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The 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 experiencing notable growth due to several key factors. First, increasing consumer interest in natural cosmetics is driving expansion. This shift stems from greater awareness of the potential health risks associated with synthetic ingredients and a preference for products that are sustainably and ethically sourced. Additionally, the rise of private-label brands is making a significant impact on market dynamics. These brands offer consumers unique and customized product choices, such as face oils, often at competitive prices, and are steadily gaining market share from well-established brands. This reflects a broader consumer demand for variety, affordability, and quality in cosmetics. As the market progresses, innovation in product formulation and marketing strategies will likely be crucial in maintaining growth and addressing changing consumer preferences.
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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 segmentation by source includes vegetable and mineral oils. Rising awareness of healthy skin is driving global demand for vegetable oil. Its eco-friendly properties and moisturizing benefits are leading to its increased use in cosmetic products as a replacement for mineral oils. Commonly used vegetable oils in cosmetic ingredients include olive, coconut, and palm oil. The growing preference for natural ingredients in cosmetics production is expected to fuel demand, further contributing to market growth during the forecast period.
The offline segment is expected to see notable growth in market share during the forecast period. Organized retail outlets, such as hypermarkets and supermarkets, serve as key distribution channels, simplifying the purchasing process for consumers. Shoppers benefit from a wide selection of beauty and personal care products in these retail settings, where they can compare options based on factors like price and quality. The convenience of having products readily available across various platforms, along with easy access to stores offering a broad range of merchandise, is anticipated to drive the growth of this segment throughout the forecast period.
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The offline segment was valued at USD 3.33 billion in 2018 and experienced steady growth through 2022. This segment includes hypermarkets, supermarkets, grocery stores, and convenience stores. A key driver of growth in this segment is the global expansion of hypermarkets and supermarkets, which enhances product visibility and stimulates demand. These retail outlets cater to individuals who favor traditional shopping methods, offering convenience and a tangible shopping experience. As a result, these factors are expected to contribute significantly to the segment's growth over the forecast period.
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APAC is projected to account for 54% of the global market growth during the forecast period. Analysts have provided detailed insights into the regional trends and key drivers shaping the market's trajectory. APAC has emerged as a key market for cosmetic oils, largely due to growing consumer awareness about the potential side effects of synthetic chemicals in cosmetic products. In addition, cosmetic emulsifiers are playing a critical role in enhancing skincare formulations across the region.
These emulsifiers are vital for stabilizing products and improving their texture and effectiveness, addressing the diverse skincare requirements in the region. Increasingly, consumers in APAC are recognizing the benefits of cosmetic oils and cosmetic emulsifiers, which are seen as suitable for various skin types. The heightened focus on achieving healthy, radiant skin is driving the adoption of these products, contributing significantly to the growth of the cosmetics and personal care industry in APAC during the forecast period.
The market is experiencing strong growth as skincare needs increase, particularly due to concerns about air pollution's effects on skin health. Consumers are increasingly opting for clean and natural beauty products that provide moisturizing, barrier-enhancing, and anti-aging benefits. Oils such as chamomile, mentha, and lavender align with the clean beauty trend by offering protection against UV radiation and pollution. Additionally, oils like coconut, olive, and almond appeal to a wellness-focused approach, emphasizing essential and organic components.
As consumers seek safe, sustainable, and effective beauty products, there is a rising demand for transparency in ingredient sourcing and manufacturing practices. Shoppers are avoiding synthetic chemicals, including parabens and sulfates, and are looking to social media, beauty blogs, and global cosmetic oil markets for guidance. This shift is propelling industry growth. The emergence of bio oil is a notable driver of market expansion; however, challenges such as the increasing presence of counterfeit products could hinder the growth of the cosmetic oil market during the forecast period.
The growing demand for natural and organic cosmetics is a significant factor driving market growth. Increasing awareness about the potential risks associated with synthetic beauty and personal care (BPC) products has led to a rise in the demand for natural and organic cosmetic oils. Prolonged use of synthetic cosmetic oils can cause various hair, skin, and health issues, including skin irritation, allergies, chemical burns, and hormonal imbalances.
In contrast, organic cosmetic oils are formulated from natural and organic ingredients, such as plant extracts and essential oils. Commonly used natural ingredients in these products include aloe vera, sea salt, jojoba seed oil, apricot kernel, beeswax, almond oil, coconut oil, and avocado oil. Manufacturers are increasingly focusing on expanding their product lines to include more organic options, allowing them to differentiate their offerings and meet growing consumer demand. These organic oils are produced in compliance with strict purity standards established by regulatory bodies in different regions, further contributing to market growth during the forecast period.
The rise of bio-oil is a key driver supporting the growth of the cosmetic oil market, particularly in the skincare segment. Composed of ingredients like mineral oil, sunflower seed oil, rosemary, chamomile, lavender, vitamin E, marigold extract, and soybean oil, Bio-Oil offers numerous benefits for various skin concerns.
These components are highly effective in addressing issues such as stretch marks and hyperpigmentation across diverse skin tones, while also helping retain moisture to promote overall skin health. The plant-based ingredients in Bio-Oil provide hydration and contribute to reducing wrinkles, giving the skin a fuller, more youthful appearance. These qualities have led to increased consumer demand for Bio-Oil, further driving the growth of the cosmetic oil market during the forecast period.
The growing prevalence of counterfeit products poses a significant challenge to the cosmetic oil market's growth. Customers often struggle to differentiate between authentic cosmetic products and counterfeit items, as the packaging and appearance of fake products can closely resemble those of genuine ones. The rise of e-commerce has further exacerbated this issue by extending the reach of counterfeit product manufacturers across broader geographic areas.
Additionally, the lower prices of counterfeit goods increase their appeal, driving demand. The influx of fake products negatively impacts the sales and pricing strategies of legitimate companies in the global market. In response, many established players are forced to lower their prices, which reduces profit margins and diminishes the market's value. As a result, the widespread availability of counterfeit products is expected to hamper the growth of the cosmetic oil 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 market is driven by a variety of factors that influence skin and hair care. Influencers and social media play a crucial role in enhancing product visibility, particularly for nourishing elixirs like argan oil and cold-pressed variants. These oils are celebrated for their antibacterial and anti-inflammatory properties, addressing skincare concerns such as skin inflammation, dry scalp, and scarring. Brands are increasingly emphasizing bio-based ingredients and hormone-balancing formulations, attracting consumers who seek natural solutions. Urbanization and shifting lifestyles are propelling demand for hair care products that offer aesthetic benefits, while retailers enhance accessibility. As internet usage expands, consumer awareness regarding the benefits of carrier oils and their applications in moisturizers, serums, and lip balms continues to grow. The market's evolution incorporates innovation in product formulation and marketing strategies, aligning with diverse consumer preferences and skincare challenges.
Moreover, the market addresses a wide array of skincare and haircare needs, emphasizing natural ingredients and specialized formulations. Argan oil and cold-pressed variants are especially valued for their nourishing properties and efficacy in treating issues like dandruff and dry skin. The market also features bio-based oils popularized in K-beauty products, which are heavily promoted by social media influencers and retail channels. Products such as lipsticks and facial oils contribute to beauty awareness, catering to both male and female consumers. Brands are focused on minimizing irritation and pore-clogging while promoting the use of natural cosmetic ingredients free from toxins. With a growing population and increased beauty activations, the market is adapting to meet the demand for creams, makeup, and exfoliating agents that incorporate olive oil for effective skin and hair conditioning.
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Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.02% |
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Market Growth 2024-2028 |
USD 1.93 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.69 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 54% |
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Key countries |
US, China, Japan, Germany, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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 |
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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 |
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Customization purview |
If our cosmetic oil market analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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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