Cosmetics Market Growth Prospects: Demand Trends, Player Strategies, and Future Outlook
The global cosmetics market size was valued at USD 313.22 billion in 2023 and is projected to grow to USD 417.24 billion by 2030, exhibiting a CAGR of 4.2% during the forecast period. Asia Pacific dominated the global market with a share of 37.55% in 2022.
List of Key Players Profiled in the Cosmetics Industry Report:
T... moreCosmetics Market Growth Prospects: Demand Trends, Player Strategies, and Future Outlook
The global cosmetics market size was valued at USD 313.22 billion in 2023 and is projected to grow to USD 417.24 billion by 2030, exhibiting a CAGR of 4.2% during the forecast period. Asia Pacific dominated the global market with a share of 37.55% in 2022.
List of Key Players Profiled in the Cosmetics Industry Report:
The Estée Lauder Companies Inc. (New York, U.S.)
Beiersdorf AG (Hamburg, Germany)
Shiseido Co., Ltd. (Tokyo, Japan)
Coty Inc. (New York, U.S.)
Natura & Co. (São Paulo, Brazil)
Kao Corporation (Tokyo, Japan)
Johnson & Johnson Services, Inc. (New Jersey, U.S.)
L’Oréal S.A. (Paris, France)
Unilever (London, U.K.)
Procter & Gamble Co. (Ohio, US)
Market Segmentation:
By category, the market is segmented into hair care, skincare, makeup, and others. By gender, it is bifurcated into men and women. By distribution channel, it is divided into specialty stores, hypermarkets/supermarkets, online channels, and others. Finally, based on region, the market is categorized into North America, Europe, Asia Pacific, and the rest of the world.
COVID-19 Impact
The cosmetic industry was negatively impacted by the COVID-19 pandemic. The manufacturers witnessed a decline in their sales, and the consumers' purchasing patterns also witnessed a change. For instance, Estee Lauder's report published in April 2020 stated that most of the retail stores had to be closed since mid-March 2020 across its operating regions, including The Americas and Europe, and the Middle East & Africa. Moreover, the company production unit in Whitman, the U.K., started manufacturing hand sanitizers under the company’s brand Jo Malone London.
Further, a rapid shift towards online channels was seen, as the retail stores were closed. According to L'Oréal's 2020 annual results published in February 2021, the company’s sales increased by 62% for e-commerce across all divisions and all regions, accounting for about 26.6% of the total company’s sales for 2020.
Factors Affecting the Growth of the Cosmetics Market:
Several factors can affect the growth of the Cosmetics Market. Some of these factors include:
Increasing Disposable Income: Rising disposable income levels among consumers, particularly in developing countries, have contributed to the growth of the cosmetics market. As people have more money to spend on non-essential items, they are willing to invest in cosmetics and personal care products.
Changing Consumer Preferences: Consumer preferences have shifted towards a greater focus on personal grooming, beauty, and self-care. There is a growing demand for cosmetics that enhance physical appearance and cater to specific skin types or concerns. This change in preferences has fueled the growth of the cosmetics industry.
Influence of Social Media and Influencers: The advent of social media platforms and the rise of beauty influencers have had a significant impact on the cosmetics market. Consumers now have access to a wide range of beauty-related content, product reviews, and tutorials. Social media platforms provide a platform for cosmetic brands to engage with their target audience and promote their products, leading to increased sales.
Technological Advancements: Advancements in technology have revolutionized the cosmetics industry. Innovations such as improved formulations, advanced manufacturing processes, and product customization options have expanded the product offerings and improved the quality of cosmetics. Technological advancements also enable companies to market their products more effectively, reach a wider audience, and provide personalized recommendations.
Growing Men's Grooming Segment: The men's grooming segment has witnessed substantial growth in recent years. Men are increasingly conscious of their appearance and are willing to invest in grooming products. Cosmetic companies have recognized this trend and have launched specific product lines targeting the male demographic, contributing to the overall growth of the cosmetics market.
Increasing Awareness of Health and Wellness: There is a growing awareness among consumers about the importance of maintaining healthy skin and overall well-being. This has led to an increased demand for cosmetics that contain natural and organic ingredients, are free from harmful chemicals, and offer skincare benefits. The focus on wellness and sustainability has prompted cosmetic companies to develop and promote products that align with these values.
Expansion of E-commerce: The rise of e-commerce has significantly impacted the cosmetics industry. Online platforms provide consumers with convenience, a wider product selection, and the ability to compare prices and reviews. E-commerce has opened up new market opportunities for cosmetic brands, especially small and niche players, enabling them to reach global consumers and compete with established brands.
Urbanization and Globalization: Rapid urbanization and globalization have influenced the growth of the cosmetics market. As more people move to urban areas and experience exposure to global beauty trends, their demand for cosmetics increases. Cosmetics brands are expanding their presence in urban centers and leveraging global marketing strategies to cater to this growing consumer base.
These factors collectively contribute to the growth and evolution of the cosmetics market, making it a dynamic and competitive industry.
What does the Report Provide?
The market report offers a comprehensive examination of various aspects, encompassing key drivers and restraints poised to influence growth. Furthermore, it furnishes insights into regional analysis spanning diverse territories, pivotal in driving market expansion. Additionally, it delves into the competitive landscape featuring prominent entities and their strategic initiatives in product innovation, partnership announcements, and collaborative endeavors aimed at bolstering market progression.
Driving Forces
The surge in demand for personalized beauty and skincare solutions has spurred manufacturers to integrate customization and digitalization into cosmetic offerings, aiming to cater to evolving consumer preferences. For instance, L’Occitane Group unveiled its personalized range, Duolab, in February 2020, leveraging AI technology to assess skin conditions and deliver tailored face care solutions through freshly blended creams. Thus, heightened grooming awareness coupled with technological strides is anticipated to underpin the cosmetics industry's growth trajectory in the foreseeable future.
Regional Perspectives
Asia Pacific is poised to command market dominance, buoyed by escalating urbanization, improved standards of living, a burgeoning working female demographic, and an expanding middle-class populace. Conversely, North America is slated for positive growth, fueled by rising disposable incomes, robust purchasing power among consumers, and the proliferation of beauty product retail outlets. Notably, Sephora, a leading cosmetics retail chain, unveiled plans for expansive growth in February 2020, including the launch of approximately 100 new stores across North America by 2020, further propelling market expansion.
Competitive Dynamics
Market consolidation is evident among major players, as they strive to fortify their market presence through a gamut of strategies encompassing new product launches, collaborative ventures, and strategic acquisitions. These concerted efforts are anticipated to bolster market resilience and enhance competitive standing.
Industry Highlights:
February 2023: Shiseido Company Limited announced the launch of two new moisturizers from SIDEKICK, its skincare brand that focuses on common skin concerns that young men face.
December 2022: Beiersdorf AG acquired a majority stake in S-Biomedic NV, a Belgium-based life-science company. With this acquisition strategy, the company will be able to strengthen its expertise in the field of acne treatment.
