by The global cosmetics market comprises of a wide range of beauty and personal care products that enhances the appearance of individuals and exudes confidence. Products such as skin and sun care products, hair care products, deodorants, fragrances, makeup and color cosmetics are an integral part of daily lives for both men and women across the globe.
The global cosmetics market size was valued at US$ 289.2 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 5.3 % from 2023 to 2030.
Key Takeaways
Key players operating in the cosmetics market are L’Oreal S.A, Unilever plc., The Procter and Gamble Company, The Estee Lauder Companies Inc., Shiseido Company, Limited, LVMH Mo&et Hennessy, Kao Corporation., Oriflame Holding AG, Avon Products Inc., Revlon, Inc. Key players are focusing on new product launches with innovative formulations and sustainable packaging options. This is expected to drive the market growth during the forecast period.
The Cosmetics Market Demand of online platforms has boosted the availability of cosmetic products to customers across the world. E-commerce giants are collaborating with leading cosmetic brands to ensure smooth delivery of products. Furthermore, rising disposable income of middle-class populations in developing countries will create numerous sales opportunities for international as well as local brands.
Owing to rapid urbanization, growing women workforce, and increasing spending on personal appearance, the demand for cosmetics is surging in Asia Pacific and Middle East & Africa regions. Major multinational brands are expanding their distributor networks and setting up manufacturing units in high growth markets to tap into new customer bases and benefit from low production costs.
Market Drivers
One of the key drivers for the cosmetics market is the rising experimental trends in the beauty industry. Young consumers especially are willing to try out new formulations, ingredients, and products. Beauty bloggers and social media influencers promote different cosmetic trends inspiring people to purchase accordingly. This encourages established as well as emerging brands to come up with innovative ranges to meet the dynamic consumer demands.
PEST Analysis
Political: The Cosmetics Market is regulated by various bodies to ensure product quality and safety standards are met. These regulations can impact new product development and market entry.
Economic: Changes in consumer spending patterns and economic growth influence demand for cosmetic products. A strong economy encourages more discretionary spending on beauty and personal care items.
Social: Evolving social trends like an increased focus on natural/organic ingredients and customization help drive new product innovation. Social media also impacts customer preference through online reviews and influencer marketing.
Technological: Advanced formulations utilize biomimetics and 3D printing for customized products. Mobile/digital technologies provide new channels for product information, virtual try-ons, and online purchasing.
Geographical Regions of Concentration
Western Europe accounts for the largest share of the global cosmetics market in terms of value. Countries like France, Germany, the UK and Italy have some of the world’s biggest beauty brands and a culture that values personal aesthetics. North America is another major region underpinned by the lucrative US market and high spending power. Emerging markets like China, India and Brazil offer considerable growth prospects powered by expanding middle classes and improving standards of living.
Fastest Growing Region
The Asia Pacific region excluding Japan holds the greatest potential for future market expansion. Countries such as China, South Korea and India have burgeoning youth populations and inflation-beating economic growth. Rising affluence is translating to higher per capita cosmetics expenditure, while local manufacturers strive to meet the diversifying needs of their populations. Additionally, greater Western influence and widespread internet/smartphone access turbocharge consumer willingness to experiment with new products.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
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