L'Oreal to Launch Anti-Aging Creams

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( Trefis) -- L'Oreal (PINK:LRLCY) is going to launch a new range of anti-aging creams in 2012 starting with the European and the U.K. market.

It faces stiff competition from Estee Lauder ( EL) in the prestige anti-aging beauty market. Anti-aging today forms the bulk of the facial skin care market, which itself is the largest beauty segment.

The Trefis price estimate of $23 implies an upside of about 10% to the current market price.

See full analysis for L'Oreal here .

Europe and the U.S. together control more than 60% of the global anti-aging cosmetics market share. The market is expected to be dominated by the cosmeceutical segment growing at a CAGR of around 10%, with popular brands like Clinique developed by Estee Lauder and Allergan.

According to Global Industry Analysts, the U.S. market for anti-aging products is expected to grow from around $80 billion in 2011, of which skin care is around $20 billion, to $115 billion by 2015. The fastest growing target segment of the anti-aging market is expected to be 25- to 35- year olds who are progressively more interested in anti-aging products, especially topical skin treatments that are applied directly in the skin.

L'Oreal's anti-aging products in Europe face stiff competition from Estee Lauder, a leading market player in the prestige anti-aging category. Estee Lauder is scheduled to launch its first global anti-age product -- Revitalizing Supreme Global Anti-Aging Creme - that is designed specifically for European women, in February 2012.

Global anti-age, a fast-growing segment under anti-aging beauty products, refers to a single, complete product that can treat multiple signs of skin aging at one time.

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This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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