L’Oreal Adds to Anti-Ageing Line on Strong Global Demand for Skin Care Products
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.
- Is There More Room For Growth In L’Oreal Stock?
- After Underperforming The Markets, Can L’Oreal Stock Rally?
- L’Oreal Stock Poised For Bounce Back After Rough Month?
- After Dismal Performance Last Month, L’Oreal Stock Looks Set To Rebound
- L’Oreal Stock Looks Set For A Rally On The Back Of Strong Earnings Growth
- Forecast Of The Day: L’Oreal Makeup Revenues
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.
Understand how a company’s products impact its stock price at Trefis