by Cosmetics Market is Booming in Trend of Natural and Organic Products
The cosmetics industry provides a wide range of skincare and beauty products to enhance physical appearance and boost self-confidence, including foundations, nail polish, eyeliner, lipstick and cleansers. These products help users care for their skin and hair while feeling and looking their best. The global cosmetics market is estimated to be valued at US$ 438.5 billion in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period from 2023 to 2030.
Key Takeaways
Key players operating in the cosmetics market include L’Oreal S.A, Unilever plc., The Procter & Gamble Company, The Estee Lauder Companies Inc., Shiseido Company, Limited, LVMH Moët Hennessy, Kao Corporation., Oriflame Holding AG, Avon Products Inc., Revlon, Inc. Key players in the cosmetics industry continue to launch natural and organic product lines in response to growing consumer demand. The increasing focus on natural ingredients is expected to open many opportunities for industry players to expand their portfolio.
The growing demand for multifunctional, natural and sustainable products is fueling the expansion of the global cosmetics market. Consumers are increasingly seeking products with skincare and makeup benefits that also contain ingredients like hyaluronic acid, coconut oil and vitamins. Manufacturers are responding by developing innovative products lines paired with effective marketing strategies.
The global expansion of leading cosmetic companies has also contributed to the market growth. International brands are increasing their presence in emerging markets like Asia Pacific, Africa and South America through tailored campaigns, influencer marketing and e-commerce partnerships. The rising spending power of consumers in developing economies provides huge opportunities for premium brands to penetrate new regions.
Market Key Trends
The use of natural and organic ingredients is a major trend shaping the future of the cosmetics industry. Growing health awareness and concerns over toxic chemicals are driving demand for cosmetics with natural formulations. Key players are emphasizing clean, eco-friendly products made from plant-based oils, flower extracts and vitamins. This has boosted the popularity of natural cosmetic ranges among health-conscious consumers.
Porter’s Analysis
Threat of new entrants: The cosmetics market has high set up costs due to stringent regulations and R&D requirements. While the market is profitable, regulations provide barriers for new companies to enter.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes and brands. However, customer loyalty gives brands an edge in negotiations.
Bargaining power of suppliers: Major suppliers include ingredients, packaging and distribution companies. The suppliers have moderate bargaining power due to the global presence of buyers and supplier substitutability in the market.
Threat of new substitutes: Substitutes include generic makeup and personal care brands. However, customer loyalty and aggressive marketing by established brands make substitute threat moderate.
Competitive rivalry: The rivalry in the cosmetics market is high due to the global presence of major brands. Players compete on the basis of product quality, innovation, and brand recognition.
Geographical Regions
North America accounts for over 30% of the global cosmetics market value majorly contributed by the US and Canada. High disposable incomes and wellness trends drive large per capita beauty spending in the region.
The Asia Pacific region is anticipated to witness the fastest growth during the forecast period majorly driven by India and China. Increasing middle-class population, growing beauty consciousness, and rising per capita incomes are fueling cosmetics market growth in the Asia Pacific region.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
