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The Global Cosmetic Oil Market size is projected to increase by USD 1.93 billion, at a CAGR of 5.02% between 2023 and 2028. The market is undergoing substantial growth due to several pivotal factors.
Firstly, there is a rising consumer inclination towards natural and organic cosmetics, driving the expansion. This shift is propelled by heightened awareness of potential health risks linked to synthetic ingredients and a growing preference for sustainable and ethically-sourced products. Secondly, the ascent of private-label brands is significantly boosting market dynamics. These brands provide consumers with distinctive and tailored product options such as face oils, often at competitive prices, and are progressively capturing market share from established brands. This trend underscores a broader consumer demand for diversity, affordability, and quality in cosmetics. As the market continues to evolve, innovation in product formulation and marketing strategies will likely play a crucial role in sustaining growth and meeting evolving consumer preferences.
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The market segmentation by source consists of vegetable and mineral oil. The growing awareness of healthy skin among individuals increases the demand for vegetable oil globally. The eco-friendly nature and moisturizing properties of vegetable oil increase its adoption in cosmetics products as an alternative to mineral oils. The most commonly used vegetable oil in cosmetics applications includes olive, coconut, cosmetic, and palm oil. The increase in the demand for natural ingredients in the production of cosmetics is expected to increase the demand, which in turn will boost the growth of the market during the forecast period.
The market share growth of the offline segment will be significant during the forecast period. Organized retailing, which includes hypermarkets and supermarkets as two of the major offline distribution channels, eases the purchasing process for consumers. Consumers can choose from a wide range of products in retail stores based on parameters such as price and quality. The ease of availability of products across platforms and the easy accessibility to outlets with a broad merchandise mix is estimated to drive this segment during the forecast period.
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The offline segment was valued at USD 3.33 billion in 2018 and continued to grow until 2022. Offline channels include hypermarkets, supermarkets, and grocery and convenience stores. One of the major factors expected to drive the growth of the segment is the expansion of hypermarkets and supermarkets worldwide. They help in improving the visibility of vendor products and increase the demand for such products. These stores are convenient for individuals who prefer the traditional way of shopping. Hence, such factors are fuelling the growth of the segment during the forecast period.
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APAC is estimated to contribute 54% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC has emerged as a growing segment for cosmetic oil due to factors such as increasing consumer awareness about the side effects of harmful substances used in cosmetics products, such as synthetic chemicals. Cosmetic emulsifiers play a crucial role alongside cosmetic oils in enhancing skincare formulations in APAC.
Cosmetic emulsifiers are essential for stabilizing and improving the texture and efficacy of skincare products, catering to the diverse skincare needs across the region. People in APAC are increasingly recognizing the numerous skincare benefits of using cosmetic oils and emulsifiers, which are considered beneficial for every skin type. The rising awareness of achieving healthy and glowing skin drives the increased adoption of a wide range of cosmetic oils and emulsifiers in the region during the forecast period, contributing to the growth of the cosmetics and personal care industry in APAC.
The market is thriving amidst escalating skincare requirements, driven by concerns over air pollution's impact on skin health. Consumers are increasingly turning to clean and natural beauty products with moisturizing, barrier-enhancing, and anti-aging properties. Key players like chamomile and lavender oils align with the clean beauty movement, offering protection against UV radiation and pollution. Coconut, olive, almond, and other oils cater to a wellness-centric approach, emphasizing essentials and organic elements. In this pursuit of safe, sustainable, and effective beauty products, consumers demand transparency in ingredient sourcing and manufacturing processes, shunning synthetic chemicals like parabens and sulfates. Health-conscious and environmentally aware consumers are turning to social media, beauty blogs, and global cosmetic oil markets for guidance, propelling the industry forward. The emergence of Bio-Oil is notably driving the market growth, although factors such as the increasing availability of counterfeit products may impede the market growth.
The increasing demand for natural and organic cosmetics is a major factor driving the market growth. The rising awareness about problems caused by synthetic beauty and personal care (BPC) products has increased the demand for natural and organic cosmetic oil. The continuous use of synthetic cosmetic oil can cause various hair-, skin-, and health-related issues, such as skin irritation, skin allergies, chemical burns, and various hormonal disorders.
Moreover, organic cosmetic oils are made from natural and organic ingredients, such as plant extracts and natural oils. Other natural ingredients used in organic cosmetic oils include aloe vera, sea salt, jojoba seed oil, apricot kernel, beeswax, almond oil, coconut oil, and avocado oil. Manufacturers are focusing more on organic cosmetic oil. This expansion of product lines also helps companies differentiate their offerings. These organic cosmetic oils adhere to the high standards of purity set by various regulatory bodies in different countries. Hence, such factors are fueling market expansion within the forecast period.
The emergence of Bio-Oil stands as a pivotal factor bolstering cosmetic oil market growth in the realm of skincare. Comprising mineral, sunflower seed, rosemary, chamomile, lavender, vitamin E, marigold extract, and soybean oil, bio-oils offer a plethora of benefits for various skin concerns.
Moreover, these ingredients play a crucial role in addressing issues such as stretch marks and hyperpigmentation across different skin tones while aiding in moisture retention, thus promoting skin health. The plant-based components present in bio-oils deliver hydration and contribute to the reduction of wrinkles, imparting a plump appearance to the skin. Such attributes elevate the demand for bio-oils among consumers, fueling market expansion within the forecast period.
The increasing availability of counterfeit products is the major challenge impeding cosmetic oil market growth. Customers face difficulties in distinguishing between genuine and counterfeit products as they appear similar. The advent and growing penetration of e-commerce have further propelled the sales of counterfeit cosmetic products as it has widened the geographical reach of manufacturers offering counterfeit products.
Further, the low pricing of counterfeit products fuels their demand. The growing number of counterfeit products will have an adverse impact on the sales and pricing strategies of genuine Companies operating in the global market. To meet such challenges, global players are compelled to price their products at lower rates, reducing their profit margins and also the value sales proportion of the market. Therefore, the increasing availability of counterfeit products will negatively impact the growth of the market during the forecast period.
The Cosmetic Oil market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the Cosmetic Oil market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Key Offering - Aethos-oils - The company offers essential oils such as lavender essential oils, Eucalyptus oil, peppermint oil, lemon essential oil, and rosemary oil.
The Cosmetic Oil market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 18 market players, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The Cosmetic Oil market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market thrives on a diverse range of factors impacting skin and hair care. Influencers and social media amplify product visibility, highlighting nourishing elixir oils like argan and cold-pressed variants. These oils, rich in antibacterial and anti-inflammatory properties, cater to skincare needs such as skin inflammation, dry scalp, and scars. Brands like Innisfree and Biotique emphasize bio-based ingredients and hormone-balancing elixirs, appealing to consumers seeking natural solutions. Urbanization and changing lifestyles drive demand for hair care products and aesthetic benefits, while retailers like Target and Costco promote accessibility. As internet penetration increases, consumer awareness grows about the benefits of carrier oils and their application in moisturizers, serums, and lip balms. The market's evolution integrates innovation in product formulation and promotion, aligning with diverse consumer preferences and skincare challenges.
In addition, the market caters to diverse skincare and haircare needs with a focus on natural ingredients and specialized formulations. Essential in nourishing the skin and hair, argan oil and cold-pressed variants are renowned for their antibacterial properties and ability to address dandruff, dry skin, and genetic abnormalities. This market includes bio-based oils popularized in K-beauty items, promoted through social media influencers and retail outlets. Products like lipsticks and facial oils highlight beauty awareness and cater to both women and men-focused beauty goods. Brands emphasize avoiding irritation and pore blocking while promoting natural cosmetic ingredients and avoiding contamination with toxins. With increasing population and beauty activations, the market evolves to meet demand for creams, makeup, and exfoliating agents enriched with olive oil for effective skin conditioning and hair conditioning.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.02% |
Market Growth 2024-2028 |
USD 1.93 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.69 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 54% |
Key countries |
US, China, Japan, Germany, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AETHOS Essential Oils, AMOREPACIFIC Group Inc., Beiersdorf AG, Bramble Berry Inc., Chanel Ltd., Clariant International Ltd., Dabur India Ltd., Farsali, Johnson and Johnson Services Inc., Kao Corp., Khadi Natural, LG Corp., LOreal SA, Sanghvi Technologies Pvt. Ltd., Shiseido Co. Ltd., Sophim, The Body Shop International Ltd., The Procter and Gamble Co., Uncle Harrys Natural Products, and Unilever PLC |
Market dynamics |
Parent market analysis, Market forecasting, Cosmetic Oil market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Cosmetic Oil market worth and condition analysis for the forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Source
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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