The Cosmetics market is expected to grow from US$ 262,210 million in 2022 to US$ 367,687 million by 2030; it is expected to record a CAGR of 4.6% from 2022 to 2030.
Market Insights and Analyst View:
Cosmetics are formulated to improve beauty and enhance physical appearance. They encompass various types, such as haircare, skincare, care, and color cosmetics. Traditionally, cosmetic products have been manufactured by using artificial ingredients. However, due to the growing consumer preference for natural and organic sources, manufacturers increasingly incorporate natural ingredients into cosmetics production to promote a more desirable aesthetic. Additionally, it is anticipated that the rising desire for natural and organic cosmetics products will also increase the demand for cosmetics and is expected to drive the cosmetics market growth.
Growth Drivers and Challenges:
In recent times, hair and skin care awareness has increased significantly among consumers across the globe. Consumers are seeking products that help them look youthful. Due to increased disposable income, consumers are willing to spend a tremendous amount on skincare and haircare products that make their skin appear healthy and radiant. People also spend extensively on cosmetics and personal care products as they are conscious about their appearance in social settings. Due to the increasing pressure to look good in an image-focused society, people are dedicated to researching the best products for their skin type. Per the data published in L'Oréal's 2020 annual report, the global beauty markets witnessed a growth rate of 8% in 2019. This shows the rising expenditure on personal care and beauty products globally, boosting the demand for cosmetics worldwide.
Moreover, the increasing adoption of organic ingredients in cosmetics boosts the demand for organic, natural, and clean-label cosmetics as consumers become more aware of the adverse effects of synthetic and chemical ingredients used in product formulation. Thus, consumer preference for organic cosmetics over chemically infused products is associated with growing knowledge about these products and their beneficial effects on the skin, which is further fuelling the cosmetics market expansion.
People increasingly prefer online retail platforms for purchasing cosmetics such as moisturizers, creams and lotions, cleansers, makeup products, fragrances, etc. Consumers across the globe are becoming confident about purchasing these products online, moving from the traditional try-and-buy purchasing model to a buy-and-try model. Moreover, online sales of cosmetics and personal care products grew significantly during the COVID-19 outbreak due to the closure of brick-and-mortar stores and the government's imposition of social restrictions. As lockdowns constrained people's movement and people were compelled to work from their homes, there was a substantial shift to online shopping. Thus, growing online shopping preferences are expected to drive the cosmetics market growth across the globe.
Strategic Insights
Report Segmentation and Scope:
The "Global Cosmetics Market" is segmented based on product type, category, distribution channel, and geography. Based on product type, the cosmetics market is segmented into skincare products, hair care products, fragrances & deodorants, makeup and color cosmetics, and others. based on category, the market is bifurcated into men and women. In terms of distribution channels, the market is classified into supermarkets and hypermarkets, specialty stores, online retail, and others. The cosmetics market based on geography is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America)
Segmental Analysis:
The cosmetics market is segmented based on product type into skin care products, hair care products, fragrances & deodorants, makeup and color cosmetics, and others. The skincare segment holds a significant market share and is projected to register a significant CAGR in the cosmetics market during the forecast period. Consumers are using skincare products earlier as they become more aware of skin issues and treatments, helping the cosmetics market grow. The rising skin diseases among both men and women population and growing awareness about anti-aging are expected to fuel the demand for skin care products. Moreover, an increasing number of women are opting for anti-aging products like L'Oreal Revitalift, Avon Anew Sensitive+, Caudalie Premier Cru anti-aging cream moisturizer with hyaluronic acid, and many more, which make up a significant sector of the skincare products. These factors are expected to drive the segment's share in the forecast period.
Moreover, the hair care segment also holds a significant share of the cosmetics market. Dry and itchy scalp, dandruff, hair loss, and damaged hair are some of the primary concerns that trigger any individual. According to the report of the American Academy of Dermatology, approximately 30 million women in the US suffer from hereditary hair loss problems and increasingly spend on hair care products. Furthermore, the rising demand for natural/organic products for personal grooming purposes has become one of the major concerns for individuals. Thus, manufacturers are launching hair care products infused with organic ingredients. For instance, in May 2021, AVA Group's flagship brand, Medimix, launched a shampoo with natural ingredients, Total Care Shampoo, as part of its reputable line of beauty products. These factors are expected to boost the demand for hair care products and are anticipated to propel the cosmetics market size.
Regional Analysis:
Based on geography, the cosmetics market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The cosmetics market in North America is significantly growing with the thriving personal care & cosmetic industry. Further, there is a growing trend of using natural, vegan, and organic cosmetic products amongst consumers in the region due to a growing preference for chemical-free products, which tends to increase the sales of natural and organic cosmetics. Increasing cases of graying hair and early aging among the youth population due to lack of nutrition increases the sales of hair care and skin care products. The Estee Lauder Companies Inc., L'Oréal S.A., and Johnson & Johnson Services Inc. are some of the well-established players in cosmetic products in North America. These factors are expected to generate lucrative opportunities for the cosmetics market growth in the region.
Industry Developments and Future Opportunities:
Various initiatives taken by key players operating in the cosmetics market are listed below:
1. In December 2021, L'Oréal S.A. signed an agreement to acquire 'Youth to the People,' a California-based skincare company. Youth to the People develops and sells high-performance skincare products comprising premium vegan superfood extracts and science blends.
2. In January 2022, Galderma, the well-established dermatology company, completed the acquisition of Alastin Skincare Inc., a specialty aesthetics company dedicated to developing innovative skincare products that are clinically tested physician-dispensed.
3. in June 2022, Biologi, an Australian clean cosmeceutical business, unveiled an anti-pollution serum with a wild-harvested extract containing vitamin C, niacinamide, and salicylic acid.
4. In September 2021, Symerise Cosmetic Ingredients partnered strategically with Kobo to expand the cosmetic business.
5. Beiersdorf AG's NX NIVEA Accelerator expanded its presence in China and selected the top five startups for a new program in Shanghai in July 2021. The brand signed a partnership agreement with China's leading e-commerce platform, Tmall, and is focusing on collaborating with beauty startups from the areas of indie brands, beauty technology, personalization, and platform business models with a high degree of digitalization.
6. In June 2022, Absolutely Ayur launched a hair color shampoo. The brand claims that the shampoo would make hair coloring easier as it takes less than 10 minutes to color it.
7. In March 2021, Colorbar launches a customizable makeup palette which includes 12 custom-designed cases and a selection of eyeshadow, highlighters, and blushers. The company aims to increase profitability and provide more options for consumers.
COVID-19 Impact:
The COVID-19 pandemic affected almost all industries in various countries. Lockdowns, business closures, and travel restrictions in North America (NA), Europe (EU), Asia Pacific (APAC), South & Central America (SAM), and the Middle East & Africa (MEA) restrict the growth of several industries, including the personal care and cosmetic industries. The shutdown of production units negatively impacted the global supply chains, delivery schedules, manufacturing activities, and nonessential and essential product sales. In 2020, various manufacturing companies witnessed delays in deliveries and a slump in sales of end products.
Moreover, bans imposed by governments of various European countries, Asia Pacific, and North America on international travel compelled companies to temporarily discontinue their partnership and collaboration plans. All these factors impede various industries in 2020 and early 2021, thereby hampering the growth of cosmetics market growth. However, by the end of 2021, many countries were fully vaccinated, and governments announced relaxations in certain regulations, including lockdowns and travel bans. The relaxation of trade restrictions aided in import and export operations, positively impacting the cosmetics market growth.
Competitive Landscape and Key Companies:
A few of the prominent players operating in the global cosmetics market include L'Oréal Paris, Procter & Gamble, Unilever, SHISEIDO PROFESSIONAL INC, LVMH, AMOREPACIFIC US, INC, Beiersdorf, Estée Lauder Inc., Kao Corporation, Revlon among others. These market players are adopting strategic development initiatives to expand, further driving the cosmetics market growth.
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
1.L'Oréal Paris
2.Procter & Gamble
3.Unilever
4.SHISEIDO PROFESSIONAL INC
5.LVMH
6.AMOREPACIFIC US INC
7.Beiersdorf
8.Estée Lauder Inc
9.Kao Corporation
10.Revlon
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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