AMERICA’S FUNCTIONAL COSMETICS AND SKIN CARE INGREDIENTS MARKET ANALYSIS

Market Challenges And Opportunities

Market Restraints:

Lack of proper regulation is leading to misleading claims. This is expected to hinder the market growth. For instance, Food and Drug Administration (FDA), the agency that administrates the requirements of Food, Drug, and Cosmetics Act, does not regulate the cosmeceuticals market. Although, few countries recognize cosmeceuticals as separate entities, there is a lack of unified regulation across the region. This is particularly evident in the case of developing countries, like Brazil, Argentina, Mexico etc., where there are multiple bodies, which have their own legislations for cosmetic products.

Presence of counterfeit products is also expected to restrict the market growth. The entry of counterfeit goods has become a significant threat to the market the counterfeit products that are available at very low prices than actual organized market player offerings, and are adversely affecting the sales and pricing strategy across the world, as this affects their profit margin.

Market Opportunities:

Integration of probiotics in facial care segment is expected to bring bright market opportunities for the key players. For instance, in August 2021, TULA Skincare, the clean clinical skincare brand powered by probiotic extracts and superfoods, announced that it is expanding its North American footprint and launching into Sephora Canada. TULA will be available for purchase in the retailer’s full network of over 80 stores, including locations in Toronto, Vancouver and Montreal, and will offer an extended assortment available on Sephora.ca and on the Sephora app.

Changing lifestyle and growing purchasing power of consumers are other major factors expected to offer lucrative growth opportunities over the forecast period. Growing demand for high quality cosmetic products especially in North America is further projected to foster market growth.