May 22, 2024

The Global Premium Cosmetics Market is projected to driven by growing skincare awareness

The premium cosmetics market comprises of high-end products including beauty products, fragrances, and personal care items. Premium cosmetics promise quality formulation and ingredients targeting specific skincare needs. They claim to offer anti-ageing benefits, hydration and protection from environmental damage. With growing pollution levels and hectic lifestyles, consumers are increasingly becoming aware of skincare resulting in rising demand for premium products formulated to combat signs of ageing.

The global premium cosmetics market is estimated to be valued at US$ 123.39 billion in 2024 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the premium cosmetics industry is the growing popularity of customized products. Consumers are showing preference for personalized products tailored to their specific needs and concerns like skin-type, texture, tone and signs of ageing. Brands are launching customized beauty and skincare ranges where consumers can select ingredients, fragrances, shades and textures of their choice. This allows customers to experiment with various combinations to zero-in on the perfect product for their requirements. This emerging trend is expected to drive innovation and further fuel growth of the premium cosmetics market over the forecast period.

Porter’s Analysis

Threat of new entrants: The premium cosmetics market is competitive due to high capital requirements and established customer relationships of incumbent players. However, new digitally native players can enter the market with differentiated products.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and brand consciousness. However, switching costs are low.

Bargaining power of suppliers: Suppliers of raw materials have moderate bargaining power due to fragmented supply base and complexity of formulation process.

Threat of new substitutes: Premium skincare and makeup brands are major substitutes. However, customer loyalty and focus on innovation mitigates threat.

Competitive rivalry: Market is concentrated with top players holding majority share. Players compete based on brand image, product innovation, and customer experience in stores and online.

Key Takeaways

The global premium cosmetics market is expected to witness high growth over the forecast period. The Skincare segment is anticipated to be the fastest-growing segment. The growth is attributed to rising awareness about skincare products and sustainable packaging solutions. The global premium cosmetics market is estimated to be valued at US$ 123.39 billion in 2024 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030.

Regional analysis: North America region currently dominates the market owing to frequent launches of premium range products, strong brand positioning, and expanding e-commerce platform by leading brands. However, Asia-Pacific is expected to show fastest growth due to growing working women population, rising disposable incomes, and increasing social media penetration in countries like China and India promoting premium brands.

Key players: Key players operating in the premium cosmetics market are L’Oréal,Estée Lauder Companies,Procter & Gamble,Shiseido,Coty,Chanel,LVMH Moët Hennessy – Louis Vuitton,Kering,Unilever,Beiersdorf. Players compete on the basis of brand identity, innovation, and experiential retailing including virtual try-ons and personalized recommendation engines.