Brands at Every Price Point Tout Anti-Aging Benefits for This Key Segment
The hand lotion market is a surprisingly exciting arena for a customer segmentation example. For Mother’s Day this year, my daughter Emily sent me wonderful high-end hand lotion. The lovely case and lotion pod from Soft Services came in a very “gift-y” box with its strong (and recyclable) cardboard and a clean, aesthetic look. More importantly, the lotion promises to be good for:
- Plumping thining and delicate skin with moisture
- Evening appearance of spotty skin
- Tidy cuticle maintenance
It’s formulated with .05% Retinol, 1% Colloidal oatmeal, 0.5% Panthenol, along with being fragrance-free and a 5.0 pH.
This lovely gift made me want to learn more about the special ingredients available to improve skin health.
Customer Segmentation Example:
Growing US Hand Lotion Market
The US hand lotion market was about $3.8B in 2024 and is expected to grow at an annual rate of about 4% for the next decade.
The growth of hand lotion usage in the US is driven by consumers’ increased interest in and willingness to spend on personal care products. Americans spent 9.7% more on personal care products in 2023 than in 2022. One reason is the innovation in skincare that has benefits beyond simple moisturizing, including anti-aging and anti-inflammation. Additionally, the clean ingredient trend is helping with this growth. In 2021, one out of three beauty products in the US were labeled “clean,” and skin care products were 40% of all natural and organic beauty products.
Hand Lotion Customer Segmentation Example:
Active Ingredients and What They Do
Hand lotions have moved from their humble beginnings of homemade lotions made from animal fats, beeswax, and herbs. The top-billed ingredient in my hand lotion gift is retinol. While retinol has been used for its anti-aging properties since the 1980s, it was not until 1995 that this was clinically proven. Retinol works by stimulating collagen production, thickening the outermost skin layers and increasing the rate of skin cell turnover. The result is the reduction of lines and wrinkles and the increase of skin firmness. And, retinol is not the only active ingredient with positive functional benefits:
| Hand Lotion Active Ingredients | Functional Benefit |
| Retinol | Stimulates collagen production, thickens the outermost skin layers and increases the rate of skin cell turnover |
| Glycerin | Improves surface skin hydration by attracting water from deeper skin layers and the air |
| Shea Butter | Softens rough skin |
| Petrolatum | Increases surface skin hydration by preventing 99% of water loss from skin |
| Niacinamide | Brightens and evens skin tone by reducing inflammation |
| Ceramides | Restores the skin barrier to lock in moisture |
| Panthenol (B5) | Soothes irritation and improves skin softness and elasticity |
| Urea | Hydrates and helps remove dead skin |
| Dimethicone | Smooths skin and improves hydration |
| Allantoin | Reduces skin irritation |
| AHA (Alpha hydroxy acids like lactic, glycolic, citric, and tartaric acids) | Reduces fine lines, wrinkles, irregular pigmentation, and age spots and shrinks enlarged pores |
| Salicylic acid | Improves the texture and color of sun-damaged skin by removing dead skin |
| Hydroquinone | Lightens hyperpigmentation, such as dark spots and age spots |
| Hyaluronic acid | Improves skin elasticity by improving skin hydration |
These functional benefits are not just to improve how you look. They are also used for serious skin conditions like eczema. Psoriasis has a different set of active ingredients (coal tar, calamine, hydrocortisone, menthol, salicylic acid) than usually found in hand lotion.
Functional Benefit Driven Customer Segmentation Example
Based on the benefits of different active ingredients, a customer segmentation example of functional benefits emerges. These consumers seek specific results from their hand lotion:
- Moisturizing
- Repairing & Protecting
- Anti-Aging
- Therapeutic
- Price tier from value-priced, professional-grade, mid-level to luxury
- Natural/organic ingredients based versus chemical ingredients
- Gender focus: Men
Focus on Anti-Aging Hand Lotion:
A Lotion at Every Price Point
As a customer segmentation example, the benefits of anti-aging hand lotions can be obtained at any price point. I sourced the following brands on Amazon, June 15, 2025.
While I will be enjoying my luxury brand hand lotion, I know that I don’t have to spend a fortune to get the anti-aging benefits of retinol in my hand lotion in the future. But I welcome any such gifts in the future!
Insight to Action has tracked the growing personal care market from several angles. We’ve explored “Growth Strategy Example: Glossier Black Cherry,” highlighted “Brand Strategy Example: Sephora,” and dove into “Brand Strategy Example: Gen Z Glows Up with e.l.f. Cosmetics.” Check out those resources, and contact us to start a conversation about growing your brand.
