Overview of the Industry Leaders in the Global Men's Skincare Market

• The industry leaders are Procter & Gamble, Unilever, Beiersdorf AG, Johnson & Johnson, Estee Lauder Companies, and L’Oréal. They all offer a varied range of skincare products for men aimed at different demographic groups under the name of other brands.
• When it comes to consumer choices, pricing plays an important role. Industry experts say that mid-range products have high demand, especially in Asia. High demand for products translates to an increase in sales.
• These companies have different marketing strategies. For example, Europe and North America are prominent markets for men’s luxury skincare, especially for Baby Boomers and Millennials with high spending capability. For that reason, established brands are creating premium products approved by celebrities.
• Low-income countries are the right market for economy range men’s skincare products. In the long term, these companies could outweigh the profits of premium products due to high demand in less developed countries.
• The reason those companies are leading the industry is that their innovative ideas and portfolio extension lead to premiumization, which is the act of increasing the perceived value of products.
• In spite that gender-neutral branding is a growing trend embraced by nearly two-thirds of men aged 16-24 in the US, products with the label “for him” or “men” dominate corridors. However, experts say that will change as gender identity and product education become macro trends.

Emerging Brands in the Market

Soft

•  Soft is a New York-based mask company launched on November 5, 2019. Its objective is to demonstrate that skincare has nothing to do with feminism, but self-love and well-being. Soft boys and people that use genderless products are the typical customers.
• The initiative behind the name is that skincare products for men should not be ‘hard’ or hyper-masculine. Boys like to look good too, and they should not have to demonstrate their manhood to take care of them.
• The ingredients the brand uses for their products (moisture mask and ritual set) are hyaluronic acid, squalane, niacinamide, turmeric, and ginger.

Asystem

•  Asystem is a brand that assists men from a scientific standpoint. The company started operating in 2019, and it focuses on creating products for men of all ages.
• The brand classifies its products into two parts: preventive care and treatment (once the person is dealing with a skin concern).
• The company is creating awareness of the brand to drive word of mouth and reach new customers like Millennials and Gen Zers.

The Ordinary

•  The Ordinary is a Canadian-based genderless skincare brand that started operating in 2016. As the skincare industry become non-binary and ingredients-first, The Ordinary increased its male customer volume by 5% since 2017.
• The colors that the brand uses are neutral. In that way, the brand reaches a broad audience.
• The strategy seems to be working because the brand made $300 million in sales in 2019.

Potential for Growth

• Experts expect the global men's skincare products market to grow at a compound annual growth rate (CAGR) of 3.34% during the 2019-2023 period. They are also expecting that in 2022, the industry will hit $166 million.
• In 2018, men spent $9.5 billion on skincare products. In that same year, 37% of all men’s skincare products were launched in the UK, 25% in the US, and 15% in France. Companies also had a 7% jump in sales due to the demand of the products.
• The best-selling products include shaving products, sunscreens, moisturizers, face wash, cleansers, and creams.
• The global men’s skincare market is growing at a fast pace, which means there are many opportunities for emerging and established brands. Some niches with opportunities are personal cleanliness, shaving products, moisturizers and face creams, and physical facilities like spas and salt caves.

Research Strategy

Product Premiumization

• Product premiumization is considered the latest development in the men’s skincare products market.
• This trend is about companies offering natural and organic skincare products that have natural extracts.
• The products are attractively packaged and listed under the premium category. 
•  Globalization and economic growth are providing profitable opportunities for multiple businesses to capitalize on. Product premiumization is one of those lucrative opportunities.
• These businesses use the premiumization of male skincare product lines to improve their market position.

Gender Neutral Branding

• Brands that focus on the science of skincare are appealing to the audience beyond the gender norms.  
• Brands like ‘The Ordinary’ appeal to both educated male and female audiences. The number of males shoppers for the brand is increasing.
• According to the Vogue Business report, there has been a 5% increase in the Ordinary’s male customer volume since 2017.
•  69% of skincare products were listed as “male” on Superdrug.com in 2019.
• Experts project that there will be a shift in the skincare market considering the increasing changes around gender identity in skincare products.

Complexion Enhancers

• More men are focusing on cosmetic products to help their skin look and feel better.
• The entry points of men to the skincare market include concealers, primers, and BB creams as well as foundations.
• Brands like Covergirl are at the forefront in introducing more men to the skincare market. Male spokespeople are used as the face of new cosmetic promotions in a sector that was predominantly female-centered.
• In 2018, Chanel launched its inaugural men’s makeup product portfolio.
• More men are focused on men’s makeup lines to correct and conceal so that their skin can look healthy and vibrant.

Focus on Easy to Identify Natural Ingredients

• Charcoal is easy to identify in male skincare products. Shoppers believe that the dark hue of charcoal is an appealing colorant for male skincare products.
• The detoxification and cleansing features of charcoal are making it ideal for adding to male skincare products.
• Charcoal powder is currently used in sheet masks, scrubs, and peel-off masks as well as wipes.
• The Twincraft Skincare team is an example of a brand that is using charcoal in developing men’s skincare product lines.
• Also, caffeine is becoming a popular ingredient in male skincare products.
• Caffeine is making an appearance in male skincare products such as shampoos and conditioners that are produced by the brands Man Cave and Fudge.

Research Strategy

Skincare Products for Extreme Conditions

• There is a growing demand for sun protection skin products. Ultraviolet radiation leads to damage of skin cells which increases vulnerability to skin cancers.
• Skin products required for men should have a skin protection factor (SPF) of at least 30.
• The demand for skin protection products is driven by extreme climate conditions. For example, Australia occasionally experiences temperatures as high as 50°C in the state of South Australia.
• More people are now adopting skin care products like sunscreen, moisturizing creams and lotions.
• Sun protection skincare products is a market opportunity because more men are now demanding these products.
• The skincare product, Peter Thomas Roth Cucumber Gel Mask is used to soothe sunburn or dry skin.

Organic Skincare Products

• The market for global organic skincare products is estimated to reach $12.58 billion in 2022 as a result of increasing demand for the products.
•  Organic skincare products are derived from plants and naturally occurring ingredients. The plants are grown with no pesticides, inorganic fertilizers or herbicides.
• Inorganic skincare products are associated with skin irritation and allergies due to chemicals inclusion. Organic skincare products do not carry these disadvantages.
• Men are becoming more aware of natural grooming skincare products and are seeking those without harsh chemicals for their skin routines. This presents a viable market opportunity.
• An example of organic products for men is Biossance squalane oil which is 100% derived from sugarcane and has no synthetic ingredients. It is produced by the French company Sephora.

Anti-acne Skincare Products

•  Men are more likely to experience severe acne and scarring compared to women. It is recommended that men seek effective treatment to treat acne and scarring. When a man experiences acne, usually it means they have been struggling with the condition since their teenage years.
• The process of seeking early effective treatment for men's acne, creates a market opportunity for acne reducing skincare products.

•  Cosmetic companies are now seeking more advanced skincare products that aim to reduce acne and improve overall complexion to meet customer's demand.
• The demand for more acne skincare products globally is driven by the rising awareness about self care and grooming by men.
• As an example, Incospharm recently launched a new product called Sebodulin. Sebodulin can restore the skin and treat acne. 

Research Strategy

 Origins Clear Improvement Charcoal Exfoliating Powder 

• This exfoliating powder is predominantly used for post-gym or pre-shave.

• It uses charcoal powder to help detoxify the skin and also blends with water to form a creamy texture that sheds off dead skin leaving the skin feeling soft, smooth, and completely refreshed.

 Malin + Goetz Vitamin E Face Moisturizer 

• Malin + Goetz Vitamin E Face Moisturizer is an oil-free, residue-free moisturizer that scientifically synthesizes natural vitamins E and B5 with absorbent fatty acids and fatty alcohols.
• The moisturizer effectively hydrates and balances all skin types, unlike traditionally greasy pore-clogging oils, for an intensely nourishing treatment, reducing epidermal irritation.

 Kiehl’s Facial Fuel Energizing Tonic For Men 

• This is a popular skin toner, infused with caffeine and bamboo extract, and helps to balance and refresh skin.
• The product also visibly reduces the signs of fatigue, while helping to soothe and balance skin, leaving the skin feeling hydrated and comfortable.
• It is also formulated Vitamins C and E, which naturally occur in plants leaves and skin. Vitamin E helps to neutralize skin-damaging free radicals.

 Dermalogica Daily Microfoliant 

• This is a white, super fine powder that transforms from finely granulated rice to a textured paste when wet to gently slough away dead skin cells.
• The Microfoliant, which is also spiked with salicylic acid to chemically exfoliate, colloidal oatmeal to soothe, and tea tree to target oiliness is a popular men's skincare product.

 Nivea Men Sensitive Protect Moisturizer SPF 15 

• Nivea men sensitive protective is a moisturizer formulated for men with sensitive skin. It offers gentle protecting and soothing care for easily irritated skin.
• With SPF 15, it actively protects the skin from harmful sun rays, prevents it from drying out and moisturizes deeply for long-lasting results.

Overview of Early-Stage Investments in the Global Men’s Skincare Industry

• The Grand View Research report argues that, although the global men’s grooming products market is booming, venture capital firms still resist early-stage investment or seed capital. The main reason would be the dispute with market monopolies on some products, such as Gillet, which holds 50% of the market for beard care products. However, the demand for innovative, eco-friendly, and natural products is changing this scenario.

Case I — Every Man Jack

• Every Man Jack is an American company focused on beauty products and skincare exclusively for men. It received an early-stage investment in the amount of $5.15 million, from Funk Ventures capital firm.
• The investment took place in round A, increasing the contribution of the company that is taking a large space in the market. Every Man Jack offers products for face and lip treatments, moisturizers, anti-age treatment, among others, with natural ingredients.
• Funk Ventures offers early-stage investments in the areas of health, wellness, and technology for companies based in California. Founded in 2000, it has an active portfolio with 5 companies included.

Case II — Beardo.in

• Indian company Beardo.in is one of the successful startups in the men’s skincare business. In late 2017, the company received its first $5,000 early-stage investment through angel investor Artha India Ventures.

• In 2018, the company raised $500,000 in early-stage financing through Mumbai’s investment firm Venture Catalysts.

•  Venture Catalysts makes early-stage investments in all sectors and also has the largest incubator for startups in India. Outside the country, it has partnerships in the United Arab Emirates and Hong Kong. 

• The investment round included specialists from Venture Catalysts and other interested companies, such as RHV Enterprise, Somaiya Group, and Biorefineries. India has one of the largest male skincare markets in the world, with about 42% growth in CAGR, and this is attracting interest from venture capital firms.

• The products offered by Beardo.in are focused on beard and facial hair care after shaving. There are still facial moisturizers and soaps for treatments. The company is linked to more than 200 beauty salons and has more than 500 daily orders.

Case III — Scotch Porter

• Scotch Porter specializes in products for male self-care, with organic ingredients and natural formulas. In 2017, it received an early-stage investment from the Raptor Group estimated at $1.4 million.

• Scotch Porter is an American company and is headquartered in New Jersey. Based on the “beard gang” culture, it started its activities producing care items for male hair and beards, expanded to skincare. Today it has a wide range of products, all without sulfides or petrolatums, and packaged with eco-friendly and recyclable materials.

• While it was founded in 2015, the Raptor Group’s investment remains its only contribution.

• The Raptor Group is a venture capital firm founded in 2009, with a portfolio that includes sports, technology, finance, and entertainment. However, the company has a flexible strategy, being open to opportunities. It is headquartered in Boston and New York.

Research Strategy

Age

• Users of men’s skincare products in the United States tend to be young, based on the following information.
• Men under 24 are 1.21 times more likely than the average consumer to buy Every Man Jack products. Every Man Jack, a grooming brand that focuses on men and appears to be one of the top men’s skincare brands in the United States, ships within the United States only but is available at national retailers in the United States and Canada. Every Man Jack has on offer 20 skincare products that are categorized into washes and scrubs, moisturizers, wipes and masks, and lip balms.
• Men aged 25-34 are 1.76 times more likely than the average consumer to buy Every Man Jack products.
• Men aged 35-44 are 1.23 times more likely than the average consumer to buy Every Man Jack products.
• According to market research firm Mintel, men aged 35-44, especially those with kids, are the consumers who will drive growth in the men’s grooming market.

Income

• Users of men’s skincare products in the United States tend to be affluent, based on the following information.
• Men with an income of $100,000 to $125,000 are 1.11 times more likely than the average consumer to buy Every Man Jack products.
• Men with an income of over $125,000 are 1.37 times more likely than the average consumer to buy Every Man Jack products.
• According to market research firm Future Market Insights, in North America, men’s skincare products with mid-range prices are more popular than men’s skincare products with economy or premium prices. Demand for premium men’s skincare products is fast-growing, however, and is driven by older men who tend to have more money than younger men.

Education

• Users of men’s skincare products in the United States tend to be highly educated, based on the following information.
• Men with a college degree are 1.04 times more likely than the average consumer to buy Every Man Jack products.
• Men with an advanced degree are 1.29 times more likely than the average consumer to buy Every Man Jack products.

Marital Status

• Users of men’s skincare products in the United States seem to be more likely to be married than single, based on the following information.
• Men with kids are 1.01 times more likely than the average consumer to buy Every Man Jack products.
• Among male personal care product users in the United States, dads are the ones who are more concerned about “preventing the signs of aging.” Thirty-four percent of dads, compared to 26% of male personal care product users, care about stopping the signs of aging.
• Dads with more children are also more concerned about staying and looking young than dads with fewer children. Thirty-two percent of dads with one child, versus 38% of dads with two children, care about stopping the signs of aging.

Race

• Users of men’s skincare products in the United States tend to be Asian or Hispanic, based on the following information.
• Asian men are 1.47 times more likely than the average consumer to buy Every Man Jack products.
• Hispanic men are 1.07 times more likely than the average consumer to buy Every Man Jack products.

Research Strategy

Values

• American men skincare users value the products that share their values. They value skincare products that are environment-friendly, ethically produced and cruelty-free.
• Kantar Worldpanel study reveals that 36% of Brazilian men value their looks.

Interests

• According to a Mintel study, around one-third of American fathers who use skincare, two-thirds of those who have two children and 23% of those without kids care about the prevention of the signs of aging.
•  Japanese men are also seen to care about anti-aging. A study by Kantar Worldpanel also shows that 45% of Chinese men are interested in trying to look young.
• In contrary to men of other nationalities, Brazilian men are least concerned about aging. Brazilian men are more concerned about preventing acne and greasy skin.
• Men skincare users in Japan are interested in products that simplify their skincare routine such as all-in-one products.

Attitudes

• Mintel also says that American men who are 35-44 years old, especially the dads, care less about the product price than other age groups. Around three-fifths of this age group pay attention to the personal care products that they purchase.
• Men skincare users also "draw greater self-confidence from looking good." It appears that this attitude is shaped by having increased exposure brought about by the age of social media.
• A study by Kantar Worldpanel shows that Chinese men prefer to spend less time on themselves. They are also becoming more concerned about uneven skin coloring.
• This same study reveals that 61% of Brazilian men are more likely to buy the latest products and brands.