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The personal care market is estimated to grow by USD 169.7 billion at a CAGR of 6.4% between 2022 and 2027. The market's expansion relies on several factors, notably the rising preference among both male and female consumers for personal care items. This trend is fueled by an increasing awareness of the benefits of naturally derived ingredients in such products. Additionally, conglomerate companies are launching an array of new personal care items to cater to this growing demand. These factors collectively contribute to the market's growth, reflecting a shift towards more holistic and natural approaches to personal care.
The market is growing due to an increasing number of male and female customers opting for these products. While the personal care product segment for women is prominent, the segment targeting male customers has seen significant developments and product launches in 2022. Brands in the personal care industry are increasingly focusing on creating innovative products that go beyond the basics. These include face wash, moisturizers, eye creams, face masks, sunscreen, makeup, and grooming kits. To meet consumer demand for more natural and organic options, brands are developing formulations with organic ingredients and plant extracts. They are also emphasizing chemical-free products and creating multifunctional products that offer multiple benefits in a single product. The rising demand across all genders has opened up opportunities in the market, and the increasing number of product launches in this market segment is expected to drive the growth of the market during the forecast period.
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The market is segmented by distribution channels, including offline and online. The product segment by skincare products, hair care products, color cosmetics, oral care products, and others. The geography by (APAC, Europe, North America, Middle East and Africa, and South America).
Skincare products include serums, moisturizers, cleansers, toners, body lotions, sunscreens, and others. These aim at providing cleansing and protection to the skin from external factors. Personalized skincare products have gained traction in developed economies such as the US, France, Canada, and others, where consumers with high disposable income spend on premium and luxury skincare. Brands design these personalized skincare products as per the specifications provided by consumers by answering expert-created questionnaires. Brands make use of artificial intelligence that matches with ideal formulas specific to the needs of consumers.
In June 2021, Hale Cosmeceuticals, a skincare manufacturer in US, launched two natural ingredient, Natural AZA Cleanser and Date Palm Deep Moisturizer, for US market. In March 2021, Artistry brand, a skincare product brand owned by Amway Corp., launched Artistry Skin Nutrition Line, a clean, traceable, and vegan skincare line. Owing to the latest trends witnessed in the skincare segment, the demand is expected to increase during the forecast period.
The market share growth of the offline segment will be significant during the forecast period. In 2022, the specialty stores retail format generated the maximum revenue in the market through offline distribution channels. The growing popularity of beauty and personal care specialty retail stores drives the growth of this segment. Manufacturers rely on such retail stores to plan their budget for marketing, advertising, and promotion activities to create product and brand visibility among customers.
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The offline segment was valued at USD 299.74 billion in 2017. Personal care is mostly sold through the offline distribution channel, which includes retail formats such as specialty stores, hypermarkets, supermarkets, convenience stores, and warehouse clubs. The offline distribution channel for personal care also consists of drugstores, salons and spas, department stores, and medical clinics and institutes. These retail formats generate most of the global revenue.
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APAC is estimated to contribute 41% 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 market in APAC is very competitive owing to the presence of established brands such as Kao Corp. and Shiseido Co. Ltd. The key companies in the market focus on innovation and launching new products to keep up with the latest market trends. Consumers in several countries in the region, such as China, Japan, South Korea, and others, especially those belonging to the Millennial working population, prefer to spend on premium, good quality, and organic personal care. Owing to lifestyle changes in developing economies in APAC, such as India and China, premium personal care, which was earlier used in urban areas, is now slowly penetrating rural areas.
The market is witnessing a shift towards natural and organic formulations, driven by the preferences of millennials and consumers seeking chemical-free alternatives. Products like vegan beauty ranges and organic skincare products are gaining popularity due to their use of organic components and avoidance of the harmful effects of chemicals found in synthetic cosmetics. These often feature plant extracts and natural oils, appealing to those looking for clean labels and non-toxic ingredients. Retailers like Mozo and Boohoo are increasingly offering, which are commonly found in pharmacies and beauty salons. Consumers are becoming more aware of the potential adverse side effects of chemicals, driving the demand for safer, more natural alternatives. Our researchers analyzed the data with 2022 as the base year, along with 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.
Influence through social media and blogging is the primary trend in the market. Social media is becoming an increasingly important channel for personal care brands to reach and interact with consumers. As the number of social media networks is high and very fluid, brands use a variety of networks for promotion and marketing.
Social media has become a critical way for consumers to find the trendiest personal care products in line with their needs and is reshaping consumer preferences. The social media platforms such as Instagram, Facebook, and YouTube provide an opportunity for brands to showcase and market their products and improve the sales generated as a result of viral and trending posts. Brands have become popular among the younger generation using these platforms owing to their product promotion through influencers and have witnessed an increase in their sales after their products were endorsed by these influencers. Social media trends impact consumers' purchasing patterns and help brands improve their presence and witness increased demand.
The major challenge impeding market growth is the high cost of natural and organic personal care products. Production costs of organic products are comparatively higher than other alternatives because of the great labor inputs required to make these products.
Manufacturers must use high-quality raw materials to produce because of the stringent regulations made by governments regarding the production of organic personal care products. For instance, personal care product manufacturers in Canada are prohibited by law from selling cosmetics that contain ingredients hazardous to the health of Canadians and must disclose all ingredients to Health Canada, which is a department of the Government of Canada responsible for national healthcare policy. Owing to these factors, manufacturers set high prices for their natural and organic personal care product offerings, which poses a challenge in the market.
The 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 Market 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.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 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 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.
The market is witnessing a surge in demand for vegan beauty ranges and cruelty-free products, especially among Australian women. Consumers are increasingly seeking natural and organic formulations in products such as facial makeup and hairstyling items, which often feature natural ingredients and are marketed as multifunctional. The market is also seeing a rise in product innovation, with companies focusing on organic ingredients, vegan cosmetics, and eco-friendly options. Male consumers are becoming more prominent in the market, driving the need for specialized products. Merger and acquisition activities are also reshaping the industry landscape while rising disposable incomes and health consciousness are fueling growth in skincare and haircare products markets. These products are commonly found in drug stores, online stores, and supermarkets, often with special offers to attract consumers.
Furthermore, Australian women are increasingly turning to vegan beauty ranges and DIY beauty treatments that feature natural/organic formulations in the personal care market. This trend reflects a broader shift towards sustainability and eco-friendly cosmetics, with consumers prioritizing products with natural and organic ingredients. This demand is particularly strong in segments such as skincare, haircare products, makeup and color cosmetics, and deodorants/fragrances. Supermarkets and hypermarkets are important retail channels for these products, catering to consumers' growing health and wellness awareness.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.4% |
Market growth 2023-2027 |
USD 169.7 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.4 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 41% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amway Corp., Beiersdorf AG, CHANEL Ltd., Colgate Palmolive Co., Emami Ltd., Groupe Clarins, Henkel AG and Co. KGaA, Johnson and Johnson, Kanebo Cosmetics Inc., Kao Corp., LOreal SA, Mary Kay Inc., Natura and Co Holding SA, Oriflame Holding AG, Revlon Inc., Shiseido Co. Ltd., Skinfood Co. Ltd., The Estee Lauder Co. Inc., The Procter and Gamble Co., and Unilever PLC |
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 market 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 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
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