Cosmetics Market Size, Share and COVID 19 Impact Analysis, By Category (Hair Care, Skin Care, Makeup, and Others), By Gender (Men and Women), By Distribution Channel (Specialty Stores, Hypermarkets/Supermarkets, Online Channels, and Others), and Regional Forecasts, 2023-2030

The global cosmetics market size was valued at USD 299.77 billion in 2022 and is projected to grow from USD 313.22 billion in 2023 to USD 417.24 billion by 2030, exhibiting a CAGR of 4.2% during the forecast period.

Cosmetics are beauty & personal care products used for skin cleansing and beautification purposes. Rising consciousness among the global population regarding personal appearance and wellbeing is propelling the cosmetics market growth. These products can enhance an individual's overall appearance. The manufacturing of such items has been controlled by a handful of multinational corporations. They offer a wide variety of skincare, hair care, and lip care products, which are essential to fulfill specific cosmetic requirements of a client. Moreover, increasing launches of anti-aging products, developing innovative & convenient packaging designs, and compact containers that can be easily carried are also attracting consumers. Manufacturers are focusing on developing a diverse product portfolio that can cater to the specific requirements of every individual.

COVID-19 IMPACT

Product Sales Declined during COVID-19 due to Store Closures

The industry was severely affected by the COVID-19 crisis as there was a significant decline in the demand for cosmetic products. Additionally, the consumers’ purchasing patterns changed dramatically across the beauty & personal care space due to the imposition of strict lockdowns and closure of several beauty stores across the world in the first half of 2020.

As per news published by the Estee Lauder Companies Inc. in April 2020, most retail stores operated by the company or its customers had to be closed down since mid-March 2020 across its operating regions, including the Americas, Europe, and the Middle East & Africa. The company's travel retail business was negatively affected due to strict restrictions imposed on travel, particularly air travel. However, the firm took efforts to participate in COVID-19 relief activities through funds and product donations. Estée Lauder's production site, located at Whitman, U.K., started to manufacture hand sanitizers under its brands Jo Malone London and Estée Lauder due to its intensified demand, which were donated to employees and front-line workers.

Moreover, the growing necessity to control the spread of COVID-19 through hand-shaking practices and initiatives by governments to promote hand hygiene & care have also spiked the demand for hygiene products. According to the latest article ‘Namaste. Not Handshakes, to prevent COVID-19’, published by India Times News, in May 2020, the Singaporean government unveiled a ‘no-contact’ policy to minimize the transmission of flu-like viruses & germs from handshaking practices.

Retail store closures led to a rapid shift toward online channels, thereby providing growth opportunities to manufacturers. As per L'Oréal's annual results for 2020, the company's e-commerce sales increased by 62% across all divisions and regions, accounting for about 26.6% of its total sales in 2020.

Therefore, players operating in the beauty market are trying to streamline their supply chain and focus on increasing their online sales. The opening of offline stores will further boost product sales in the future.

LATEST TRENDS

Growth of E-commerce Industry and Improved Marketing Activities by Manufacturers

Various players in the market are initiating digital marketing strategies, preparing interactive advertisements, and making substantial efforts to promote their products through social media, which is likely to foster product demand. The rising influence of social media and increasing internet penetration are attracting consumers toward e-commerce to buy personal care products. 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. Therefore, manufacturers are focusing on offering a large number of products through online channels to meet consumer demand. In addition, companies are largely focusing on the utilization of recyclable & sustainable materials for the packaging of cosmetic products to reduce carbon emissions and contribute toward environmental sustainability. Therefore, various waste management practices are being implemented by prominent companies to minimize wastage from production. For example, in May 2019, the Body Shop, a beauty brand, partnered with Terracycle, a U.S.-based waste management company to promote minimal plastic waste generation.

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DRIVING FACTORS

Rising Awareness Regarding Health, Hygiene, and Grooming to Fuel Product Demand

The trend of self-care and grooming has skyrocketed across the world in recent years, with women being at the epicenter of the cosmetics industry. Concerns regarding body and well-being are increasing daily due to a busy schedule, changes in routine, eating habits, and fluctuations in the sleep cycle. Beauty products 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 and aged population. The increasing trend of using sun care products, night skin repair creams, refreshing fragrances, and hair colors, and others, is also expected to boost the product demand. For instance, according to the '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. The ever-expanding glamour industry is further boosting the demand for makeup products among the young generation to help them enhance their appearance. Social media has a strong influence on this generation, with attractive product promotions showcasing newer trends.

A wide range of product offerings from manufacturers, such as lotions, creams, and gels that are suitable for an individual’s skin & hair is expected to augment the market growth. Manufacturers are focusing on introducing personalization and digitalization in cosmetic products to attract a customer base. For instance, in February 2020, L'Occitane Group launched its new personalized skincare system, 'Duolab,' having a countertop device operated using artificial intelligence. This device can diagnose an individual's skin condition as and when required and then provides a customized face care solution in the form of freshly blended cream. Brands, such as SA.AL & Co., Bulldog Skincare, David Beckham’s House 99 range, and Chanel’s BOY makeup line are focusing on offering products that cater to men’s skincare needs.

Adoption of Sustainable Cosmetics to Drive Market Growth

Rising consumer preference toward organic and therapeutic formulations has accelerated research & development activities among manufacturers to seek novel ingredients that can attract consumers. For instance, as per the ‘U.S. Organic Industry Survey 2020’ by the Organic Trade Association, the total sales of organic non-food products in the U.S. were about USD 5 billion in 2019, which increased by nearly 9.2% from 2018.

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 future, owing to increasing awareness regarding sustainability among the population. This awareness is rising as clients are being exposed to more information on the adverse effects of synthetic chemicals on their health and the environment. Lowering the use of synthetic chemicals that majorly include preservatives and pigments has pushed the concept of refrigerated BPC products, wherein the shelf life of products can be extended with the help of colder temperature without the addition of toxic preservatives. Several brands including FaceTory, Beautigloo, and The Quick Flick Beauty Fridge launched their mini cosmetic fridge products in 2019.

According to the ‘Organic Beauty and Wellbeing Market’ report published in the Soil Association Certification report, the organic personal care market in the U.K. witnessed a growth rate of 7% in 2018. Additionally, consumer preference is shifting toward 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, degradable, and refillable packaging options to attract more users and reduce their carbon footprint.

RESTRAINING FACTORS

Rising Awareness of the Side-effects and Access to Surgical Options to Hamper Market Growth

Cosmetic formulations are a mixture of numerous natural and synthetic ingredients, such as sulfates and phthalates. Rising awareness regarding the adverse health effects and toxicity of a few ingredients is likely to limit the product demand. Synthetic chemicals, such as preservatives, pigment molecules, and other additives have serious side-effects on the body, such as allergic reactions, formation of black patches, acne or discoloration, and others. Prolonged exposure to such products results in the continuous deposition of toxic ingredients in the body’s cells that can eventually cause adverse reactions. Excessive use of certain makeup and hair coloring products can result in rashes or patches on skin and permanent hair greying. These factors are also shifting the consumer preference toward cosmetic surgeries, which can alter their appearance permanently and help them reduce the daily use of beauty products. These factors will restrain the market growth. In addition, the higher cost of certain products, such as makeup and anti-aging skin care items is also expected to hinder the market growth. This factor has also resulted in the development of low-cost counterfeit products that contain low-quality ingredients and are not safe to use.

SEGMENTATION

By Category Analysis

Rising Awareness About Skincare Routines to Boost Demand for Skincare Products

Based on category, the market is segmented into hair care, skincare, makeup, and others. The skincare segment is expected to hold a significant cosmetics market share during the forecast period as a vast majority of the population uses skincare products daily as compared to hair care products. For instance, according to the ‘Consumer Survey on Cosmetic Dermatologic Procedures 2018’ conducted by the American Society for Dermatologic Surgery (ASDS), about 80% of consumers spent more than USD 100 per month on skincare products in the U.S.

People who have skin problems are using skincare products on a large scale. Several skincare products are being developed to quicken the healing process of the skin while also eliminating scars and rashes. According to the data issued by the National Health Interview Survey, in 2018, 9.2 million children in the U.S. who were 18 years and under were reported to have skin allergy.

Haircare includes several products, such as shampoos, hair colors, oils, serums, and others. The growing number of people experiencing hair issues, such as dry hair, dull hair, spit ends, hair loss, and others is escalating the consumption of hair care products. These products can control hair thinning and breakage and also repair damaged, dry, and chemically treated hair. According to the article ‘Hair Loss in Women’ published by Cleveland Clinic in May 2018, more than 50% of women in the U.S. experienced noticeable hair loss.

Makeup products include face powders, blush, mascara, and lipstick, which further enhance a person’s appearance. Innovative color shades and affordable makeup products are expected to drive the segment growth.

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The others segment includes fragrances and hygiene & oral care products. And the need for products including fragrances, teeth whitening creams, and breath fresheners is increasing globally owing to growing hygiene awareness, thereby boosting the segment growth.

By Gender Analysis

Cosmetic Products to be Widely Used by Working Women to Enhance Their Appearance

Based on gender, the market is divided into men and women. The women segment is anticipated to hold the larger market share as a more manufacturers are producing products that are specifically targeted toward women. A large percentage of women are more inclined to beauty products as compared to men. Young girls and working women are increasingly exploring beauty care solutions. Therefore, an increasing number of working women globally is expected to boost the product demand and support the 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.

Additionally, the promotion of beauty contests, such as Miss World, Miss Universe, and Victoria’s Secret is generating more traction for cosmetic products among women as it prompts them to emulate their looks. For instance, according to the Indian Express, Miss World 2019 was estimated to have a viewership of 900 million from 140 countries.

The men segment is displaying a strong presence in the market owing to the increasing consciousness among men regarding their looks and wellbeing. This factor has escalated the sales of men grooming products. A large number of men are working in professions, such as sales, hospitality, aviation, and others, which requires dealing with clients or customers on a daily basis. This has surged the usage of cosmetic products among men as they need to look presentable. For instance, according to a survey conducted by The Bluebeards Revenge in the U.K. in 2018, 52% of the men surveyed said that they wished to pay more for grooming products in the coming year.

By Distribution Channel Analysis

Wide Availability of Products under One Roof to Boost Consumer Preference for Hypermarkets/Supermarkets

In terms of distribution channel, the market is segmented into hypermarkets/supermarkets, specialty stores, online channels, and others. The hypermarkets/supermarkets segment is expected to hold the largest market share during the forecast timeframe. These stores are known to showcase a vast variety of several brands and their products that are provided under the mass market. Products used for daily purposes are purchased at these stores as they offer the option to buy products in bulk at lower prices. Value packs of body lotions, shampoos, conditioners, and a bundle of roll-ons/antiperspirants are easily available at these market that attract consumers.

Specialty stores offer a wide range of products under specific brands. These stores are explored particularly for makeup products, anti-aging cosmetics, and fragrance products from luxury brands. Therefore, these stores are gaining momentum among customers as they cater to their specific product requirements. The online stores segment is projected to grow significantly due to the ease and convenience offered by online purchasing. Additionally, these stores provide different benefits, such as free home delivery, discounts on bulk orders, and gift coupons, while also saving their time going to offline stores.

REGIONAL INSIGHTS

Asia Pacific dominated the global market share and was valued at USD 112.57 billion in 2022, owing to a large pool of aging population in countries, such as China and Japan, that have surged the demand for anti-aging, anti-wrinkle, and dark spot treatment products. According to data released by the Ministry of Economy, Trade, and Industry of Japan in 2019, the production of cosmetic products increased from 434,000 tons in 2017 to 455,000 tons in 2018.

According to a survey report ‘World Population Aging: 2019’, published by the Department of Economic & Social Affairs of the United Nations, in 2019, nearly 164.49 million people in China were in the age group of 65 years and above.

The rising middle-class population in the region is also responsible for the burgeoning demand for beauty products. For instance, according to the article ‘The Middle Class in India - From 1947 To The Present and Beyond’ published by the Association for Asian Studies in 2018, the middle-class population in India was about 5-10% of the country’s total population in 2005, which is expected to increase to about 90% by 2039.

Moreover, growing consumer preference toward buying high-quality and premium cosmetic items and rising income of the population are further propelling the demand for branded cosmetic items in the region. According to statistics presented by the U.S. National Library of Medicine National Institute of Health, in December 2019, nearly 25.8% of males and 74.2% of females preferred to buy Korean luxury cosmetics in China.

The market in North America has witnessed strong growth owing to higher spending power of the population and increased demand for luxury and premium products. Growing incidence of skin-related problems, such as cancers, rashes, and wrinkles among the population in countries, such as the U.S. and Mexico is primarily driving the demand for dermatologically proven skincare products. According to the data published by the American Academy of Dermatology Association, every year, nearly 50 million Americans are affected by acne.

The Europe market holds a considerable share of the global market owing to a large number of on-street salons that support the consumption of skincare & haircare cosmetics. Increased number of beauty salons and rising number of millennials and 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 market in Germany.

Additionally, increasing import of essential oils in countries, such as France, Italy, and others, indicates increased demand for essential oil-based perfumes in the region. According to the analysis report ‘Organic imports in the EU’ published by the European Commission, in 2018, Europe imported 178 tons of essential oils from Tunisia.

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The market in South America and the Middle East & Africa is expected to hold a comparatively lower share than other regions. The growing online presence of key players and rising online shopping in the Middle Eastern countries, such as Saudi Arabia, Qatar, and Egypt, are propelling cosmetic companies’ revenues from online stores in the region. Additionally, rising disposable income, increasing access to international products, and growing availability of affordable products are expected to drive the market growth in these regions.

KEY INDUSTRY PLAYERS

Market is Highly Fragmented with Varied Product Portfolios of Companies

The cosmetics industry is highly fragmented, owing to the presence of several domestic and international players across the globe. Additionally, these companies are focusing on developing organic and natural products, which will propel the market growth. Several domestic and small- scale players in the market are adopting various strategies to expand their business operations. Strategic partnerships of key players with companies offering innovative techniques and packaging solutions are expected to further consolidate their market positions.

For instance, in February 2021, Kao Corporation introduced a serum named SOFINA iP INTERLINK SERUM Pore Refining Moisture. This product is said to condition the skin and conceal pores to provide a clear, moist texture.

LIST OF KEY COMPANIES PROFILED:

• L’Oréal S.A. (France)


• Unilever plc. (U.K.)


• Procter & Gamble Co. (U.S.)


• The Estée Lauder Companies Inc. (U.S.)


• Beiersdorf AG (Germany)


• Shiseido Co., Ltd. (Japan)


• Coty Inc. (U.S.)


• Natura & Co. (Brazil)


• Kao Corporation (Japan)


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

KEY INDUSTRY DEVELOPMENTS:

• February 2023: Shiseido Company Limited announced the launch of two new moisturizers from SIDEKICK, its skincare brand that focuses on common skin concerns that young men face.


• December 2022: Beiersdorf AG acquired a majority stake in S-Biomedic NV, Belgium-based life-science company. With this acquisition strategy, the company will be able to strengthen its expertise in the field of acne treatment.


• September 2022: Shiseido Europe S.A., a subsidiary of Shiseido Company, Limited, entered an agreement to acquire all the outstanding shares of Gallinée Ltd, a London-based beauty brand. 


• February 2021: Revlon partnered with MDR Brand Management for new product launches, wider retail reach, deeper consumer engagement across the EMEA, APAC, and the Americas.


• February 2020: Beiersdorf AG acquired ‘STOP THE WATER WHILE USING ME’, from the T.D.G. Vertriebs GmbH & Co., which helped the company accelerate the shared efforts on climate & resource protection and bolstered the impact of sustainable skincare.

REPORT COVERAGE

An Infographic Representation of Cosmetics Market

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

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