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The Online Premium Cosmetics Market size is projected to increase by USD 9,515.73 million and the market size is estimated to grow at a CAGR of 4.78% between 2022 and 2027. In 2017 the size of the market was valued at USD 32,949.09 million.
This online premium cosmetics market research report extensively covers market segmentation by product (skincare, makeup, haircare, and others), end-user (women and men), and geography (APAC, North America, Europe, 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.
The recent surge in popularity and prevalence of luxury cosmetic skincare brands has resulted in market expansion. Wealthy consumers constantly seek to update and enhance their knowledge of cosmetics and are receptive to learning about and interacting with high-end brands through digital channels. These affluent consumers are influencing luxury cosmetic brands to bolster their digital presence and credibility to increase their market share. For instance, companies such as LVMH and CHANEL sell cosmetic products that are more aspirational than attainable due to the use of editorial and artistic imagery. CHANEL also opts to launch online campaigns and consistently post videos on YouTube to remind consumers of the brand's extensive history and unique vision, showcasing the exclusivity of its products and making consumers feel important and valued. Furthermore, premium brand companies like LOreal and Estee Lauder are focusing on both facial treatments and anti-aging skincare products while offering body skincare and cleansers to drive brand value and sales, significantly contributing to the growth of the global online premium cosmetics market. Therefore, the trend of premium cosmetic brands is likely to have a favorable impact on the market in the projected period.
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Our researchers analyzed the data with 2022 as the base year, along with the key 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.
An increase in online retailing is the key trend in the online premium cosmetics market. Consumer access to online shopping platforms is increasing due to rising internet penetration and the high availability of smart devices. Retailers are using these online platforms to expand their geographic reach and customer base. Moreover, the convenience of online shopping and enhanced security features of e-commerce platforms are driving the growth of the market.
Most of the vendors that offer premium cosmetic products sell their products through online e-commerce sites. Sephora has a strong presence through offline and online distribution channels. Other online premium cosmetics retailers include Amazon.com and Nykaa. These vendors offer various discounts and describe the product features in their online stores. These advantages will create a lucrative distribution channel for mineral cosmetics, which is expected to drive the growth of the market during the forecast period.
The high cost of cosmetic skincare products is the major challenge impeding market growth. Cosmetic skincare products contain expensive ingredients, including gold, caviar extract, saffron, rose, jasmine essential oils, and arginine. These products are priced on the higher side due to the presence of the above-mentioned ingredients. Also, the inclusion of packaging and advertising costs in the final price of the product makes it very expensive.
Moreover, companies are also using a combination of expensive antioxidants and nourishing ingredients such as peptides and retinol to get rid of fine lines and wrinkles. The companies are also investing heavily in developing innovative cosmetics and skincare products that are advanced, efficient, and safe for users. Thus, the high cost of cosmetic skin care products makes them unaffordable for many people, which significantly hinders the growth of the market during the forecast period.
The market research 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 Online 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.
The online 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 of the skincare segment will be significant during the forecast period. Skincare products include products such as topical creams, lotions, toners, exfoliators, and serums for the skin. Skincare products are used as skincare solutions for anti-aging, skin-whitening, and sun protection. The major factor that is contributing to the growth of the segment includes the increase in the older population and advances in the technology used in manufacturing skincare products.
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The skincare segment was valued at USD 11,917.69 million in 2017 and continued to grow until 2021. Product premiumization is one of the major factors driving the market growth among fashion-conscious consumers and high-profile makeup artists during the forecast period. Various vendors in the market are offering premium skincare products that stimulate the natural rejuvenation process of facial skin and improve the complexion and appearance of the skin.
The women segment in the global online premium cosmetics market is expected to witness significant growth, primarily driven by the increasing demand for premium cosmetics products such as makeup, haircare, skincare, and several others. Women are increasingly becoming conscious about their appearance and are willing to spend on high-end products that promise to enhance their beauty. The growing popularity of social media platforms is further fueling the demand for premium cosmetics, as women across the globe are constantly exposed to images of celebrities and influencers with perfect skin and makeup. All these factors is expected to propel the market growth.
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APAC is estimated to contribute 47% to the growth of the global online premium cosmetics market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC was the largest contributor to the global online premium cosmetics market in 2022, in terms of market share. Some of the popular premium cosmetics categories include skincare products, hair 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 regional market over the past years. In addition, an increase in the rate of urbanization, penetration of smartphones and the Internet, high density of population, and rising demand for personal grooming products from male and female customers will likely drive the market in APAC during the forecast period.
In 2020, the outbreak of COVID-19 adversely affected the growth of the cosmetic industry in APAC. The governments in India, China, Japan, Australia, Indonesia, South Korea, Bangladesh, Vietnam, and other countries across APAC imposed stringent lockdowns to prevent the spread of COVID-19. However, the lockdown restrictions were lifted in the second half of 2020 with the rolling of vaccination drives across APAC. This resumed manufacturing activities in several industries, including premium cosmetics. Moreover, the logistics and transportation activities also restarted in the first half of 2021. This will allow easy distribution and delivery of premium cosmetics ordered through online platforms, which will positively impact the growth of the market during the forecast period.
The online premium cosmetics 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.
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Online Premium Cosmetics Market Scope |
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Report Coverage |
Details |
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Page number |
171 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.78% |
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Market growth 2023-2027 |
USD 9,515.73 million |
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Market structure |
USD Fragmented |
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YoY growth 2022-2023(%) |
3.76 |
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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 47% |
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Key countries |
US, Canada, China, Japan, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Amorepacific Corp., Avon Products Inc., Clarins Pte Ltd., Dambiro de, Hermes International SA, Johnson and Johnson, Kao Corp., Kose Corp., LOccitane Groupe SA, LVMH Moet Hennessy Louis Vuitton SE, Manash Lifestyle Pvt. Ltd., PUIG S.L., Shiseido Co. Ltd., CHANEL Ltd., LOreal SA, Oriflame Holding AG, Revlon Inc., The Procter and Gamble Co., The Estee Lauder Co. Inc., 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 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. |
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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 Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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