Cosmeceuticals Market Size, Share & COVID-19 Impact Analysis, By Product Type [Skin Care (Anti-Ageing, Skin Whitening, Sun Protection, Professional Skincare, Anti-Acne, and Others), Hair Care (Hair Growth, Anti-Dandruff, and Others), Injectable (Botulinum Toxins, Dermal Fillers, and Other Injectable), and Others (Lip Care, Tooth Whitening, Anti-Cellulite/Body Slimming Preparations, Oral Care)], By Distribution Channel [Pharmacy/Drug Stores, Online Stores, and Others], and Regional Forecast, 2023-2030

The cosmeceuticals market size was valued at USD 56.78 billion in 2022 and is projected to grow from USD 63.59 billion in 2023 to USD 114.32 billion by 2030, exhibiting a CAGR of 8.7% during 2023-2030. Asia Pacific dominated the global market with a share of 40.94% in 2022.

Cosmeceuticals are cosmetic formulations containing bioactive ingredients known for their medical benefits. The increase in the prevalence of skin disorders worldwide and the inclination of dermatologists toward prescribing these products over other modes of treatment are responsible for their rising demand. This factor, along with key market players launching e-commerce platforms to cater to the increasing demand for these products, is anticipated to support the cosmeceuticals market growth.

According to a report published by MDPI in 2022, cosmeceutical prescriptions accounted for 40% of the total dermatologic prescriptions globally. The significant rise in cosmeceutical prescriptions, coupled with an increasing number of market players providing key products for these conditions, is expected to drive market growth.

COVID-19 IMPACT

Reduced Patient Visits for Dermatological Treatments Hampered Market During Pandemic

The emergence of COVID-19 significantly impeded the demand for cosmeceuticals globally. A major decline in the number of patient visits reported by leading dermatologists and the shutdown of stores engaged in the distribution of these products during the lockdown period were some of the key reasons affecting the market adversely. Moreover, the cancellation of elective procedures, including medical aesthetic procedures, to avoid the spread of COVID-19 reduced patient footfall at specialty clinics offering aesthetic therapy. The decline in these procedures resulted in lower patient prescriptions for these products, thereby adversely affecting the cosmeceuticals market forecast.

Leading players operating in the market reported a decline in their revenues due to the COVID-19 pandemic. This scenario was due to the limited distribution of cosmeceuticals during the lockdown period.

• For instance, Shiseido Company Limited, in 2020, reported a decline of 17% in its revenue as compared to the previous financial year. Moreover, according to a Beiersdorf report in 2020, there was a decline of 7.5% as compared to the previous financial year. This decline was due to the implementation of emergency protocols to close down customer facilities and considerable disruptions in business activities.

Furthermore, the key players operating in the market faced a number of challenges, such as disruptions in the procurement of active ingredients and product suppliers. However, patient volumes increased as the regulations imposed by various governments were relaxed. In 2021, the patient volume bounced back owing to higher vaccination coverage among the general population, the implementation of strong guidelines and COVID-19 protocols in public places, the dismissal of restrictions for travel, and other factors. This led to an increase in the demand for skin and hair care products in 2021.

• For instance, Shiseido Company Limited generated a revenue of USD 7,087.5 million in 2021 from its cosmetics portfolio, experiencing a growth of 11.2% from the prior year.

The overall recovery of the market was estimated at 12%, with leading market players generating positive growth post-pandemic owing to an increase in patient volume along with the rising demand for cosmeceuticals.

LATEST TRENDS

Increasing Preference of General Population Toward Natural Products to Boost Demand for Cosmeceuticals

Increasing awareness about the benefits of natural ingredients over traditional products, including fewer side effects such as skin cracking and hair fall, will boost the sales of cosmeceuticals. Major market players are taking various initiatives to improve awareness of organic products through various brand campaigns. Moreover, dermatologists are increasingly prescribing natural alternatives, such as organic products for skin and hair care. These factors are expected to augment the market’s growth. Additionally, the major players operating in the market are involved in the development of e-commerce platforms, such as Direct to Consumer (DTC) distribution channels, to cater to the rising demand. Such developments will also support the growth of organic products.

• For instance, in September 2021, Boddess announced the launch of Juice Beauty, a plant-based line of cosmeceutical products, to cater to the increasing demand for organic products.

Such active initiatives taken by key players operating in the cosmeceutical industry are anticipated to support the growth of the market.

COSMECEUTICALS MARKET GROWTH FACTORS

Increasing Awareness of Cosmeceuticals and Introduction of Advanced Products to Augment Market Growth

The proliferation of initiatives from both government agencies and key companies, aimed at enhancing awareness regarding skin and hair health within the general populace, has resulted in a notable increase in the global utilization of cosmeceuticals. Furthermore, the ongoing efforts by market players in developing active ingredients represent a significant driver fostering the widespread adoption of these products across both emerging and established economies.

• For example, during the year 2021, the American Academy of Dermatology launched several targeted initiatives pertaining to skin and hair health, as well as overall well-being. Notable instances comprised the observance of May as Skin Cancer Awareness Month, wherein the adverse effects of UV rays on the skin were highlighted, underscoring the importance of employing sunscreen products for sun protection.

The increasing prevalence of skin disorders among adults and children alike is responsible for the high demand for skincare products. This, along with the increased adoption of organic products globally, has encouraged various market players to create novel formulations with a focus on developing active ingredients, such as plant-based alternatives. The rise in product development, along with a surge in key product launches, is driving market growth.

For instance, in August 2021, Gragem Co. Ltd., in collaboration with the University of Suwon, developed sulforaphane, a new active ingredient as a novel alternative for the treatment of androgenic alopecia. The development was aimed at incorporating the ingredient and developing novel products in the field of hair care. The key product launches, supported by the rising demand for skin and hair products, are anticipated to augment market growth.

RESTRAINING FACTORS

Cost Barriers and Lack of Stringent Regulations Impede the Market Growth

The demand for cosmeceutical products is growing globally due to the rising prevalence of skin and hair disorders, an increasing elderly population, and growing awareness of dermatological treatments. However, the high cost of branded cosmeceuticals sold by major market players is anticipated to limit the growth of the market. The increasing number of key companies positioning themselves as luxury brands in this industry, high recovery costs of products owing to expenditure on R&D of novel products, and brand campaigns are responsible for the high cost of products.

• For instance, in February 2022, L’Oréal Professional Products announced the launch of its new Hair the Love 2022 campaign. The company aimed at promoting its leading line of hair care products by appealing to hairdressers and improving the distribution of their products through leading hairdresser chains in the hair care market.

The availability of low-quality substitutes due to a lack of stringent regulation is a major restraining factor for market growth. Additionally, the lack of insurance reimbursement for these products will hamper their demand in developing countries during the forecast period.

SEGMENTATION

By Product Type Analysis

Increasing Awareness Regarding Skin Ailments to Boost Demand for Skincare Products

Based on product type, the market is segmented into skin care, hair care, injectable, and others. The skin care segment is further divided into anti-aging, skin whitening, sun protection, professional skin care, anti-acne, and others. The dominance of this segment is resulting from the rising adoption of personal care products and growing awareness of skin diseases among the general population.

• For instance, according to a report published by JMIR Dermatology in August 2021, the global prevalence of melanoma was found to be 10.11% of the global population. Moreover, the prevalence of psoriasis and dermatitis was found to be 9.81% and 9.77%, respectively. The increasing incidence of such skin disorders, along with active initiatives by key market players to increase awareness of skin and hair products as a therapy option, is responsible for the segment’s growth.

Under skin care, the anti-aging segment dominated the market due to the rise in the aging population and increasing awareness of anti-aging products for effectively managing wrinkles.

The injectable segment will exhibit the fastest CAGR during the forecast period owing to the increasing applications of injectable cosmeceuticals in medical procedures. The injectable segment is further classified into botulinum toxin, dermal fillers, and others. The botulinum toxin segment dominated the market share among injectables. This is owing to the increasing applications of the product for cosmeceutical and aesthetic purposes, and the entry of key market players into the injectable segment through novel product launches.

• For instance, in May 2019, Evolus announced the launch of Jeuveau, a botulinum toxin injectable. The product was launched after the previous approval of XEOMIN in 2010 by Merz Pharma. The launch was anticipated to boost the market owing to the increasing demand for botulinum toxin in medical aesthetics along with the rising demand for medical tourism.

The hair care segment is further divided into hair growth, anti-dandruff, and others. The hair growth segment held a dominant share, with the anti-dandruff segment registering the fastest growth rate over the forecast period.

The others segment is further split into lip care, tooth whitening, anti-cellulite/body slimming preparations, and oral care. The lip care segment dominated the market share in the others segment, whereas the tooth whitening segment is expected to register the highest CAGR throughout the study period.

By Distribution Channel Analysis

Pharmacy/Drug Stores to Dominate Market Due to Their Robust Distribution Network

The global market is segmented into pharmacy/drug stores, online stores, and others based on distribution channel. The pharmacy/drug stores segment held the largest share in the global market in 2022. The dominance of the segment is attributed to the launch of advanced products at affordable prices through retail stores and the discounts offered by these stores. Moreover, the substantial expansion of this sector in the global market can be attributed to the extensive presence of these stores in developed nations and the heightened market penetration of prominent retail chains.

The online stores segment is anticipated to register a higher CAGR compared to the other segments. The higher growth of this segment is attributed to the entry of leading players and their rising investments in the development of e-commerce and digital platforms. The companies use these platforms to engage consumers in real-time, which is expected to support the segment's growth. Moreover, the COVID-19 pandemic heavily contributed to the shift of consumers to online stores over retail ones.

• For instance, in May 2021, Routinely, in collaboration with Beiersdorf, launched its Direct-to-Consumer (D2C) platform in Belgium and the Netherlands. The launch was aimed at cultivating a strong distribution channel in Europe and improving brand image among cosmeceutical consumers.

The others segment includes supermarkets, hypermarkets, specialty stores, convenience stores, and other distribution channels.

REGIONAL INSIGHTS

Geographically the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific dominated the global market and was valued at USD 23.25 billion in 2022. The growth of the market is due to the increasing focus of market players on strategic partnerships, a high emphasis on product launches, and rising investments in digital infrastructure to improve product appeal and distribution. Furthermore, the rising population and higher awareness of these products among the general public are some of the key factors responsible for driving the growth of the Asia Pacific market.

• For instance, in January 2021, L’Oréal announced the acquisition of Takami Co., a Japanese developer of the skincare brand Takami, among other brands. The contract was inclusive of Takami’s dermatology clinics under a long-term brand licensing. The acquisition provided regional market access to both the companies and strengthened their individual market presence.

Additionally, cosmeceutical consumers in Asia Pacific are likely to increase gradually owing to growing awareness regarding the benefits of improving facial aesthetics and skin & hair health. The demand for these products is also increasing due to the rising prevalence of dermatological disorders.

North America accounted for the second-largest share in the global market. This growth is attributed to the presence of a large patient pool suffering from dermatological disorders, such as melanoma and eczema, and growing adoption of advanced dermatology products in the region. Moreover, an increasing number of dermatological procedures, such as non-surgical cosmetic procedures, are anticipated to augment the demand for cosmeceutical products. This factor will foster the market’s growth in the region.

• For instance, in May 2021, The Estee Lauder Companies Inc. announced its decision to increase ownership in Deciem Beauty Group Inc., a Canada-based developer of cosmeceutical as well as cosmetic products. This move supported the expansion of distribution channels across key regions and consolidated the company’s market position.

Europe accounted for a significant share of the market owing to the increasing adoption of novel cosmeceutical products and the rising prevalence of skin conditions, such as acne. Moreover, increasing initiatives of major market players to expand their distribution channels in the region to cater to the rising product demand are estimated to boost the regional market growth.

Latin America is expected to register the highest growth rate during the forecast period. The increasing availability of affordable OTC cosmeceutical products, rising awareness of cosmeceutical therapies, and preference of leading dermatologists for these products to manage various skin conditions are driving the regional market growth. Moreover, the growing disposable income in emerging countries in the region is also providing favorable conditions for the growth of the market.

The Middle East & Africa market is estimated to grow considerably throughout the analysis period. The increasing medical tourism and rising number of people seeking medical aesthetics therapy are expected to boost the demand for cosmeceutical products in the region. Moreover, these factors coupled with stringent regulations on certifications, such as halal certification for cosmeceutical products in these regions, is expected to improve the adoption of cosmeceuticals. This factor is expected to drive the market growth during the forecast period.

KEY INDUSTRY PLAYERS

Strong Product Portfolio of Leading Players to Help Them Dominate Market

The global market exhibits a high degree of fragmentation, with major industry players such as Estée Lauder Companies Inc., L’Oréal, Unilever, Shiseido Company Limited, and Procter & Gamble holding substantial market shares. The dominance of these corporations can be attributed to their robust skincare product portfolios, strategic collaborations, and extensive distribution networks. However, it's worth noting that the competitive landscape includes domestic players that dominate the cosmeceuticals market share in various regions. Prominent market participants are continuously innovating their core products to gain a competitive edge over their counterparts. Additionally, there is a strong emphasis on strategic mergers and partnerships aimed at bolstering product portfolios. Furthermore, a notable focus is directed towards developing e-commerce platforms to enhance product accessibility and augment market positioning.

• For instance, in May 2021, Shiseido Company Limited entered a joint venture with Accenture to create Shiseido Interactive Beauty Company Limited, a digital marketing and IT services firm, for Shiseido and its group companies. The development is aimed at creating a digital infrastructure to connect and interact with consumers and create an e-commerce platform.

Furthermore, other significant market players such as Beiersdorf, ELEMENTIS PLC., AVON, and Allergan (AbbVie Inc.) are strategically concentrating on providing OTC products to meet the demands of emerging markets and secure a substantial market share on a global scale.

LIST OF KEY COMPANIES PROFILED IN COSMECEUTICALS MARKET:

• L’Oréal (France)


• Estée Lauder Companies Inc. (U.S.)


• Beiersdorf (Germany)


• Shiseido Company Limited (Japan)


• Procter and Gamble (U.S.)


• Elementis Plc (U.S.)


• Avon (U.K.)


• Allergan (U.S.)


• BASF SE (Germany)


• Croda International Plc (U.K.)


• Unilever (U.K.)


• Coty Inc. (U.S.)


• Johnson & Johnson Services, Inc. (U.S.)


• Clarins (France)


• LVMH (France)

KEY INDUSTRY DEVELOPMENTS:

• September 2022 – Estée Lauder Companies Inc. and BALMAIN entered a strategic collaboration to develop, manufacture, and commercialize beauty products under the name BALMAIN BEAUTY.


• September 2021 – Croda International Plc. launched Nutrinvent Balance, a novel cosmeceutical ingredient to reduce sebum from hair and scalp. The new ingredient was intended to be used in hair care formulations for consumers. The development was aimed at strengthening the company’s product portfolio and improving its market position.


• July 2021 – L’Oreal announced the filing of a patent for a novel digital biomarker detection system that identifies clinical signs of aging. This system claimed to improve awareness of skin aging among the general population along with recommending customized formulations and products. This move was intended to increase the company's consumer base and improve the adoption of its product portfolio.


• February 2021 – Beiersdorf announced the launch of O.W.N., a face care brand. The brand uses Artificial Intelligence (AI) with a proprietary algorithm to further customize product offerings to the consumer. The launch was focused on European consumers with a view to strengthening the company’s regional market presence.


• June 2021 - The Beauty Health Company announced the acquisition of four international third parties to improve its global footprint for the brand HydraFacial. The acquisition was expected to consolidate the company’s market position in key countries, such as Germany, France, Australia, and Mexico.

REPORT COVERAGE

The report provides a detailed analysis of the market. It focuses on key aspects, such as leading companies, product types, and distribution channels. Besides this, it offers insights into the trends in the global market and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation 

ATTRIBUTE	DETAILS
Study Period	2019-2030
Base Year	2022
Estimated Year	2023
Forecast Period	2023-2030
Historical Period	2019-2021
Growth Rate	CAGR of 8.7% from 2023-2030
Unit	Value (USD billion)
Segmentation	By Product Type, Distribution Channel, and Region
By Product Type	Skin Care Anti-Ageing Skin Whitening Sun Protection Professional Skincare Anti-Acne Others Hair Care Hair Growth Anti-Dandruff Others Injectable Botulinum Toxins Dermal Fillers Others Others Lip Care Tooth Whitening Anti-Cellulite/Body Slimming Preparations Oral Care
By Distribution Channel	Pharmacy/Drug Stores Online Stores Others
By Geography	North America (By Product Type, Distribution Channel, and Country) U.S. (By Product Type) Canada (By Product Type) Europe (By Product Type, Distribution Channel, and Country) U.K. (By Product Type) Germany (By Product Type) France (By Product Type) Italy (By Product Type) Spain (By Product Type) Rest of Europe (By Product Type) Asia Pacific (By Product Type, Distribution Channel, and Country) China (By Product Type) Japan (By Product Type) India (By Product Type) Australia (By Product Type) South East Asia (By Product Type) Rest of Asia Pacific (By Product Type) Latin America (By Product Type, Distribution Channel, and Country) Brazil (By Product Type) Mexico (By Product Type) Rest of Latin America (By Product Type) Middle East & Africa (By Product Type, Distribution Channel, and Country) GCC (By Product Type) South Africa (By Product Type) Rest of Middle East & Africa (By Product Type)