Market Challenges And Opportunities
Under Eye Serum Market Drivers:
- Increasing prevalence of under eye skin issues: Increasing prevalence of under eye skin concerns like dark circles, fine lines, wrinkles, and puffiness is driving demand for specialized products like under eye serums. Lifestyle factors like lack of sleep, genetics, sun exposure, and skin aging lead to under eye skin damage. The desire to treat these issues is fueling the growth of the under eye serum market. Companies are formulating targeted serums with ingredients like retinol, vitamins, and peptides to address concerns like pigmentation, dryness, and collagen loss around the delicate eye area. For instances, according to the data provided by the U.S. Department of Agriculture Economic Research Service experienced that organic personal care product sales grew by over 14% from 2020 to 2021 with under eye serums being one of the top selling categories. Consumers are increasingly using specialized under eye serums and creams containing ingredients like caffeine, peptides, hyaluronic acid etc to target specific under eye concerns like dark circles, fine lines and puffiness.
- Rising awareness regarding the importance of under eye skincare: There is a growing awareness among consumers regarding the need for specialized under eye skincare, beyond just facial moisturizers and creams. The skin around the eyes is thinner and more fragile. Using regular facial skincare products may not sufficiently address under eye skin problems. Brands and beauty influencers are educating consumers that the eye area needs products specifically formulated for its needs. This is expected to increase the adoption of under eye serums that cater to the specific requirements of the eye contour area. For instances, in 2022, according to a study by the United Nations, the percentage of people aged 15-29 using eye serums on a daily basis has gone up substantially in the past three years across most regions of the world.
- Product innovations and packaging improvements: Under eye serum brands are continuously launching innovations in formulations and packaging to address consumer needs better and differentiate them. The use of cutting-edge ingredients like epidermal growth factors, argireline, matrixyl, and plant stem cells is rising in under eye serums. Packaging in airless pumps, roll-on formats, and cooling applicators is also gaining traction. Moreover, natural, organic, cruelty-free, and clean label claims are also prominent. Such product innovations are fueling the incremental growth of the under eye serum market.
- Influence of social media and beauty blogs: Growing influence of social media platforms and beauty blogs is propelling the demand for under eye serums. Consumers are increasingly exposed to product reviews, before-after images, and education around ingredients and formulations through Youtube videos and Instagram posts. Key opinion leaders and skinfluencers drive awareness and interest in specialized skincare like under eye products. Social commerce is also allowing brands to target and sell to consumers digitally. This social media momentum will continue to boost market growth.
Under Eye Serum Market Opportunities:
- Growing demand from emerging economies: Emerging economies in Asia, Africa, and South America present strong opportunities for under eye serum brands due to the expanding middle class, rising disposable incomes, and increasing adoption of beauty and personal care products. Consumer segments in these regions are becoming more aware of premium skincare technologies. Local players as well as international brands can tap into this demand by offering innovative under eye serums catered to different skin types and concerns. Moreover, digital marketing helps connect with audiences.
- Increasing popularity of organic and natural under eye serums: Rising consumer preference for clean, green, and sustainable beauty products presents an opportunity for natural and organic under eye serums. Botanical, herbal, and plant-based ingredients like aloe vera, chamomile, coffee, green tea, jojoba, rosehip, and turmeric are gaining traction. Consumers concerned about skin sensitivities and harsh chemicals have a strong demand for paraben-free, sulfate-free, non-toxic formulas. Brands can capitalize on this trend with natural under eye serums. For instances, in 2020,according to a report by the United Nations Conference on Trade and Development, global sales of organic food grew to US$97 billion, reflecting increasing preference for natural personal care as well.
- Mens grooming and multi-benefit under eye serums: While the market is dominated by female consumers, the growing focus of men on skincare and anti-aging products presents an untapped opportunity. Brands can offer under eye serums tailored for men's needs while keeping formulations non-greasy and fast-absorbing. Combination products that address dark circles, puffiness, wrinkles, and eye bags can appeal to male consumers. Marketers need to break stereotypes and effectively target the male demographic through gender-neutral branding. For instances, in 2021, according to study by the United Nations International Childrens Emergency Fund (UNICEF), 56% of men surveyed globally paid more attention to their overall appearance as compared to pre-pandemic. With the stigma around male skincare fading, companies can capitalize on this shift by launching affordable yet effective eye serums specially formulated for men's skin.
- Omnichannel distribution expansion: To expand their consumer reach, eye serum brands have the opportunity to penetrate new retail channels and markets by adopting an omnichannel distribution strategy. Collaborations with e-commerce platforms, niche beauty retailers, salons & spas, pharmacies, and department stores can help gain access to different consumer segments. The right channel mix balancing physical retail and online presence can enable brands to grow sales. Investing in brand building across channels is crucial.
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