Murad offers a range of supplements that are designed to maintain skin health.

What’s New in Cosmetic R&D

New ingredients, new products and, of course, a few new problems keep cosmetic chemists active at the bench.

Tom Branna
Editorial Director

Is the cosmetic industry entering a new age, or at least a new phase of cosmetic research? After all, new products on the market today not only camouflage wrinkles, they actually help repair damage and promise to boost production of collagen and elastin too. But before marketers and suppliers become too enamored with all this technology, they must answer questions regarding product efficacy, get a handle on new regulations and meet growing consumer demands.

From an economic standpoint, the U.S. personal care market appears to be firing on all cylinders these days. Fine fragrance sales rose 1.5% last year—an excellent result when one considers how difficult the market has been during the past several years. Sales of AP/Deos, personal cleansers and other toiletries jumped more than 4.5% in 2006. But the biggest winner last year was the skin care category which, according to Kline & Co., surged 5.7%, driven by the demand for anti-aging products. Earlier this year, Kline published a new report Beauty Retailing 2006, which takes a detailed look at the U.S. beauty industry.

Factors driving the growth include an aging population, more sophisticated products making bolder claims and younger women using these products to prevent wrinkles altogether. Marketers certainly recognize the potential of the skin care segment. According to recent data from Mintel, skin care represented the No. 2 category for new product launches in 2006, topped only by color cosmetic introductions, which often are rolled out several times a year in order to keep in step with the changing fashion seasons.

Demand Continues to Rise

According to Information Resources, Inc., Chicago, sales in the mass market facial anti-aging category rose 3.7% to nearly $475 million. NPD Group, Port Washington, NY, won’t have 2006 sales results for department stores for another month, but the industry estimates sales gains of around 6%. That’s very good, but still nowhere near the 12.6% surge in sales reported by professional brands such as N.V. Perricone and Obagi. According to Kline, sales in the professional skin care market reached $870 million in manufacturer’s dollars.

Avon’s Anew Alternative Photo Radiance treatment was developed to meet the skin-lightening needs of consumers around the world. It’s just one skin lightening product in the Avon portfolio. More recently, the company rolled out Solutions Banishing Cream Day SPF 15 UVA/UVB and Banishing Cream Night.

Those double-digit gains have captured the attention of multinationals that are hungry for growth. In January, Procter & Gamble acquired Doctor’s Dermatologic Formula (DDF), which reported sales of $27 million in 2005, a 17% increase over 2004 results. And just last month, The Carlyle Group, a Washington, D.C.-based investment firm, purchased Philosophy, skin care company with strong sales in department stores and QVC.

With so much activity in the skin care market, more companies are entering the segment. Dr. LeWinn’s Private Formula International, which calls itself the No. 1 brand in Australia, is trying to crack the U.S. skin care market right now.

“Consumers are tired of paying hundreds of dollars for doctor-inspired brands that don’t do what they promise,” explained Stephanie White, president of Dr. LeWinn. “Our products work and that’s why customer loyalty is so strong in Australia.”

At price points ranging from $22 to $85, Ms. White predicts that Dr. LeWinn will steal market share from Estée Lauder and Perricone and convince Olay users to trade up to her brand. The line includes ingredients such as oligopeptides, hyaluronate and natural ingredients such as Resurrection plant extracts. In fact, Resurrection plant is found in Dr. LeWinn’s new Ultra R4 night cream.

“Resurrection plant is superhydrating and helps regenerate the skin,” explained Ms. White. “It also contains peptides which help increase collagen levels.”

That combination of peptides and botanicals is becoming increasingly popular in anti-aging products. According to one recent study of active ingredients, botanicals and enzymes are expected to post the most growth (13%) a year through 2016.

Like many other companies, Estée Lauder is researching the benefits of peptide fragments, explained Harvey Gedeon, executive vice president of global research & development. But he insisted peptides are just part of the answer.

“Estée Lauder is looking for natural ingredients from natural sources, especially in China,” he told Happi. “We’re looking at a variety of materials right now and focusing on the correct extraction methods.”

Anti-Aging Answers in China?

Nearly a year ago, Estée Lauder opened a research facility in China, which may have provided some of the inspiration for this month’s launch of Origins Modern Fusion, a face serum that reportedly produces a softer, more radiant texture by boosting the skin’s natural exfoliating process. A 1oz. bottle retails for $36 and contains a rice refinishing complex made from eight rice-derived ingredients. Fermented rice bran acts as a natural exfoliator while purple rice, rice bran extract and Oryzanol all have antioxidant properties to even skin tone and reduce discoloration. The formula also contains rice starch and rice butter to help skin retain moisture. According to company research, rice provides all the benefits of fruit acids, but is gentler than these more established exfoliants.

Murad’s Intensive Wrinkle Reducer promises to diminish fine lines and wrinkles by 45%.

Estée Lauder isn’t the only company scouring China in search of anti-aging answers. Avon’s new Anew Alternative Intensive Eye with Multi-Fade Complex is billed as infusing Western-inspired science and Eastern healing medicinal plant therapies.

 “In addition to the cutting edge, first to market, glycation reversing technology and strong anti-aging benefits associated with the Anew Alternative franchise, this eye treatment targets the key causes of undereye dark circles including pigmentation, inflammation, micro-circulation,oxidation and degradation,” said Robert Kalafsky an Avon researcher.

AGI also relied on elements of traditional Chinese medicine for its new Remergent skin care line. The barrier repair formula contains Evodia extract to calm skin as well as ursolic acid in liposomes to stimulate the production of ceramides and vitamin A to build collagen.

Hydrate, Hydrate, Hydrate

While Estée Lauder, Avon and others are focused on products from natural, sustainable sources, Howard Murad is convinced that hydration plays a key role in slowing down the aging process.

“A newborn’s body is 75% water,” noted Dr. Murad. “But that percentage drops to 50% for women and 60% for men as they age.”

According to Dr. Murad, improving skin means boosting the amount of cellular water by increasing the intake of lecithin, omega-3,-6 and -9, and amino acids, which are the building blocks of collagen and elastin. Unfortunately, it’s difficult to topically apply collagen to the skin and get much benefit. Rather, consumers should use nutritional supplements.

More companies are taking this “inside-out” approach to beauty. Last year, a Datamonitor study projected that sales of oral beauty supplements will grow 9.6% a year to reach $1.2 billion by 2010.

Dr. Murad advocates an internal and external approach to skin care. Earlier this year, for example, Murad introduced Intensive Wrinkle Reducer, which contains GlycoNutrient Complex, a combination of glycosaminoglycans, glucosamine, marine-derived polysaccharides, and linoleic and glycolic acids. GlycoNutrient Complex has been clinically proven to regenerate the skin’s appearance by activating epidermal proliferation and boosting collagen and hyaluronic acid.

Researchers may never forsake anti-aging solutions created in the lab, but more marketers are looking to nature for solutions. Last fall, for example, L’Oréal introduced Pro-Xylane, an anti-aging molecule that is the first new active ingredient stemming from L’Oréal’s “green chemistry” concepts. The molecule was obtained from an endogenous sugar produced by natural beech wood using a direct and optimized synthesis process that is environmentally friendly, according to L’Oréal. Moreover, environmental data indicate that Pro-Xylane is easily biodegradable, not bioaccumulateable and not ecotoxic. L’Oréal calls Pro-Xylane a perfect ex-ample of sustainable and responsible innovation.

“Organic is the biggest category out there right now,” noted Mr. Gedeon. “The problem is that no one has a clear definition of organic and the consumer is very confused by the term.”

For its purposes, Estée Lauder follows National Organic Program guidelines established by the U.S. Department of Agriculture.

Consumer confusion hasn’t stopped the proliferation of cosmetics that are billed as organic, especially in Europe. According to Organic Monitor, a London-based research consultancy, European sales of natural and organic cosmetics have surged more than 20% annually for the past several years and topped $1.2 billion in 2006. Germany is the biggest market for organic cosmetics and is also the toughest. The BDIH (Association of German Industries and Trading Firms) tests and regulates products based on criteria that includes raw materials, animal testing and ecological impact.

Hydroquinone Alternatives

If the organic issue is confusing for many marketers, then the controversy surrounding hydroquinone is absolutely maddening. The material, which is the only FDA OTC skin bleaching active, is now under review by FDA. The material has already been banned in many global markets.

“Beauty companies are researching cosmetic alternatives to visibly brighten skin and improve overall skin tone,” noted Mr. Kalafsky. “Avon has been dedicated to this scientific approach on skin lightening technology, especially in support of our critical Asian business where skin pigmentation concerns are of paramount importance to the consumer.”

Mr. Kalafsky maintains that Avon’s product portfolio offers excellent alternatives including Anew Alternative Photoradiance SPF 15 UVA/UVB and new Solutions Banishing Cream Day SPF 15 UVA/UVB and Banishing Cream Night that contains Avon’s new TDPA technology.

Dermatologists Weigh In

The potential loss of hydroquinone as a skin lightener has dermatologists scrambling too. During an anti-aging webinar held in December on Happi.com, Andrew Alexis, a New York-based dermatologist, noted that Dyschromia (uneven skin tone) is the biggest problem among his Black, Latino and Asian patients.

“There is a lot of room for improvement for products that address dyschromias,” noted Dr. Alexis. “There will be growing demand for topicals for ethnic consumers. We need further research to address their specific anti-aging concerns.”

During the webinar, Zoe Draeolos, a North Carolina-based dermatologist, also complained about the availability of a good pigment lightener. She offered two potential hydroquinone replacements. Soy contains something called soybean trypsin inhibitor, which has been shown to decrease pigmentation. The other is N-acetyl glycosamine. It inhibits the tyrosinase enzyme that produces melanin, but it does not work as well as hydroquinone.

In addition to finding a good hydroquinone replacement, Dr. Draelos called for more research on products that reduce redness. Three promising new ingredients include benzaldehyde, licochalone A and aventhranilides.

While marketers and their suppliers search for a suitable hydroquinone alternative, formulators may soon have to address product efficacy issues too. The January issue of Consumer Reports compared skin care brands across a broad product range. The best performer was Olay Regenerist, which costs less than $20, and the worst? La Prairie Cellular, which retails for $335 an ounce!

But before P&G researchers start patting themselves on the back, Consumer Report staff found that even the best performers reduced the average depth of wrinkles by less than 10%—a magnitude of change that’s barely visible to the naked eye. If today’s better-educated consumer doesn’t see results fast, she’s sure to move on to another brand, observe industry experts.

“The biggest change to hit the cosmetic industry in the past 20 years has nothing to do with technology—it’s the scientific literacy of consumers,” insisted Dan Yarosh, president of AGI. “Twenty years ago, companies weren’t talking about free radicals and antioxidants. Now, these terms are common in advertising and the consumer understands them.”

Despite all their knowledge, 94% of women are confused by anti-aging treatments on the market, according to a recent study by the American Academy of Dermatology. Mr. Yarosh said many cosmetic companies are actually behind the times, when it comes to anti-aging research. He predicted that the successful cosmetic companies of the future will look at mitochondria, cell biology and even DNA.

More Regulations on the Way

Besides winning over the consumer with effective products, marketers and their suppliers must deal with a wide range of rules and regulations that are growing increasingly complex. In a couple of months, the European Union will begin implementing the Registration, Evaluation and Authorization of Chemicals (REACH) legislation.

Many marketers and suppliers insist that they have REACH under control, but Mr. Gedeon worries that the worst of REACH will come next February once pre-registration is over.

“REACH will have a huge impact on innovation,” he insisted. “Companies will have to decide if it is worth spending millions of dollars to get a new material registered.”

If REACH isn’t enough to worry about, there are plenty of other regulations that could have a major impact on cosmetic R&D. Lambros Kromidas, Coty’s vice president of product integrity, said product safety has become a huge concern. He noted that the EU’s Dangerous Substance Directive harmonized the hazard classification and labeling of chemical substances to identify physicochemical hazards. Some widely used cosmetic ingredient substances were listed as a carcinogen, mutagen and/or reproductive toxicant (CMR).

“Alcohol is defined as a carcinogen because if consumed in excessive amounts may cause liver cancer,” he told Happi.
 
As a result, the French Institute National de Recherche et de Securite (INRS) proposed to have ethanol classified as a CMR 1. If ethanol is classified as a CMR 1, the European Commission would be obliged to bring forward a proposal to ban the use of ethanol in cosmetic products.

“Can you imagine the economic, and for that matter, social consequences?” he asked. “It will be interesting to see what will become of this 7th Amendment challenge.”

Mr. Kromidas also noted that formaldehyde has also been listed as a CMR, which may affect the use of certain cosmetic ingredients that are formaldehyde releasers, such as DMDM hydantoin. Parabens too, are under attack—especially in Europe. The Scientific Committee on Consumer Products was not satisfied with the studies submitted by industry and found that the data was insufficient for propyl-, isopropyl-, butyl-, and isobutylparaben. In its opinion last October, the SCCP did not support the branched-chain parabens. 

“Colipa will support future work on the straight-chain parabens, but may not support the branched-chain parabens, noted Mr. Kromidas. “That’s great! Even fewer preservatives to use.”

Is Nano a No-No?

As marketers grapple with the prospect of fewer preservatives on the market, they are also aware that some regulators are even questioning the size of cosmetic ingredient particles. For the past several years, some sun care formulations have contained nano-sized sun blocks. But in recent months, some consumer groups, and a few regulators as well, questioned the safety of this technology.

“Nanomaterial and nanoscale technology will infiltrate every corner of our existence and will revolutionize our existence—it will better our existence,” insisted Mr. Kromidas. “Many nanomaterials are already used in many different consumer products. It will be a shame if this technology is to be unfairly regulated because it is misunderstood.”

Understanding how new technology, growing consumer demands and regulatory issues all play a role in cosmetic research and development has become a key component of the cosmetic chemist’s job description. The most successful companies will learn how to help their R&D staffs manage these new responsibilities effectively.