Cosmetics Market Overview and Analysis:
The Cosmetic Market is currently valued at USD 402.8 billion in the year 2022 and is expected to register a CAGR of 6.3% over the forecast period, 2023-2030.
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Cosmetics are constituted mixtures of chemical compounds derived from either natural sources, or synthetically created ones. Cosmetics have various purposes. Those designed for personal care and skin care can be used to cleanse or protect the body or skin.
The rising disposable income levels, especially in emerging economies, have led to increased spending on cosmetics and personal care products and Consumers are increasingly health-conscious and are seeking products with natural and organic ingredients. Thus these factors have fueled the demand for clean and sustainable beauty products.
Cosmetics Market Latest Trends:
Consumers are increasingly seeking products with clean, natural, and sustainable ingredients, resulting in the rise of organic and eco-friendly cosmetics. Brands are offering personalized cosmetics, allowing consumers to tailor products to their specific needs and preferences. Many brands are utilizing AR and virtual try-on tools to enhance the online shopping experience, especially for makeup products. Brands are expanding their product ranges to cater to a broader range of skin tones and types, emphasizing inclusivity and diversity.
Market Segmentation:
The Cosmetic Industry Market is Segmented
By Product Type :
- Color Cosmetics
- Hair Styling
- Coloring Products
Distribution Channel :
- Hypermarkets/Supermarkets
- Specialty Stores
- Pharmacy and Drug Stores
- Online Retail Stores
- Other Distribution Channels
Geography :
- North America
- Europe
- Asia-Pacific
- Rest of the World
The market sizes and forecasts are provided in terms of value in USD billion for all the above segments.
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Market Drivers :
Increasing Disposable Income
The correlation between increasing disposable income and the use of cosmetics is significant. As people's financial resources expand, they are more inclined to invest in cosmetic products, leading to higher consumption within the cosmetics market. This trend is a key driver of growth in the cosmetics industry. Higher disposable income levels enable consumers to purchase cosmetics for gifting purposes and special occasions. For instance, an article published by NCBI in April 2022, reported that in developing countries like India disposable income is increased by 10-12% over the last decade. This includes buying makeup and skincare products as gifts for loved ones and for use at important events like weddings and parties. As a result, the market is expected to witness significant growth over the forecast period
Growing Awareness of Health and Beauty
The growing awareness of health and beauty is a significant catalyst for the increased use of cosmetics. As consumers become more health-conscious and beauty-focused, they are inclined to incorporate cosmetics into their daily routines to support their well-being and enhance their appearance. This trend contributes to the sustained growth of the cosmetics industry. Health and beauty influencers, as well as media coverage on these topics, play a significant role in shaping consumer perceptions. For instance, an article published by the Economic Times reported that the growth of social media influencers over the various social media platforms increased by 27.8% in the year 2022 as compared to the previous years. These trends report that the demand for cosmetics products is significantly increasing. As awareness grows, consumers are more likely to follow beauty trends and use cosmetics to achieve the desired look.
Market Restraints :
Regulatory Hurdles and Environmental Issues
Stringent regulations related to product safety and ingredient restrictions can limit product innovation and market entry for new and smaller brands. The increasing awareness of environmental sustainability has put pressure on the cosmetics industry to reduce packaging waste and develop eco-friendly formulations. Thus, the growth of the market is expected to slow down over the forecast period.
COVID-19 Impact on Cosmetics Market:
The cosmetics market experienced significant disruptions due to the COVID-19 pandemic. Lockdowns and restrictions on movement led to a decline in demand for makeup and fragrances but an increase in skincare and personal hygiene products. E-commerce and digital marketing strategies became essential for cosmetics brands to maintain sales during the pandemic. The pandemic also accelerated the adoption of online consultations and virtual beauty services, further integrating technology into the cosmetics industry. In the current scenario, it is anticipated that the widespread application of cosmetics among the young generation will significantly increase its usage thereby driving the growth of the studied market.
Segmental Analysis :
Color Cosmetics Segment is Expected to Witness Significant Growth Over the Forecast Period
Color cosmetics are a staple in the beauty routines of many individuals, serving both aesthetic and self-expression purposes. Color cosmetics, also known as makeup or decorative cosmetics, are products that enhance or alter the appearance of the face and body. These products are designed to add color, texture, and visual interest to various areas of the skin. Color cosmetics are a significant and diverse segment within the beauty and cosmetics industry. Foundation products, lipsticks, lip glosses, lip liners, and lip balms, Eye makeup products include eyeshadows, eyeliners, mascara, eyebrow products and nail polishes, nail art products, and nail care items etc are some of the products present in this category.
Hypermarkets/Supermarkets Segment is Expected to Witness Significant Growth Over the Forecast Period
Hypermarkets and supermarkets are integral to the cosmetics industry by providing a wide range of products, competitive pricing, convenience, and opportunities for brand exposure. They offer a dynamic retail environment that caters to a diverse customer base, from those looking for budget-friendly options to those seeking premium cosmetics. Thus, the segment is expected to witness significant growth over the forecast period.
North America Region is Expected to Witness Significant Growth Over the Forecast Period
North America is a dynamic and influential region in the cosmetics industry, characterized by a well-informed and diverse consumer base, high disposable income, and a strong presence of beauty influencers and retailers. These factors contribute to the widespread use of cosmetics and the continuous evolution of beauty trends in the region.
The launch of new brands in the region is further contributing to the growth of the studied market. For instance, Celebrity cosmetics brand Rare Beauty is expected to be launched in India by June 15, 2023. The brand, founded by Selena Gomez in 2019, is currently ranked among the top 3 celebrity makeup brands worldwide and focuses on creating awareness around mental health and wellness. This move is expected to significantly boost the brand’s sales, given Selena’s large and growing fanbase in the country.
Moreover, many consumers in North America are mindful of social and environmental issues. Cosmetic companies that align with sustainability and social responsibility values often receive positive attention and usage. Thus, due to the above-mentioned reasons, the market is expected to witness significant growth over the forecast period.
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Cosmetics Market Competitive Landscape:
The Cosmetics Market is highly competitive due to the presence of many industrial players working globally and regionally. Some prominent players in the global cosmetics market include:
Key Players :
- Coty Inc.
- L'Oréal S.A.
- Estée Lauder Companies Inc.
- Revlon, Inc.
- Avon Products Inc.
- Unilever PLC
- Shiseido Company, Limited
- Godrej
- Procter & Gamble
- Beiersdorf AG
- Henkel AG & Co. KGaA
- Kao Corp.
- Hoyu Co., Ltd.
Key Developments:
1. In September 2021, Coty Inc. revealed a strategic partnership with Perfect Corp., signalling its commitment to incorporating cutting-edge AI and AR technologies into the digital marketing strategies of its cosmetic brands.
2. In November 2021, The Estée Lauder Companies Inc. embarked on a collaborative initiative with Florida A&M University to launch a pioneering talent development program. The program's primary objective was to nurture a new generation of black beauty professionals within the travel retail sector, aligning with their dedication to promoting racial equity. This collaboration facilitated the establishment of an exclusive internship and scholarship program in conjunction with Florida A&M University.
Frequently Asked Questions (FAQ) :
Q1. What was the Cosmetics Market size in 2022?
The Cosmetic Market is currently valued at USD 402.8 billion USD in the year 2022.
Q2. At what CAGR is the Cosmetics Market projected to grow within the forecast period?
Cosmetics Market is expected to register a CAGR of 6.3% over the forecast period.
Q3. What are the Growth Drivers of the Cosmetics Market ?
Increasing Disposable Income and Growing Awareness of Health and Beauty are the Growth Drivers of the Cosmetics Market.
Q4. Which region has the largest share of the Cosmetics Market? What are the largest region's market size and growth rate?
North America has the largest share of the market . For detailed insights on the largest region's market size and growth rate request a sample here
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Data Library Research are conducted by industry experts who offer insight on industry structure, market segmentations technology assessment and competitive landscape (CL), and penetration, as well as on emerging trends. Their analysis is based on primary interviews (~ 80%) and secondary research (~ 20%) as well as years of professional expertise in their respective industries. Adding to this, by analysing historical trends and current market positions, our analysts predict where the market will be headed for the next five years. Furthermore, the varying trends of segment & categories geographically presented are also studied and the estimated based on the primary & secondary research.
In this particular report from the supply side Data Library Research has conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and SOFT) of the companies that active & prominent as well as the midsized organization
FIGURE 1: DLR RESEARH PROCESS
Extensive primary research was conducted to gain a deeper insight of the market and industry performance. The analysis is based on both primary and secondary research as well as years of professional expertise in the respective industries.
In addition to analysing current and historical trends, our analysts predict where the market is headed over the next five years.
It varies by segment for these categories geographically presented in the list of market tables. Speaking about this particular report we have conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and many more) of the major players active in the market.
Secondary ResearchSecondary research was mainly used to collect and identify information useful for the extensive, technical, market-oriented, and Friend’s study of the Global Extra Neutral Alcohol. It was also used to obtain key information about major players, market classification and segmentation according to the industry trends, geographical markets, and developments related to the market and technology perspectives. For this study, analysts have gathered information from various credible sources, such as annual reports, sec filings, journals, white papers, SOFT presentations, and company web sites.
Market Size EstimationBoth, top-down and bottom-up approaches were used to estimate and validate the size of the Global market and to estimate the size of various other dependent submarkets in the overall Extra Neutral Alcohol. The key players in the market were identified through secondary research and their market contributions in the respective geographies were determined through primary and secondary research.
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