Suncare - US - August 2008

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations
Terms
EXECUTIVE SUMMARY
Sales growth remains strong, for now
Sun protection a common theme across skincare categories
New product development follows similar themes across brands
Questions of efficacy and safety cloud the view of sunscreen’s growth potential
Regulatory changes may help… eventually
All channels benefit from category sales growth
Acquisitions and share gains level the corporate playing field
Improvements to product application key to market share moves
Advertising stays on the beach, but the message gets more serious
A majority of adults still don’t use suncare
INSIGHTS AND OPPORTUNITIES
All-around effort to promote year-round sunscreen use
FAST FORWARD TRENDS
Deseasonalization
What’s it all about?
Ignoring the expected holiday noise
MARKET SIZE AND FORECAST
Key points
Awareness of the dangers of sun has made suncare more top-of-mind…
…creating a healthy market for new suncare products
Future growth prospects more uncertain
Sales and forecast of suncare products
Figure 1: U.S. FDMx sales and forecast of suncare products at current prices, 2003-13
Figure 2: U.S. FDMx sales and forecast of suncare products at inflation adjusted prices, 2003-13
Wal-Mart sales
COMPETITIVE CONTEXT
Sun protection a common theme across skincare categories
New product development follows similar themes across brands
Questions of efficacy and safety cloud the view of sunscreen’s growth potential
SEGMENT PERFORMANCE
Key points
Adult sun protection sets the pace for the category
Segment sales and forecast
Figure 3: U.S. FDMx sales and forecast of suncare at current prices, by segment, 2003-13
Figure 4: U.S. FDMx sales of suncare products, share by segment, 2007 and 2008
SEGMENT PERFORMANCE—ADULT IN-SUN PRODUCTS
Key points
Sun protection defines the segment
Adult in-sun products sales and forecast
Figure 5: U.S. FDMx sales and forecast of adult in-sun products, 2003-13
SEGMENT PERFORMANCE—KID/BABY SUNCARE
Key points
Kid/baby market follows trends in the adult market
Kid/baby suncare sales and forecast
Figure 6: U.S. FDMx sales and forecast of kid/baby suncare products, 2003-13
SEGMENT PERFORMANCE—SUNLESS TANNERS
Figure 7: U.S. FDMx sales and forecast of sunless tanners, 2003-13
RETAIL CHANNELS
Key points
All channels benefit from category sales growth
Figure 8: U.S. FDMx sales of suncare products, by retail channel, 2006 and 2008
RETAIL CHANNELS—DRUG STORES
Key points
Convenience and healthcare combine to drive suncare sales in drug stores
Figure 9: U.S. sales of suncare products at drug stores, 2003-08
RETAIL CHANNELS—OTHER IRI CHANNELS
Key points
Mass channel well suited to suncare
Figure 10: U.S. sales of suncare products at other IRI channels, 2003-08
MARKET DRIVERS
Subtle shifts in population composition may point to opportunities
Figure 11: U.S. population and projections and usage of suncare products, by age, 2003-13
Figure 12: U.S. population and projections and usage of suncare products, by race/Hispanic origin, 2003-13
LEADING COMPANIES
Key points
Acquisitions and share gains level the playing field
Figure 13: FDMx suncare sales of leading suncare product companies, 2007 and 2008
BRAND TRENDS—ADULT IN-SUN PRODUCTS
Key points
Improvements to product application key to market share moves
Figure 14: Selected FDMx brand sales of in-sun products in the U.S., 2007 and 2008
BRAND TRENDS—KIDS/BABY SUNSCREENS
Key points
Leading suncare brands dominate kids/baby segment
Figure 15: Selected FDMx brand sales of kids/baby products in the U.S., 2007 and 2008
BRAND TRENDS—SUNLESS TANNERS
Key points
Figure 16: Selected FDMx brand sales of sunless tanners in the U.S., 2007 and 2008
BRAND QUALITIES
Sun is out. Protection is in.
INNOVATION AND INNOVATORS
Innovations in efficacy face regulatory hurdles
L’Oréal’s Mexoryl SX makes the cut
Continuous sprays change the shape of suncare
A sunscreen for all seasons
Everything under the sun
Colorescience Sunforgettable – SPF 30 Orb
Nature's Gate – Mineral Sportblock SPF 20
L'Occitane do Brasil – High Protection Sunscreen Veil
Belli Pregnancy – Anti-Chloasma Facial Sunscreen
Burt's Bees Natural Suncare – SPF 30 Chemical-Free Sunscreen with Hemp Seed Oil
Alba Botanica Sun – Facial Sunscreen SPF 20
Mustela – Sun Cream for Sensitive Areas
Dr. Susan Taylor's Rx for Brown Skin – Moisturizing Sunscreen with SPF 15
Weleda – Children's Sunscreen SPF 18
Lancaster Sunslim Body Programme – Anti-Cellulite Range
Shady Day – Daily Sun Protection Wipes
ADVERTISING AND PROMOTION
Making ads while the sun shines
The Coppertone DermaPhoto Booth
Figure 17: Coppertone base brand DermaPhoto television ad, 2008
Figure 18: Coppertone sport DermaPhoto television ad, 2008
Banana Boat “At Your Service”
Figure 19: Banana Boat television ad, 2008
Aveeno Active Naturals
Figure 20: Aveeno Continuous Protection television ad, 2008
Neutrogena Ultra Dry
Figure 21: Neutrogena television ad, 2008
USAGE
A majority of adults still don’t use suncare
Figure 22: Incidence of using suncare products, by gender, January-November 2007
Figure 23: Incidence of using suncare products, by age, January-November 2007
Figure 24: Incidence of using suncare products, by household income, January-November 2007
Figure 25: Incidence of using suncare products, by education, January-November 2007
Protection from the sun is the top need by product type
Figure 26: types of suncare products used, by gender, January-November 2007
Average volume of use is low
Figure 27: Quantity of suncare products used, gender, January-November 2007
BRANDS
Popularity of brands
Figure 28: brands of suncare products prefered, by gender, January-November 2007
ATTITUDES AND MOTIVATIONS
A majority of adults likely to tan at least occasionally
Figure 29: Occasions or frequency for tanning, by gender, June 2007
Figure 30: Occasions or frequency for tanning, by age, June 2007
Levels of sun exposure concerns
Figure 31: Concern about sun exposure issues, by gender, June 2007
UVA/UVB combination tops product preferences
Figure 32: Characteristics sought in suncare products, by gender, June 2007
Level of SPF used
Figure 33: SPF level of sunscreen/sunblock used, by gender, June 2007
SPF level(s) kept in household
Figure 34: Household has repertoire of suncare products, by age, June 2007
Claimed suncare use on the rise
Figure 35: Change in amounts of suncare products used, by gender, June 2007
Cream/lotion still most commonly used form, sprays on the rise
Figure 36: Sunblock/sunscreen product formats used, by age, June 2007
Figure 37: Sunblock/sunscreen product format used, by age, June 2007
Suncare users display little brand loyalty
Figure 38: Suncare brand purchasing habits, by gender, June 2007
TEENS
Usage particularly high among younger teens and teen girls
Figure 39: Teen incidence of using suncare products, by age and gender, January-November 2007
Protection is key, but older teen girls also gravitate to tan enhancement
Figure 40: Types of suncare products used by teens, by age and gender, January-November 2007
Teen brand choice consistent with adults
Figure 41: Brands of suncare products used by teens, by age and gender, January-November 2007
RACE/HISPANIC ORIGIN
Usage
Figure 42: Incidence of using suncare products, by race/Hispanic origin, January-November 2007
Product type
Figure 43: Types of suncare products used, by race/Hispanic origin, January-November 2007
Replenishment rates
Figure 44: Quantity of suncare products used, by race/Hispanic origin, January-November 2007
Concern about sun exposure issues
Figure 45: Concern about sun exposure issues, by race/Hispanic origin, June 2007
Reported changes in product usage
Figure 46: Change in amounts of products used, by race/Hispanic origin, June 2007
CLUSTER ANALYSIS
SPF maximizers
Sun worriers
Unconcerned ostriches
Cluster characteristics
Figure 47: Sunscreen user clusters, June 2008
Figure 48: Occasions or frequency for tanning by cluster, June 2008
Figure 49: Concern about sun exposure issues by cluster, June 2008
Figure 50: Characteristics sought in suncare products by cluster, June 2008
Figure 51: SPF level of sunscreen/sunblock used by cluster, June 2008
Figure 52: Household has repertoire of suncare products by cluster, June 2008
Figure 53: Change in amounts of suncare products used by cluster, June 2008
Figure 54: Suncare brand purchasing habits by cluster, June 2008
Figure 55: Suncare product format used by cluster, June 2008
Cluster demographics
Figure 56: Sunscreen user clusters by gender, June 2008
Figure 57: Sunscreen user clusters by age group, June 2008
Figure 58: Sunscreen user clusters by household income group, June 2008
Figure 59: Sunscreen user clusters by race, June 2008
Methodology
CUSTOM CONSUMER GROUPS
Gender and age
Figure 60: Occasions or frequency for tanning, by gender and age, June 2008
Figure 61: Concern about sun exposure issues, by gender and age, June 2008
Figure 62: Change in amounts of suncare products used, by gender and age, June 2008
Race/Hispanic origin and household income
Figure 63: Occasions or frequency for tanning, by race/Hispanic origin and household income, June 2008
Figure 64: Concern about sun exposure issues, by race/Hispanic origin and household income, June 2008
Figure 65: Change in amounts of products used, by race/Hispanic origin and household income, June 2008
KEY PURCHASE MEASURES
Consumer insights—suntan lotion and oil
Summary and overview
Figure 66: Key purchase measures for suntan lotion and oil, by brand, by household penetration, 2007*
Figure 67: Key purchase measures for suntan lotion and oil manufacturers, by household penetration, 2007*
APPENDIX: OTHER USEFUL CONSUMER TABLES
Figure 68: Types of suncare products used, by age, January-November 2007
Figure 69: Types of suncare products used, by household income, January-November 2007
Figure 70: Quantity of suncare products used, by age, January-November 2007
Figure 71: Quantity of suncare products used, by household income, January-November 2007
Figure 72: Change in amounts of products used, by age, June 2007
Figure 73: Household has repertoire of suncare products, by race/Hispanic origin, June 2007
APPENDIX: IRI/BUILDERS PANEL DATA DEFINITIONS
APPENDIX: TRADE ASSOCIATIONS