Skincare is the fastest growing category in the Irish Health & Beauty market with the category seeing 9% growth this year in pharmacies. This growth is driven by increased consumer awareness about skincare, a rising focus on personal health and wellness and the influence of social media and celebrity endorsements.
There was significant growth in the skincare category during the Covid-19 lockdowns in 2020 and the growth has continued. Consumers became more focused on self-care and wellness during this period and skincare became a priority for many consumers. Many consumers were opting for make-up free skin and focused on the importance of a good skincare regime.
Derma skincare has continuously seen the most engaged shoppers in the skincare category in pharmacies with consumers looking at clinical studies and key ingredients. La RochePosay and CeraVe are the market leaders in this category in pharmacies and continue to go from strength to strength. Constant innovation, along with Dermatologist endorsements and recommendations are key to the success of these brands. La Roche-Posay continues to offer fantastic solutions to many common skin concerns and consumers remain loyal to brands when they see results.
The body suncare category has been struggling due to poor weather in June and July this year but the face suncare category is continuing to grow all year round as consumers are more aware of the need to wear sun protection 365 days a year. Within skincare, the highest predicted rate of revenue growth is within the ‘sun protection’ category, estimated to grow by 7.5% in 2024 and 1.8% in 2025.
Females represent over 80% of skincare sales on the Irish market currently but there is a notable rise in demand for gender-neutral skincare, as well as increasing popularity of skincare routines among men. Many brands are developing gender-neutral products to appeal to a broader audience. There is a growing trend of men investing in skincare which is driven by the normalisation of male grooming.
While the skincare e-commerce is growing, many consumers still value the in-store experience. A hybrid shopping model, where consumers research products online but purchase in-store, is very common and is a trend that is set to continue. This trend highlights the importance of an omnichannel approach, where pharmacies integrate their online and offline channels to provide the best possible shopping experience for the consumer.
Online Sales
Online sales are forecasted to account for 27% of all retail skincare sales in Ireland in 2024. That is up from 10% in 2018 and it is forecasted to reach 37% by 2027. Over half of those online sales now take place on mobile devices.
Overall, online search for ‘skincare’ is +83% YoY in 2024. Growth was consistant from 2020, through to 2023, but growth exploded in July 2023, seeing much higher volumes of search YoY up to June 2024.
Consumer behaviour and buying habits
Personalisation is emerging as a theme in customer habits & expectations in 2024, with consumers exhibiting higher levels of brand loyalty when a brand or retailer is able to offer them a personalised experience. Skincare bundles are becoming increasingly popular where consumers want to buy a skincare routine for their skin type such as cleanser, serum, moisturiser and SPF.
Different age groups have varying skincare needs and preferences. Younger consumers, particularly millennials and Gen Z, are more inclined to look for preventative skincare and focus on products such as sunscreens and antipollution creams. Older consumers, on the other hand, prioritise antiaging products, such as serums and creams designed to reduce wrinkles and improve skin elasticity. We have also seen increased demand for additional skincare products such as neck creams. The trend towards a holistic approach to health has led consumers to view skincare as part of their overall wellness routine. This has increased the demand for products which promote skin health from the inside out. We have seen significant growth in the skin supplements category with collagen, omegas, vitamin c and probiotics now regularly purchased along with topical skincare products.
Consumers are moving away from being loyal to brands and are more inclined to shop by ingredients. Hyaluronic acid, vitamin c, retinol and ceramides are all now wellknown ingredients that customers regularly ask for in pharmacies.
Innovations in the Category
Innovation is key to driving the skincare category and continuous improvements and product extensions are shaping the market. The introduction of ingredients such as probiotics, peptides and plant stem cells are transforming skincare formulations. These ingredients offer targeted benefits to the consumer including improving skin barrier function and promoting collagen production. Brands are expanding their product lines to cater to specific skin concerns and demographic groups. There is a growing range of products targeting sensitive skin, acne-prone skin and mature skin.
Innovations in sustainability are becoming more important in the skincare market. Brands are focusing on eco-friendly packaging, sustainable sourcing of ingredients and reducing their carbon footprint. Some brands are using biodegradable or recyclable packaging materials and implementing waterless formulations to reduce environmental impact.
The integration of technology into skincare products is an emerging trend in the skincare market. Beauty tech is an emerging category where smart skincare devices analyse skin conditions and deliver customised treatments. These devices often use technologies like LED light therapy, microcurrents, and ultrasonic waves to enhance skincare routines. German beauty tech brand Geske has created a buzz in the market and we expect this category to further expand in the next few years.
Despite its growth, the skincare category within Irish pharmacies faces several challenges and risks. The skincare market is highly competitive, with numerous brands competing for consumer attention. This can make it difficult for new entrants to successfully launch in Ireland.
We have seen some incredible Irish brands successfully launch and achieve continuous growth, some great examples of Irish innovative brands are Skingredients, Ella & Jo and Pestle & Mortar. Each of these female founded brands continue to innovate and compete with well known international brands.
Opportunities for the future
We expect to see an increased demand for high quality, active, problem-solving body products this year. The demand for the Inky List Glycolic Body Stick was an unprecedented sell out in Ireland and globally.
Tik-tok trending products and brands will continue to grow.
Caudalie is having a resurgence in Irish pharmacies due to viral tik-tok reviews leading to a huge demand for the brand from all age groups.
Beauty tech is becoming much more affordable and accessible to skincare customers and the continued innovation by Geske will result in the integration of personalised beauty into skincare routines as standard.
With Dermatologist’s waiting lists getting longer and longer, customers are turning to their pharmacy for advice on treating skin conditions. Continued training and education for front of counter staff is key to offering customers effective skincare solutions to treat common skin conditions such as eczema, atopic dermatitis, psoriasis etc.
Scalp care is an emerging category with many consumers now aware that the skin on their scalp needs to be cared for as much as the skin on their face. There is plenty of opportunity for new brands to enter the market in this space as consumers are looking for advice from pharmacies.
Merchandising is becoming increasingly challenging in pharmacies where many brands and products benefit from dual citing within numerous categories.
Adding more skincare products to the men’s section creates opportunity to grow skincare sales as research shows men shop differently to women and prefer to have relevant products in one section rather than shopping skincare by brand.
Overall, skincare is a buoyant category in Irish pharmacies with lots of exciting innovation and notable growth. Many pharmacies have chosen to move away from supermarket skincare brands and focus on problem solving, effective solutions for customers which is key to continued growth in the category.
Written by Oonagh O’Hagan, Managing Director & Pharmacist, Meaghers Pharmacy Group
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