The global anti-acne market is on a tear. According to Grand View Research, the category was valued at US$4.13 billion in 2021 and is expected to hit US$8.91 billion by 2030.
Masks, creams, ointments and lotions are the preferred choices in the OTC acne treatment market. The sector exploded during the pandemic as stress, anxiety and the wearing of face masks accelerated the incidence of acne worldwide.
Church & Dwight, the parent company of Batiste dry shampoo and Nair hair removal, have taken a major tilt at the lucrative anti-acne market with the acquisition of Hero Cosmetics for US$630 million.
Korean-born Ju Rhyu co-founded Hero Cosmetics in 2017. Its core launch product was the Mighty Patch, a hydrocolloid anti-acne patch. The US brand has become the number one product in the skincare and acne care categories on Amazon and one box of patches sells every three seconds in the US.
Other patches and anti-acne products have joined the original patch and the brand’s sales in the US reached US$115 million in 12 months to June 30th this year.
The Mighty Patch is also sold in leading retailers such as Ulta Beauty and Target. But Church & Dwight plan to extend its distribution in the US and leverage international expansion.
The acquisition follows Church & Dwight’s corporate strategy of buying the number one or number two brand in a category. In late 2021, for example, the multinational bought TheraBreath, the number two brand in the alcohol-free mouthwash category in the US, for US$580 million in cash.
Mighty Patch will join Church & Dwight’s Speciality and Skin portfolio, alongside Nair, Batiste, Viviscal hair growth supplements and Toppik hair thickening fibres.
Anti-acne patches have become particularly popular with younger consumers. Globally, more than 95 per cent of boys and 85 per cent of girls suffer from pimples and breakouts in their teens and more than 40 per cent continue to suffer during adulthood.
Matthew T. Farrell, CEO of Church & Dwight, described the Hero Cosmetics buyout as a powerful addition to the company’s stable. Ju Rhyu and other senior executives will continue to run the business under its new ownership.