Moisturizing Cream Market Analysis

Moisturizing Cream Market (Global, 2024)

Introduction

A moisturising cream market has come to the fore, in the wake of the growing interest in the care of the skin and the importance of hydration. The demand for high-quality moisturising creams is growing, as people seek not only cosmetics which improve their appearance, but also products which nourish and protect the skin against the harmful effects of the environment. This market is characterised by a wide variety of products, from luxurious creams enriched with natural ingredients, to products designed for the needs of particular skin types and skin problems. The rise of e-commerce and social media has also transformed the landscape, enabling brands to reach a wider audience and to engage with consumers through targeted marketing. Moreover, the growing trend towards clean cosmetics and sustainable practices is influencing product development, as manufacturers seek to ensure that their products are derived from sustainable sources and that the origins of the ingredients are transparent. Hence, as the market continues to evolve, a thorough understanding of consumers’ preferences and the latest trends will be essential for all those wishing to benefit from the opportunities presented by this vibrant sector.

PESTLE Analysis

Political

In 2024, the moisturising cream market is expected to be influenced by various political factors, including the government's regulations on cosmetic products. The European Union has imposed a regulation on moisturising creams and other cosmetics that they must be proven safe before they are sold. This regulation affects the approximately 1,200 cosmetic companies operating in the EU and ensures that they meet strict safety and labeling requirements to protect the health of consumers.

Economic

The market for moisturizing creams in 2024 is characterized by the spending patterns of consumers. In the United States, the sale of personal care products, including moisturizing creams, amounted to about $93 billion in 2024, indicating a steady demand for cosmetics. The average household income in the United States is expected to be about $54,000 in 2024, which will affect the willingness of consumers to buy high-quality care products and thus affect market dynamics.

Social

In 2024 the social trends show an increasing tendency towards the use of natural and organic ingredients in emollients. In 2024, a survey conducted in early 2024, revealed that 68% of consumers give priority to products containing natural ingredients. The demand for brands that are sustainable and eco-friendly is growing. In addition, the rise of social media influencers has had a significant impact on the purchase of emollients. Thus, 45% of consumers are influenced by the choice of emollients by beauty influencers.

Technological

The moisturizing cream market is expected to be influenced by the technological development in 2024. Artificial intelligence is widely used in product development and customer personalization. Up to now, more than 30% of the major brands have used artificial intelligence to analyze customer needs and develop customer-oriented products. Besides, the packaging of airless pumps has also made great progress, and the quality of moisturizing creams has been greatly improved, which has led to an increase in demand for high-end moisturizing creams.

Legal

In 2024 the legal conditions affecting the moisturizing cream market include the following: compliance with the regulations of international trade and labeling. The Food and Drug Administration requires that all cosmetic products, including moisturizing creams, be labeled according to certain guidelines, which include the declaration of ingredients and warnings about possible allergens. The penalties for noncompliance can reach up to $ 10,000 per violation, which underlines the importance of legal compliance for manufacturers in the market.

Environmental

The moisturizing cream market in 2024 is increasingly influenced by considerations of the environment, with an emphasis on sustainable sourcing and packaging. Some 50% of consumers are willing to pay more for eco-friendly products, so many companies are introducing sustainable practices. The growing crisis over plastic waste has prompted a push to reduce the use of plastic containers, and by 2025, one-quarter of companies in the cosmetics industry are expected to use only recyclable materials.

Porter's Five Forces

Threat of New Entrants

The barrier to entry in the moisturizing cream market is moderate, because it requires a large investment in product development and marketing. In addition, established brands have strong brand loyalty and brand awareness, which may hinder new entrants. The growing demand for natural and organic products opens up the opportunity for niche players to enter the market.

Bargaining Power of Suppliers

Suppliers’ power in the moisturizing cream market is relatively low because of the availability of many raw materials and ingredients. There are many suppliers of common ingredients, enabling manufacturers to easily change suppliers. This limits the ability of any one supplier to influence the price and availability of a particular ingredient.

Bargaining Power of Buyers

High – The buyers in the moisturising cream market have a high bargaining power, as there are many different products to choose from. The consumers are easily able to change to a product with a better quality or a lower price. This gives the manufacturers a great deal of competition. In addition, the emergence of e-commerce has given consumers a better opportunity to compare prices and products.

Threat of Substitutes

The threat of substitutes in the moisturising cream market is moderate. There are other skin care products, such as lotions, oils and natural remedies, but moisturising creams have a specific role in the market and thus remain in demand. However, as consumers become more health-conscious, they may opt for substitutes that are perceived as more natural or effective.

Competitive Rivalry

Competition is fierce in the market for moisturizing creams. Both well-established brands and new entrants are competing for market share. Brands are spending heavily on marketing and innovation to differentiate their products. Brands are aiming to capture all consumer segments.

SWOT Analysis

Strengths

• High consumer demand for skincare products, particularly moisturizing creams.
• Diverse product offerings catering to various skin types and concerns.
• Strong brand loyalty among established players in the market.

Weaknesses

• High competition leading to price wars and reduced profit margins.
• Potential for negative consumer perception due to harmful ingredients in some products.
• Dependence on seasonal trends affecting sales fluctuations.

Opportunities

• Growing awareness of skincare routines among younger demographics.
• Expansion into emerging markets with increasing disposable income.
• Innovation in product formulations, such as organic and natural ingredients.

Threats

• Intense competition from both established brands and new entrants.
• Regulatory challenges regarding ingredient safety and labeling.
• Economic downturns affecting consumer spending on non-essential products.

Summary

The moisturizing cream market in 2024 is characterized by strong demand and brand loyalty, but is also challenged by strong competition and a negative image of product safety. The growth opportunities lie in the development of new markets and in the innovation of natural substances. But the companies must also overcome the regulatory hurdles and the economic fluctuations that can affect consumers' spending power.