Enjoy complimentary customisation on priority with our Enterprise License!
The facial serum market size is estimated to grow at a CAGR of 7.92% between 2022 and 2027. The market size is forecast to increase by USD 466.23 million. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
The introduction of brands owned or endorsed by celebrities is notable, driving the market growth. Over the past two decades, the beauty and fashion industry has been witnessing fast transformations and advances mainly due to the growing number of fashion-conscious people, particularly in emerging countries such as Asia. Further, the endorsement of fashion and BPC products, such as skincare serums by celebrities, has a high influence on the customers regarding purchasing decisions. Furthermore, including facial serums, the global BPC products market has experienced the launch of different celebrity-owned brands, which is also driving the demand for various BPC solutions. The emergence of their own brands by celebrities is also a crucial part of the marketing strategies adopted by various companies. Companies usually sign multi-year endorsement agreements with high-profile celebrities to improve their market reach and value. Such marketing initiatives are likely to fuel the growth of the facial serum market during the forecast period.
To learn more about this report, Request Free Sample
The growing prominence of social media influencers is an emerging trend shaping the market growth. The rapid penetration of the internet and smart devices has been the key to the growing importance of digital media as a key communication and marketing channel. In developed markets, manufacturers of skincare serums invest in social media campaigns, such as in the US, for product promotions and more comprehensive marketing outreach. Facial serums are utilized to enhance skin hydration and overall complexion, while self-tan products provide a consistent and natural-looking tan. Together, these products complement each other in a comprehensive skincare and aesthetic routine. The popularity of social media influencers in such markets has led prominent brands, such as L'Oreal, to create strategic partnerships with influencers, particularly for their beauty and makeup brands. In the last few years, micro-influencers that have around 2,000 to 50,000 followers on any social media channel and focus on a niche passion, topic, or market have grown in stature as opinion leaders in the global facial serum market.
Consequently, companies such as L'Oreal and The Estee Lauder Companies invest in micro-influencers instead of costly celebrity endorsements. Engaged fanbase, lower price point, higher authenticity, and ease of marketing help micro-influencers replace celebrities as the preferred communicators for face cream products. Therefore, the popularity of social media influencers is anticipated to support markets such as India and China to grow. Thus, the rising importance of social media influencers will drive the growth of the market during the forecast period.
An increasing number of domestic and niche brands is a significant challenge hindering market growth. Cost-effectiveness and consumer loyalty tend to elongate the product endorsement cycles of established companies. Nevertheless, several domestic and niche brands face competition that are active in certain regions and offer products that suit the specific needs of consumers. As domestic brands are perceived to have a good knowledge of local consumers, their choices, and their skin types and associated issues, they remain highly patronized, causing multiple established brands to fight for shelf space at major specialty stores, hypermarkets, and supermarkets.
For instance, local cosmetics brands such as Lotus Herbals and Jovees have substantial stock-keeping units (SKUs) for skincare products in hypermarkets and supermarkets operating in India. Lotus Herbals delivers a range of skincare, sun care, hair care, and makeup products for retail and professional markets in India, while Jovees has in its portfolio around 125 skin, body, and hair care products that are researched, developed, and produced at the company's state-of-the-art manufacturing units at Noida and Rudrapur in India. Therefore, a rising number of domestic and niche brands can pose a major challenge that may hinder the market growth during the forecast period.
The offline segment is estimated to witness significant growth during the forecast period. The segment includes departmental stores, supermarkets, hypermarkets, pharmacies, and convenience stores. Some of the largest retail chains are Tesco Plc (Tesco), Walmart Inc. (Walmart), and Target Corp. (Target) and most of them have a separate retail section for facial serums at their stores. These retail formats support in development of substantial revenue in the global facial serum market.
Get a glance at the market contribution of various segments View the PDF Sample
The offline segment was the largest segment and was valued at USD 647.15 million in 2017. For a long time, retail stores such as Walmart and Walgreens have been dealing with cosmetic serums, including facial serums, on their shelves. Companies are generating huge revenue by establishing new facial serum products at retail stores with mainstream consumers gradually shifting to the adoption of facial care products. For instance, in April 2022, Unilever Plc's brand Ferver launched a collection exclusively at Target Corp, which includes a full range of cleansers, treatments, masks, and moisturizers that use fermented actives. Therefore, systematic product innovation and launches are anticipated to have a favorable influence on the growth of the offline segment of the global facial serum market during the forecast period.
The online distribution channel segment includes company-owned channels (company websites) and online sales channels of various retailers. Online platforms enable consumers to gather information and compare serums, as well as allow them to provide beneficial feedback on products over multiple days such as reviews and ratings. Some services that encourage consumers to buy products online comprise secure transactions, cash-on-delivery (COD) options, convenient return policies, integrated and centralized consumer service, various options, and most importantly easy accessibility. Consumer choices shifting toward online purchasing, especially on products such as skin care serum and cosmetic face serum are also positively influencing the market. Therefore the expanded penetration of the Internet along with the consumer's preference for online platforms drive the market growth during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In APAC, relying on the specific climatic conditions, skin care regimes in various countries differ, with consumers in a few countries, such as South Korea, preferring 8-10-step beauty rituals while people in other countries, such as India, have 3-4-step beauty rituals. Consequently, markets in various nations in the region are in different stages. Countries such as China and India have emerging markets that are moving fast on the growth trajectory while Japan and South Korea have relatively mature markets with high penetration of skin care products.
In addition, social media campaigning and celebrity endorsements for cosmetic products in the region are advancing. Promotional videos and advertisements by celebrities on social media platforms, such as YouTube, Instagram, and Facebook, influence the purchasing patterns of consumers, particularly targeting the Millennial population. Therefore, celebrity endorsements in APAC are a critical marketing strategy for companies operating in the cosmetic industry. Such factors are expected to drive the market growth during the forecast period.
In 2020, the region was the epicenter of the COVID-19 pandemic and the market experienced favorable growth. However, in 2021, following the initiation of large-scale COVID-19 vaccination programs across the region, the growth of the global facial serum market resumed. The removal of lockdown restrictions owing to the large-scale vaccination drives carried out in the region led to the reopening of manufacturing operations, which increased the sales of skin care serums and cosmetic face serums. The augmented demand for the product from offline retail stores owing to the rise in the number of consumers visiting brand outlets had a favorable impact on the growth of the regional skin care serum market in 2021. With growing internet penetration and availability of smart devices in countries across the region, the e-commerce market in the region is expected to grow, which will further fuel the growth of the facial serum market in APAC during the forecast period.
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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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.
The facial serum market 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.
|
Facial Serum Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
174 |
|
Base year |
2022 |
|
Historic period |
2017-2021 |
|
Forecast period |
2023-2027 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 7.92% |
|
Market growth 2023-2027 |
USD 466.23 million |
|
Market structure |
Fragmented |
|
YoY growth 2022-2023(%) |
7.55 |
|
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
|
Performing market contribution |
APAC at 43% |
|
Key countries |
US, China, Japan, India, and Germany |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
A.G. Industries, Amway Corp., Beiersdorf AG, Bio Veda Action Research Co., Chanel Ltd., Coty Inc., EMK Products LLC, HCP Wellness, Johnson and Johnson, Kao Corp., LOreal SA, Natura and Co Holding SA, O3plus, PEP Technologies Pvt. Ltd., Procter and Gamble, Radha Beauty, Saks Direct Inc., Shiseido Co. Ltd., The Estee Lauder Companies, and Unilever PLC |
|
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, and 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
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 Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
Get the report (PDF) sent to your email within minutes.