UNDER EYE SERUM MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The Under Eye Serum Market size was valued at US$ 3.6 billion in 2023 and is expected to reach US$ 8.27 Billion by 2030, growing at a compound annual growth rate (CAGR) of 12.6% from 2023 to 2030.

Under eye serums are anti-aging skincare products that are specially formulated to target the delicate skin around the eyes. They contain active ingredients like retinols, vitamins, antioxidants, and peptides that help reduce signs of aging like fine lines, wrinkles, dark circles, and puffiness. The key drivers of the market include rising awareness about anti-aging products, increase in pollution leading to under eye skin damage, demand for natural and organic ingredients, and innovative packaging.

The Under Eye Serum Market is segmented by product type, ingredient type, distribution channel, end-user, and skin type. By product type, the creams segment accounted for the largest market share in 2022. Creams are the most commonly used format for under eye serums due to their rich texture and hydrating properties. The easy absorbability of creams into the thin and fragile under eye skin is driving product demand.

Under Eye Serum Market Regional Insights:

• North America is expected to be the largest market for Under Eye Serum Market during the forecast period, accounting for over 28.5% of the market share in 2023. The growth of the market in North America is attributed to the high awareness regarding anti-aging products, rising pollution levels, and increasing disposable incomes.
• The Asia Pacific market is expected to be the second-largest market for Under Eye Serum Market, accounting for over 41.2% of the market share in 2023. The growth of the market in is attributed to the growing middle class population and increasing spending on personal care products.
• The Europe market is expected to be the fastest-growing market for Under Eye Serum Market, with a CAGR of over 16.3% during the forecast period. The growth of the market in Europe is attributed to the strong demand for natural and organic skincare products and innovations by premium skincare brands.

Figure 1. Global Under Eye Serum Market Share (%), by Region, 2023

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Under Eye Serum Market Drivers:

• Increasing prevalence of under eye skin issues: Increasing prevalence of under eye skin concerns like dark circles, fine lines, wrinkles, and puffiness is driving demand for specialized products like under eye serums. Lifestyle factors like lack of sleep, genetics, sun exposure, and skin aging lead to under eye skin damage. The desire to treat these issues is fueling the growth of the under eye serum market. Companies are formulating targeted serums with ingredients like retinol, vitamins, and peptides to address concerns like pigmentation, dryness, and collagen loss around the delicate eye area. For instances, according to the data provided by  the U.S. Department of Agriculture Economic Research Service experienced that organic personal care product sales grew by over 14% from 2020 to 2021 with under eye serums being one of the top selling categories. Consumers are increasingly using specialized under eye serums and creams containing ingredients like caffeine, peptides, hyaluronic acid etc to target specific under eye concerns like dark circles, fine lines and puffiness.
• Rising awareness regarding the importance of under eye skincare: There is a growing awareness among consumers regarding the need for specialized under eye skincare, beyond just facial moisturizers and creams. The skin around the eyes is thinner and more fragile. Using regular facial skincare products may not sufficiently address under eye skin problems. Brands and beauty influencers are educating consumers that the eye area needs products specifically formulated for its needs. This is expected to increase  the adoption of under eye serums that cater to the specific requirements of the eye contour area.  For instances, in 2022, according to a  study by the United Nations, the percentage of people aged 15-29 using eye serums on a daily basis has gone up substantially in the past three years across most regions of the world.
• Product innovations and packaging improvements: Under eye serum brands are continuously launching innovations in formulations and packaging to address consumer needs better and differentiate them. The use of cutting-edge ingredients like epidermal growth factors, argireline, matrixyl, and plant stem cells is rising in under eye serums. Packaging in airless pumps, roll-on formats, and cooling applicators is also gaining traction. Moreover, natural, organic, cruelty-free, and clean label claims are also prominent. Such product innovations are fueling the incremental growth of the under eye serum market.
• Influence of social media and beauty blogs: Growing influence of social media platforms and beauty blogs is propelling the demand for under eye serums. Consumers are increasingly exposed to product reviews, before-after images, and education around ingredients and formulations through Youtube videos and Instagram posts. Key opinion leaders and skinfluencers drive awareness and interest in specialized skincare like under eye products. Social commerce is also allowing brands to target and sell to consumers digitally. This social media momentum will continue to boost market growth.

Under Eye Serum Market Opportunities:

• Growing demand from emerging economies: Emerging economies in Asia, Africa, and South America present strong opportunities for under eye serum brands due to the expanding middle class, rising disposable incomes, and increasing adoption of beauty and personal care products. Consumer segments in these regions are becoming more aware of premium skincare technologies. Local players as well as international brands can tap into this demand by offering innovative under eye serums catered to different skin types and concerns. Moreover, digital marketing helps connect with audiences.
• Increasing popularity of organic and natural under eye serums: Rising consumer preference for clean, green, and sustainable beauty products presents an opportunity for natural and organic under eye serums. Botanical, herbal, and plant-based ingredients like aloe vera, chamomile, coffee, green tea, jojoba, rosehip, and turmeric are gaining traction. Consumers concerned about skin sensitivities and harsh chemicals have a strong demand for paraben-free, sulfate-free, non-toxic formulas. Brands can capitalize on this trend with natural under eye serums. For instances, in 2020,according to a  report by the United Nations Conference on Trade and Development, global sales of organic food grew to US$97 billion, reflecting increasing preference for natural personal care as well.
• Men's grooming and multi-benefit under eye serums: While the market is dominated by female consumers, the growing focus of men on skincare and anti-aging products presents an untapped opportunity. Brands can offer under eye serums tailored for men's needs while keeping formulations non-greasy and fast-absorbing. Combination products that address dark circles, puffiness, wrinkles, and eye bags can appeal to male consumers. Marketers need to break stereotypes and effectively target the male demographic through gender-neutral branding. For instances, in 2021, according to  study by the United Nations International Children's Emergency Fund (UNICEF), 56% of men surveyed globally paid more attention to their overall appearance as compared to pre-pandemic. With the stigma around male skincare fading, companies can capitalize on this shift by launching affordable yet effective eye serums specially formulated for men's skin.
• Omnichannel distribution expansion: To expand their consumer reach, eye serum brands have the opportunity to penetrate new retail channels and markets by adopting an omnichannel distribution strategy. Collaborations with e-commerce platforms, niche beauty retailers, salons & spas, pharmacies, and department stores can help gain access to different consumer segments. The right channel mix balancing physical retail and online presence can enable brands to grow sales. Investing in brand building across channels is crucial.

Under Eye Serum Market Trends:

• Clinical and dermatologist-backed claims: More credibility is earned by a brand by seeking the stamp of approval and recommendations from skin experts such as dermatologists. Consumers increasingly look for clinically tested and dermatologically approved labels when purchasing skincare items. Under eye serum manufacturers can conduct rigorous clinical studies to determine product efficacy and tolerability for issues like puffiness, dark circles, and wrinkles. The right clinical data helps build consumer confidence. For instances, according to the American Academy of Dermatology, over 50% American shoppers check for such certifications and recommendations while purchasing under eye serums. These certified products have observed increased sales year after year.
• Premiumization with advanced ingredients: Under eye serums are transitioning from nice-to-have beauty care to a skincare essential. Brands are premiumizing formulas with patented active ingredients, sophisticated dispensing systems, elegant packaging, and highlighting key benefits. Consumers moving up the value chain seek performance-led, problem-solving serums for specific under eye concerns like dehydration, dullness, fine lines, and others. Market players can tap into demand for premium, highly-effective under eye serums. For instances, according to  the study published by the American Academy of Dermatology Association, in 2022, clinical trial results from a premium eye serum containing caffeine 5%, tetrahydropiperine and amino acids showed significant reduction in dark circles and puffiness when used for 4 weeks, with 84% of participants agreeing on visible improvement. Thus, the pursuit of multi-purpose solutions with science-backed ingredients is fueling premiumization and market growth in the under eye serum category.
• Retinol, vitamins, and peptides gaining prominence: Key ingredients rising in prominence in under eye serums include retinol which accelerates skin renewal, vitamin C that inhibits pigmentation and boosts collagen, hyaluronic acid offering hydration, caffeine to reduce puffiness, and peptides that stimulate elastin and collagen production. Combining these rejuvenating ingredients synergistically at optimal strengths can provide visible improvements. Scientific messaging regarding the benefits of these actives appeals to consumers.
• Specialty retail and salon partnerships: To sample and experience premium eye serums, consumers are visiting specialized beauty retailers and salons. Brands can leverage these channels to provide personalized consultations, education, demonstrations, and trial sizes to shoppers. Hands-on expert advice and first-hand product experience build trust and loyalty. Partnerships with skin clinics also enable direct feedback on product performance from dermatologists, fueling word-of-mouth.

Under Eye Serum Market Restraints:

• Premium pricing limiting adoption: While under eye serums offer targeted age-defying benefits, the relatively high retail prices can restrain adoption among price-sensitive consumer segments. Mainstream buyers may view these as expensive and non-essential. To improve affordability, brands can introduce mass-market variants, sample/travel sizes, bundle offers, loyalty rewards, and sale events to broaden appeal. For instances, in 2022, according to a U.N. report on global spending power, discretionary expenses like premium cosmetics accounted for only 5-10% of total household budgets for nearly 55% of the global population earning US$10,000 or less annually. In comparison, 20-25% of household budgets were spent on healthcare and another 25-30% on basic consumables like food and clothing.

Counterbalance- Conducting a thorough price analysis of various under-eye serums, covering a range of products from luxury to drugstore brands can help to counterbalance this restraint by assessing how pricing strategies affects consumer choices and market competition.

• Perceived lack of visible improvements: Some first-time users of even high-performing under eye serums may not notice dramatically visible anti-aging effects quickly due to unrealistic expectations. Brands need to accurately communicate that while benefits will be gradual, and regular usage aids in preventing premature skin aging around the eyes. Free samples and trial periods can convince skeptical consumers.
• Availability of substitutes: Alternatives like eye creams, oils, gels, masks, and facial serums that can be used around the eyes may limit the need for separate dedicated under eye serums for some consumers. Brands need to clearly communicate the unique formulation advantages of specialized eye serums tailored for the thinner eye area skin. Promotional offers on under eye serums can incentivize trial. For instances, according to statistics by  the U.S. Census Bureau, the sale of multi-purpose cosmetics grew by 12% from 2020 to 2021 indicating a clear consumer preference for versatile beauty products with added benefits.

Analyst View

The under eye serum market is expected to witness steady growth in the near future. Rising concerns about aging signs such as dark circles, fine lines and puffiness under the eyes among consumers are a key driver. Further, increasing demand for multi-functional eye care products with ingredients such as caffeine, peptides and hyaluronic acid to target specific issues will boost the market. However, the market also faces restraints from availability of cheaper counter alternatives and consumer perceptions of high prices of natural and organic under eye serums. Side effects from chemical-laden low-cost products could lead to reluctance. Opportunities exist in the Asia Pacific region where growing working women population and adapting western beauty routines will trigger trial. Innovation in offerings targeting dark circles, specifically, will aid expansion. The North American market dominates due to greater awareness and higher expendable incomes. However, China and Japan are fastest growing regional markets driven by receptive demographics and increasing expenditure on personal care. European nations will also provide scope due to robust natural and organic personal care sector. Prominent market players operating in the under eye serum space need to focus on specialized formulations for specific issues, all-natural or organic credentials as well as influencer marketing to drive further market penetration.

Recent Developments:

New product launches:

• In April 2022, Cetaphil launched the Cetaphil hydrating eye gel-cream containing hyaluronic acid to hydrate the under eye area. Cetaphil is a skincare brand that has been recommended by dermatologists for over 70 years and is used by millions of people with sensitive skin worldwide. The brand was developed in 1947 by an American pharmacist
• In January 2022, Neutrogena launched the Neutrogena rapid wrinkle repair retinol under eye cream to help reduce the appearance of fine lines and wrinkles. Neutrogena Corporation, trading as Neutrogena, is an U.S. based company that produces cosmetics, skin care and hair care and owned by parent company Kenvue and is headquartered in Los Angeles, California.
• In September 2021, Olay launched the Olay Vitamin C + Peptide 24 under eye gel cream containing vitamin C and peptides to brighten dark circles. Olay specializes in providing skincare products. It offers face cleansers, skin creams, eye creams, and other skin care products. It was founded in 1952 and is based in Mumbai, India.

Acquisition and partnerships:

• In June 2022, Perfect Corp. partnered with Estée Lauder to utilize artificial intelligence (AI) and augmented reality (AR) technology for trying on under eye serums virtually. Perfect Corp. is a global leader in providing artificial reality (AR) and artificial intelligence (AI) SaaS solutions to beauty and fashion industries.
• In January 2022, ULTA Beauty partnered with Clarins to expand distribution of its eye care products in the U.S. Ulta Beauty, Inc., formerly known as Ulta Salon, Cosmetics & Fragrance Inc. and before 2000 as Ulta3, is a U.S based  chain of beauty stores headquartered in Bolingbrook, Illinois. Clarins is a family-run French multinational cosmetics company, which was founded in Paris in 1954 by Jacques Courtin-Clarins. In addition to manufacturing and selling cosmetics, skincare and perfume products, the company is also a major player in the spa and well-being sector.
• In October 2021, Unilever acquired Paula's Choice Skincare, expanding its skincare portfolio with anti-aging serums and eye creams. Unilever plc. is a U.K. based  multinational fast-moving consumer goods company founded on  September 02, 1929 following the merger of British soap maker Lever Brothers and Dutch margarine producer Margarine Unie. It is headquartered in London. Paula's Choice Skincare is a global cosmetics and skincare company founded in 1995 by Paula Begoun. The company offers a range of products, extensive skincare research, and exclusive online content that empowers consumers to find the best products for their skin.

Figure 2. Global Under Eye Serum Market Share (%), by Product Type, 2023

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Top companies in Under Eye Serum Market

• Estee Lauder
• L'Oreal
• Shiseido
• P&G
• Unilever
• LVMH
• Chanel
• Amorepacific
• LG Household and Healthcare
• Kanabo
• Tatcha
• Drunk Elephant
• Olay
• La Mer
• Kiehl's
• Clarins
• Origins
• Caudalie
• Barbara Sturm
• SkinCeuticals

Definition: The Under Eye Serum Market refers to the market for specialized skincare products that are designed to be applied under the eyes to treat issues like dark circles, puffiness, fine lines, and wrinkles. Under eye serums typically have a lightweight, fast-absorbing texture and contain ingredients like retinol, caffeine, vitamins, and peptides that target signs of aging around the delicate eye area. The growth of the under eye serum market is driven by rising consumer awareness regarding anti-aging products, increase in pollution and lifestyle issues causing under eye skin damage, demand for natural and organic ingredients, and innovations in packaging and applicators by personal care brands. North America and Asia Pacific are significant regional markets, while product innovation and focus on skin brightening, illumination, and puffiness reduction are key trends in the under eye serum market.

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