A Global Look: How the US anti-aging supplement market fares

The top spot is taken by Japan, where the latest Euromonitor International data estimates the retail value of vitamins and dietary supplements marketed for beauty was US$1.16 billion in 2015. Keeping it company in the top three are two other Asian markets, China and Hong Kong.

Globally, the value of the beauty supplements market is estimated at $2.9 billion in 2015, which means Japan makes up about 40% of the global market. In contrast, the US, at seventh place, had a beauty supplements market value of $76 million in 2015.

“One of the reasons for this is the big collagen market in Japan,”​ lead analyst at Euromonitor International Mariko Takemura told NutraIngredients-USA. “Collagen is widely known among consumers to improve elastic skin and available not only in tablet format but also in tonics format as well as powder format.”​

Beauty from within in oatmeal, yogurts, and café lattes​

The notion that smooth skin’s secret comes from within the body is more prevalent in Japan, seen from the prevalence of collagen in an array of products. "Applications in Japan for ingestible collagen span from beverages, to foods, as well as to powders and supplements as well,"​ Naoki Inoue, a scientist at Nitta Gelatin, told NutraInrgedients-USA. "The U.S. is taking notice of this ingredient and recognizing the associated benefits of using a beauty from within product containing collagen peptides to enhance beauty and wellness from the inside and out. "​

In a previous interview with NutraIngredients-USA​, Lauren Clardy, CEO of Nutrimarketing, who works with Nippi Collagen, said that the ingredient can be found on grocery store shelves in products ranging from oatmeal to yogurts to marshmallows to café lattes.

"There, demand is increasing at a rate close to 40% per year. The effective cosmetic uses of collagen as employed in Asia are now well documented by many clinical studies,"​ she said.

According to Takemura, studies are the most effective way to educate consumers on the benefits of collagen. “With regard to regulation, it is not allowed for manufacturers to appeal the direct benefits of supplements due to the strict pharmaceutical law in Japan,”​ she said. “Therefore, scientific studies on benefits of collagen are often referred to, in order to improve consumer understanding.”​

Inoue added that there are takeaways for the US collagen market: "Collagen and its relationship to joint health in the U.S. and Europe has been more of an established market for ingestible collagen than skin health until relatively recently. But as a society where we’re working on staying as youthful and healthy as possible on the inside and out, collagen peptides are now gaining a reputation in a big way to promote healthy skin."​

Beauty in Brazil: a potential opportunity

Last year, Brazil was seen as a top contender for a burgeoning beauty supplement market. Lara Niemann, marketing director for Gelita USA, picked it out as one of the markets with a nutricosmetic scene to watch, and data from Euromonitor International supported this with its estimated CAGR of 30+% in the past five to six years ending in March 2015.

But in a recent interview with Guilherme Machado, research associate at Euromonitor International, said it seems like, as of 2016, Brazil is still an untapped market. The Portuguese-speaking Latin American behemoth places number 16 for its beauty dietary supplements market.

“In absolute numbers, the US corresponds to approximately 300% of Brazilian revenues with only about 55% more population [than Brazil],” ​Machado said.

There is a booming market for other means of beautification—Euromonitor data ranks Brazil number two in nail products and third in hair care in 2015—even with the strong currency devaluation in the period. “Therefore, Brazil represents good potential for beauty supplements, especially for those targeting hair and nail appearance.”​

Collagen, lycopene, biotin in Brazil​

Machado added that it is a tough process to market the beauty benefits from the use of vitamins and dietary supplements there “due to the restriction to claims imposed by ANVISA—[it] makes it difficult or very expensive for manufacturers to accomplish.”​

According to Euromonitor International’s data, the most common types of beauty supplement in Brazil are multivitamins with collagen, lycopene, biotin or pantothenic acid.

“They are mainly targeted to women and the photos of young women modelling in manufacturer’s communications indirectly suggest hair strengthening and skin firmness as benefits, but objectively few words officially communicate these benefits (due to regulatory restrictions for claims),”​ Machado added.

However, there is still growth. Despite Brazil’s headline-making issues and economic hardship at the moment (think Zika, President Rouseff’s ousting, declining oil prices, and a bumpy start to the Rio Olympics), Brazil still presents value growth of approximately 10% in local currency for beauty dietary supplements in 2015, Machado said.

“Since these products are positioned in a higher price point, targeting a group of consumers with higher income levels and consequently more resilient to periods of crisis like what is happening currently,”​ he added.

“A regular package of with 30 units of a Beauty Dietary Supplement costs approximately 45-50% more than the 30 units of massively advertised multivitamins and in general are not perceived as a priority for consumers from lower socioeconomic levels.”​

Anti-Aging​

Experts from Nutrilite/Amway, Atrium Innovations, Unistraw and CosmeticsDesign-USA will discuss the science, market, and consumer expectations at the upcoming NutraIngredients-USA Anti-Aging Forum on July 28. For more information and to register for free, please click HERE​​.