Cosmetic Serum Market by Distribution Channel, Product and Geography - Forecast and Analysis 2023-2027

Cosmetic Serum Market Forecast 2023-2027

The Global Cosmetic Serum Market size is projected to increase by USD 1.39 billion from 2022 to 2027. The market is estimated to grow at a CAGR of 4.36% during the forecast period. In 2017, the market size was valued at USD 5.33 billion. The market is being propelled by the growing desire for male beauty items, the emergence of celebrity-owned and endorsed brands, and the uptick in luxury beauty product sales. However, challenges persist, including the prevalence of counterfeit goods, potential health risks associated with chemical/synthetic ingredients, and stringent regulations governing product composition, labeling, and packaging.

The market is experiencing significant growth, driven by the rising demand for male beauty products. In addition to female consumers, men are increasingly interested in personal grooming, leading to the development of new products tailored to their needs by major vendors. The growing awareness among men regarding their appearance has prompted vendors to launch innovative cosmetic serums designed specifically for men, catering to various scalp, hair, and skin types. Moreover, the market is witnessing a surge in the launch of products aimed at enhancing styling, indicating a shift towards targeted solutions in the cosmetic serum segment.

Cosmetic Serum Market: Overview

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Market Segmentation

This market research report extensively covers market segmentation by distribution channel (offline and online), product (hair care serum, skin, and sun care serum), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.

By Product

The cosmetic serum market segmentation by product consists of hair care serums, skin, and sun care serums. Increasing work pressure, leading to hectic and imbalanced lifestyles, has a huge impact on the daily routine and diets of people, especially the working population. The growing use of medications for different health conditions and diseases by people and the rising use of scientific beauty treatments (such as hair transplants), which do not suit some people, also lead to hair-related issues. In addition, the growing pollution levels because of urbanization and climate change are also leading to several hair-related issues, such as hair fall and reduced hair volume. There are several benefits of using hair care serum, which fuels their demand from people across the globe.

By Distribution Channel

The cosmetic serum market segmentation by distribution channel consists of offline and online. The market share growth by the offline segment will be significant during the forecast period. The segment comprises departmental stores, supermarkets, hypermarkets, pharmacies, and convenience stores. These retail formats help in generating significant revenue in the global cosmetic serum market.

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The offline segment was valued at USD 4.15 billion in 2017 and continued to grow until 2021. Vendors in the organized retail sector operate based on factors such as geographical presence, ease of production and inventory management, and transportation of goods. They invest significantly in brick-and-mortar organized retail stores to increase their regional and global presence and share in the market. With mainstream consumers gradually shifting to the adoption of these products, vendors are generating higher revenue from launching products at retail stores. Thus, frequent product innovation and launches are expected to positively impact the growth of the segment during the forecast period.

By Region

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APAC is estimated to contribute 58% 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.

The cosmetic serums market in APAC is expected to grow at the fastest rate when compared with the other regions. The major contributing countries in APAC are China, Japan, and South Korea. Moreover, vendors are also advertising their products by showcasing them on social media and promoting their products through different celebrity endorsements. The high fashion consciousness among the millennial, generation X, and baby boomer populations also contributed to the significant growth of the market during the last five years, which will further drive the regional market. Additionally, other factors influencing regional growth are rapid urbanization and a rise in disposable income. Hence, these factors will fuel the growth in the region during the forecast period. 

Market Dynamics and Customer Landscape

The market is experiencing significant growth driven by several key factors and trends. The rising demand for specialized skincare solutions, such as acne control serum and anti-aging serum, is propelling market expansion. Moreover, the increasing consumer preference for herbal, natural, and cruelty-free products is influencing product development, with a focus on formulations containing hyaluronic acid, peptides, and other beneficial ingredients.

The market is also witnessing a surge in online retail channels, allowing for greater accessibility and convenience for consumers to purchase cosmetic serums. Additionally, the introduction of customized serums and anti-pollution serums reflects the industry's response to evolving consumer needs and preferences for personalized skincare solutions.

However, challenges such as counterfeit products and regulatory compliance remain significant concerns within the market. Nonetheless, with advancements in technology, including virtual try-on tools like Modiface, and the expansion of distribution channels such as direct selling and online retail, the Cosmetic Serum Market is poised for continued growth in the global consumer goods industry.

Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.

Market Trends

The increase in the introduction of organic and natural products is an emerging trend supporting the growth of the market. The health-related problems due to the usage of BPC products have increased the demand for natural products. The regular use of synthetic cosmetic serums can cause various hair-, skin-, and health-related issues, such as skin irritation, skin allergies, nerve damage, chemical burns, and various hormonal disorders.

Organic cosmetic serums are made from natural and organic ingredients, such as plant extracts and natural oils and the negative effects do not occur. Manufacturers are focusing more on organic cosmetic serums and this expansion of product lines also helps vendors differentiate their offerings. Organic cosmetic serums are free from harmful ingredients, such as sulfates and formaldehyde. These organic serums adhere to the high standards of purity set by various regulatory bodies in different countries. To address the growing demand for organic BPC products, vendors are introducing new lines of cosmetic serums.

Market Challenge

The availability of counterfeit products will be a major challenge for the market. Owing to a surge in demand for these cosmetics, the supply of fake products is also increasing. This has also increased due to the growing penetration of e-commerce. Customers face difficulties in distinguishing between genuine and counterfeit products as they appear similar. Further, the low pricing of counterfeit products fuels their demand. Moreover, duplicate products are often contaminated with harmful substances, that may have harmful side effects on consumers.

The growing number of counterfeit products will harm the sales and pricing strategies of genuine vendors operating in the global market. To meet such challenges, global players are compelled to price their products at lower rates, which reduces their profit margins and also the value sales proportion of the global market. Furthermore, another reason for the low price of counterfeit products is that a significant amount of costs is saved on the production and transportation of these products as their manufacturers usually operate in regional or local markets. This makes counterfeit products cheaper than their genuine counterparts. Therefore, these factors will hinder the market growth during the forecast period.

Customer Landscape

The cosmetic serum market 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Cosmetic Serum Market Customer Landscape

Cosmetic Serum Market Company Overview

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 - Amka offers cosmetic serums that are enriched with a unique formulation of Super Fruit Serum which leaves the skin looking soft, radiant and beautiful.
• Key Offering - Amwayglobal offers cosmetic serums that provide the skin with the extra care and attention it requires and deserves amidst the ever-increasing pollution and stress.
• Key Offering - Beiersdorf offers cosmetic serums, under the brand names of Nivea, Eucerin and La Prairie.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:

• Amka Products Pty Ltd.
• Amway Corp.
• Avon Products
• Beiersdorf AG
• CHANEL Ltd.
• Clarins Pte Ltd.
• Coty Inc.
• Edgewell Personal Care Co.
• Henkel AG and Co. KGaA
• Johnson and Johnson
• Kao Corp.
• LOreal SA
• LVMH Moet Hennessy Louis Vuitton SE
• Markwins Beauty Brands Inc.
• Mary Kay Inc.
• Shiseido Co. Ltd.
• The Estee Lauder Co. Inc.
• The Procter and Gamble Co.
• Unilever PLC
• ZYMO Cosmetics

Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Segment Overview

The cosmetic serum market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Distribution Channel Outlook 
  • Offline
  • Online
• Product Outlook
  • Hair care serum
  • Skin
  • Sun care serum
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

In today's dynamic beauty landscape, the market is witnessing unprecedented growth, driven by a surge in beauty consciousness among consumers worldwide. The market is brimming with a plethora of specialized serums targeting various skin concerns, from hydrating and brightening to anti-aging and acne treatment. Influencers and YouTube channels play a pivotal role in shaping consumer preferences, particularly among women and the men segment. With a rising demand for natural and organic products, brands are incorporating vegan and plant-based ingredients, endorsed by organizations like the Soil Association. However, supply chain disruptions and lockdowns have posed challenges, prompting innovative solutions to ensure uninterrupted production activities. Amidst these dynamics, the market continues to evolve, catering to diverse skin-related issues and preferences across different demographics and regions.

The global market is experiencing a paradigm shift, propelled by an increased demand for specialized skincare solutions catering to diverse skin concerns. From acne treatment serums to anti-aging products, the market offers a wide array of options endorsed by prestigious organizations like the American Academy of Dermatology Association. Consumers are gravitating towards natural and organic ingredients, reflecting a growing awareness of animal welfare and environmental sustainability. Specialty serums such as brightening, hydrating, and retinol-infused variants are gaining traction, available at beauty salons, department stores, and pharmacies worldwide. Hypermarkets and supermarkets also stock premium skincare products, including eye serums and face moisturizer serums, targeting middle-aged individuals seeking effective solutions for self-grooming. The LAMEA region witnesses significant growth in this sector, influenced by Western lifestyle trends and the rising popularity of vegan and plant-based ingredient blends. With the skincare market evolving rapidly, the emphasis on hydration and sunscreen protection remains paramount, driving innovation and product diversification in the cosmetics industry. PHILOSOPHY, INC., a leading player in the market, is at the forefront of this revolution, offering vitamin-infused serums and herbal concoctions to meet the evolving needs of modern consumers.

 

Cosmetic Serum Market Scope
Report Coverage	Details
Page number	166
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.36%
Market growth 2023-2027	USD 1,394.77 million
Market structure	Fragmented
YoY growth 2022-2023(%)	3.56
Regional analysis	APAC, Europe, North America, Middle East and Africa, and South America
Performing market contribution	APAC at 58%
Key countries	US, Japan, China, India, and South Korea
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Amka Products Pty Ltd., Amway Corp., Avon Products, Beiersdorf AG, CHANEL Ltd., Clarins Pte Ltd., Coty Inc., Edgewell Personal Care Co., Henkel AG and Co. KGaA, Johnson and Johnson, Kao Corp., LOreal SA, LVMH Moet Hennessy Louis Vuitton SE, Markwins Beauty Brands Inc., Mary Kay Inc., Shiseido Co. Ltd., The Estee Lauder Co. Inc., The Procter and Gamble Co., Unilever PLC, and ZYMO Cosmetics
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our 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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What are the Key Data Covered in this Cosmetic Serum Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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