The skincare market is expected to reach unprecedented sales in the coming years. Skincare is the dominant segment of the beauty industry, with 42% of the market share. The global market value of the skincare sector is expected to reach sales of over $207 billion by 2028, showing consumer interest and, ultimately, saturation. With endless opportunities and mounting competition, brands and retailers must double down on bright spots and provide actual value to the consumer through proof.
In 2023, clinical is expected to grow over clean. This is due to the rising popularity of green claims and the increased consumer demand for transparency and efficacy. Similarly, OTC products are growing in popularity as consumers become more conscious of rising costs in the skincare industry. On the other hand, luxury skincare products are expected to experience a decline in the coming years. This is due to the increasing availability of effective products at accessible price points. Furthermore, the rising cost of luxury products across the market is a significant factor in the decline of the luxury skincare market.
Ahead, we'll look at top-selling and most-stocked skincare subcategories. Plus, our trend predictions for 2023.
StyleSage Top Selling Subcategories
* Percentage of the product sold out online. Not an absolute inventory count nor a representation of in-store stock.
StyleSage Most Stocked Subcategories
Though the skincare market is on the rise overall, brands need to understand the trends in the subcategories of the market to develop strategies for success. By leveraging AI and data-driven insights, brands can better understand the needs of their customers and create products that stand out in a competitive market.
The skincare consumer of 2023 is more informed than ever, and oversaturation online and in-stores forces brands to double down on areas of opportunity.
Two Trends For 2023 & Beyond
Treatments (13%) are currently the most stocked skincare subcategory at Ulta Beauty and Sephora. The medicalization of skincare is fueling demand for potent products that provide professional-level efficacy. For skincare brands to stand out on the shelves and in consumers' minds, they'll need to create value and provide proof that a product works through clinicals, panels, before and after photography, or testimonials.
Mass and prestige brands like Josie Maran, Bubble, and The Inkey List have expanded into the OTC category since 2020. In September 2022, The Inkey List launched Supersolutions, a collection of five OTC products under $25, focusing on acne, eczema, psoriasis, and rosacea. The Inkey List expects Supersolution to soon account for 10-20% of brand sales.
Over-exfoliation and increased use of active acids have pushed consumers to get educated about their skin barrier. In Q4 2022, 13% of skin barrier products sold out at Sephora, Ulta Beauty, and Nordstrom.
In 2023, we'll see demand for barrier-friendly ingredients like niacinamide and ceramides that balance and support the skin's microbiome. The concept of "moisture sandwiching" or "skin flooding" to lock in hydration isn't new. Protecting the barrier isn't a trend, and it's not going anywhere. From the founders of Starface, Futurewise is a three-step layering system dedicated to skin health. The combination of humectants, emollients, and occlusives work together to preserve the skin's moisture levels.
Are you interested in learning more about this topic? Clients have exclusive access to our in-depth report here!