L’Oreal Adds to Anti-Ageing Line on Strong Global Demand for Skin Care Products

by Trefis Team
+0.94%
Upside
33.80
Market
34.12
Trefis
LRLCY
L'Oreal
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L’Oreal (PINK:LRLCY) is going to launch a new range of anti-aging creams in 2012 starting with the European and the U.K. market. It faces stiff competition from Estee Lauder (NYSE:EL) in the prestige anti-aging beauty market. Anti-aging today forms the bulk of the facial skin care market, which itself is the largest beauty segment.

The Trefis price estimate of $23 implies an upside of about 10% to the current market price.

See full analysis for L’Oreal here.

Global Anti-Aging Market Dominated by Europe and the U.S.

Europe and the U.S. together form more than 60% of the global anti-aging cosmetics market share. The market is expected to be dominated by the cosmeceutical segment growing at a CAGR of around 10%, with popular brands like Clinique developed by Estee Lauder and Allergan.

According to Global Industry Analysts, the U.S. market for anti-aging products is expected to grow from around $80 billion in 2011 (of which skin care is around $20 billion) to $115 billion by 2015. The fastest growing target segment of the anti-aging market would be 25-35 year olds who are progressively more interested in anti-aging products, especially topical skin treatments that are applied directly in the skin.

L’Oreal Faces Stiff Competition From Estee Lauder

L’Oreal’s anti-aging products in Europe face stiff competition from Estée Lauder which is a leading market player in the prestige anti-aging category. Estée Lauder is also scheduled to launch its first global anti-age product – Revitalizing Supreme Global Anti-Aging Creme – designed specifically for European women, in February 2012. Global anti-age refers to a single, complete product that can treat multiple signs of skin aging at one time, and is a fast-growing segment under anti-aging beauty products.

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