Sales of skin care products - including face care, body and hand care and depilatories and sun care products - are expected to grow steadily throughout the rest of the decade, according to the report.
Although the US, Japan and Western European countries are currently the largest markets, the emerging markets are expected to lead future growth.
Furthermore, the report notes that skin care products are becoming increasingly complex and sophisticated with ever more tailored ingredients leading to super niche products.
China and Brazil are the new big players
In 2007, 75 per cent of skin care products sales were attributable to Europe, Asia-Pacific and the US, however the report predicts that future growth will be driven by the Asia-Pacific countries.
China is the giant of the region and is predicted to account for 32 per cent of regional sales by 2010.
Furthermore, Brazil is highlighted as the strong player in the Latin America region.
The European market is predicted to grow at a slower rate than others and the report notes that much of this growth will result from an increase in sales of sun care products.
Naturally sophisticated anti-aging solutions The skin care market is still very much dominated by facial care products in the US, according to the market research company, of which a majority are anti-aging solutions.
The report notes that an aging population and a continued emphasis on personal grooming combined with increased consumer affluence is pushing global growth.
As an established market the anti-aging category is currently undergoing increasing segmentation with highly tailored products appearing on the market.
Examples from 2007 include Sederma's Ovaliss ingredient designed to fight double chins, Jan Marini Skin Research's Transformations product designed to fight menopausal acne, which was released this week, and a number of ranges designed for individuals recovering from cosmetic surgery.
Trend towards naturals and more sophisticated products This increasingly segmented market is being shaped by two important trends of the moment - the trend for natural products and the move towards increasingly sophisticated formulations that play on medical and scientific claims and images.
The report references these two trends stating that: "Natural and therapeutic products are finding increased application in categories such as sun care and face care."
A number of the major ingredients suppliers have tapped into these growing trends throughout 2007 and the early part of 2008.
Earlier this week, Germany-based Cognis bought into one of the world's largest natural actives database in order to further its portfolio of bioactive natural ingredients.
In addition, Swiss-based Mibelle has recently launched an anti-aging ingredient based on the stem cells of a rare Swiss apple combining both the trend for both natural ingredients and therapeutic use of stem cells that is tipped as the sector's next big development.