U.S & Global Competitive Landscape

US Competitive Landscape

The cosmeceutical industry is highly fragmented. Packaged Facts estimates that there are 400-600 active U.S. marketers of cosmeceuticals. There are approximately 115 significant marketers with in the mass channels of supermarkets, chain drugstores and mass merchandisers. These mass merchandisers are beginning to implement higher end prestige items conventionally carried at stores located in malls such as Sephora. There are (2004) only 19 marketers within the makeup sector in the mass channels that are capturing a significant share of the market - over .1% of retail dollars earned. Marketers within the cosmeceutical industry are not commonly diversified with the exception of companies such as Proctor & Gamble and Unilever that also sell food and household items (Packaged Facts: The US Cosmeceuticals Market).

Global Competitive Landscape

Forty percent of the market is controlled by five major players; L'Oreal controls 16% of this market share, Proctor & Gamble 7%, Estee Launder 7%, Avon 6% and Shiseido 4%. These market leaders have gained dominance via strategic acquisitions; L'Oreal has acquired Lancome, Maybe line, Yuesae, Mininurse and Miss Ylang. Estee Lauder acquired Mac and Bobby Brown and Proctor & Gamble acquired Cover Girl and Max Factor. Leading Lip Gloss Players are L'Oreal, Avon, Estee Launder, Proctor & Gamble and Revlon (Packaged Facts: The US Cosmeceuticals Market).