COSMECEUTICALS MARKET ANALYSIS

Market Challenges And Opportunities

Global Cosmeceutical Market Drivers:

High prevalence of skin and hair disorders to propel market growth

One of the key factors expected to propel the growth of the global cosmeceutical market over the forecast period is the rise in prevalence of skin and hair disorders worldwide. Such a high burden of skin/hair disorders leads to an increase in demand for cosmeceutical products and it is expected to augment the market growth. According to the World Health Organization (WHO), skin diseases are among the most common of all human health diseases and affect over 900 million people across the world. The most common skin diseases in older people are eczema, skin infections, and pruritus (severely dry and itchy skin), driving the market growth.

Growing geriatric population worldwide to underpin market growth

Another factor which is driving the growth of the global cosmeceutical market is the rise in aging (geriatric) population around the world. For instance, the aging population is increasingly looking for ways or products to maintain and improve their appearance to look young and beautiful, with the rising awareness about anti-aging products. According to the UN DESA’s Population Division, one in six people in the world will be over the age 65 by 2050, up from 1 in 11 in 2019. In many regions, the population aged 65 will double by 2050, while global life expectancy beyond 65 will increase by 19 years. This in turn is driving the market growth.

Global Cosmeceutical Market Opportunities:

Increasing demand for cosmeceuticals around the world is expected to provide significant growth opportunities for players in the cosmeceutical market. For instance, with the increase in awareness among people about cosmeceuticals and its benefits, demand for cosmeceuticals is also increasing with a rapid pace, worldwide. In January 2023, Oriflame expanded its skincare offering in India and launched first range of ‘cosmeceutical’ products named ‘NovAge Proceuticals’. The cosmetics and beauty business’ new line is designed to address its customers’ specific skin challenges. This in turn is expected to drive growth of the market.

Increasing demand for skin care, hair care, and oral care products is expected to offer significant growth opportunities for players in the cosmeceutical market. For instance, the rising number of millennials (the first global generation and generation that grew up in the Internet age) around the world is spending more on cosmetic products to maintain their appearance, and they are leading the trend of beauty athleisure. According to the World Economic Forum (WEF), there are around 1.8 billion millennials around the world, equal to 23% of the global population. This in turn has increased the demand for skin care, hair care, and oral care products.

Global Cosmeceutical Market: Restraints:

Presence of counterfeit products to hamper market growth

One of the key factors expected to hinder growth of the global cosmeceutical market is the presence of counterfeit products. For instance, although, few countries recognize cosmeceuticals as separate entities, there is lack of unified regulation across the globe. This is particularly evident in the case of developing countries, like India and China, where there are multiple regulatory bodies, which have their own legislations for cosmetic products. However, with the increase in awareness among people, the demand for cosmeceuticals is also increasing.

Lack of awareness among people to hinder market growth

Another factor which is hampering the growth of the cosmeceutical market is the lack of awareness among people about cosmeceuticals and related benefits. Cosmeceuticals represent a new category of products placed between pharmaceuticals and cosmetics that are intended for the enhancement of both the health and beauty of skin. With the introduction of new products, the awareness among people is also increasing. However, the lack of awareness of potential ‎hazards of cosmeceuticals might cause severe and even ‎fatal adverse effects.