Makeup Market Size, Share & COVID-19 Impact Analysis, By Product (Powder, Gel, Lotions, and Others), By Application Area (Lips, Eyes, Face, and Nails), By Distribution Channel (Supermarkets & Hypermarkets, Exclusive Brand Stores, Online/E-Commerce, and Others), and Regional Forecast, 2022-2029

The global makeup market size was valued at USD 40.37 billion in 2021. The market is projected to grow from USD 41.85 billion in 2022 to USD 61.34 billion by 2029, exhibiting a CAGR of 5.61% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with makeup experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 14% in 2020 as compared to 2019.

The growing awareness of consumers toward personal grooming is driving the demand for makeup products. Nowadays, self-care has become an integral part of a daily routine for a large number of individuals as it enables highlighting facial features such as eyes and lips and thereby provides an efficient method for grooming. In addition, rising establishment of mega stores and brand stores in developing countries such as India, China, and others and the availability of a wide range of cosmetic products is augmenting the market size. In addition, the popularity of premium beauty products among women and millennials is driving the makeup market growth over the forecast period.

COVID-19 IMPACT

Supply Chain Disruptions Due to the Pandemic Affected the Market Growth

The COVID-19 pandemic has a major impact on the growth of the market. During the pandemic, lockdowns and emergency measures hampered the supply of raw materials to the market. Prices for natural ingredients rose in exports from developing countries due to higher freight prices and longer shipping delays. Due to lockdowns in some countries, import and export activities became difficult and the demand also dropped, affecting market expansion. Also, the COVID-19 crisis restricted supply chains in every industry, including fashion and cosmetics.

Furthermore, the pandemic adversely affected the global cosmetics products market, resulting in a sharp drop in sales. Governments imposed lockdowns and shutdowns of retail stores, affecting retailers as the epidemic spread across the globe. Labor shortages in factories and logistics operations due to the pandemic continue to have a serious impact on supply chains around the world.

Despite the negative impact of the coronavirus pandemic, the global cosmetics market is expected to recover in the coming years. With consumer preferences changing to organic and therapeutic formulations due to rising awareness of organic products, manufacturers have accelerated research & development efforts to find new organic and herbal ingredients that can attract consumers. Additionally, players are focusing on strengthening online and offline distribution to expand its presence. For instance, in October 2022, Earth Rhythm announced its entry into the offline retail market with the launch of 12 kiosks in India's Tier 1 and Tier 2 cities, New Delhi, Chennai, Chandigarh, Raipur, Bangalore, Mumbai, and Dehradun. The kiosks include 90 products across its four major categories – beauty, bath & body, face, and hair.

LATEST TRENDS

Request a Free sample to learn more about this report.

Inclination of Consumers Toward Natural Cosmetic Products to Assist Market Growth

The rising concern about skin problems due to wearing makeup has affected the global demand, with the use of beauty products with chemicals resulting in acne, breakouts, and other conditions. Regular makeup use is harmful for skin as it breaks the skin's protective layer. For instance, a 2020 study by the National Library of Medicine stated that the use of cosmetics harms the human skin and can lead to pigmentation and skin problems as some of these substances could also have harmful, irritating, and allergic effects on human health. With the rise in skin problems due to chemically contained cosmetics, people shifted toward more natural and organic products. Many key manufacturers such as L'Oréal S.A., Estée Lauder Companies, Honasa Consumer Private Limited, and others in this industry also shifted their production toward natural cosmetic products.

DRIVING FACTORS

Increasing Inclination Toward Personal Grooming to Favor Market Expansion

Grooming, looking good, and feeling good trend is rising worldwide with women at the center of the cosmetics industry. The emerging glamor industry is boosting the demand for various skincare products among the young generation that can alter their appearance. Social media strongly influences this generation, with attractive product promotions showcasing newer trends. Brands such as SA.AL & Co., Bulldog Skincare, David Beckham's House 99 range, and Chanel's BOY are focusing on offering products for men's skincare needs to cater to its increasing demand.

Product Modernization in Terms of Cosmetic Items to Expand Product Demand

As natural beauty ingredients are gaining popularity, the need for natural preservatives is also rising, resulting in research opportunities for organic and natural constituents. With the rising awareness of harmful chemical ingredients on one’s health and the environment among consumers, their buying behaviors have shifted to organic products. Hence, sustainability has become a priority across all industries. The COVID-induced lockdown restrictions have changed how we live and work. This has also decreased the negative impact on the environment to some extent.

RESTRAINING FACTORS

Rising Awareness Regarding Adverse Effects of Chemical Formulations to Hamper Product Sales

Chemicals used in the production of cosmetic products can harm an individual's skin and the daily application of these products could be dangerous. The formulations of cosmetic products consist of numerous chemical constituents, including synthetic chemicals, coloring agents, sulfates, and others. The rising inclination of consumers in terms of health awareness and toxicity created by the products is expected to restrict the product demand in the long run. Moreover, prolonged exposure to such products results in the continuous deposition of toxic ingredients in body cells that can eventually cause adverse effects.

Excessive use of certain creams and powders and hair coloring products can result in rashes or patches on the skin and permanent hair graying. Furthermore, the higher cost of skin-lightening products may hamper product demand. This factor also resulted in the development of low-cost counterfeit products with lower-quality ingredients that are not safe to use.

SEGMENTATION

By Product Analysis

To know how our report can help streamline your business, Speak to Analyst

High Absorbing Features of Powder to Trigger Demand for Powder Segment

Based on product, the market is segmented into powder, gel, lotion, and others. The powder segment is estimated to grow at a significant rate in the coming years. A variety of cosmetics are available in powder form, whether as loose or pressed powder, such as face powder and powder foundation. Face powder is highly used as a base to apply bronzer, contour, or blush. Certain powders also help to reduce the look of pores and fine lines. Moreover, powdered contents are suitable for oily skin as they help absorb oily residue. Such factors contribute to the growth of the powder segment.

The rising popularity of powder foundations among young users who demand light coverage is driving segmental growth. It also helps control excess oil around the nose and forehead area, preventing the need for frequent reapplication and further increasing its demand. Companies are focusing on developing powder based products that also protect the skin other than just enhancing the appearance. For instance, in August 2022, Ponds, a beauty brand from Unilever, a British consumer goods company, launched its natural glow face powder which is made from ingredients such as titanium dioxide and zinc oxide that have UV protection properties.

By Application Area Analysis

Face Segment to Dominate the Market Owing to Rising Product Demand

Based on application area, the market is segmented into lips, eyes, face, and nails. The face segment is expected to dominate the market as most of the consumers apply creams and powders on face compared to other body parts, which increases its demand in the market. Key players focus on launching new facial skin easing products developed according to the need of different skin types, supporting the segmental growth. For instance, in April 2022, RENEE Cosmetics, an Indian cosmetic brand, announced the launch of its new product range called Face Base for Indian skin types. The range includes liquid foundation, stick foundation, concealer, and compact, available in five shades. The range also includes loose powder, which is offered in four shades. The products are available on both online and offline platforms.

Large key companies across the globe focus on developing sustainable face products that are safe for the environment. For instance, in May 2021, Huda Beauty, a cosmetic brand headquartered in Dubai, UAE, announced the launch of its new cosmetic collection, GloWish. According to the brand, the collection is cruelty-free and vegan, with sustainable packaging and ingredients. The collection includes MultiDew Skin Tint and Soft Radiant Bronzing Powder.

By Distribution Channel Analysis

Supermarkets/Hypermarkets Segment to Dominate the Market Due to Growing Demand for Variety of Options

Based on distribution channel, the market is segregated into supermarkets & hypermarkets, exclusive brand stores, online/e-commerce channels, and others. The supermarkets & hypermarkets segment is expected to capture a significant makeup market share during 2022-2029. These stores offer a variety of products to consumers and every individual has the liberty to validate the genuineness of the product. Apart from this, the online segment is anticipated to hold the fastest growing CAGR during the forecast period owing to the rapid boom of e-portals during 2020.

REGIONAL INSIGHTS

To get more information on the regional analysis of this market, Request a Free sample

Based on geography, the market is categorized into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

The Asia Pacific region is estimated to rise at a CAGR of 5.0% over the forecast years. The region is anticipated to experience a significant growth in the coming years, owing to the rise in the young population along with their rising consumption of branded beauty products. Moreover, the need for cosmetic products among beauty professionals is projected to foster the demand for the entire market.

The North America market share is expected to increase at a CAGR of 6.50% in the near term. The presence of large players in the region provides huge opportunity for the consumers to have access to different beauty brands and select products according to their choice. This in turn fosters the demand of the products in countries such as the U.S., Canada, and Mexico.

The market of Europe is characterized by the occurrence of various international cosmetic brands in countries such as France, U.K., and others. The increasing collaboration of market players with different brands and stakeholders to provide a variety of products along with improving their supply chain management is propelling the region’s demand for cosmetic products.

To know how our report can help streamline your business, Speak to Analyst

The Middle East & Africa and Latin America makeup products markets are assisted by the continuous support of the government for skin care product manufacturers to produce products at affordable costs. The positive stance of the producers in the region supported by short term loans provided by the government along with other facilities, are raising the product demand in these regions.

KEY INDUSTRY PLAYERS

Beauty Brands Focus on Acquisitions to Expand Product Portfolio

Beauty companies are aiming to expand their product portfolio by acquiring different small-scale cosmetic brands as it helps the company with maximum customer reach and builds brand identities in the untapped markets globally. This is also considered a marketing strategy for many bog beauty firms for brand building and market acquisitions. For instance, in 2020, Loreal S.A. acquired a renowned brand for natural remedies, THAYER'S. The deal helped increase the company's product portfolio and added a rich skincare heritage to L'Oréal's Consumer Products Division, offering a wide range of high-quality items.

LIST OF KEY COMPANIES PROFILED:

• Unilever (U.K.)


• L'Oréal S.A. (France)


• Avon Products, Inc. (U.K.)


• Oriflame Cosmetics AG (Switzerland)


• Revlon, Inc. (U.S.)


• Coty Inc. (U.S.)


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


• The Procter & Gamble Company (U.S.)


• Kao Corporation (Japan)


• Shiseido Co. Ltd (Japan)

KEY INDUSTRY DEVELOPMENTS:

• September 2022: L’Oréal inked an agreement for the acquisition of Skinbetter Science. This helped the company to expand its product portfolio, strengthening its presence globally.


• April 2022: Health and Glow, a beauty retail chain, launched H&G Cosmetics, its brand in quality color cosmetics. The new brand offers a range of cruelty-free and vegan everyday makeup products.


• April 2022: Shiseido, a brand of the Shiseido Group, in collaboration with Revieve, a personalized digital brand experience company, launched an AI Makeup Advisor experience to serve consumers in the EMEA region.


• March 2022: E.l.f. Cosmetics, in partnership with Dunkin’ Donuts, launched a new limited edition makeup collection, E.l.f.ing Sweet Collection. The products are exclusively available on Ulta.com and Ulta Beauty stores.


• March 2022: Space NK, a British personal care and beauty product retailer, partnered with Walmart to launch BEAUTYSPACE. It features a collection of 600 beauty products from 15 new and established brands specifically for Walmart customers.

REPORT COVERAGE

An Infographic Representation of Makeup Market

View Full Infographic

To get information on various segments, share your queries with us

The research report analyzes the industry in-depth and highlights crucial aspects such as prominent companies, product types, and sales channels. Besides this, the report provides insights into the makeup market trends and highlights significant industry developments. In addition to the aspects mentioned earlier, the report encompasses several factors contributing to the market growth.

Report Scope & Segmentation