Suncare - US - August 2008

TABLE OF CONTENTS

• 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
• 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
• 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: Trade Associations