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 (Botox, 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, 2022-2029

The global cosmeceuticals market size was valued at USD 50.75 billion in 2021 and is projected to grow from USD 54.57 billion in 2022 to USD 96.23 billion by 2029, at a CAGR of 8.4% during the forecast period. Based on our analysis, the global market exhibited a decline of -9.3% in 2020 compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.

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

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

COVID-19 IMPACT

Reduced Patient Visits Associated with Dermatology to Hamper Demand During COVID-19 Pandemic

The emergence of COVID-19 significantly impeded the demand for cosmeceuticals across the world. A significant decline in the number of patient visits reported by leading dermatologists and the shutting down of stores engaged in the distribution of these products during the lockdown period are some of the key reasons affecting the market adversely. Moreover, cancellation of elective procedures, including medical aesthetic procedures to avoid the spread of COVID-19 reduced patient footfalls at specialty clinics engaged in aesthetic therapy. The decline in these procedures resulted in lower patient prescriptions for these products, adversely affecting the market.

Leading players operating in the market reported a decline in their revenues due to the COVID-19 pandemic. The decline in revenues was attributed to limited distribution of these products during the lockdown period.

• For instance, Shiseido Company Limited 2020 reported a decline of 17.0% in revenue as compared to the previous financial year. Moreover, according to a Beiersdorf report in 2020, there was a decline of 7.5% compared to the previous financial year. The decline was major during the financial year due to the emergency protocols for the closure of customer facilities along with considerable disruption 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, implementation of strong guidelines and COVID-19 protocols in public places, dismissal of restrictions for travel, and others. This led to an increase in demand for skin and hair care products in 2021.

• For instance, Shiseido Company Limited reported a recovery of 9.4% in revenue as compared to the previous financial year. Moreover, Beiersdorf reported a decline of 11.5% as compared to the previous financial year.

The overall recovery of the market was an estimated 12.0%, with leading market players generating positive/significant growth post-pandemic, owing to an increase in patient volume along with rising demand for these products.

LATEST TRENDS

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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 lesser side effects such as cracking of the skin and hair fall. Initiatives by major market players to improve awareness of organic products through various brand campaigns along with the increasing preference of dermatologists to prescribe natural alternatives such as organic products for skin and hair care are expected to augment the growth of the market. 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, which is expected to 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 this industry are anticipated to support the growth of the market

DRIVING FACTORS

Increasing Awareness of Cosmeceuticals along with Introduction of Advanced Products to Augment Market Growth

Strong emphasis on initiatives by government agencies and market players toward increasing the awareness of skin and hair health among the general population has led to a higher number of people using these products globally. Moreover, the development of active ingredients by market players is one of the key factors driving the adoption of these products in emerging and established economies.

For instance, in the American Academy of Dermatology in 2021, various dedicated campaigns are focused on skin and hair health among general well-being. Some examples include the month of May as the awareness month of skin cancer, the harm caused by UV rays to the skin along with highlighting the significance of sun protection through the use of sunscreens products.

The increasing prevalence of skin disorders among adults and children alike is responsible for the increased demand for skincare products. This, along with the increased adoption of organic products globally, has encouraged various market players to develop novel formulations with a focus on developing active ingredients such as plant-based alternatives. The rise in product development, along with an upsurge of key product launches, is responsible for driving the 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 is aimed at incorporating and developing novel product launches in the field of hair care products. The key product launches supported by rising demand for skin and hair products are anticipated to augment the market growth.

RESTRAINING FACTORS

High Cost of Branded Products to Affect Demand for Cosmeceuticals

The demand for cosmeceutical products is growing globally due to the rising prevalence of skin and hair disorders, increasing elderly population, and increasing awareness of dermatological treatment. The high cost of branded cosmeceuticals retailed 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 research and development of novel products, and brand campaigns are responsible for the high cost incurred to the end consumer.

• For instance, in February 2022, L’Oreal Professional Products announced the launch of its new Hair the Love 2022 campaign, which aims at promoting its leading line of hair care products by appealing to hairdressers along with a view to improving the distribution of their products through leading hairdresser chains in the hair care market.

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

SEGMENTATION

By Product Type Analysis

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Increase in Adoption of Skin Care Products led to Dominance of the Skin Care Segment in 2021

Based on product type, the market is segmented into skin care, hair care, injectable, and others. The skin care segment is further segmented into anti-aging, skin whitening, sun protection, professional skin care, anti-acne, and others. The dominance of this segment resulted from the rising adoption of personal care products and the growing awareness of skin diseases in 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 were found to be 9.81% and 9.77%, respectively. The increasing prevalence 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 primarily responsible for the growth of the segment.

Among skin care, the anti-aging segment dominated due to the rise in aging population coupled with increasing awareness of anti-aging products effectively managing skin aesthetics such as wrinkling of the skin.

The injectable segment exhibited the fastest CAGR during the forecast period owing to increasing applications of injectable cosmeceuticals in medical aesthetics. The injectable segment is further segmented into botulinum toxin, dermal fillers, and other segments. Botulinum toxin dominated the market share among injectables, owing to increasing applications in cosmeceutical as well as aesthetic purposes along with key market players entering the injectable segment through key 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 is anticipated to boost the market, owing to increasing demand for botulinum toxin in medical aesthetics along with rising medical tourism.

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

The others segment is further segmented into lip care, tooth whitening, anti-cellulite/body slimming preparations, and oral care. The lip care segment dominated the market share among others segment, whereas the tooth whitening segment registered the highest CAGR throughout the study period.

By Distribution Channel Analysis

Robust Distribution Network to Help Pharmacy/Drug Stores Segment Dominate the Global Market During 2022-2029

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 2021. The dominance of the segment is attributed to the launch of advanced products at affordable prices through retail stores combined with discounts offered by retail stores. Additionally, the strong growth of the pharmacy/drug stores segment in the global market is due to the robust network of these stores in developed countries coupled with stronger penetration of larger store chains.

On the other hand, the online stores segment is anticipated to register a high CAGR as compared to the other segments. The higher growth of online channels is attributed to the entry of leading players investing in the development of e-commerce and digital platforms to engage consumers in real-time is expected to support the segment growth. Moreover, the COVID-19 pandemic has contributed heavily to the shift of consumer preference to online stores over retail.

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

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

REGIONAL INSIGHTS

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Asia Pacific dominated the global market with a contribution of USD 18.80 billion in the global market in 2021. The growth of the market is owed to the increasing focus of market players on strategic partnerships with a focus on product launches coupled with investing in digital infrastructure to improve consumer appeal and product distribution. Furthermore, the rising population and higher awareness of these products among the general population are some key factors responsible for driving the growth of the Asia Pacific market.

• For instance, in January 2021, L’Oreal announced the acquisition of Takami Co., a Japanese developer of skincare brand Takami, among other brands. The contract was inclusive of Takami dermatology clinics under a long-term brand licensing. The acquisition provides market access to both market players regionally with strengthening of individual market presence.

Additionally, cosmeceutical consumers in Asia Pacific are likely to increase gradually, owing to increasing awareness of medical aesthetics, skin and hair health, and increasing demand for products, owing to the rising prevalence of dermatological disorders.

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

• For instance, in May 2021, The Estee Lauder Companies Inc. announced increasing ownership in Deciem Beauty Group Inc., a developer of cosmeceutical as well as cosmetic products based in Canada. The development supports the expansion of distribution channels across key regions along with consolidating the market position of the company in the market.

Europe accounted for a significant share of the market owing to the increasing adoption of novel cosmeceutical products and the increasing prevalence of skin conditions such as acne. Moreover, increasing initiatives of major market players expanding distribution channels in the region catering to the rising demand are estimated to grow the market in the European region.

On the other hand, the Latin American market is expected to register the highest growth rate during the forecast period. The increasing availability of affordable OTC cosmeceutical products, rising awareness of cosmeceutical therapy along with the prescription preference of leading dermatologists to advocate the management of various skin conditions by these products are driving the market growth in Latin American countries. Moreover, the growing disposable income in emerging countries in the region is also providing favorable conditions for the growth of the market.

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The Middle East and Africa market is estimated to grow considerably throughout the study period. The increasing medical tourism along with the general population seeking medical aesthetics therapy is expected to increase the demand for cosmeceutical products in the region. This, coupled with stringent regulation on certifications, such as halal certification of cosmeceutical products in these regions, is expected to improve cosmeceutical adoption, thereby driving the growth during the forecast period.

KEY INDUSTRY PLAYERS

Strong Product Portfolio of Leading Players to Help Dominate the Market

The global market is fragmented with key players, such as L’Oréal, Unilever, Estée Lauder Companies Inc., Procter & Gamble, and Shiseido Company Limited, holding a significant market share. The dominance of these players is attributed to the robust product portfolio of skincare products, strategic collaborations, and strong distribution network. However, the presence of domestic players in the competitive landscape, holding the majority of the market share, varies among different regions. The key companies operating in the market are introducing advancements in key products to gain a competitive advantage over other market players. Moreover, there is strong emphasis on mergers and partnerships with a view to strengthening product portfolio along with a focus on the development of e-commerce platforms to improve product reach and market position.

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

Moreover, the other market players, including Beiersdorf, ELEMENTIS PLC., AVON, and Allergan (AbbVie Inc.) are focused on offering OTC products to cater to developing markets and acquire prominent market share across the globe.

LIST OF KEY COMPANIES PROFILED:

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


• July 2021 – L’Oreal announced the filing of a patent for a novel digital biomarker detection system that detects clinical signs of aging. This improves awareness of skin aging among the general population along with recommending customized formulations and product recommendations. This may increase the consumer base, thereby improving the company's product portfolio adoption.


• 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 is focused on European consumers with a view to strengthening market presence in the region.

REPORT COVERAGE

An Infographic Representation of Cosmeceuticals Market

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The global cosmeceuticals market research report provides a detailed analysis of the market. It focuses on key aspects such as leading companies, product type, 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