The emerging pure-play dermatology category leader Galderma has launched its latest scientific innovation, Cetaphil Healthy Renew. Galderma states that the product line, which utilizes purified peptides as alternatives to retinol, aims to help combat visible signs of aging. In recent years, peptides have been increasingly used in cosmetic formulations, and in the Chinese market, there is a company dedicated to cosmetic peptide ingredients that is preparing to go public. Can peptides become the next popular trend in the ingredients market?
The first-ever healthy aging skincare line in Cetaphil dermatologist-recommended skincare range
Galderma, as an emerging leader in the field of pure dermatology, has recently launched another scientific innovation, Cetaphil Healthy Renew. Galderma stated that Cetaphil Healthy Renew is the first-ever skincare line in Cetaphil’s range of dermatologist-recommended products that specifically target healthy aging. Recognizing the unique aging patterns of sensitive skin, Cetaphil aims to assist individuals with sensitive skin by offering a range of retinol alternatives that utilize purified peptides. This formulation is designed to combat noticeable signs of aging and provide defense against them.
Dendy Engelman, Board-Certified Dermatologist and Cetaphil Partner said: “Aging skin is a particular point of frustration for my sensitive skin patients due to increased risks of irritation and an already compromised skin barrier. Active ingredients like retinol are especially not well-tolerated, so I’m thrilled to share Cetaphil Healthy Renew with them as a new, gentle, and efficacious option to combat the early signs of aging.”
“Those with sensitive skin have an inherently compromised skin barrier, causing it to age differently than other skin types. This is because the skin experiences recurrent irritation that can affect the skin’s natural collagen and elastin production. The simplified protein chains within the Healthy Renew collection are a gentler option for sensitive skin, don’t require typical adaptation time, and aren’t known to increase sensitivity to the sun. Instead, they help reduce the visible signs of aging with minimal skin disruption.” Matthew Meckfessel, Ph.D. Director of Galderma Medical Affairs added.
Healthy Renew’s formula incorporates Vitamins B3 and B5, which aid in moisturizing, soothing, and repairing the skin’s moisture barrier. Additionally, botanical extracts derived from Rice lees and Edelweiss are included to address issues like dullness and uneven skin tone. The dermatologist-developed line comprises four products, all of which are hypoallergenic, fragrance-free, paraben-free, and non-comedogenic.
The peptide cosmetic ingredients market is expected to reach a size of $1.97 billion in 2030
As mentioned above, previous ingredients like retinol were often too harsh and poorly tolerated, particularly in terms of the tolerance of active ingredients like retinol. However, Galderma’s latest introduction of retinol alternatives formulated with purified peptides not only maintains their anti-aging properties but also makes the products gentler.
In fact, in the recent cosmetics ingredients market, peptides have gained popularity due to their diverse range, broad physiological activity, clear mechanisms, easy absorption, and high safety. They have shown excellent results in wrinkle reduction, anti-aging, repair, and skin whitening. Compared to some traditional ingredients, peptides are milder and do not irritate the skin. With the upgrade in consumer demands, the influence of ingredient enthusiasts, and the focus on skincare efficacy, the popularity of peptide-based products has been steadily increasing.
According to Frost & Sullivan, the global market size of peptide cosmetic ingredients maintained a compound annual growth rate of 16.8% from 2016 to 2021. It is projected that the global market size will reach $1.45 billion by 2025 and $1.97 billion by 2030. Within the sustained popularity of peptide ingredients, collagen peptides play a significant role. Public data indicates that the global collagen peptide market was valued at $161 million in 2022 and is expected to reach $859 million by 2029, with a compound annual growth rate of 26.7% during the forecast period of 2023 to 2029.
It is well known that collagen is essential for maintaining hydrated, youthful, and firm skin as it is a crucial component of the skin. Collagen peptides are widely used in the health and beauty industry to support wrinkle reduction, youthful skin, and improve hair and nail health. The demand for collagen is driven by the desire to achieve a youthful appearance. This factor is expected to drive the growth of the collagen peptide market.
Simultaneously, there is a rising demand in the consumer market for natural and clean-label products that are free from artificial additives, chemicals, or allergens. Collagen peptides derived from natural sources such as fish, bovine, and porcine collagen can meet this requirement. The natural sourcing and associated health benefits of collagen peptides attract health-conscious consumers. This factor also contributes to the growth of the collagen peptide market.
Peptides are gaining popularity in the cosmetics ingredients market. Compared to traditional mainstream ingredients, peptides have the advantage of being gentler, which appeals to consumers. Although the peptide market is still in its early stages with a relatively small market size, its impressive compound annual growth rate of 16.8% makes it a noteworthy player in the cosmetics ingredients market.
The peptide ingredients market for cosmetics in China is experiencing accelerated growth
With the continuous expansion of the global market, the peptide ingredients market for cosmetics in China has grown from 630 million RMB in 2016 at a compound annual growth rate of 18.2% to 1.45 billion RMB in 2021. It is projected that the market size will continue to expand at compound annual growth rates of 12.5% and 6.9% from 2021 to 2030, reaching approximately 2.32 billion RMB by 2025 and an estimated 3.24 billion RMB by 2030. In this rapidly growing market, Zhejiang Peptites Biotech Co., Ltd. (referred to as ZPC) has applied for listing on the ChiNext board.
According to Frost & Sullivan’s report, ZPC is the largest domestic supplier of peptide ingredients for cosmetics, with a market share of 6.9%. ZPC collaborates with well-known domestically listed cosmetic companies such as Proya, Bloomage Biotech, and Marubi. Additionally, its peptide ingredients are also used by internationally renowned brands like SK-II, Chanel, and Estée Lauder.
ZPC’s revenue from 2020 to 2022 was 86 million RMB, 140 million RMB, and 210 million RMB, respectively, with a compound annual growth rate of 57.8%. Net profit increased from 12 million RMB to 72 million RMB, nearly doubling year after year. The peptide ingredients business accounted for the highest proportion of the company’s total revenue, reaching 64.61%. During this period, the gross profit margin of ZPC’s peptide ingredients for cosmetics was 77.7%, 79.5%, and 77.5%, respectively.
However, it is important to note that despite the rapid development of the domestic peptide ingredients market in recent years, there is still a gap compared to the international market. The Inventory of Existing Cosmetic Ingredients in China 2021 includes only over 70 types of peptide ingredients, which is less than 1/15 of the international counterparts and lacks diversity. The competition structure in the domestic market remains fragmented, with a combined CR5 market share of only 19.3%. However, with economic growth, continuous improvement of regulatory systems, and increased skincare awareness among residents, it is expected that China’s peptide ingredients industry for cosmetics will experience rapid development and have vast market potential.
At the policy level, the Hangzhou Municipal Government recently issued a notice on Measures to Support the High-Quality Development of Synthetic Biology Industry, which specifically mentions peptide drugs and cosmetic ingredients. It is worth noting that the Hangzhou Municipal Government provides a maximum subsidy of 300,000 RMB for each newly registered or recorded cosmetic ingredient that is successfully included in the Inventory of Existing Cosmetic Ingredients in China 2021 by the National Medical Products Administration.
In summary, the Chinese market for peptide ingredients in cosmetics is developing rapidly but still lags behind the international market. Currently, there are relatively few types of peptide ingredients registered domestically, and the competition landscape is relatively fragmented. However, with the improvement of regulatory systems and the strengthening of consumer skincare awareness, China’s peptide ingredients industry for cosmetics is in a phase of rapid development.
