April 17, 2024

The Expanding Cosmeceuticals Market is Growing in Popularity by Rising Health Conscious Consumers

The cosmeceuticals market has seen significant growth in recent years due to increased demand for enhanced skincare and hair care products with added health benefits. Cosmeceuticals products combine cosmetics with pharmaceuticals with the primary purpose of improving the skin quality, repairing damaged skin, slowing skin aging, and improving overall appearance. Cosmeceuticals contain drugs and biologically active ingredients that are safer and gentler alternatives to pharmaceuticals. They are a vital source of antioxidants, peptides, growth factors, and other nutritive ingredients. Therefore, cosmeceuticals can help reduce fine lines and wrinkles, lighten dark spots, improve skin firmness and elasticity, treat acne, and nurture healthy hair and scalp. The Global Cosmeceuticals Market is estimated to be valued at US$83.95 Bn in 2024 and is expected to exhibit a CAGR of 9.2% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the cosmeceuticals market are Bayer AG, Henkel AG & Co. KgaA, Avon Products Inc., Johnson & Johnson Inc., Kao Corporation, Beiersdorf AG, Groupe Clarins SA, Revlon Inc., Shiseido Co. Ltd., Unilever PLC, Procter & Gamble, L’Oréal SA, Lotus Herbals Pvt. Ltd., and The Estée Lauder Companies Inc. The major players are investing heavily in research and development to develop new and innovative product lines.

The growing demand for multifunctional cosmetic products with added health benefits among consumers is a major factor driving the cosmeceuticals market. Consumers are increasingly spending more on beauty and wellness products that can deliver therapeutic benefits for their skin and hair. In addition, the rising trend of preventive healthcare and availability of tech-enabled cosmeceutical products are fueling market growth.

Geographically, North America represents the largest and fastest-growing regional market for cosmeceuticals owing to growing aging population, increasing disposable income, and high consumer awareness about personal care products. However, emerging markets in Asia-Pacific are expected to witness the highest growth during the forecast period attributed to increasing consumer purchasing power, rising standards of living, and growing cosmetic cultures in China and India.

Market Key Trends

One of the key trends gaining major traction in the cosmeceuticals market is the growing demand for natural and organic cosmeceutical products. Consumers are increasingly preferring ingredients sourced from natural sources rather than synthetic ones owing to rising health awareness and changing lifestyles. They are concerned about the potential side effects of chemicals, preservatives and artificial ingredients. This has prompted leading manufacturers to focus on sourcing ingredients from natural sources such as plants, herbs, essential oils, and fruit/vegetable extracts. They also offer clinically-tested natural formulations that deliver results without any side effects. This trend is expected to continue in the foreseeable future.

Porter’s Analysis
Threat of new entrants: The cosmeceuticals market has a moderate threat of new entrants due to the high research and development costs for new ingredients and formulations.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of various established brands and new emerging brands.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of alternative ingredient sources.
Threat of new substitutes: The threat of new substitutes is low as there are limited substitutes that can provide the functional benefits of cosmeceuticals.
Competitive rivalry: The competitive rivalry is high owing to the presence of many established international as well as local players.

Geographical Regions
North America dominates the cosmeceuticals market, accounting for over 35% of the global market share in 2024, owing to increased consumption of anti-ageing products. The United States holds the largest market share in the region due to the rising geriatric population and high consumer expenditure on personal care products.

The Asia Pacific region is expected to witness the fastest growth during the forecast period, growing at a CAGR of around 12%. This can be primarily attributed to improving healthcare infrastructure, rising disposable incomes, increasing awareness about cosmeceuticals, and growing spending on premium beauty products in major countries, including China, Japan, and India.

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  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it