The skincare market can be divided into segments, each with its own needs and wants. The key to successful marketing is understanding these different segments and targeting them with the right products.

One of the most popular methods for performing market segmentation uses demographic factors like age, gender and income.

Other methods use psychographic factors like lifestyle, motivations, values, likes and dislikes as well as behavioral factors like purchasing habits, how someone intends to use a product or service, how often they will use it, the benefits they seek, or brand preference that they have.

In this article, we perform skincare market segmentation using the following 7 variables: type of skincare product, price range, ingredients, organic (or not), the occasion of use, brand, and gender.

But first, let’s start by understanding why skincare market segmentation is important.

The Importance of Segmentation of the Skincare Market

The segmentation of the skincare market is essential because it allows skin care product manufacturers and retailers to target specific groups of consumers with laser precision.

By understanding the needs and wants of different segments, businesses can create products that are more likely to appeal to them and retailers can stock skincare products that their customers are most likely to buy.

The market for skincare ranges from those looking for a practical everyday cleanser to someone looking for a product to solve a specific skincare issue like acne.

There exist skincare products for every budget, but not all types of skincare products are suitable for all customers and their needs.

By segmenting the market, businesses can identify which type of skincare products are most popular with each group and target their marketing and sales efforts accordingly.

Variables for Skincare Market Segmentation

Skincare market segmentation can be performed along the following 7 axes:

  1. Type of skincare product
  2. Price range
  3. Ingredients
  4. Organic (or not)
  5. Occasion of use
  6. Brand and
  7. Gender


Different people have different needs, wants and motivations for purchasing a product or service.

And so most skincare product manufacturers do not cater to all buyers. Instead, they focus on those segments of the market that are most likely to buy their products.

With market segmentation, they can target specific groups of consumers with tailor-made products or services that satisfy their needs.

It is therefore essential that businesses decide which segments they want to target and then design their products, marketing, and sales strategy accordingly.

Let’s now look in detail at each of the 7 variables used in skincare market segmentation.

#1. Segmentation Based on Type of Skincare Product

People buy skincare products for different reasons. Some want to prevent wrinkles and fine lines, others look to protect their skin from the sun, and still others could be interested in treating acne or other blemishes.

The type of skincare product that someone buys depends on their specific needs and wants and so it is an important variable in skincare market segmentation.

Here are some of the most popular types of skincare products:

  • Cleansers
  • Toners
  • Moisturizers
  • Exfoliators
  • Sunscreens
  • Foundations

#2. Skincare Market Segmentation Based on Price Range

Price is, of course, always a factor that influences consumer behavior.

When it comes to skincare products, there are products available at all price points, from simple creams to expensive serums.

Many people feel that premium skincare products are worth the investment because they last a long time or have special ingredients that offer unique benefits.

However, not all customers will be willing to spend a lot of money on an expensive skin care product, even if they like it.

Businesses need to decide which price point they want to target with their products.

They also need to make sure that their products are priced in line with what their target market is willing to pay.

Skincare product manufacturers and retailers often use price segmentation techniques to maximize their revenue and profit by extracting the most revenue out of each customer based on their willingness to pay.

#3. Segmentation Based on Skincare Ingredients

Whenever a product is ingested or applied to the body, people want to know what it is made of.

With skincare products, this is especially important because people want to avoid using products that contain harmful chemicals or other ingredients that could cause skin problems.

For this reason, skincare market segmentation often includes a focus on the ingredients used in products.

People who have allergies to certain ingredients or who want to avoid using products with chemicals will be particularly sensitive to what’s in the skincare product they purchase.

#4. Segmentation Based on whether the product is Organic (or not)

Continuing the previous point, an important sub-segmentation of skincare products is based on whether they are organic or not.

Organic skincare products are made with ingredients that are grown without the use of pesticides or other chemicals. They are also not tested on animals.

Many people feel that organic and natural skin care products are better for their skin and for the environment. As a result, they are willing to pay more for these products.

Organic skincare products make up a small but growing segment of the skincare market and businesses who choose not to cater to this segment may be missing out on future growth.

#5. Segmentation Based on Occasion of Use

Whether a consumer is an occasional user of skin care products or a daily user is another important variable in skincare market segmentation.

People who only use skincare products on special occasions, like before a big event, are not as interested in purchasing an extensive skincare routine with many different products.

On the other hand, people who use skin care products every day are more likely to be interested in an elaborate skincare routine that includes several steps and products.

Skincare market segmentation based on the occasion of use can help market differently to these different types of uses of skincare products.

#6. Skincare Market Segmentation Based on Brand

Brand loyalty is a big deal in the skincare industry.

People who find a skincare brand they like often stick with that brand for many years, only trying new products from that same brand.

But as people age, their skincare needs change and they may be willing to try new brands that offer products specifically designed for their current skincare needs.

Skincare businesses use these transition points in a person’s life to try and convert them into users and eventually loyal customers of their brand.

#7. Skincare Market Segmentation Based on Gender

A customer’s gender is not an insignificant variable in skincare market segmentation.

Historically, skincare products have been marketed mostly to women and they still make up the vast majority of skincare customers.

However, the skincare industry is starting to see more men interested in their products.

This change in society’s perception of the target market for skin care products has been a dramatic one and skincare businesses have had to adapt their marketing strategies accordingly.


As you can see, the target market for skincare can be segmented using many variables and can be analyzed from different angles.

In this article, we performed skincare market segmentation following these 7 factors: type of skincare product, price range, ingredients, organic (or not), the occasion of use, brand, and gender.

Manufacturers and retailers of skincare products often use market segmentation to better understand their customers and figure out how to appeal to them.

With skincare market segmentation, they can better understand which of their products are likely to sell well and can target their audiences more effectively.