According to Fortune Business Insights, the global cosmetics industry was valued at USD 287.94 billion in 2021 and is projected to grow USD 415.29 billion in 2028, exhibiting a CAGR of 5% during the 2023-2028 period.

Information Source:

https://www.fortunebusinessinsights.com/cosmetics-market-102614

In recent times, the demand for makeup and skincare products has surged dramatically. Both men and women use it to enhance their overall appearance. The industry offers a wide variety of products, such as hair care, face care, lip care, and others. Additionally, the increasing demand for anti-aging creams and serums and the development of advanced tools and innovative packaging is attracting consumers. Besides, the new trend of personalized products for a specific person, based on their hair type, skin tone & texture, and eye color, is generating traction. The manufacturers are also trying to grab consumers' attraction by coming up with sustainable packaging and chemical-free products to cater to the demand of every individual.

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)

Market Segmentation:

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. 

COVID-19 Impact

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 brands 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:

There are several factors that 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 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?

The market report provides a detailed analysis of several factors, such as the key drivers and restraints that will impact growth. Additionally, the report provides insights into the regional analysis that covers different regions, contributing to the growth of the market. It includes the competitive landscape that involves the leading companies and the adoption of strategies to introduce new products, announce partnerships, and collaborate to contribute to market growth.

Driving Factors

Availability of Customized Beauty & Skincare Products to Drive Market Growth

In recent times, demand for personalized skincare, and hair care is promoting manufacturers on introducing personalization and digitalization in cosmetic products to increase customers. For instance, in February 2020, L’Occitane Group announced the launch of its new range of personalized range called Duolab. The range has a countertop device that functions with artificial intelligence (AI) technology. This device helps in finding out one’s skin condition to provide it with a face care solution in the form of freshly blended cream. Therefore, increased awareness regarding grooming coupled with technological advancements is expected to support the cosmetics industry statistics 2020 growth in upcoming years.

Regional Insights

Asia Pacific to Dominate the Market Backed by Increasing Urbanization and Standard of Living

Asia Pacific is expected to dominate with a market size of USD 102.55 billion in 2020. Increasing urbanization & standard of living, a growing number of working women, and rising middle-class population are the key contributing factors to the growth of the market in this region.

North America on the other hand is expected to witness positive growth owing to the rising disposable income and high spending power of the population in the region. Additionally, an increasing number of beauty product stores in the region is also one of the major flourishing factors for the growth of the market during the forecast period. For instance, in February 2020, one of the largest cosmetics retail stores Sephora announced its expansion plans, which included the opening of around 100 new stores across the North American region by 2020.

Competitive Landscape

Key Players to Focus on Partnerships and New Launches to Strengthen Market Growth

This market is consolidated by major companies striving to maintain their position by focusing on new launches, collaborations & partnerships, and acquisitions. Such strategies taken up by key players are expected to strengthen its market prospects.

Below are the industry developments:

• January 2020: Natura &Co announced the acquisition of Avon Products, Inc. Avon offers beauty and personal care products. Through this acquisition, Natura aims to expand its product portfolio.
• February 2021: Revlon made a partnership with MDR Brand Management to come up with new cosmetics products and increased consumer engagement across the EMEA, APAC, and America.