What do you get when you cross a pharmaceutical with a cosmetic product? No, it’s not a bad joke—cosmeceuticals have taken the natural products industry by storm and show no sign of fizzling out anytime soon.

During the period of 2014 to 2019, the global cosmeceuticals market is projected to grow at a CAGR of 8.62 percent, according to a new report by Research and Markets. Cosmeceuticals, or cosmetics with medicinal benefits, continue to revolutionize the world of hair, lip, tooth and skin care by offering safe and natural ingredients for consumer’s personal use.

The latest report predicts new ingredients will continue developing in this sector—from plant stem cells to peptides and beyond. In addition, increasing urbanization and per capita expenditure in developing countries has caused an increase in demand for cosmetic products. As populations’ disposable incomes grow, so do their appetites for quality health and hygiene products. For example, countries in the Middle East offer huge market potential for the global cosmeceutical sector.

In addition, the report indicates strong vendor competition may threaten the survival of medium and small vendors within the market. Some of today’s key vendors include Beiersdorf, L'Oréal, P&G and Unilever Group.

Last year, information from The Freedonia Group indicated cosmeceuticals were the fastest-growing part of the cosmetics market, with consistent growth recorded during the past 10 years. The group predicted cosmeceutical demand within the United States alone would hit $8.5 billion in 2015, with the average consumer being a woman over age 35 with a disposable income.

A 2013 report by RNCOS Business Consultancy Services (“The Cosmeceutical Market – Current and Future Outlook") illustrated cosmeceuticals’ market share within the global cosmetics market will grow from 13 percent in 2012 to 16 percent in 2017. When broken down by region, the global cosmetics market is led by Asia Pacific (34 percent), followed by the Americas (33 percent), Europe (29 percent) and the Middle East and Africa (4 percent). In 2017, 62 percent of the cosmeceuticals market will consist of skin care, followed by hair care (15 percent) and injectables (4 percent), according to the report.

Find out more about cosmeceutical market predictions, the latest ingredient research and best formulation practices by downloading INSIDER’s Digital Issue “A New Standard of Beauty."