The global cosmetics market size was valued at USD 313.22 billion in 2023 and is projected to grow to USD 417.24 billion by 2030, exhibiting a CAGR of 4.2% during the forecast period. Asia Pacific dominated the global market with a share of 37.55% in 2022.
List of Key Players Profiled in the Cosmetics Industry Report:
- The Estée Lauder Companies Inc. (New York, U.S.)
- Beiersdorf AG (Hamburg, Germany)
- Shiseido Co., Ltd. (Tokyo, Japan)
- Coty Inc. (New York, U.S.)
- Natura & Co. (São Paulo, Brazil)
- Kao Corporation (Tokyo, Japan)
- Johnson & Johnson Services, Inc. (New Jersey, U.S.)
- L’Oréal S.A. (Paris, France)
- Unilever (London, U.K.)
- Procter & Gamble Co. (Ohio, US)
By category, the market is segmented into hair care, skincare, makeup, and others. By gender, it is bifurcated into men and women. By distribution channel, it is divided into specialty stores, hypermarkets/supermarkets, online channels, and others. Finally, based on region, the market is categorized into North America, Europe, Asia Pacific, and the rest of the world.
The cosmetic industry was negatively impacted by the COVID-19 pandemic. The manufacturers witnessed a decline in their sales, and the consumers’ purchasing patterns also witnessed a change. For instance, Estee Lauder’s report published in April 2020 stated that most of the retail stores had to be closed since mid-March 2020 across its operating regions, including The Americas and Europe, and the Middle East & Africa. Moreover, the company production unit in Whitman, the U.K., started manufacturing hand sanitizers under the company’s brand Jo Malone London.
Further, a rapid shift towards online channels was seen, as the retail stores were closed. According to L’Oréal’s 2020 annual results published in February 2021, the company’s sales increased by 62% for e-commerce across all divisions and all regions, accounting for about 26.6% of the total company’s sales for 2020.
Factors Affecting the Growth of the Cosmetics Market:
Several factors can affect the growth of the Cosmetics Market. Some of these factors include:
- Increasing Disposable Income: Rising disposable income levels among consumers, particularly in developing countries, have contributed to the growth of the cosmetics market. As people have more money to spend on non-essential items, they are willing to invest in cosmetics and personal care products.
- Changing Consumer Preferences: Consumer preferences have shifted towards a greater focus on personal grooming, beauty, and self-care. There is a growing demand for cosmetics that enhance physical appearance and cater to specific skin types or concerns. This change in preferences has fueled the growth of the cosmetics industry.
- Influence of Social Media and Influencers: The advent of social media platforms and the rise of beauty influencers have had a significant impact on the cosmetics market. Consumers now have access to a wide range of beauty-related content, product reviews, and tutorials. Social media platforms provide a platform for cosmetic brands to engage with their target audience and promote their products, leading to increased sales.
- Technological Advancements: Advancements in technology have revolutionized the cosmetics industry. Innovations such as improved formulations, advanced manufacturing processes, and product customization options have expanded the product offerings and improved the quality of cosmetics. Technological advancements also enable companies to market their products more effectively, reach a wider audience, and provide personalized recommendations.
- Growing Men’s Grooming Segment: The men’s grooming segment has witnessed substantial growth in recent years. Men are increasingly conscious of their appearance and are willing to invest in grooming products. Cosmetic companies have recognized this trend and have launched specific product lines targeting the male demographic, contributing to the overall growth of the cosmetics market.
- Increasing Awareness of Health and Wellness: There is a growing awareness among consumers about the importance of maintaining healthy skin and overall well-being. This has led to an increased demand for cosmetics that contain natural and organic ingredients, are free from harmful chemicals, and offer skincare benefits. The focus on wellness and sustainability has prompted cosmetic companies to develop and promote products that align with these values.
- Expansion of E-commerce: The rise of e-commerce has significantly impacted the cosmetics industry. Online platforms provide consumers with convenience, a wider product selection, and the ability to compare prices and reviews. E-commerce has opened up new market opportunities for cosmetic brands, especially small and niche players, enabling them to reach global consumers and compete with established brands.
- Urbanization and Globalization: Rapid urbanization and globalization have influenced the growth of the cosmetics market. As more people move to urban areas and experience exposure to global beauty trends, their demand for cosmetics increases. Cosmetics brands are expanding their presence in urban centers and leveraging global marketing strategies to cater to this growing consumer base.
These factors collectively contribute to the growth and evolution of the cosmetics market, making it a dynamic and competitive industry.
What does the Report Provide?