May 24, 2024

The Growing Cosmeceuticals Market is Trending Due to Rising Skin Health Concern

The global cosmeceuticals market has registered significant growth in recent years owing to the proliferation in demand for multifunctional cosmetic products which deliver perceived skin health benefits. Cosmeceuticals find widespread application in anti-aging creams, sun protection, acne treatment, skin brightening, and various other skin care treatments. The growing geriatric population and increasing inclination towards maintaining youthful appearances have augmented the consumption of anti-aging cosmetic products.

The Global cosmeceuticals Market is estimated to be valued at US$83.95 Billion in 2024 and is expected to exhibit a CAGR of 9.2% over the forecast period 2024 to 2031.

Cosmeceuticals are cosmetic formulations intended to deliver pharmaceutical benefits and ingredients by caring for the skin. The products aim to improve overall skin health by hydrating, brightening, anti-aging, and targeting specific dermatological concerns such as acne, dark spots, wrinkles etc. Burgeoning demand for multifunctional cosmetic products that provide skin care benefits along with makeup effects has augmented the market growth. Rising awareness regarding the potential skin health impact of environment factors including pollution has also fuelled the consumption of specialized cosmeceutical treatments. Moreover, growing product visibility through e-commerce platforms and social media influence has significantly boosted the market revenues. The Global cosmeceuticals Market is projected to cross a value of US$148 Billion by 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.
Key players are engaged in extensive R&D activities to formulate novel cosmeceutical formulations with enhanced efficacy. Strategic acquisitions and partnerships are also common in order to expand consumer reach and product portfolios.

The growing demand for multifunctional, result-oriented skin care products has significantly propelled the cosmeceuticals market revenues. Rising health concerns coupled with increasing spending on personal care are expected to continue driving market growth over the forecast period.

Globally, the market is witnessing strong expansion backed by growing urbanization, rising middle-class disposable incomes, and changing lifestyles in emerging economies of Asia Pacific and Latin America. Ease of availability through online retailing is also contributing to market penetration in remote areas.

Market Key Trends

Incorporation of natural and organic ingredients is one of the key trends being observed in the cosmeceuticals industry. Consumers are increasingly demanding products containing plant-based active ingredients that are less likely to cause side effects. As a result, manufacturers are boosting investments in natural formulations containing organic botanicals, vitamins, and antioxidants to deliver perceived anti-aging and skin rejuvenating benefits. Sustainable and eco-friendly packaging solutions are also gaining traction to attract consumers who are conscious about their environmental footprint.

Porter’s Analysis
Threat of new entrants: The cosmeceuticals industry requires high research and development costs for product innovation and advancement, creating barriers to entry for new players.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and price sensitivity.

Bargaining power of suppliers: Key raw material suppliers possess some bargaining power owing to technical expertise required and differentiation in product quality.

Threat of new substitutes: Substitutes like ayurvedic and natural skin care products pose moderate threat as they offer similar benefits at lower prices.

Competitive rivalry: The industry is marked by fierce competition among major global players and private label brands.

Geographical Regions
The cosmeceuticals market in terms of value is highly concentrated in North America and Europe owing to high per capita expenditure on personal care products in countries like the US, Germany, UK and France. However, Asia Pacific is emerging as the fastest growing regional market due to growing middle class, rising beauty consciousness and rapid urbanization in China and India.

South Korea has emerged as a major contributor to the Asia Pacific cosmeceuticals market growth on account of strong domestic companies, early adoption of new technologies and high penetration of premium skincare brands. Rising disposable incomes and growing media influence are fueling demand in Southeast Asian countries as well.

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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