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The cosmetic products market size is estimated to grow by USD 115.4 billion at a CAGR of 5.58% between 2023 and 2028. The surge in e-commerce has fueled remarkable growth in online sales of cosmetic products, with skincare items taking the lead as the dominant category within the industry. The Asia-Pacific region emerges as the foremost consumer of cosmetic items globally, driven by a burgeoning middle class and increasing disposable income. Concurrently, there's a notable shift towards natural and organic cosmetics, driven by heightened consumer consciousness regarding sustainability and health. This trend reflects a growing preference for products formulated with botanical extracts, free from harmful chemicals. As consumers prioritize wellness and environmental responsibility, the demand for natural and organic cosmetics continues to rise, shaping the trajectory of the industry towards a more sustainable future.
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The market is being propelled by a myriad of factors, including the growing trend of self-care and the emergence of social commerce driven by internet penetration. Personal care brands like Shiseido Company leverage social media marketing to enhance brand recognition and tap into global markets. However, challenges such as adverse side effects of cosmetics and the need to innovate amidst changing fashion trends remain. Technological developments continue to drive product innovation, while the rise of social platforms presents opportunities and challenges for cosmetics companies to connect with consumer beauty products and consumers in new ways. For instance, acrylic powder is often used in cosmetic products to enhance nail treatments, providing a durable and stylish finish.
The surge in the aging population remains a pivotal driver propelling growth within the industry, particularly in the realm of anti-ageing and skin product. Factors like appearance enhancement, focusing on eyebrows and eye cosmetics, and the allure of mascara contribute significantly to this evolution.
Additionally, the market thrives on innovative treatments and advanced cosmetic ingredients like probiotics, catering to skincare demands. The beauty product market, including the skincare products market, is experiencing a surge in demand. This growth is evident in the escalating focus on beauty items marketing, with companies leveraging market insights from sources like Zion Market research to tap into market trends and consumer preferences.
The primary trend driving the growth of the global market is the escalating preference for organic cosmetics and cosmeceuticals. Consumers' growing apprehension regarding the potential adverse effects of chemicals in traditional cosmetics, such as parabens and phthalates, has propelled a significant shift towards chemical-free cosmetics and organic skincare. Natural raw materials like neem extract, soybean, fish oil, aloe, and guar gum are favoured for their therapeutic effects and absence of harmful chemicals. Organic skincare product also utilize natural fragrances, bypassing the toxic effects associated with chemical alternatives.
For instance, brands like Forest Essentials and NATURA BRASIL capitalize on this trend with derivatives like LOTION LIGHT DAY LAVENDER and CACAU SOFT BODY CREAM - EKOS, respectively, featuring natural ingredients like Ashwagandha, Gokharu, almonds, and olive oil. These offerings aim to nourish the skin, combat free radicals, and provide intense hydration, driving growth in the natural cosmetic market as consumers prioritize healthier choices.
The presence of counterfeit products is a major challenge to the growth of the global cosmetic skincare market. There are some fake premium product in the market that are hindering the growth of the market. As the sale of these counterfeit products increases, customers may no longer be able to distinguish between counterfeit and genuine product. These reproductions are available at low prices because they are made with inferior raw materials and low production costs.
In addition, counterfeit product damage original brand products and brand image and affect original brand sales and profit margins. Therefore, these factors will adversely affect the sales and pricing strategies of major vendors selling premium cosmetics during the forecast period.
The market forecasting 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 market growth analysis 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.
Coty Inc.: The company offers products under the brand Sulwhasoo, Laneige, and Mamonde.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, 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.
In segmentation, innovation and brand recognition are key drivers, fueled by the rise of social media marketing and internet penetration. Consumers increasingly prioritize self-care and seek out personal care brands like Shiseido Company known for their commitment to quality. The growing influence of social platforms and social commerce channels allows for targeted marketing strategies tailored to individual preferences, driving sales and fostering brand loyalty. As economies grow and fashion trends evolve, there's a heightened awareness of the potential adverse side effects of certain cosmetics, leading to demand for safer alternatives. Technological advancements continue to drive product innovation, with a focus on addressing the needs of the global aging population and catering to diverse hair color preferences. Amidst concerns about dangerous chemicals, consumers prioritize transparency and seek out products with proven efficacy and minimal risk. Overall, the cosmetics market remains dynamic, with continual evolution driven by consumer demand and technological developments.
The market share growth by the skincare products segment will be significant during the forecast period. The segment includes products that remove dirt, sebum, makeup, and dead skin cells to clean the skin. The cosmetic market is witnessing a surge in demand for global probiotic cosmetic products, renowned for their beneficial impact on the skin microbiome. Alongside this trend, the sector is experiencing a rise in premium preferred for their high-quality formulations and efficacy in addressing concerns like anti-aging. The skincare segment segment is growing as both young and older women are looking for products that help their skin look better.
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The skincare segment was valued at USD 131 billion in 2018. Women form the largest customer segment in the global market. However, men are becoming increasingly aware of their personal care and wellness needs. Therefore, to expand their customer base, suppliers are in the process of launching innovative products tailored specifically for men. Top products in this segment include Chanel's Microfluidic Serum, the new Vichys LiftActiv Supreme, Jurlique Herbal Recovery range, ReVive Skin Tone Serum and Laura Mercier Infusion de Rose Nourishing Oil. Therefore, the skincare products segment is expected to drive the growth of the market during the forecast period.
The Distribution Channel is segmented as Online and Offline sub-segment during the market growth and forecasting.
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APAC is estimated to contribute 36% to the growth of the global market during the market forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The APAC market is projected to be the fastest-growing geographic segment during the forecast period, with Japan, China, India, and South Korea being the largest contributors. The region has several companies that offer cosmetic items, creating high growth potential in the market. For example, South Korea-based Amorepacific offers products such as Time Response Skin Renewal Cream and Time Response Skin Renewal Serum. These products are packed with antioxidants that help protect your skin and reverse the signs of aging. Similarly, India-based Bio Veda Action Research offers skin maintenance products such as BIO MORNING NECTAR Face Lotion, BIO SANDALWOOD Face Cream, and BIO CARROT Face Cream to meet the growing demand for skin care.
The top three countries consuming cosmetic items are China (20%), the United States (18%), and Japan (15%). People in the APAC region are increasingly choosing such as skin lightening cream and lotions as women in the region prefer lighter skin tones. Some companies focus their promotional activities on attracting customers through advertisements and fancy packaging that promote the positive impact of their products. This helps build even more confidence in people using these products. In addition, the growing number of specialty stores offering a variety of skin-lightening and skin-whitening products from different brands has fostered the growth of the regional market.
The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is shaped by various factors, including economic growth, technological advancements like beauty tech and personalization software, and changing consumer preferences. Personal care brand leverage celebrity endorsements and online sales channel to drive net sales. With a focus on natural products and skincare formulas, brands like Bondi Sands and Rare Beauty cater to millennials seeking personalized beauty solutions. Self-tan products have become a popular category within cosmetic products, offering consumers a convenient way to achieve a sun-kissed glow without the need for sun exposure. The market also embraces cultural and social elements influences, with the rise of K-beauty and J-beauty, offering innovative makeup & color cosmetics products. Try-on apps and unisex offerings further enhance consumer engagement and inclusivity. Both offline and online distribution channels, including hypermarkets, pharmacies, and social commerce, play a crucial role in reaching diverse audiences. As the industry continues to evolve, it intersects with mental health, emphasizing self-care and holistic well-being.
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Market Scope |
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Report Coverage |
Details |
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Page number |
184 |
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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 5.58% |
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Market growth 2024-2028 |
USD 115.4 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.19 |
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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 36% |
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Key countries |
US, China, Japan, Germany, and Brazil |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Amorepacific Corp., Avon Products Inc., Beiersdorf AG, Chanel Ltd., Coty Inc., Johnson and Johnson Services Inc., Kao Corp., Kjaer Weis, Kose Corp., LOreal SA, LVMH Group., Mary Kay Inc., Natura and Co Holding SA, Nu Skin Enterprises Inc., Oriflame Cosmetics S.A., Revlon Inc., Shiseido Co. Ltd., The Estee Lauder Companies Inc., The Procter and Gamble Co., and Unilever PLC |
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Market dynamics |
Parent market analysis, 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 |
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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. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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