Enjoy complimentary customisation on priority with our Enterprise License!
The premium cosmetics market size is estimated to grow at a CAGR of 8.9% between 2022 and 2027. The size of the market is forecast to increase by USD 55,503.21 million. The growth of the market depends on several factors, including the increased demand for premium skincare products, the rise in sales of premium cosmetics through e-commerce, and innovation and portfolio extension leading to product premiumization.
This report extensively covers market segmentation by product (skincare products, fragrances, color cosmetics, hair care products, and others), distribution channel (offline and online), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, Download Report Sample
The increased demand for premium skincare products is notably driving the market growth, although factors such as the availability of counterfeit brands may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Premium Cosmetics Market Driver
The increased demand for premium skincare products is notably driving the premium cosmetics market growth. Selected professional skincare product manufacturers provide innovative, professional treatments to their customers, followed by giving them premium products that are costlier than regular skincare products. Consumers are more aware of skincare concerns like aging spots, acne, and pigmentation and hence, are ready to pay for premium skincare products. Innovative skincare products have the right combination of superior-quality ingredients, a factor that leads to product premiumization. With rising disposable income, consumers do not mind spending more on premium products, which has led to increased demand for premium cosmetics, especially skincare products.
Skincare brands also focus on differentiating themselves from pharmaceutical companies. Therefore, they invest in innovative ingredients and technologies that would positively affect the health and appearance of customers' skin. Consumers, especially the aging population, increasingly look for methods and products to maintain and improve their appearance and look youthful. Earlier, anti-aging creams were used to temporarily plump up the skin to reduce the appearance of fine lines and wrinkles. But presently, advancements in technology have increased the number of advanced and value-added anti-aging products in the market, thereby playing a vital role in the growth of the global premium cosmetics market. The market also has products that contain ingredients that treat fine lines and wrinkles for consumers with oily and sensitive skin. Such factors are estimated to drive the focused market growth.
Significant Premium Cosmetics Market Trend
Multichannel marketing is a major trend in the premium cosmetics market. Social media plays a vital role in increasing product awareness. The presence of social media is a boon for any industry as it provides a platform to engage with consumers actively. Consumers are increasingly inclined toward social networking and blogs to educate themselves about premium cosmetics products. As consumers are increasingly engaging in social networking and blogs, vendors use these platforms to increase awareness and promote their products. Facebook, Twitter, Instagram, and YouTube are powerful social media platforms for product promotion.
Some of the successful social media campaigns for skin care products include Procter and Gamble's Your Best Beautiful for Olay, and L'Oreal's Rock Your Style for Garnier. Factors such as the increasing penetration of the internet and smartphone and the growing number of customer-engagement practices by premium cosmetic vendors (through their web portals and third-party online sellers) have contributed to the overall sales volume and revenue of vendors over the past years.
Major Premium Cosmetics Market Challenge
The availability of counterfeit brands is a major challenge impeding the premium cosmetics market growth. The global premium cosmetics market has the presence of many counterfeit premium cosmetics products, which hinder the market growth. With the growing sales of these counterfeit products, customers may not be able to differentiate them from genuine products.
These fake and replicated products are available at very low prices than the actual premium cosmetics as they are made of low-quality petrochemicals with low production costs. These factors adversely affect the sales and pricing strategy of the major vendors selling premium cosmetics products. Counterfeit products also damage the product and brand image, affecting the revenue and profit margin of vendors of genuine products. Manufacturers are focusing on ads and promotions to spread awareness against such counterfeit products and sustain their customer base. The availability of these products is expected to hamper the growth of the market in focus during the forecast period.
Key Premium Cosmetics Market Customer Landscape
The 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 Premium Cosmetics Market Customer Landscape
Vendors 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.
L'Oreal SA - The company has multiple business segments, with a strong emphasis on consumer products and active cosmetics. Among these segments, the company's consumer products segment is particularly noteworthy, as it is responsible for managing four major global brands: L'Oreal Paris, Garnier, Maybelline New York, and NYX Professional Makeup. Additionally, the company deploys specialized and regional brands such as Stylenanda, Essie, and Dark and Lovely. The company's extensive range of premium cosmetic products is a key feature of its offerings.
The premium cosmetics market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
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.
The market share growth by the skincare products segment will be significant during the forecast period. The skincare market is growing as both young and old women seek products to help them achieve better-looking skin.
Get a glance at the market contribution of various segments Request a PDF Sample
The skincare products segment shows a gradual increase in the market share of USD 27,683.46 million in 2017 and continued to grow until 2021. The global premium skincare products market is experiencing growth as consumers of all ages seek solutions to improve their skin's appearance. While women are the largest customer segment, men are increasingly becoming conscious of their personal grooming and wellness, prompting vendors to launch innovative skincare products tailored to men. Popular offerings in this segment include Chanel microfluidic serum, Vichy's LiftActiv Supreme, Jurlique Herbal Recovery range, ReVive Skin Tone Serum, and Laura Mercier Infusion de Rose Nourishing Oil.
In the premium fragrance market, brands are perceived as prestige, driving demand for high-end products, especially in European countries such as the UK, Germany, and France. Top premium fragrance brands include Christian Dior, Chanel, and Paco Rabanne, among others. However, the market is affected by the presence of counterfeit products in the grey market, negatively impacting sales and the overall growth of the market. Other premium fragrance brands include TOM FORD, Dolce and Gabbana, Lanvin, Atelier Cologne, Hugo Boss, Maison Margiela, and YSL.
For more insights on the market share of various regions Request PDF Sample now!
APAC is estimated to contribute 44% 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.
In 2022, in terms of market share, APAC was the largest contributor to the global premium cosmetics market. In this region, some of the popular premium cosmetics categories include skincare products, hair care products, baby care products, sun care products, deodorants, and fragrances. The rising access to online shopping through the Internet and smart gadgets has considerably driven the growth of the market over the years. The premium skincare products segment is one of the major contributing segments to the total revenue of the premium cosmetics market in APAC.
China, Japan, and South Korea are the three key leading countries in the region. The growing concern for personal hygiene and wellness is driving the demand for skin care products in APAC. Many customers in APAC aspire to try new products such as color cosmetics and fragrances, which also skincare in the premium cosmetics category. Though women are the largest end-user segment in the premium cosmetics market in APAC, men too, constitute a sizeable portion of the premium cosmetics market. The growing organized retail sector, along with the booming e-commerce industry, also contributes to the growth of the premium cosmetics market in APAC. The rise in demand for anti-aging, skin whitening creams, and sun protection skincare products also drives the demand for premium cosmetics in APAC.
The rapid spread of the COVID-19 pandemic hampered the growth of the regional market in 2020. However, in 2021, with the introduction of COVID-19 vaccines many business and industrial activities related to the production of cosmetics resumed, which spurred the demand for premium cosmetics across the region. In addition, rising consumer awareness and the shift from mass-produced cosmetics to premium products have increased the demand for premium cosmetics. Thus, the regional premium cosmetics market is expected to grow positively during the forecast period.
The 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.
Premium Cosmetics 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 8.9% |
Market growth 2023-2027 |
USD 55,503.21 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.22 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 44% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amway Corp., Avon Products, Beiersdorf AG, CHANEL Ltd, Coty Inc, Groupe Clarins, Henkel AG and Co. KGaA, Honasa Consumer Pvt. Ltd., Johnson and Johnson, Kao Corp., Laboratoires Expanscience, LOreal SA, LVMH Moet Hennessy Louis Vuitton SE, Natura and Co Holding SA, NUDE Beauty Brands, Revlon Consumer Product Corp., Shiseido Co. Ltd., The Estee Lauder Co Inc, The Procter and Gamble Co, 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, 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. Get in touch
Get lifetime access to our
Technavio Insights
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.