Skin and Hair Treatment Trending; Plant Based and Organic Products Demand (OTCQB: $RVIV) (NYSE: $EPC) (NYSE: $NUS) (CSE: $GGB.C)
Point Roberts, WA and Delta, BC - August 7, 2019 (Investorideas.com Newswire) Investorideas.com, a leading investor news resource covering wellness and cannabis stocks releases a sector snapshot reporting on the continued growth being seen in the global skin and hair care market as consumer awareness, demand for organic products, global temperatures and UV exposure all continue to rise.
The hair care market is forecast to reach USD 116.33 billion by 2024, registering a CAGR of 3.35% during the forecast period (2019 - 2024).
A recent report showed that "the growing demand for organic/natural products for personal grooming has become one of the primary concerns for individuals. Among organic hair care products, owing to its wide usage, conditioners and shampoos held a majority share in the global organic haircare market in 2018. Furthermore, anti-dandruff organic hair oils are expected to register robust growth over the forecast period."
Reviv3 Procare Company (OTCQB: RVIV), a company engaged in the manufacturing, marketing, sale and distribution of premium quality hair and skin care products under various trademarks and brands announced that it plans to launch multiple product sets of its plant-based products at Costco locations in the United Kingdom.
Donald Starace, President of REVIV3, said "As part of our international market expansion strategy, our customized product set offerings for Costco, UK will provide exposure to a market that until now has not been able to experience the amazing benefits we provide in hair and scalp health. It is our ultimate goal to be the primary destination for anyone looking for drug-free alternatives to improve follicle structural properties, nourish and rejuvenate hair." Mr. Starace continued, "We believe the quality and effectiveness of our hair products is our most powerful marketing tool and the primary driver of our customer referrals and retention."
The product lines for Costco, UK are planned for launch in September 2019 and will include a deep cleanser shampoo, moisturizing conditioner, hair follicle treatment, hair thickening spray and thermal protectant spray. The products are formulated with premium plant-based peptides and active botanicals formulated for safe and effective daily use.
Reviv3 is currently expanding its sales channels domestically and across the globe with customized product offerings in new markets. The recent expansions include agreements with Asian distribution partners for sale of Reviv3 products in TMALL.com and JD.COM as reported in the company's press release on June 5, 2019. In conjunction, the company has continued to build on its operational efficiencies which according to Reviv3's annual results on July 19,
resulted in a 16.8% decrease in operating expenses for FY2019, compared to the same period last year.
We are also seeing strings of acquisitions and mergers to help companies meet the increased need for larger distribution and production capabilities in this growing market.
Edgewell Personal Care Company (NYSE: EPC) and Harry's, Inc. announced in May that they entered into a definitive agreement under which Edgewell would combine with Harry's in a cash and stock transaction that values Harry's at $1.37 billion. The combination of Edgewell and Harry's brings together complementary capabilities to create a next-generation consumer products platform with an expansive runway for accelerated topline growth and enhanced value creation.
Together, Edgewell and Harry's will create a platform that enables building and scaling the next generation of impactful consumer brands. Harry's has been a disruptive force across the men's and women's shaving market and adjacent grooming and personal care categories. Its demonstrated expertise in brand building and direct-to-consumer marketing are a complementary fit with Edgewell's strong intellectual property, best-in-class product technology, global scale and stable of strong consumer brands. The combined company will have a leading portfolio of global brands in men's and women's shaving, personal and sun and skin care.
Andy Katz-Mayfield and Jeff Raider, Harry's Co-Founders and Co-CEOs, have agreed to join the Executive Team of Edgewell at closing, to serve as Co-Presidents of US operations.
"The combination of Edgewell and Harry's is a pivotal step forward in further transforming our organization and strengthening our competitive position and ability to drive sustained growth and value creation," said Rod Little, Edgewell's President and Chief Executive Officer. "Building on Edgewell's and Harry's complementary strengths, our combined company will have leading brands and omni-channel capabilities that are essential to meet the needs of the modern consumer and win in today's market environment. We welcome Harry's entrepreneurial employees and look forward to working closely with Andy and Jeff, whose ingenuity and demonstrated success will enable us to take our U.S. business to the next level. We are excited about our future and the opportunities we have to deliver superior long-term shareholder returns as a next-generation CPG platform."
Andy Katz-Mayfield and Jeff Raider, Co-Founders and Co-CEOs of Harry's, said "When we launched Harry's six years ago our vision was to create a grooming brand that better met our needs as consumers, and over time, a CPG platform that creates brands people love across more categories. Together with Edgewell, we see a significant opportunity to continue delivering on that vision, leveraging Edgewell's advanced technology and global footprint alongside our customer-first approach, brand building expertise and omni-channel capabilities. We're incredibly proud of the brands we've created and the team we've built, and have tremendous respect for Edgewell and its established brand portfolio. We look forward to what we can accomplish together."
ResearchAndMarkets.com recently released the "Skin Care Products Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024" which discussed the trends in the global skincare market, noting that the market was worth US$ 128.9 Billion in 2018 and projected to reach a value of US$ 165.9 Billion by 2024, registering a CAGR of around 4% during 2019-2024.
The report continued, "Skin is one of the organs that receive the most damage owing to the exposure to external factors such as ultraviolet (UV) rays and pollution. Consequently, there has been an increase in the inclination among the masses towards engaging in a regular skin care regime, thus making it an integral part of personal well-being. This has led to the introduction of diversified products containing various chemical and herbal elements, aiming at the overall enhancement and maintenance of healthy skin. Urban regions, in particular, have been a witness to increasing consumers' inclination toward various skin care products owing to rising disposable income, aggressive promotional activities, and launch of innovative products by manufacturers. Rising awareness about both skin ailments and available treatments is propelling consumers to start using skin care products quite early, thus aiding the market growth. The market is further driven by an increasing number of women preferring anti-aging products which form a crucial segment of the skin care products market."
As these factors influence the market we see more companies looking to expand their product portfolios as well as enter into new international marketplaces which are joining this skincare and wellness trend.
Nu Skin Enterprises, Inc. (NYSE: NUS) recently announced their estimated second-quarter results and updated its outlook for full-year 2019. The company anticipates reporting second-quarter revenue between $622 and $623 million and earnings per share of $0.82 to $0.84. The company's revised revenue outlook for 2019 is $2.48 to $2.52 billion with a negative foreign currency impact of approximately 4 percent, and earnings per share of $3.20 to $3.35.
"We are adjusting our guidance for the year primarily due to a reduced revenue outlook in Mainland China following the government's 100-day campaign to review and inspect the health products and direct selling industries," said Ritch Wood, Chief Executive Officer. "Continued restrictions on sales meetings, as well as media scrutiny, have negatively impacted consumer sentiment and contributed to this adjustment. While we anticipated we could begin holding meetings in the second quarter, meeting approvals for the industry have been significantly more restrictive than expected and remain limited. Additionally, the U.S. dollar has continued to strengthen, and we have adjusted our 2019 guidance to include a larger-than-anticipated foreign currency impact. We will provide more detail regarding results for the second quarter in our earnings release scheduled for Aug. 6."
Several institutional investors increased or changed their position leading up to the results such as Handelsbanken Fonder AB who increased its position in Nu Skin by 25.0%, Delek Group Ltd. who purchased a new position in shares of Nu Skin Enterprises, Amalgamated Bank who raised its holdings in shares of Nu Skin Enterprises by 14.8% and Trexquant Investment LP who raised its holdings in shares by 7.0%.
Several research firms have also weighed in on NUS such as Zacks Investment Research who raised shares of Nu Skin Enterprises from a "sell" rating to a "hold" rating in a report on Friday, May 3rd and ValuEngine who raised shares from a "strong sell" rating to a "sell" rating in a research note on Thursday, August 1st.
CBD is also playing an important role in these markets with companies such as Green Growth Brands Inc. (CSE: GGB) (OTC: GGBXF) who announced it has received a purchase order from American Eagle Outfitters, Inc. through which it will sell hemp-derived cannabidiol (CBD) infused personal care products in nearly 500 American Eagle (AE) stores and American Eagle Outfitters, Inc.'s online website.
The purchase order represents GGB's third major wholesale agreement since the passage of the Agriculture Act of 2018 in December 2018 (the 2018 Farm Bill).
The products, which were exclusively developed for American Eagle include a wide assortment of CBD-infused personal care items such as lotions, muscle balms, and aromatherapy. Sales of the product are expected to begin in October 2019.
"We are very pleased to be partnering with American Eagle, a leader in the specialty retail space," said Green Growth Brands CEO, Peter Horvath. "GGB provided the expertise necessary to develop the product formulations and packaging to create a really special line of products."
All Green Growth Brands CBD products are sourced from US-based, licensed hemp processors and comply with the 2018 Farm Bill. GGB sells and distributes topical CBD products only in jurisdictions that permit such sale.
Quality organic products are becoming a majority trend not just in the US and EU but also increasingly in every corner of the world. This increased awareness of product quality in the global consumer is forcing companies to adapt, which in turn is benefiting the consumer and their overall health and wellness.
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