy aging
70 plus
Jewels of lifetime Soothe post-procedure skin

Novel delivery methods

to enhancing the efficacy of
Teens and Tweens an active ingredient.
Preserve your skin
early to stay young Sustainability
and healthy looking. is key

Nutrition & Care Source: SPC; Happi; Cosmetics & Toiletries magazine Page 17
Key findings

• The demand of anti-aging products is still growing.

• There exist different challenges and opportunities in
the regions.
• The skin care consumer is becoming more educated
and ready to learn.
• Social media is becoming more and more important
to be connected with the consumer.
• Nu naturals as new dimension of natural
• Men`s grooming market will be more established.
• Ingredients which influence the mood.
• Next to multifunctional, „Skin´s own“ is seen as one
of the key Trends on an ingredient level.

A selection of the right „tools“ is important to be

ready for the future
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Market Insights
Consumer Insights
Beauty and Personal Care Trends
Get ready for tomorrow with Evonik
Summary

Nutrition & Care Page 19

Evonik supports you to get ready for
tomorrow by…

Taking care of consumer needs

• Easy to understand actives – Animated skin modell
• B to C ready to market concepts

Covering regional needs

• Ingredients which can be used in cosmetic formulations
for China
• FDA confirm documents

Serving current and future trends

• Sustainability tool box
• Men´s care concept
• Well-being over a lifetime
• Skin identical actives like Ceramides
• Skin penetration data
• Multiple tested activities

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Market Insights
Consumer Insights
Beauty and Personal Care Trends
Get ready for tomorrow with Evonik
Summary

Nutrition & Care Page 21

Summary

• The demand of anti-aging products is still growing.

• The skin care consumer is becoming more educated
and ready to learn.
• Social media is becoming more and more important
to be connected with the consumer
• Beauty trends will continue to move back and forth
between the continents.

Evonik delivers a complete package to support

you to get ready for tomorrow

Nutrition & Care Page 22