Men’s Skin Care Fueled By Launches, Wider Distribution, With Room To Grow

Sales of men's prestige skincare products grew to $32 mil. in the first half of 2006, up 3% over the prior-year period, while sales for women's prestige skin care were flat, according to research from the NPD Group.

The men's prestige skincare category is a $70 mil. industry, which means that there is considerable growth to be realized as new lines are introduced and more men are drawn to purchase the products.

"In the men's arena you have newer brands like Anthony , Logistics , and Jack Black and so on that are still experiencing very strong growth and expanding in their lines and in their distribution," Senior Beauty Analyst for the NPD Group Karen Grant said in a Nov. 27 interview.

In contrast, women's skin care reaches $2 bil. in sales annually, and represents 97% of the prestige skincare market, according to NPD.

The women's skincare market encompasses brands that have already staked out market share, which slows growth. "With the more established brands you are going to have much smaller growth over a longer period of time," Grant said.

Considering the opportunity to be seized, it comes as some surprise that growth in skin care for men in the first half of 2006 actually represents a slowdown from the previous two years: 2004 sales and 2005 sales advanced 18% and 15%, respectively.

The slowdown is due in part to retail consolidation and store closings, which is causing disruption in the entire prestige skincare category, Grant maintained.

Some men's skincare products showed double-digit growth during the first half of 2006. Sales of facial moisturizers for men grew 12% to $8.6 mil., while facial cleansers brought in $3.4 mil., a 14% increase over the prior-year period, according to NPD. Market research firm Mintel says 109 new products were launched in men's facial care in 2006, up from 76 in 2005 and 96 in 2004.

Shave treatments and facial exfoliators did not fare as well in the first half of 2006. Shave treatment sales declined 1% to $7.7 mil., and exfoliator sales were down 7% to $3.7 mil, according to NPD. The slowing of sales in the shave treatments segment was also observed at the mass level, Grant said.

"When shave treatments, which is such a primary category in men's, begins to slow down, the question is: Are more men coming into the category and switching over to prestige, or is there more work that needs to be done on that side to really get more men into using more prestige products overall?" Grant said.

There may also be some cannibalization as new products enter the market and compel consumers to switch, she noted. This results in fewer total unit sales. The trend of new products outperforming existing ones is also consistent across women's skin care.

Average prices for men's skin care continue to be about $14 lower than women's products, NPD says. The average price for men's products during the first half of 2006 was $18.56, while women spent $34.53.

There are very few players at the highest end of men's skin care, Grant said. However, she noted that ultra-high-end women's skin care continues to perform very well. Considering that women often make skincare purchases for men, there could be opportunities for a higher price point if the products are being positioned as high quality.

Products in the men's skincare segment have also become more sophisticated, Grant observed. The products may incorporate natural ingredients or more complicated technology in their formulations, and have more sophisticated packaging.

The most successful products are also multipurpose, providing various benefits such as moisturizing, toning and firming in one bottle. "There are all these things going into the product so it's a much more robust product than it used to be," Grant said.

Skincare marketers can take a page out of the fragrance playbook to sell their products for men, Grant added. The market for men's fragrance, at about $1 bil., currently dwarfs men's skin care.

In the fragrance arena, conveying the benefits of the product is less important than appealing to the influence of a man's partner, Grant said.

"For every age, from 13 on up to 64, men tell us that the number-one reason they choose a fragrance is because it's liked by women," Grant said. This method is "most successful on the fragrance end and you would only anticipate that you're still speaking to the same man" for skin care.

- Molly Laas