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SWOT of Sunscreen Market: Packaging/plastic-Packaging-Policy

The sunscreen market offers opportunities for brands to develop new products with different functions and SPF levels to gain competitive advantages. While demand for sunscreen is increasing, the market is intensely competitive with many giant brands. L'Oreal aims to introduce organic sunscreens for all skin types in Korea and Japan over the next 12 months to increase its global market share. It also has sustainability goals such as using 50% bio-sourced or recycled plastics for packaging by 2025.

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250 views2 pages

SWOT of Sunscreen Market: Packaging/plastic-Packaging-Policy

The sunscreen market offers opportunities for brands to develop new products with different functions and SPF levels to gain competitive advantages. While demand for sunscreen is increasing, the market is intensely competitive with many giant brands. L'Oreal aims to introduce organic sunscreens for all skin types in Korea and Japan over the next 12 months to increase its global market share. It also has sustainability goals such as using 50% bio-sourced or recycled plastics for packaging by 2025.

Uploaded by

Nấm Cà Chua
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We take content rights seriously. If you suspect this is your content, claim it here.
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SWOT of sunscreen market

In the beauty industry, particularly skincare sector, sunscreen is the most basic indispensable product for
all beauty lovers. Since consumers are increasingly aware of the need to protect skin from harmful effects
of the sun such as UV rays, the product of sunscreen would, without doubt, play an important role not only
in cosmetic industry but also in people’s daily lives (Kumar, 2005). As a result, sunscreen has strongly
competitive advantage in comparison with other cosmetic products in beauty industry. However, basically
the price of sunscreen with organic ingredients remains too high and the function seems not work effectively
even though the trend of using organic products has been increasing, price for organic sunscreen remains
too high and the function seems not work effectively. Currently, sunscreen is created in different forms
such as emulsion, oil, spray, mousse, foams, soap with a wide range of functions including various levels
of SPF (SPF 15, SPF 30, SPF 50) and PA (PA+, PA++, PA+++) to avoid negative effects of the sun, which
is suitable for specific usage purposes like travelling, picnic, working, beach,... (Kumar, Massie and
Dumonceaux, 2006). Therefore, it offers huge opportunities for brands to research, develop and introduce
different functions of sunscreen to create competitive advantages. Besides, higher demand of sunscreen
currently would be a contributor to assist businesses in the industry in generating profitability.
Notwithstanding, the market includes different giant brands such as Neutrogena, La Roche-Posay, Blue
Lizard, Aveno, Olay, to name but a few. This may mean that sunscreen market could be seen as an intensely
competitive sector, which is a serious threat for the product development in this industry (Weber and
Capitant de Villebonne, 2002).
Business background
The business, L’Oréal, is operating in beauty industry for over one century, having in-depth understanding
of makeup and skincare sectors with various products in a wide range. The business set goals to introduce
organic sunscreen to all consumers with different skin types of oily, combination, sensitive and dry in the
next 12 months in order to achieve more global market share in comparison with other competitors in Korea
and Japan (Reuters, 2019). In terms of sustainable development, by 2025, 50% of the plastics used for
packaging will be either bio-sourced or recycled origin. Furthermore, 100% of plastic packaging will be
refillable, recyclable and rechargeable (Loreal.com, 2019). Besides, currently the business is researching
packaging made by paper or wood, which is definitely friendlier with the environment (Packaging Digest,
2019). By 2020, the business made a goal to renew packaging of products with size of 500 ml bottle in the
US market.
References
Kumar, S. (2005). Exploratory analysis of global cosmetic industry: major players, technology and market
trends. Technovation, 25(11), pp.1263-1272.
Kumar, S., Massie, C. and Dumonceaux, M. (2006). Comparative innovative business strategies of major
players in cosmetic industry. Industrial Management & Data Systems, 106(3), pp.285-306.
Loreal.com. (2019). Plastic packaging policy - L’Oréal Group | World Leader in Beauty | Official Website.
[online] Available at: https://www.loreal.com/sharing-beauty-with-all-innovating/optimising-
packaging/plastic-packaging-policy.
Packaging Digest. (2019). L’Oréal’s paper bottle: Easy on the earth but tough in showers. [online]
Available at: https://www.packagingdigest.com/personal-care-packaging/loreals-paper-bottle-is-easy-on-
the-earth-but-tough-in-the-shower-2018-04-30.
Reuters. (2019). L'Oreal grows natural cosmetics focus with vegan firm Logocos. [online] Available at:
https://www.reuters.com/article/us-loreal-acquisitions/loreal-grows-natural-cosmetics-focus-with-vegan-
firm-logocos-idUSKBN1KM5Q1.
Weber, J. and Capitant de Villebonne, J. (2002). Differences in purchase behavior between France and the
USA: the cosmetic industry. Journal of Fashion Marketing and Management: An International Journal,
6(4), pp.396-407.

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