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Research Outline

Prepared for Paul J. | Delivered March 13, 2020

Sunscreen and Skincare for African Americans

Goals

This research aims to identify the following:
1. The market potential of an athlete/celebrity driven sunscreen product specifically marketed to the African American consumer.
2. What the current size of the sunscreen market is, both globally and domestically.
3. If the sunscreen market growing or contracting (with reasons why and by how much).
4. What the potential size of the sunscreen market is.
5. What the current trends are in the sunscreen market, i.e. everyday use vs. beach use, safe ingredients, educating consumers, etc.?
6. What the size of the African American skincare market is.
7. What the size of the African American lotion market is.
8. What the size of the African-American sunscreen market is.
9. What the consumer product spending habits of African-American’s are.
10. Size of the African-American spending power.
11. What product categories African-American‘s over-index.
12. Sunscreen products that are currently on the market specifically marketed to African-American’s and what their revenues are.
This will be used for a business pitch to create a celebrity-driven sunscreen, targeted to the African-American market.

Early Findings

  • In 2017, African-American consumers in the U.S. spent about 465 million U.S. dollars on skincare products.
  • A survey by the Skin Cancer Foundation found that 63% of African Americans have never used sunscreen products.
  • African-American buying power was estimated at $1.3 trillion in 2018. "The African-American market has seen a 114% increase in buying power since 2000."
  • The U.S. sunscreen manufacturing industry had a revenue of $399 M in 2019.

Spending Habits of African Americans

  • According to a 2019 Nielsen report, "African Americans outspend the total market on personal soap and bath needs by nearly 19% ($573.6 million)."
  • "Blacks are 20% more likely than the total population to say they will 'pay extra for a product that is consistent with the image they want to convey.'"
  • African Americans account for almost 90% of the overall spend in the ethnic hair and beauty aids category.
  • "42% of Black adults expect brands they purchase to support social causes."
  •  35% of African American shoppers are more likely to buy a product "when a celebrity designs it.”
  • A 2018 Nielsen report found that "black shoppers spent $473 million in total hair care and made other significant investments in personal appearance products, such as grooming aids ($127 million) and skincare preparations ($465 million)."

Sunscreen Products in the Market

Bolden

  • Bolden is a skincare brand designed by Chinelo Chidozie and Ndidi Obidoa for people of color through its formulated SPF 30 brightening moisturizer. Their product does not include zinc oxide and titanium oxide, which leaves a residue causing a pasty effect in regular sunscreen when applied.

Black Girl Sunscreen

  •  Black Girl Sunscreen was created by Shontay Lundy in 2017. The sunscreen is an SPF-30 product that contains cocoa butter and avocado.

Summary

  • For the initial hour, we tried identifying as much of the requested information as possible. We were able to identify some early insights on the African-American buying power, their purchasing habits, sunscreen use, the size of the US sunscreen industry by revenue, and sunscreen products that are formulated for African-Americans.
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