The global sun protection products market is highly competitive with key industry players adopting various strategies such as product launches and expansions to strengthen their market positions. Most companies in the market are focused on expanding operations across regions, augmenting their capabilities, and building strong partner relations.
The growth of market players is dependent on market conditions, government support, and industry development. Thus, vendors should focus on expanding geographically and improving product quality. Johnson & Johnson Services Inc, L’Oreal S.A.., The Estee Lauder Companies Inc, Revlon Inc, Shisiedo Co. Ltd, Avon Products Inc, Groupe Clarins, Amway, Lotus Herbals Pvt. Ltd., Edgewell Personal Care Company, Beiersdorf AG, Procter & Gamble Company, and Unilever are the major companies in the market, who compete based on market presence, quality, and price.
The key players are taking steps toward business expansions and entering into untapped markets, thereby increasing their consumer bases. The international players may strengthen their presence worldwide through acquisitions during the review period. It has also been forecast that improvements in the global economic scenario and the growing sun protection products industry in emerging nations are fueling market growth, thereby making it an ideal time for players to launch new products and increase their global market shares.
Michael Porter’s Five Forces model offers a framework to study the global sun protection products market. Strategic business managers, trying to gain an edge over competitive firms in the global sun protection products market, can utilize this model to better comprehend the industry in which the company operates. The components of each of the forces and the degree of impact of each component in the context of the global sun protection products market have been broken down and analyzed.
Threat of New Entrants
The global sun protection products market is large and highly competitive. The initial investments required are high and include processing equipment costs. The revenues are also high considering the high demand for sun protection products in various forms and packaging across the globe.
The global sun protection products market is fragmented owing to the presence of established players, along with local and regional players. The new players need to invest highly in creating their brand identity through strategies such as innovative formulations, designs, and producing quality products with the help of advanced technology. Moreover, the initial set up costs are quite high, including the cost of space and advanced machinery.
Hence, the threat of new entrants in the global sun protection products market is expected to be moderate.
Bargaining Power of Suppliers
Numerous suppliers provide the raw materials required to produce sun protection products. Thus, manufacturers can easily switch between suppliers as they are not dependent on a single supplier, which reduces their operational risks. The suppliers are not only concentrated in one region but have a cross-regional presence, which decreases the switching costs.
Hence, the bargaining power of suppliers in the global sun protection products market is expected to be low.
Threat of Substitutes
Sun protection products have no available substitutes. Sunscreens are essential and have become a necessity to protect the skin from harmful UV rays. However, the market is highly fragmented and faces intense internal competition at the quality, price, SPF rating, and convenience levels. For instance, consumers are substituting cream sunscreens with sprays or roll-on sticks based on their convenience and the comparative cost benefit. Thus, there are chances of product substitution at an internal level based on raw material, price, and packaging.
Hence, the threat of substitutes in the global sun protection products market is expected to be low.
Bargaining Power of Buyers
The presence of large industrial players in the global sun protection products market has attracted a wide consumer base. Due to a large number of existing manufacturers in the market, the switching costs for consumers are low. Consumers are also well-informed about the products and their brand loyalty is low. Moreover, most of the consumers are price sensitive and tend to switch to offerings with a comparatively lower price.
Hence, the bargaining power of buyers in the global sun protection products market is expected to be high.
Industry Rivalry
The global sun protection products market is marked by high industry rivalry. Established players are targeting their competitors in terms of quality and price, making the industry competitive, reducing profit margins for all the existing firms. Additionally, players operating in the market are competing based on customized offering and technological advancements. Owing to the wide scope for growth in the global sun protection products market, numerous players are entering the market at the regional level, which increases the market competition between global players and local vendors.
Players in the global sun protection products market have moderate production capacities and focus on strategic investments. Major manufacturers are inclined to enhance their production capacities, especially in emerging economies, owing to the high demand for the products.
Hence, the rivalry in the global sun protection products market is expected to be high.
