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The global cosmetics market size was USD 297.61 billion in 2018 and is projected to reach USD 438.38 billion by 2026, exhibiting a CAGR of 5.1% during the forecast period.
Cosmetics have become one of the essential products in life as they enhance the overall appearance of the individual and thereby help to achieve a positive impact on the personality. The cosmetics industry offers a wide variety of products, including face care, hair care, and lip care, among others, which are essential to fulfill particular requirements of end-user. Moreover, innovative and convenient to use packaging designs, coupled with compact containers that can be easily carried on-the-go, are also attracting the consumers. The hair type, skin tone, and eye color vary for each person. Therefore, manufacturers are focusing on developing and having a diverse product portfolio that can cater to specific requirements of every individual.
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Growth of E-commerce Industry Coupled with Improved Marketing Activities by Manufacturers is Expected to Drive the Market Growth
Various players in the cosmetics market are initiating digital marketing strategies, preparing interactive advertisements, and making substantial efforts to promote their products through social media, which is projected to support the cosmetic products demand growth. The rising influence of social media and increasing internet penetration is attracting consumers towards e-commerce for buying beauty products. Additionally, manufactures are focusing on offering a large number of products through an online channel in order to meet consumer demand. For instance, in August 2019, Grupo Boticário, a Brazil-based beauty products company, announced its plans to acquire Beleza na Web, an e-commerce platform for selling its products.
Rising Awareness Regarding Health, Hygiene, and Grooming is Expected to Fuel the Product Demand
Concerns regarding body and well-being are increasing owing to busy work schedules, changes in routine, eating habits, and also fluctuations in the sleep cycle. Cosmetics can alter the quality, cleanse, and beautify external body parts and thereby can help individuals to look healthier and more attractive. Therefore, these are some of the factors that resulted in flourishing product demand from younger as well as an aged population. Additionally, the increasing trend of using sun protection products, night skin repair creams, and the use of refreshing fragrances and hair colors, among others, is also expected to boost the product demand. For instance, according to ‘Sun Safe Behavior Survey 2018’ of the Canadian Dermatology Association, the number of individuals using sunscreen all year round increased from 17% in 2015 to 26% in 2018 in Canada.
Moreover, manufacturers are focusing on introducing personalization and digitalization in cosmetic products in order to attract a customer base. For instance, in February 2020, L’Occitane Group launched its new personalized skincare system, ‘Duolab,’ having a countertop device that is operated using artificial intelligence. This device can diagnose the skin condition of an individual as and when required and then provide customized face care solutions in the form of freshly blended cream.
Therefore, increased awareness regarding grooming coupled with technological advancements is expected to support the growth of the market.
Sustainable Cosmetic Products are Expected to Drive the Market Growth
Products formulated with naturally derived ingredients are gaining more popularity across the globe owing to their safe and non-toxic nature. Demand for eco-friendly products is expected to grow in the near future, owing to the growing awareness regarding sustainability among the population. This can be attributed to rising consumer awareness regarding the adverse effects of synthetic chemicals on health as well as the environment. For instance, according to the report, ‘Organic Beauty and Well-being Market’ published by the Soil Association Certification report, in 2018, in the U.K, organic personal care market witnessed a growth rate of 7% in 2018.
Additionally, consumer preference is shifting towards vegan products that do not contain any ingredient derived from animals. Furthermore, manufacturers are also focusing on providing sustainable packaging solutions, such as paper-based and degradable and refillable packaging options in order to attract more users and reduce their carbon footprint.
Rising Awareness Regarding Side Effects of Cosmetic Products and Increasing Access to Cosmetic Surgical Options is Expected to Hamper Market Growth
Beauty & personal care products contain several synthetic chemicals such as preservatives, pigment molecules, and other additives, which can have serious side effects on the body such as allergic reactions, the formation of black patches, acne or discoloration, and others. This can be attributed to the deposition of toxic chemicals in the body due to prolonged exposure to these products. These factors are also shifting the consumer preference towards cosmetic surgeries, which can alter their appearance permanently and thereby help them reducing the daily use of cosmetics. Therefore, rising customer awareness regarding the adverse effects of cosmetic products is expected to restrain the cosmetics market growth.
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Skin Care Segment Dominated the Global Market
Based on the category, the market is segmented into haircare, skincare, makeup, and others. The skincare segment holds the largest share among the other categories due to the consumer preference and availability of large product variants. For instance, according to the ‘Consumer Survey on Cosmetic Dermatologic Procedures 2018’ conducted by American Society for Dermatologic Surgery (ASDS), about 80% of consumers spend more than US$ 100 per month on skincare products in the U.S.
The haircare segment includes products such as shampoo, hair colors, oil, serum, and others. These products provide nourishment to the roots of the hair and also improve the texture of strands, which are more in demand from the younger population. Makeup products include face powders, blush, mascara, and lipstick, which further enhance the look or appearance. Innovative color shades and the development of affordable makeup products to the mass population is expected to drive the segment growth.
The other segment includes fragrances and hygiene and oral care products. And, need for such products, including fragrances, teeth whitening creams, and breath fresheners are increasing globally owing to growing hygiene awareness, which in turn is boosting the segment growth.
Women Segment is Expected to Dominate the Market
Cosmetic products have a greater influence on female end users as they are more concerned about their bodies and looks. The younger generation and working women are increasingly exploring beauty care solutions. Therefore, an increasing number of working women globally is expected to boost cosmetics demand and thereby will support market growth. For instance, according to the data released by the Australian Government in February 2020, among all the employed individuals in Australia, women held a share of about 47% in 2019.
Moreover, women are more conscious about their appearance and wish to look more elegant and therefore tend to purchase more cosmetic products. However, awareness regarding men’s grooming is increasing across the globe, which is also driving product demand. For instance, according to the survey conducted by The Bluebeards Revenge in the U.K. in 2018, 52% of the men surveyed said that they wish to pay more for grooming products in the coming year.
Hypermarkets/Supermarkets Segment is Projected to Hold Dominant Position in the Market
In terms of distribution channels, the market is segmented into hypermarkets/supermarkets, specialty stores, online channels, and others. Hypermarkets & supermarkets segment holds a significant share in the global cosmetics market owing to the availability of a wide range of products from various brands under one roof; discounts and offers given by these stores on bulk purchases coupled with the provision of annual membership.
Specialty stores usually offer products of specific beauty brands where available product variety is generally less. The online stores segment is estimated to grow at a significant rate owing to the ease and convenience offered by online purchasing. Additionally, options such as free home delivery and discounts on a bulk order, as well as the facility of gift coupons, are attracting the customers to buy products online and save their time to go to offline stores.
North America Cosmetics Market Size, 2018 (USD Billion)
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The cosmetics market size in North America stood at USD 82.59 billion in 2018. The market in North America has witnessed a positive growth owing to the higher spending power of the populace, coupled with increased demand for luxury and premium products. Additionally, an increasing number of beauty product stores in the region is one of the major flourishing factors for the growth of the market during the forecast period. For instance, in February 2020, Sephora, one of the largest cosmetic chains in the U.S., announced its expansion plans, which include the opening of about 100 new stores across the North America region by 2020.
The European market is characterized by the presence of leading players in the beauty & personal care industry, including L’Oréal and Beiersdorf AG, Unilever, and others. Moreover, factors such as an increased number of beauty salons and a rising number of millennials, as well as generation Z in the region, are expected to propel the demand for various cosmetic products. For instance, according to Annual Report 2018-2019 of The German Cosmetic, Toiletry, Perfumery and Detergent Association, between the years 2013 to 2018, the skin & face care products market witnessed an average growth of 2.7% per year, and it was about 4.1% per year for decorative cosmetics market in Germany.
The Asia Pacific is expected to hold a largest share in the cosmetics market due to the presence of emerging economies such as China, India, Japan, and Korea. This is owing to a number of factors, including increasing urbanization and standard of living along with an increasing number of working women, which, in turn, is fueling the product demand. For instance, according to data released by the Ministry of Economy, Trade, and Industry of Japan in 2019, the quantity of cosmetics produced has increased from 434 thousand tons of units in 2017 to 455 thousand tons of units in 2018. The middle-class population is likely to purchase cosmetics as they are evolving rapidly along with significant changes in their preferences and thereby they will tend towards looking more trendy and presentable. Therefore, a rising number of middle-class population in the region is responsible for the burgeoning demand for cosmetics. For instance, according to the article, ‘The Middle Class in India- From 1947 To The Present and Beyond’ published by Association for Asian Studies in 2018, in India, middle-class population was about 5% to 10% of country’s population in 2005 which is expected to increase to about 90% by 2039.
The market in South America and Middle East & Africa is expected to hold a comparatively lower share as compared to other regions. However, increasing access to international products and the increasing availability of affordable cosmetics is expected to drive the market growth in these regions.
Market is Highly Fragmented and is Comprised of Diversified Product Portfolio
This market is highly fragmented, owing to the presence of a number of domestic as well as international players across the globe. Manufacturers are focusing on developing new products and attractive packaging options as well as substantial promotional activities to attract consumers and gain a strong foothold in the market. Additionally, companies are focusing on developing organic and natural products, which in turn is projected to propel the market growth.
The cosmetics market report provides detailed industry analysis and focuses on crucial aspects such as leading companies, product categories, and distribution channels.
An Infographic Representation of Cosmetics Market
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Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the cosmetics market growth over recent years.
Value (USD Billion)
By Distribution Channel
Fortune Business Insights says that the global cosmetic market size was USD 297.61 billion in 2018 and is projected to reach USD 438.38 billion by 2026.
In 2018, the market value stood at USD 297.61 billion.
LOreal Professional, Unilever, Procter & Gamble, and Estee Lauder Inc. and more are the leading players in the cosmetic industry
Skincare is expected to be the leading segment under the category in this market during the forecast period.
Increasing spending power of consumers and rising awareness regarding health, hygiene, and grooming are fueling the demand for cosmetics.
Growing at a CAGR of 5.1%, the market will exhibit steady growth in the forecast period (2019-2026).
Asia Pacific region dominated the global market in 2018.
Increasing demand for natural and herbal products coupled with the development of artificial intelligence-based products offering personalized solutions and innovative packaging designs are expected to boost the market.
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