Liposomes are nano-sized particles resembling biomembranes and have a very high affinity for the skin. They can easily penetrate through the hard horny layer of the skin. Based on this feature, active ingredients can be incorporated into liposomes to enhance their absorption by the skin and thus their efficacy. In fact, liposome-encapsulation largely reduces the amount of the active ingredient required for effectivness as compared to non-encapsulated, pure active ingredients. Examples of such encapsulated functional ingredients include coenzyme Q10 and ceramides.