COSMETICS MARKET ANALYSIS

The global cosmetics market size was valued at US$ 289.2 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 5.3 % from 2023 to 2030.The cosmetic industry is witnessing boom due to increase in per capita spending among the individuals on cosmetic and personal care products.

Global Cosmetics Market: Regional Insights

Based on geography, the global Cosmetics market is segmented into North America, Europe, Asia Pacific, and Others (LMEA).

At present Asia Pacific is expected to hold leading position amounting to 40 % in the global cosmetic market over the forecast period. The growing popularity of cosmetics in the developing economies, along with the increasing disposable income of the population, is anticipated to positively influence the growth of the market in Asia-Pacific. Increasing consumer spending on cosmetic products is likely to enhance the sale of cosmetics in Asia-Pacific. Key manufacturers of cosmetics find massive opportunities in Asia-Pacific.

Figure 1: Global Cosmetics Market Share (%) in terms of Value, By Region, in 2023

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Global Cosmetics Market Drivers:

Increasing consumer spending on cosmetics & personal care products

The consumption pattern among the young population has changed with an aspiration to look good, which is expected to drive personal care products and, consequently, cosmetic products. Moreover, the growing youth population, increasing adoption of social media platforms, launch of innovative products, and easy availability of the products across the globe are also expected to support the growth of the global cosmetics market.

Increasing working women population in emerging countries

The growing working women population has led to an increased per capita disposable income of the consumers, which has changed consumer spending behavior. Cosmetics play an important role in enhancing one’s beauty and physical appearance. Improvements in the current lifestyles of the individuals are anticipated to drive the sales of cosmetics in the near future. The sales of skin cosmetics, eye cosmetics, and lip cosmetics are expected to be significant owing to the daily usage of the products by the women

Global cosmetics market opportunities:

Increasing demand for natural & organic cosmetics

The phenomenon of ‘returning to original nature’ is becoming a fashion statement with more and more people interested in buying only chemical-free products. Increasing awareness of harmful ingredients present in cosmetics might restrict market growth. The adoption of organic and natural cosmetics will result in narrowing down the scope of the cosmetics market.

Influence of social media and innovative marketing strategies

Social media is playing a critical role in driving the demand for cosmetics, especially among the youth, who are nowadays actively participating in social media for information. Thus, blogs posted on social media platforms, in favor of cosmetics, are highly influencing the growth of the market. Additionally, startups are also increasing awareness about cosmetic products, predominantly through social media campaigns. Thus, social media is playing a vital role in the growth of the global cosmetics market. It is considered an effective interactive strategy as it enables consumers to build a relationship with the brand. . So, the increasing growth of the e-commerce platform is expected to offer lucrative opportunities to the manufacturers of cosmetics in the global market.

Global Cosmetics Market Trends:

Integration of technology and cosmetics

Technology is being integrated with beauty products, with innovations such as personalized skincare regimens is gaining traction. Also Consumer market is experiencing shift towards more sustainable and environmentally friendly products.

Global Cosmetics Market Restraints:

Side- effects of harmful chemicals

There are harmful ingredients or chemicals present in professional and over-the-counter products that include resorcinol, ethanolamine (MEA), ammonia, persulfates, parabens, propylene glycol, and metals such as nickel. , hair color consists of dyes, modifiers, antioxidants, and fragrance, in addition to a variety of chemicals existing in slight proportions that impart a specific quality to the hair, such as softening it. Many of the chemicals used in hair color might prove toxic to the end user leading to irritation or allergic reactions. Increasing awareness of harmful ingredients present in cosmetics might restrict market growth

Figure 2: Global Cosmetic Market Share (%) in terms of Value, By Product Type, in 2023

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Global Cosmetics Market Segmentation:

The global cosmetics market report is segmented into product type, category, distribution Channel and region.

Based on product type, the market is segmented into Skin cosmetics, hair Cosmetics, Eye Cosmetics and Nail Cosmetics. Out of which, skin cosmetics is expected to dominate the global market over the forecast period and this is attributed to technological and product innovation by the manufacturers. The skin cosmetic segment was valued at USD 123.4 billion in 2023 and is projected to register a 4.92% CAGR during the review period.

Organic and Natural segment is also expected to witness significant growth in the near future and this is owing to the growing demand for organic & natural cosmetics is increasing due to several factors such as allergic reactions to certain makeup kits containing harsh chemicals.

Based on Distribution channel, the market is segmented into Store Based and Non-Store Based. Out of which, Store based is expected to dominate the global market over the forecast period. Also, they are combination of supermarkets & hypermarkets, convenience stores, specialty stores, and others. The supermarkets & hypermarkets sub-segment is expected to be the largest, as these channels account for the maximum sale of cosmetics

Global Cosmetics Market: Key Developments

• 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 the hair.
• July 2021: Bloomers has introduced a new brand in the market, Colors Cosmetics, which serves customers through local pharmacies and markets. The brand focuses on offering a wide range of products, encompassing everything from foundations to lipsticks, and busts the misconception that drugstore makeup is low in price and inferior in quality.
• March 2021: Colorbar launches a customizable makeup palette with 12 custom-designed cases and a selection of eyeshadow, blushers, and highlighters to choose from. The company aims to increase profitability and provide more options for consumers.

Global Cosmetics Market: Key Companies Insights

The global Cosmetics market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global cosmetic Market include L’Oreal S.A, Unilever plc., The Procter & Gamble Company, The Estee Lauder Companies Inc., Shiseido Company, Limited, LVMH Moët Hennessy, Kao Corporation., Oriflame Holding AG, Avon Products Inc., Revlon, Inc.

*Definition: Cosmetics are one of the popular consumer goods especially among females. Some of the cosmetics are hair cosmetics, skin cosmetic, nail and eye cosmetics.