NEWS FROM SCIENTIA ADVISORS
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Contact:  Anita Harris anita.m.harris@harriscom.com  617-576-0906                  Tal Dinnar 617-299-3000

For immediate release:November 4, 2009

FAST-GROWING COSMECEUTICAL INDUSTRY NEEDS NEW INGREDIENTS; CULTURAL, MARKET AND REGULATORY AWARENESS, SCIENTIA ADVISORS FIND 

Cambridge, MA, and Palo Alto, CA--The global market for cosmeceuticals (cosmetics offering health benefits) is growing nearly twice as fast as the overall cosmetics and toiletries market.  In order to sustain such rapid growth, manufacturers and brand owners must fill a relentless demand for new ingredient concepts in a context of changing government regulations, market dynamics and cultural trends.

So said Harry Glorikian, managing partner of Scientia Advisors, based on a global study of the cosmeceutical industries released today.

Scientia Advisors  is a management consulting firm specializing in growth strategies for major and emerging companies in life science fields, worldwide.

Cosmeceuticals are personal care products that go beyond cosmetics by  providing an added health benefit --such as UV skin protection, wrinkle or acne reduction,  or hair or skin moisturizing—but do not claim a therapeutic effect.  Cosmeceuticals are also known as biofunctional materials, dermaceuticals, functional cosmetics, performance cosmetics, active cosmetics, and dermocosmetics.

In its study, Scientia found that:

·         Skin care is the largest and fastest growing cosmeceutical sub segment -- driven mainly by anti-aging products designed to meet the demands of an aging population, worldwide.

 

·         Europe and Asia-Pacific account for over 70% of the worldwide cosmeceutical market. The greatest growth, across all sub segments, is in emerging economies such as those of China, Latin America, Russia and India,  which are experiencing new marketing trends and products, an aging population,  increasing wealth and consumer power.

 

·         While most sales are in “low-end” channels such as supermarkets and pharmacies, most growth is in high end specialty stores and professional establishments such as salons, medi-spas and dermatology offices. Direct sales in homes and online are fueling growth in emerging markets.

 

·          The price differential for increased “functional” health claims can be as high as 2600% per unit within the same brand.

 

·         Increased demand for cosmeceuticals has led to the emergence of a “masstige” market. Mass brands are commanding higher price point as they add benefits; premium brands are being sold at more accessible/affordable retail outlets.

The review , based on extensive primary and secondary research and proprietary analytic methods, is available on the firm’s Web site at www.scientiaadv.com.

It was funded by Scientia itself. “Our studies allow us to provide strategic advice that is deeper, more defensible and more expansive than may be offered elsewhere,” Glorikian said. “We are pleased to share our insights with clients and prospective clients and welcome discussion of potential strategic guidance.

Scientia Advisors, based in Cambridge, MA and Palo Alto, CA, is a global management consulting firm specializing growth strategies for major and emerging companies in health care and the life sciences.

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