Nutricosmetics Market Analysis

Nutricosmetics Market Deep Dive – PESTLE, Porter, SWOT

The nutricosmetics market is in a period of transition. As a result of the growing awareness of the relationship between nutrition and beauty, it is undergoing a process of transformation. The growing demand for a more natural way to improve one’s appearance is leading to the increasing demand for dietary supplements that combine a cosmetic effect with the benefits of food supplements. The nutricosmetics market is made up of a large number of products that combine vitamins, minerals and herbal extracts to promote the health of the skin, hair and nails, and overall well-being. The convergence of beauty and nutrition is influencing the choices of consumers, resulting in new formulations and marketing strategies, based on natural ingredients and scientifically proven effects. The evolution of the nutricosmetics market is taking place in terms of transparency and the ethical sourcing of ingredients, and in terms of a more informed consumer. It is a dynamic market, which presents both challenges and opportunities for companies wishing to benefit from the growing trend towards beauty from within.

PESTLE Analysis

• Political:
  In 2024, the nutricosmetics market will be influenced by a number of political factors, including government regulations on health and beauty products. Under the Cosmetics Regulation (EC) No. 1223/2009, all cosmetic products, including nutricosmetics, must be tested for safety before they are allowed on the market. This regulation applies to approximately 1,500 companies in the European Union, ensuring that they meet certain safety and quality standards. The import and export of raw materials used in nutricosmetics may also be influenced by tariffs and trade agreements. For example, the European Union imposes a tariff of up to 10 per cent on certain imported ingredients for cosmetics.
• Economic:
  The macroeconomic framework of the nutricosmetics market in 2024 will be determined by the consumption pattern and the level of discretionary income. In the United States, the average household disposable income will reach $78,500, which will affect the consumers’ willingness to invest in premium nutricosmetics. Moreover, the beauty and personal care market is expected to exceed $500 billion, with a significant portion of it going to nutricosmetics, thereby indicating a growing trend towards health-oriented beauty solutions. This macroeconomic environment will entice companies to expand their product lines and to offer new products to affluent consumers who are willing to spend on premium nutricosmetics.
• Social:
  In 2024, social trends indicate a growing awareness of the health and well-being of consumers, with a considerable impact on the nutricosmetics market. A survey conducted in early 2024 showed that 65% of consumers aged 18 to 34 are actively looking for products that combine beauty and health, indicating a shift towards total well-being. A second development is the rise of influencer marketing. More than 70% of beauty brands use influencers to promote nutricosmetics. This social trend creates a demand for products that not only beautify, but also promote well-being.
• Technological:
  The nutricosmetics market in 2024 will be influenced by technological developments, especially in the formulation and delivery of products. Such developments as the use of microencapsulation technology will enhance the bioavailability of active ingredients and therefore the benefits to the consumer. It is estimated that by 2024 approximately 30% of nutricosmetic products will use advanced delivery systems to improve their efficacy and the satisfaction of the consumers. Also, the growth of e-commerce has transformed the way consumers purchase nutricosmetics, with an estimated 25% of all sales in the beauty sector now being made on the Internet.
• Legal:
  Among the legal factors influencing the nutricosmetics market in 2024 are the requirements for labeling and advertising. In the United States, the Federal Trade Commission (FTC) requires that all health claims about nutricosmetic products be backed by scientific evidence. In the last few years, companies have been increasing the number of clinical trials. By 2024, it is estimated that about 200 trials on the effectiveness of nutricosmetics will have been registered. Intellectual property laws are also important in protecting innovations in the formulations of nutricosmetics. Over 1,000 patents relating to nutricosmetics were applied for in the last year, and companies are thus able to protect their proprietary technology.
• Environmental:
  In 2024, the nutricosmetics market will be increasingly influenced by the environment. Customers will demand sustainable and eco-friendly products. About 40 % of consumers are willing to pay more for products that are packed in eco-friendly materials. By the end of 2024, more than half of the nutricosmetics brands will be using biodegradable or recyclate-able packaging. Also, the origin of the ingredients is being questioned. There is a growing emphasis on organic and ethically derived ingredients, with an estimated increase of 25 % in the use of certified organic ingredients in nutricosmetics.

Porters Five Forces

• Threat of New Entrants:
  The nutricosmetics market is growing and new players are joining in. The media say: But the high investment costs for research and development, the regulatory hurdles and the need for a strong brand can create obstacles to entry.
• Bargaining Power of Suppliers:
  “The supply of raw materials for nutricosmetics includes a wide range of vitamins, minerals, and plant extracts. There are many suppliers, and companies can use alternative sources. The abundance of suppliers and the availability of alternative sources weakens the bargaining power of suppliers, which allows companies to bargain for lower prices.
• Bargaining Power of Buyers:
  In the nutricosmetics market, consumers are becoming more informed and health conscious, which leads to higher expectations of product quality and effectiveness. This trend gives consumers considerable power, because they can easily turn to other products if their needs are not met.
• Threat of Substitutes:
  The market is crowded with beauty and well-being products, but the unique positioning of nutricosmetics as a blend of nutrition and cosmetics creates a moderate threat of substitutes. Even so, the products of traditional cosmetics and dietary supplements can be used as alternatives.
• Competitive Rivalry:
  “The market for nutricosmetics is characterized by intense competition among established brands and new entrants. Companies are constantly innovating and launching new products to gain market share, which makes the market highly competitive.

SWOT Analysis

• Strengths:
  • Growing consumer awareness of the benefits of beauty from within.
  • Increasing demand for natural and organic ingredients in beauty products.
  • Strong market growth driven by the rising trend of holistic health and wellness.
• Weaknesses:
  • Limited consumer understanding of nutricosmetics and their benefits.
  • High competition leading to price wars and reduced profit margins.
  • Regulatory challenges and lack of standardization in product claims.
• Opportunities:
  • Expansion into emerging markets with rising disposable incomes.
  • Innovations in product formulations and delivery methods.
  • Partnerships with health and wellness influencers to boost brand visibility.
• Threats:
  • Intense competition from traditional cosmetics and dietary supplements.
  • Potential backlash against supplements due to safety concerns.
  • Economic downturns affecting consumer spending on non-essential products.

The nutritional cosmetics market in 2024 is characterized by strong consumer interest in health and beauty products that promote the feeling of well-being from within. Despite the growing awareness of natural products and the increasing demand for them, the market is faced with a number of obstacles, such as the need for more consumer education and stricter regulations. Competition is very strong and the economy is subject to fluctuations. Opportunities for growth lie in new and developing markets and in the development of new products, but companies must also beware of economic fluctuations that could affect the purchasing power of consumers.