COSMECEUTICALS: PRODUCTS AND GLOBAL MARKETS

COSMECEUTICALS: PRODUCTS AND GLOBAL MARKETS AVM099A August 2013 Rachel Agheyisi Project Analyst ISBN: 1-56965-518-9 BCC Research 49 Walnut Park, Building 2 Wellesley, MA 02481 USA 866-285-7215 (toll-free within the USA), or (+1) 781-489-7301 www.bccresearch.com information@bccresearch.com

TABLE OF CONTENTS CHAPTER 1 INTRODUCTION 2 STUDY GOALS AND OBJECTIVES 2 REASONS FOR DOING THIS STUDY 2 SCOPE OF REPORT 2 INTENDED AUDIENCE 3 METHODOLOGY AND INFORMATION SOURCES 3 ANALYST'S CREDENTIALS 3 RELATED BCC REPORTS 3 BCC ONLINE SERVICES 4 DISCLAIMER 4 CHAPTER 2 SUMMARY 6 SUMMARY TABLE GLOBAL SALES OF AL AND INJECTABLE COSMECEUTICALS, THROUGH 2017 ($ MILLIONS) SUMMARY FIGURE PROJECTED SHARES OF GLOBAL COSMECEUTICAL SALES BY TYPE, 2012 AND 2017 (%) 6 6 CHAPTER 3 OVERVIEW 9 BACKGROUND 9 INDUSTRY CONCEPTS 10 SKIN STRUCTURE 10 SKIN AGING 10 SKIN DAMAGE 11 SKIN SENSITIVITY 12 HYPERPIGMENTATION 12 IMPORTANCE OF COSMECEUTICALS 12 FORESEEABLE DEVELOPMENTS 13 CHAPTER 4 INDUSTRY CHARACTERISTICS AND REGULATION 15 INTRODUCTION 15 CHARACTERISTICS OF THE GLOBAL COSMECEUTICAL INDUSTRY 15 SNAPSHOT OF THE COSMETICS INDUSTRY 15 TABLE 1 BUSINESS PATTERN OF U.S. TOILET PREPARATION AND MANUFACTURING INDUSTRY (NO./%) HIGHLY COMPETITIVE 16 PERVASIVE PRODUCT DIFFERENTIATION 17 DISTRIBUTION CHANNELS 17 PRODUCT ADVERTISING 17 REGULATORY GUIDELINES FOR THE COSMECEUTICAL INDUSTRY 18 REGULATORY GUIDELINES IN NORTH AMERICA 18 COSMETIC GUIDELINES IN THE U.S. 18 Responsible Regulatory Agency for Cosmetics in the U.S. 18 Regulations Governing Cosmetics in the U.S. 19 Definition of Cosmetics in the U.S. 19 Ingredients Restricted and Prohibited in Cosmetics Sold in the U.S. 19 TABLE 2 INGREDIENTS BANNED FROM COSMETICS SOLD IN THE U.S. 20 16

Regulation of Cosmetic Product Labeling 20 Definition of Adulterated Cosmetics 21 U.S. Recall Policy for Cosmetics 22 Regulatory Action for Drug Claims Made for Products Marketed as Cosmetics Regulation of Cosmetics Imports 23 Nanotechnology and Cosmetics 23 Advertising Cosmetics in the U.S. 24 General Considerations on Product Endorsements in the U.S. 24 Standards for Expert Endorsements in the U.S. 24 The Case of Blog Advertising Service 25 COSMETICS GUIDELINES IN CANADA 26 Responsible Regulatory Agency for Cosmetics in Canada 26 Mandatory Notification of Cosmetic Products 26 Safety of Cosmetic Products and Ingredients: Cosmetic Ingredient Hotlist Labeling of Cosmetic Products 27 Cosmetic Product Advertisement and Claims 27 TABLE 3 EXAMPLES OF ACCEPTABLE AND UNACCEPTABLE CLAIMS FOR CONTOUR CREAMS IN CANADA TABLE 4 EXAMPLES OF ACCEPTABLE AND UNACCEPTABLE CLAIMS FOR EXFOLIANTS IN CANADA TABLE 5 EXAMPLES OF ACCEPTABLE AND UNACCEPTABLE CLAIMS FOR MOISTURIZERS IN CANADA TABLE 6 EXAMPLES OF ACCEPTABLE AND UNACCEPTABLE CLAIMS FOR VITAMINS, MINERALS AND ANTIOXIDANTS IN CANADA REGULATORY GUIDELINES IN EUROPE 30 THE LATEST (NEW) COSMETIC PRODUCTS REGULATION IN THE EU 30 EU DEFINITION OF COSMETIC PRODUCTS 30 EU REGULATION REGARDING PRODUCT NOTIFICATION 31 EU REGULATION REGARDING NANOMATERIALS IN COSMETICS 32 LONG LISTS OF RESTRICTED AND PROHIBITED INGREDIENTS IN THE EU 32 MONITORING OF COUNTERFEIT COSMETIC PRODUCTS IN THE EU 33 FORTHCOMING EU REGULATION ON PRODUCT CLAIMS 33 REGULATORY GUIDELINES IN ASIA-PACIFIC 33 COSMETICS GUIDELINES IN JAPAN 33 Regulation of Cosmetics in Japan 34 Definition of Cosmetics in Japan 34 Standards for Cosmetics in Japan 35 COSMETICS GUIDELINES IN CHINA 35 Responsible Regulatory Agency for Cosmetics in China 35 Legislations Governing Cosmetics in China 36 TABLE 7 REGULATIONS RELATING TO COSMETICS IN CHINA 36 Definition and Classification of Cosmetics in China 36 Determination of Whether an Ingredient is New in China 37 Registration of New Cosmetic Ingredients in China 38 Cosmetic Labeling Requirements in China 38 Exporting Cosmetics to China 39 22 27 28 28 29 29

China Inspection and Quarantine (CIQ) Bureau Inspection of Imported Cosmetics COSMETICS GUIDELINES IN SOUTH KOREA 40 Responsible Regulatory Agency for Cosmetics in Korea 40 Definition of Cosmetics in Korea 40 Regulations of Cosmetics Imports to Korea 40 Revised Korea Cosmetics Act 41 COSMETICS GUIDELINES IN AUSTRALIA 42 Responsible Regulatory Agency for Cosmetics in Australia 42 Definition of Cosmetics in Australia 42 Product-Specific Requirements in Australia 42 TABLE 8 PRODUCT-SPECIFIC REGULATIONS IN AUSTRALIA 43 Australia's Regulation on Cosmetic Product Labeling 43 Regulation of Cosmetic Existing and New Ingredients in Australia 44 FUTURE OF REGULATORY ENVIRONMENT IN THE GLOBAL COSMETICS INDUSTRY 39 44 CHAPTER 5 THE GLOBAL MARKET FOR AL COSMECEUTICALS 47 BACKGROUND 47 CATEGORIES OF AL COSMECEUTICAL INGREDIENTS 47 Antioxidants 47 TABLE 9 EXAMPLES OF ANTIOXIDANTS USED IN COSMECEUTICALS 48 Antibacterial Agents 48 TABLE 10 TYPES OF ANTIBACTERIAL AGENTS USED IN COSMECEUTICALS 49 Anti-inflammatory Agents 49 Barrier-enhancing Agents 49 Botanicals 50 TABLE 11 EXAMPLES OF BOTANICALS USED IN COSMECEUTICALS 50 Depigmenting Agents 50 TABLE 12 EXAMPLES OF DEPIGMENTING AGENTS USED IN COSMECEUTICALS 51 Enzymes 51 TABLE 13 EXAMPLES OF ENZYMES USED IN COSMECEUTICALS 52 Hydroxy Acids 52 TABLE 14 EXAMPLES OF HYDROXY ACIDS USED IN COSMECEUTICALS 53 Marine Actives 53 Moisturizers 54 TABLE 15 EXAMPLES OF MOISTURIZERS USED IN COSMECEUTICALS 54 Peptides 54 TABLE 16 TYPES OF PEPTIDES USED IN COSMECEUTICALS 55 Retinoids 55 Sunscreens 55 AL COSMECEUTICALS BY FUNCTION 57 SAMPLES OF AL COSMECEUTICALS BY FUNCTION 57 TABLE 17 SAMPLE OF AL ANTIAGING COSMECEUTICALS 57 TABLE 18 SAMPLE OF AL DEPIGMENTING COSMECEUTICALS 58 TABLE 19 SAMPLE OF AL APPEARANCE-ENHANCING COSMECEUTICALS 58 SPECIALTY/SPA BRANDS OF AL COSMECEUTICALS 59 Ahava and the Dead Sea Minerals 59

TABLE 20 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM AHAVA 60 Clarins 60 TABLE 21 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM CLARINS 60 Dermalogica 61 TABLE 22 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM DERMALOGICA 61 Garnier 61 TABLE 23 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM GARNIER 62 Jane Iredale 62 TABLE 24 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM JANE IREDALE 63 Obagi Medical Products 63 TABLE 25 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM OBAGI MEDICAL PRODUCTS Origins 64 TABLE 26 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM ORIGINS 64 PCA Skin Care 65 TABLE 27 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM PCA SKIN CARE 65 SkinCeuticals 65 TABLE 28 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM SKINCEUTICALS 66 StriVectin 66 TABLE 29 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM STRIVECTIN 67 RECENT GLOBAL SALES OF AL COSMECEUTICALS 67 INDUSTRY DATA 67 RECENT GLOBAL SALES OF AL COSMECEUTICALS BY PRODUCT FUNCTION TABLE 30 GLOBAL SALES OF AL COSMECEUTICALS BY PRODUCT FUNCTION, 2011 ($ MILLIONS, %) Recent Global Sales of Antiaging Topical Cosmeceuticals 68 Recent Global Sales of Appearance-enhancing Topical Cosmeceuticals FIGURE 1 ESTIMATED MARKET SHARES OF GLOBAL SALES OF AL COSMECEUTICALS BY PRODUCT FUNCTION, 2011 (%) Regional Shares of Recent Global Sales of Topical Cosmeceuticals 70 FIGURE 2 ESTIMATED MARKET SHARES OF GLOBAL SALES OF AL COSMECEUTICALS BY REGION, 2011 (%) MAJOR MANUFACTURERS OF AL COSMECEUTICALS 71 TABLE 31 ADDITION MAJOR MANUFACTURERS OF AL COSMECEUTICALS 71 TABLE 32 MANUFACTURERS OF SPECIALTY AL COSMECEUTICALS 71 PROJECTED GLOBAL SALES OF AL COSMECEUTICALS 72 MARKET DRIVERS AND DRAWBACKS 72 Demographic Trends 72 Science-based Targeted Product Formulations 72 Preparations Targeting Acne 73 Products Targeting Rosacea 73 BB/CC Creams and Other Multifunctional Products 73 Stricter Regulatory Oversight 74 SALES AND MARKET SIZE PROJECTIONS 75 PROJECTED GLOBAL SALES OF AL COSMECEUTICALS 76 Total Global Sales of Topical Cosmeceuticals Through 2017 76 64 68 68 69 69 70

TABLE 33 GLOBAL SALES OF AL COSMECEUTICALS BY PRODUCT FUNCTION, THROUGH 2017 ($ MILLIONS) FIGURE 3 ESTIMATED SHARES OF GLOBAL AL COSMECEUTICAL SALES BY PRODUCT FUNCTION, 2012 AND 2017 (%) Projected Global Sales of Topical Cosmeceuticals by Region Through 2017 TABLE 34 GLOBAL SALES OF AL COSMECEUTICALS BY REGION, THROUGH 2017 ($ MILLIONS) FIGURE 4 ESTIMATED SHARES OF GLOBAL AL COSMECEUTICAL SALES BY REGION, 2012 AND 2017 (%) Projected Global Sales of Antiaging Cosmeceuticals by Region Through 2017 TABLE 35 GLOBAL SALES OF ANTIAGING AL COSMECEUTICALS BY REGION, THROUGH 2017 ($ MILLIONS) FIGURE 5 ESTIMATED SHARES OF GLOBAL ANTIAGING AL COSMECEUTICAL SALES BY REGION, 2012 AND 2017 (%) Projected Global Sales of Appearance-enhancing Cosmeceuticals by Region Through 2017 TABLE 36 GLOBAL SALES OF APPEARANCE-ENHANCING AL COSMECEUTICALS BY REGION, THROUGH 2017 ($ MILLIONS) FIGURE 6 ESTIMATED SHARES OF GLOBAL APPEARANCE AL COSMECEUTICAL SALES BY REGION, 2012 AND 2017 (%) 76 76 77 78 78 79 79 80 80 81 81 CHAPTER 6 THE GLOBAL MARKET FOR INJECTABLE COSMECEUTICALS 84 INDUSTRY OVERVIEW 84 CURRENT U.S. FDA REGULATION ON BOTULINUM TOXIN (BOTOX) 84 TABLE 37 U.S. FDA-APPROVED BOTULINUM TOXIN FOR COSMETIC USE 85 INJECTABLE COSMECEUTICALS BY TYPE 85 BOTOX COSMETIC-THE CURRENT GOLD STANDARD FOR INJECTABLES 85 DYSPORT 86 DERMAL FILLERS-BOTOX ALTERNATIVES (A.K.A. FACIAL AESTHETICS) 87 Types of Dermal Fillers 87 Examples of Commonly Used Dermal Fillers 87 ArteFill Dermal Filler 87 Juvederm 88 Radiesse 88 Restylane 89 RECENT GLOBAL SALES OF INJECTABLE COSMECEUTICALS BY TYPE 89 INDUSTRY DATA 89 RECENT GLOBAL SALES OF INJECTABLE COSMECEUTICALS BY TYPE 90 TABLE 38 GLOBAL SALES OF INJECTABLE COSMECEUTICALS BY TYPE, 2011 ($ MILLIONS/%) Recent Global Sales of Botox-type Cosmeceuticals 90 Recent Global Sales of Dermal Fillers 91 FIGURE 7 GLOBAL SALES OF INJECTABLE COSMECEUTICALS BY TYPE, 2011 (%) 91 Regional Shares of Recent Global Sales of Injectable Cosmeceuticals 91 FIGURE 8 ESTIMATED MARKET SHARES OF GLOBAL SALES OF INJECTABLE COSMECEUTICALS BY REGION, 2011 (%) MAJOR MANUFACTURERS OF INJECTABLE COSMECEUTICALS 92 TABLE 39 MAJOR MANUFACTURERS OF INJECTABLE COSMECEUTICALS 93 90 92

PROJECTED GLOBAL SALES OF INJECTABLE COSMECEUTICALS BY TYPE 93 MARKET DRIVERS AND DRAWBACKS 93 Future Competition to Botox-type Cosmetics 93 Consumer Preferences and Demand 93 Ongoing Regulatory Oversight 94 SALES AND MARKET SIZE PROJECTIONS 94 PROJECTED GLOBAL SALES OF INJECTABLE COSMECEUTICALS 94 Total Global Sales of Injectable Cosmeceuticals Through 2017 94 TABLE 40 GLOBAL SALES OF INJECTABLE COSMECEUTICALS BY TYPE, THROUGH 2017 ($ MILLIONS) FIGURE 9 ESTIMATED SHARES OF GLOBAL INJECTABLE COSMECEUTICAL SALES BY TYPE, 2012 AND 2017 (%) Projected Global Sales of Injectable Cosmeceuticals by Region Through 2017 TABLE 41 GLOBAL SALES OF INJECTABLE COSMECEUTICALS BY REGION, THROUGH 2017 ($ MILLIONS) FIGURE 10 ESTIMATED SHARES OF GLOBAL INJECTABLE COSMECEUTICAL SALES BY REGION, 2012 AND 2017 (%) Projected Global Sales of Botox-type Cosmeceuticals by Region Through 2017 TABLE 42 GLOBAL SALES OF BOTOX-TYPE COSMETICS BY REGION, THROUGH 2017 ($ MILLIONS) FIGURE 11 ESTIMATED SHARES OF GLOBAL BOTOX-TYPE COSMETIC SALES BY REGION, 2012 AND 2017 (%) Projected Global Sales of Dermal Fillers by Region Through 2017 99 TABLE 43 GLOBAL SALES OF DERMAL FILLERS BY REGION, THROUGH 2017 ($ MILLIONS) FIGURE 12 ESTIMATED SHARES OF GLOBAL DERMAL FILLER SALES BY REGION, 2012 AND 2017 (%) 95 95 96 96 96 97 98 98 99 99 CHAPTER 7 TECHNOLOGY AND PATENT ANALYSIS 102 INTRODUCTION 102 COSMETIC DELIVERY METHODS 102 DELCORE DELIVERY SYSTEM FROM CONTIPRO BIOTECH 102 MICROSPONGE DELIVERY SYSTEMS FROM AMCOL 102 Poly-Pore Technology 103 Polytrap Technology 103 MOLECULAR FILM DELIVERY SYSTEMS FROM CENTERCHEM 103 Intelimer 8600 Emulsion Polymer 104 Retinol Molecular Film Fluid 104 NANOTECHNOLOGY IN COSMETICS 104 PATENT ANALYSIS 105 TABLE 44 U.S. PATENTS AWARDED FOR COSMECEUTICAL INGREDIENTS BY TYPE, 2011-2012 (NO./%) TABLE 45 U.S. PATENTS AWARDED FOR COSMECEUTICAL INGREDIENTS BY REGION, 2011-2012 (NO./%) PATENTS RELATING TO ANTIOXIDANTS 106 Sample of Patents Relating to Antioxidants 106 Ampholytic Copolymer Based on Quaternized Nitrogen-containing Monomers 105 106 106

Cosmetic Composition Comprising an Aqueous Extract of Chrysophyllum cainito Pawpaw and Peach Derived Composition 108 Liquid Concentrate for Preserving Cosmetics 108 Cosmetic Use of an Active Agent Capable of Stimulating Tensin 1 Expression 7-hydroxy Chromones as Potent Antioxidants 109 PATENTS RELATING TO BOTANICALS 110 Sample of Patents Relating to Botanicals 110 Composition and Method of Preparing a Tomato-based Topical Formulation for Enhanced Healing of Burns, Ultraviolet and Radiation Erythema Compositions of Marine Botanicals to Provide Nutrition to Aging and Environmentally Damaged Skin Hydrocarbon Mixture and Use Thereof 111 Use of a Brassocattleya marcella Koss Orchid Extract as an Active Agent to Prevent or Delay the Appearance of Signs of Cutaneous Aging Topical Skin Formulations Comprising Plant Extracts 112 Non-therapeutic Methods of Evaluating Skin Neurosensitivity, Kit and Use of a Kit for Implementing the Method Emulsion Cosmetic Compositions Containing Resveratrol Derivatives and Linear or Branched Silicone Modified Green Tea Polyphenol Formulations 114 Topical Compositions for Antiaging and Methods of Using Same 115 Self-adhesive Polymer Matrix Containing Sea Algae Extract 115 Modified Variant Bowman Birk Protease Inhibitors 116 Hand and Body Cream 116 PATENTS RELATING TO BOTOX 117 Sample of Patents Relating to Botox 117 Botulinum Toxin Compositions 117 Transport Protein, which is Used to Introduce Chemical Compounds into Nerve Cells Pharmaceutical Botulinum Toxin Compositions 118 Pharmaceutical Compositions Containing Botulinum Toxin 119 Skin Cosmesis Treatment with Clostridia Neurotoxins 119 Stable Liquid Formulations of Botulinum Toxin 119 PATENTS RELATING TO ENZYMES 120 Sample of Patents Relating to Enzymes 120 Treatment and Composition for Achieving Skin Antiaging Benefits by Corneum Protease Activation Herbal Composition for the Prevention of Wrinkles and Skin Disorders, Methods of Preparing the Same and Uses Thereof Anti-wrinkle Agent 121 Process for Treating the Skin Comprising Applying to the Skin at Least One Composition Comprising at Least One N-aminoacylamide Activator Including Biosurfactant as Active Ingredient, Mannosyl Erythritol Lipid, and Production Method Thereof PATENTS RELATING TO MOISTURIZERS 123 107 109 110 111 112 113 113 117 120 121 122 123

Sample of Patents Relating to Moisturizers 123 Cosmetic or Dermatological Stick 123 Topical Composition, Topical Composition Precursor, and Methods for Manufacturing and Using Cosmetic 124 Microalgae-derived Compositions for Improving the Health and Appearance of Skin Personal Care Compositions that Deposit Hydrophilic Benefit Agents Use of an Extract of the Orchid Vanda coerulea as a Skin Hydrating Agent Urea Compounds that Promote Desquamation 126 Sulfamide Derivatives and Cosmetic Use Thereof 127 PATENTS RELATING TO PEPTIDES 127 Sample of Patents Relating to Peptides 127 Synthetic Peptides for Use as Inhibitors of Neurotransmitter Secretion and as Inducers of Cellular Relaxation Osmoprotective Complexes for Prevention of Intracellular Dehydration in Mammals Compositions and Methods of Their Use for Improving the Condition and Appearance of Skin Prevention of Cellular Senescence in Mammals by Natural Peptide Complexes Skin Care Compositions 130 Oligopeptides and Compositions Containing the Oligopeptides 130 Protective Skin Care Peptides 131 PATENTS RELATING TO RETINOIDS 131 Sample of Patents Relating to Retinoids 132 Photostabilization of Retinoids with Alkoxycrylene Compounds 132 Composition for Restoration of Age Related Tissue Loss in the Face or Selected Areas of the Body Oleaginous Pharmaceutical and Cosmetic Foam 133 PATENTS RELATING TO SUNSCREENS 133 Sample of Patents Relating to Sunscreens 133 Photostabilization of Coenzyme Q Compounds with Alkoxycrylene Compounds Stabilized Glycerin-in-oil Emulsions 134 Personal Care Compositions Having Improved Compatibility and Providing Improved Sun Protection Metal Oxide Composition 135 Dispersions of Inorganic Particulates Containing Alkoxycrylene 135 Powder Makeup Compositions and Methods 136 124 125 125 126 127 128 129 129 132 133 134 CHAPTER 8 COMPANY PROFILES 138 INTRODUCTION 138 MAJOR MANUFACTURERS OF COSMECEUTICALS 138 ALLERGAN, INC. 138 AVON PRODUCTS, INC. 138 BASF SE, COMPANY 139 BEIERSDORF AG 139

ELIZABETH ARDEN, INC. 140 ESTEE LAUDER COMPANIES, INC. 140 JOHNSON & JOHNSON 140 KAO CORPORATION 141 KOSE CORPORATION 141 L'OREAL SA 142 L'Oreal Paris USA 142 MEDICIS PHARMACEUTICAL CORPORATION 142 MERCK & COMPANY 143 PHYSICIANS FORMULA HOLDINGS, INC. 143 PROCTER & GAMBLE 143 REVLON WORLDWIDE CORP 144 ROYAL DSM NV 144 SHISEIDO CO., LTD 144 UNILEVER PLC 145 Unilever USA, Inc. 145 SELECT SPECIALTY BRANDS OF COSMECEUTICALS 146 AHAVA 146 Ahava North America 146 CLARINS USA 146 DERMALOGICA 147 GARNIER 147 JANE IREDALE (A.K.A. IREDALE MINERAL COSMETICS) 147 OBAGI MEDICAL PRODUCTS, INC. 148 ORIGINS 148 PCA SKIN (A.K.A. PHYSICIAN CARE ALLIANCE, LLC) 149 SKINCEUTICALS 149 STRIVECTIN 150

LIST OF TABLES TABLE HEADING SUMMARY TABLE GLOBAL SALES OF AL AND INJECTABLE COSMECEUTICALS, THROUGH 2017 ($ MILLIONS) TABLE 1 BUSINESS PATTERN OF U.S. TOILET PREPARATION AND MANUFACTURING INDUSTRY (NO./%) TABLE 2 INGREDIENTS BANNED FROM COSMETICS SOLD IN THE U.S. 20 TABLE 3 EXAMPLES OF ACCEPTABLE AND UNACCEPTABLE CLAIMS FOR CONTOUR CREAMS IN CANADA TABLE 4 EXAMPLES OF ACCEPTABLE AND UNACCEPTABLE CLAIMS FOR EXFOLIANTS IN CANADA TABLE 5 EXAMPLES OF ACCEPTABLE AND UNACCEPTABLE CLAIMS FOR MOISTURIZERS IN CANADA TABLE 6 EXAMPLES OF ACCEPTABLE AND UNACCEPTABLE CLAIMS FOR VITAMINS, MINERALS AND ANTIOXIDANTS IN CANADA TABLE 7 REGULATIONS RELATING TO COSMETICS IN CHINA 36 TABLE 8 PRODUCT-SPECIFIC REGULATIONS IN AUSTRALIA 43 TABLE 9 EXAMPLES OF ANTIOXIDANTS USED IN COSMECEUTICALS 48 TABLE 10 TYPES OF ANTIBACTERIAL AGENTS USED IN COSMECEUTICALS 49 TABLE 11 EXAMPLES OF BOTANICALS USED IN COSMECEUTICALS 50 TABLE 12 EXAMPLES OF DEPIGMENTING AGENTS USED IN COSMECEUTICALS 51 TABLE 13 EXAMPLES OF ENZYMES USED IN COSMECEUTICALS 52 TABLE 14 EXAMPLES OF HYDROXY ACIDS USED IN COSMECEUTICALS 53 TABLE 15 EXAMPLES OF MOISTURIZERS USED IN COSMECEUTICALS 54 TABLE 16 TYPES OF PEPTIDES USED IN COSMECEUTICALS 55 TABLE 17 SAMPLE OF AL ANTIAGING COSMECEUTICALS 57 TABLE 18 SAMPLE OF AL DEPIGMENTING COSMECEUTICALS 58 TABLE 19 SAMPLE OF AL APPEARANCE-ENHANCING COSMECEUTICALS 58 TABLE 20 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM AHAVA 60 TABLE 21 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM CLARINS 60 TABLE 22 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM DERMALOGICA 61 TABLE 23 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM GARNIER 62 TABLE 24 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM JANE IREDALE 63 TABLE 25 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM OBAGI MEDICAL PRODUCTS TABLE 26 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM ORIGINS 64 TABLE 27 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM PCA SKIN CARE 65 TABLE 28 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM SKINCEUTICALS 66 TABLE 29 EXAMPLES OF SPECIALTY COSMECEUTICALS FROM STRIVECTIN 67 TABLE 30 GLOBAL SALES OF AL COSMECEUTICALS BY PRODUCT FUNCTION, 2011 ($ MILLIONS, %) TABLE 31 ADDITION MAJOR MANUFACTURERS OF AL COSMECEUTICALS 71 TABLE 32 MANUFACTURERS OF SPECIALTY AL COSMECEUTICALS 71 TABLE 33 GLOBAL SALES OF AL COSMECEUTICALS BY PRODUCT FUNCTION, THROUGH 2017 ($ MILLIONS) TABLE 34 GLOBAL SALES OF AL COSMECEUTICALS BY REGION, THROUGH 2017 ($ MILLIONS) TABLE 35 GLOBAL SALES OF ANTIAGING AL COSMECEUTICALS BY REGION, THROUGH 2017 ($ MILLIONS) TABLE 36 GLOBAL SALES OF APPEARANCE-ENHANCING AL COSMECEUTICALS BY REGION, THROUGH 2017 ($ MILLIONS) 6 16 28 28 29 29 64 68 76 78 79 81

TABLE HEADING TABLE 37 U.S. FDA-APPROVED BOTULINUM TOXIN FOR COSMETIC USE 85 TABLE 38 GLOBAL SALES OF INJECTABLE COSMECEUTICALS BY TYPE, 2011 ($ MILLIONS/%) TABLE 39 MAJOR MANUFACTURERS OF INJECTABLE COSMECEUTICALS 93 TABLE 40 GLOBAL SALES OF INJECTABLE COSMECEUTICALS BY TYPE, THROUGH 2017 ($ MILLIONS) TABLE 41 GLOBAL SALES OF INJECTABLE COSMECEUTICALS BY REGION, THROUGH 2017 ($ MILLIONS) TABLE 42 GLOBAL SALES OF BOTOX-TYPE COSMETICS BY REGION, THROUGH 2017 ($ MILLIONS) TABLE 43 GLOBAL SALES OF DERMAL FILLERS BY REGION, THROUGH 2017 ($ MILLIONS) TABLE 44 U.S. PATENTS AWARDED FOR COSMECEUTICAL INGREDIENTS BY TYPE, 2011-2012 (NO./%) TABLE 45 U.S. PATENTS AWARDED FOR COSMECEUTICAL INGREDIENTS BY REGION, 2011-2012 (NO./%) 90 95 96 98 99 105 106

LIST OF FIGURES FIGURE TITLE SUMMARY FIGURE PROJECTED SHARES OF GLOBAL COSMECEUTICAL SALES BY TYPE, 2012 AND 2017 (%) FIGURE 1 ESTIMATED MARKET SHARES OF GLOBAL SALES OF AL COSMECEUTICALS BY PRODUCT FUNCTION, 2011 (%) FIGURE 2 ESTIMATED MARKET SHARES OF GLOBAL SALES OF AL COSMECEUTICALS BY REGION, 2011 (%) FIGURE 3 ESTIMATED SHARES OF GLOBAL AL COSMECEUTICAL SALES BY PRODUCT FUNCTION, 2012 AND 2017 (%) FIGURE 4 ESTIMATED SHARES OF GLOBAL AL COSMECEUTICAL SALES BY REGION, 2012 AND 2017 (%) FIGURE 5 ESTIMATED SHARES OF GLOBAL ANTIAGING AL COSMECEUTICAL SALES BY REGION, 2012 AND 2017 (%) FIGURE 6 ESTIMATED SHARES OF GLOBAL APPEARANCE AL COSMECEUTICAL SALES BY REGION, 2012 AND 2017 (%) FIGURE 7 GLOBAL SALES OF INJECTABLE COSMECEUTICALS BY TYPE, 2011 (%) 91 FIGURE 8 ESTIMATED MARKET SHARES OF GLOBAL SALES OF INJECTABLE COSMECEUTICALS BY REGION, 2011 (%) FIGURE 9 ESTIMATED SHARES OF GLOBAL INJECTABLE COSMECEUTICAL SALES BY TYPE, 2012 AND 2017 (%) FIGURE 10 ESTIMATED SHARES OF GLOBAL INJECTABLE COSMECEUTICAL SALES BY REGION, 2012 AND 2017 (%) FIGURE 11 ESTIMATED SHARES OF GLOBAL BOTOX-TYPE COSMETIC SALES BY REGION, 2012 AND 2017 (%) FIGURE 12 ESTIMATED SHARES OF GLOBAL DERMAL FILLER SALES BY REGION, 2012 AND 2017 (%) 6 69 70 76 78 80 81 92 95 96 98 99