Monthly Dinner and Education Meeting - Cosmeceutical Claims

The global demand for cosmeceuticals continues at an explosive rate. Discovery of new anti-aging medical interventions, coupled with new functional active ingredients, provide a fertile innovation ground for product developers. This paper provides a practical guide for the development of product labels, claims and advertising that complies with the regulatory requirements.

INTRODUCTION:
According to a market research report published in February 2005 by BCC Research, baby boomers’ unprecedented purchasing power, coupled with the youth-dominated cultural shift and modern technological advancement have fueled a rapidly growing US anti-aging industry that exceeded $45.5 billion in 2004; $7.7 billion of which was spent on appearance products alone. The annual growth is expected to continue at a stunning rate of 9.5% and the market is expected to reach $72 billion by 20091. Another market trend report published by the Packaged Facts in 2005 stated that sales of cosmeceuticals in the US would reach $12.4 billion in 2004 (of which, $6.4 billion is for the skin care products) and continue to grow to over $16 billion by 2010. The new product trends would center on “anti-aging everything” with a strong demand for botanicals2. The annual global spending on OTC cosmetics and cosmeceuticals to enhance appearance is at an all time high of $230 billion3.

We have indeed entered the era of “cosmeceutical everything”. A significant amount of media coverage has been devoted to the topic of anti-aging in recent years. Anti-aging medicine practitioners claim that human life expectancy could be dramatically increased through certain chemical and/or lifestyle interventions including caloric restriction, genetic manipulation, anti-oxidants and hormone treatments, stem cell replacement therapies, etc. New cosmeceutical products allegedly incorporating the benefit of such advanced medical interventions arrive at the storefront at an increasingly alarming rate. The many ways a cosmetic product can bring eternal beauty and youth to a consumer appears to be as in-exhaustive as the imagination of any creative marketer. But how convincing are their claims? Judged by the topics of recently published media articles listed in this paper, there appears to be a certain degree of doubt in the consumers’ mind. In addition, how are cosmetic products regulated in terms of advertising and promotion? Are cosmeceutical products a new regulatory sub-category of cosmetic products? Or are they regarded as medicinal products? Are there any specific rules regulating their choice of ingredients, product claims and substantiation standards?

DISCUSSION:
The confusing and often contradicting global regulatory definitions and requirements can lead to a marketing nightmare, especially at a time when skin care product developers enjoy an unprecedented accessibility to new technologies and exotic ingredients that promise to help them formulate the best ever age defying products. In this highly regulated and inter-related modern world, a company can not measure its success simply via its ability to come up with the most scientifically advanced formula with measurable and effective skin care benefits. The biggest challenge currently faced by the cosmetic industry is how to walk the fine line when considering the following:
• What we would like to claim for marketing advantages,
• What we can truthfully say from the scientific point of view,
• What the consumers will perceive as believable,
• What our competitors are claiming for their products, and
• What we are allowed to say under the regulations.

Product developers and marketers have in their arsenal a diverse variety of market research tools to help them narrow down the playing field. They include market trend analyses, internet consumer surveys, consumer habits and practices studies, preference surveys and use tests. These studies have a proven track record in helping the company identify the most consumer appealing language that forms the best product selling strategy.

It is crucial to obtain comprehensive prior understanding of global regulatory definitions, requirements and restrictions to ensure smooth sailing of any product marketing scheme. Legislation looming large on the horizon for any cosmeceutical product market includes emerging global regulatory standards for nanatechnology, legal distinction between drugs, cosmetics, and/or devices, and a whole slew of green chemistry initiatives including REACH, animal testing ban, natural and organic product certification programs, endocrine disrupter monitoring programs, international counterfeits tracking and prevention, biocidal products control and monitoring, ..etc.

CONCLUSION:
Today’s consumer product companies face a tremendous task of bringing newer, more value-added products into the market within a much shorter time frame. Complex marketing strategies, global supply chain distribution and product positioning often collide with last minute, unexpected regulatory restraints, causing costly delay in product launch. In extreme cases, the unforeseen and/or unresolved regulatory roadblocks could sink a profitable product line. This is rather unfortunate but avoidable. Incorporating a comprehensive & well orchestrated regulatory strategy and analysis during the early conceptualization phase is essential in overall product development success.

It is imperative that any successful implementation of a global marketing plan takes into consideration different regional regulatory requirements for ingredient selection, product claims, advertisement and promotional materials. To avoid a financially disastrous last-minute show stopper for any product launch, the best operatic rule for success is to scope out the marketing scheme during the early product development cycle and develop potential claims through careful examination of regulatory allowances and scientific support evidence, taking into consideration current consumer perception and awareness, and finally, followed up with a well designed product safety review and testing, both pre- and post-market.


REFERENCES:
1. Dvorko, J. Antiaging Products and Services. BCC Research. Report ID: PHM041A. February 2005.
2. Market Trends: The US Ciosmeceuticals and Anti-Aging Products. Packaged Facts. Report ID No. LA1037623. January 1, 2005.
3. Briney, C. Industry Growth on the Horizon. Global Cosmetic Industry. 2005:41-42.
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