The vegan cosmetics market is estimated to be valued at USD 67.27 billion in 2024, exhibiting a CAGR of 6.1% over the forecast period (2024-2031). Consumers are increasingly opting for vegan alternatives due to growing concerns over animal welfare and health implications of conventional cosmetics. Furthermore, the wide availability of vegan products from mainstream brands as well as independent labels has made these options easily accessible.
Rising ethical concerns is a major driver propelling the growth of the vegan cosmetics market. There is growing sentiment against animal testing in the cosmetics industry worldwide. This has prompted many brands to shift towards developing cruelty-free formulations. Additionally, increasing instances of health issues due to chemical ingredients in regular cosmetics, such as parabens and phthalates, is driving consumers to switch to natural and vegan products. Many find vegan alternatives to not only be ethical but also better for skin health due to the absence of harsh substances. The wide availability of these products from drug stores, supermarkets as well as online retail channels has further boosted the market growth over the past few years.
Growing consumer awareness about cruelty-free and natural products
Many consumers are increasingly concerned about the ingredients in the personal care products they use. They want products that are not tested on animals and are made from natural and plant-based ingredients without any harsh chemicals. This growing awareness about the benefits of vegan and cruelty-free products is driving more consumers to switch to vegan cosmetic products. According to research, over 70% of consumers pay attention to whether a product is vegan or contains animal ingredients. This consumer preference for natural and ethical products is a major driver of growth in the vegan cosmetics market.
Rise of social media influencers promoting vegan beauty
With the rise of social media platforms, influencer marketing has become a powerful tool for brands. Many beauty and lifestyle influencers on Instagram, YouTube, and blogs actively promote vegan and cruelty-free beauty brands and products. They create compelling content highlighting the benefits of switching to vegan makeup and skincare. Their recommendations carry significant weight with consumers, especially young millennial and Gen Z. Many vegan beauty brands also collaborate with social media influencers for promotions and advertising. The influence of social media personalities in endorsing vegan lifestyles and brands is a key driver boosting demand in the vegan cosmetics sector.
Premium pricing of vegan cosmetic products
While vegan makeup and skincare products offer various health and environmental benefits, they also commonly come at a higher price point compared to mainstream brands that use animal ingredients and are tested on animals. Due to the additional costs involved in sourcing premium natural and plant-based ingredients as well as stringent packaging requirements, vegan cosmetic companies often charge premium prices. This premium pricing model may deter some price-sensitive customers from regular purchases and act as a restraint for the vegan cosmetics industry.
Lack of vegan labeling standards
There are no official regulatory standards that clearly define what makes a personal care product truly 'vegan.' Different companies take varying approaches to formulating vegan products and making vegan claims. This ambiguity around vegan certification can undermine consumer trust in vegan brands. It also allows some brands to label products as vegan even if they are not completely free of animal-derived ingredients. The lack of a global regulatory framework for strict vegan labeling acts as a barrier to increased adoption of vegan cosmetics.
Growth of Colors Cosmetics Segment
While skincare continues to be the biggest category, colored cosmetics such as vegan makeup, including products like foundations, concealers, eyeshadows, lipsticks, etc. are witnessing significant gains. As more young consumers switch to vegan lifestyles, the demand for high-performance vegan and cruelty-free makeup products in trending colors and formulations is rising. This growing interest in vegan makeup presents a major opportunity for brands to innovate and offer diverse vegan color cosmetics lines.
Increasing availability of vegan products on e-commerce platforms
With rapid digitization, e-commerce platforms now play a pivotal role in the beauty industry. Most vegan beauty brands are direct-to-consumer businesses that rely heavily on their own websites and popular e-commerce marketplaces like Amazon to reach consumers. The rising penetration of smartphones and internet has made online shopping more accessible than ever before. This expanding reach of e-commerce channels provides vegan cosmetics brands an effective platform to promote and sell their products to a global audience. It presents a significant growth opportunity for the industry.
Link: https://www.coherentmarketinsights.com/market-insight/vegan-cosmetics-market-5437
Key Developments
- The introduction of a biotech-powered haircare brand in 2024 featuring a patented K18Peptide that claims to reverse hair damage in just four minutes is a significant advancement in the beauty industry. This innovative product is likely to revolutionize haircare routines and offer consumers a quick and effective solution for damaged hair.
- The debut of Elf Cosmetics in India in January 2023 marked a significant milestone for cruelty-free and vegan makeup enthusiasts in the country. Elf Cosmetics' commitment to ethical practices and animal-friendly products aligns with the growing demand for sustainable and conscious beauty choices among consumers.
- In 2022, celebrity makeup artist Ashunta Sheriff launched her own cruelty-free and vegan beauty line, showcasing her commitment to ethical and sustainable beauty practices. This launch aligns with the growing trend of conscious consumerism and the increasing demand for animal-friendly beauty products.
- The introduction of Stella by Stella McCartney in September 2022 marked a notable collaboration between the renowned fashion designer and luxury conglomerate LVMH, signaling a significant entry into the beauty industry. This partnership combines Stella McCartney's commitment to sustainability and ethical practices with LVMH's expertise in luxury branding, creating a unique and promising beauty line.
Key Players
Amway Corporation, Estee Lauder Companies Inc., Groupe Rocher, L’Occitane Group, L’Oreal S.A., LVMH Group, MuLondon, Pacifica Beauty, Unilever plc., Weleda, Coty Inc., Beauty with Cruelty, Elf Cosmetic Company, Urban Decay, Nature’s Gate, Billy, TJS India, Seraphine Botanicals, Hera Beauty Ltd., and Herrco Cosmetics
