Premium Cosmetics Market Analysis APAC,Europe,North America,South America,Middle East and Africa - US,China,Japan,Germany,UK - Size and Forecast 2023-2027

Premium Cosmetics Market Forecast 2023-2027

The premium cosmetics market size is estimated to grow by USD 55.50 billion at a CAGR of 8.9% between 2022 and 2027. The increased demand for premium skincare, driven by consumers' growing interest in skin health and beauty, is boosting market growth. The rise in sales of premium cosmetics through e-commerce, fueled by the convenience and accessibility of online shopping, is also driving market expansion. Additionally, innovation and portfolio extension leading to product premiumization, such as the introduction of advanced formulations and luxury packaging, are creating new opportunities for growth in the market. Overall, these factors are reshaping the skincare and cosmetics industry and driving the demand for premium skincare.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

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.

By Product

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 these to help them achieve better-looking skin. 

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The skincare products segment shows a gradual increase in the market share of USD 27.68 billion in 2017. The 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 grooming and wellness, prompting vendors to launch innovative skincare 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 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 counterfeits 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.

By region

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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 market. In this region, some of the popular premium cosmetics categories include skincare, hair care, baby care, 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 market in APAC. 

China, Japan, and South Korea are the three leading countries in the region. The growing concern for personal hygiene and wellness is driving the demand for skin care 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 market in APAC, men too, constitute a sizeable portion of the market. The growing organized retail sector, along with the booming e-commerce industry, also contributes to the growth of the 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.

Market Dynamics and Customer Landscape

The market is thriving due to rising disposable incomes and a shift towards an opulent lifestyle. Consumers, influenced by social media and beauty trends, are increasingly opting for luxury skincare. Manufacturers are focusing on offering premium ingredients and ethical attributes to cater to these preferences. Influencer endorsements play a significant role in driving consumer choices. The market includes a wide range such as skincare, haircare, makeup, and fragrances, with leading brands dominating the industry. 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 Market Driver

The increased demand for premium skincare products is notably driving the market growth. Selected manufacturers offer innovative treatments followed by premium skincare that are more expensive than regular skincare items. Consumers are increasingly aware of skincare issues like aging spots, acne, and pigmentation, leading them to be willing to pay for higher-end skincare. Innovative skincare products often contain high-quality ingredients, contributing to their premium status. This trend is driven by shifting lifestyles, consumer preferences for opulent lifestyles, influencer endorsements on social media, evolving beauty trends, and a growing consciousness about wellness and beauty. As disposable income rises, consumers are more willing to spend on premium skincare, driving up the demand for premium cosmetics, particularly skincare.

Skincare brands strive to differentiate themselves from pharmaceutical companies by investing in innovative ingredients and technologies that benefit skin health and appearance. Consumers, especially the elderly, seek methods and products to maintain and enhance their appearance and youthfulness. This includes services like waxing and facials, as well as products like makeup, haircare, fragrance, and anti-aging goods. In the past, anti-aging creams temporarily plumped the skin to reduce the look of fine lines and wrinkles. However, technological advancements have led to a greater variety of advanced and value-added anti-aging products on the market, significantly influencing market growth. Additionally, there are skincare-containing ingredients that target fine lines and wrinkles for consumers with oily and sensitive skin. These factors are expected to drive growth in the focused skincare market.

Significant Market Trend

Multichannel marketing is a major trend in the 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. As consumers are increasingly engaging in social networking and blogs, vendors use these platforms to increase awareness and promote their skincare. 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 smartphones 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 Market Challenge

The availability of counterfeit brands is a major challenge impeding the market growth. The 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 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 Market Customer Landscape

Who are the Major Premium Cosmetics Market Companies?

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.

L'Oreal SA - The company's extensive range of premium cosmetic products is a key feature of its offerings.

The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Amway Corp.
• Avon Products
• Beiersdorf AG
• CHANEL Ltd
• Coty Inc
• Groupe Clarins
• Henkel AG and Co. KGaA
• Johnson and Johnson
• Kao Corp.
• Laboratoires Expanscience
• LVMH Moet Hennessy Louis Vuitton SE
• Natura and Co Holding SA
• NUDE Beauty Brands
• Revlon Consumer Product Corp.
• Shiseido Co. Ltd.

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.

Segment Overview

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. 

• Product Outlook
  • Skincare products
  • Fragrances
  • Color cosmetics
  • Hair care products
  • Others

• Distribution Channel Outlook 
  • Offline
  • Online

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The market is driven by a variety of factors, including wellness and beauty consciousness among consumers, sustainability concerns, and technological innovation in products such as UV filtering technology. Consumers are increasingly seeking anti-aging cosmetic products with cosmetic antioxidant capabilities and organic and natural color cosmetics. Personalization and customization options are becoming more important, especially in online retail stores, which are experiencing significant growth. The market is also influenced by economic downturns and health crises, impacting consumer spending behavior. Regulatory compliance and product counterfeiting are key concerns for brands, as is maintaining authentic attributes in the face of counterfeit cosmetics.

Age spots, bronzers, carotenes, concealers, duty-free stores, e-commerce platforms, emerging nations, experimental attributes, eye products, face products, female workforce, gender, high-end beauty brands, hypermarkets/supermarkets, hyperpigmentation, internet usage, inventive attributes, irritation, lip products, lipsticks. In the ever-evolving landscape of beauty and skincare, a plethora of factors are shaping consumer preferences and market dynamics. From age spots to bronzers and carotenes to concealers, the demand for products addressing various skin concerns is on the rise. Duty-free stores and e-commerce platforms are becoming popular destinations for beauty enthusiasts, offering convenience and accessibility. As the beauty market expands, emerging nations are increasingly becoming key players, driving innovation and growth. Experimental attributes, such as innovative formulations and cutting-edge technology, are capturing consumer interest and driving product development.

In the realm of cosmetics, eye products and face products continue to dominate, catering to diverse preferences and needs. Moreover, the growing participation of the female workforce in the beauty industry is reshaping gender dynamics and fostering inclusivity. High-end beauty brands are gaining traction, attracting discerning consumers seeking premium quality and luxury experiences. Meanwhile, hypermarkets/supermarkets are witnessing a surge in beauty aisles, offering a wide range of products to cater to mass-market demands.

Hyperpigmentation and other skincare concerns are driving the demand for specialized products, while internet usage is fueling online beauty communities and influencing purchase decisions. Inventive attributes, such as cruelty-free formulations and sustainable packaging, are gaining prominence amidst growing environmental consciousness. However, alongside innovation comes the challenge of irritation and adverse reactions, highlighting the importance of safe and efficacious formulations. From lip products to lipsticks, consumers are seeking products that not only enhance beauty but also prioritize skin health and comfort. In conclusion, the beauty industry is experiencing a transformative phase driven by evolving consumer preferences, technological advancements, and changing market dynamics. By embracing innovation, inclusivity, and sustainability, beauty brands can navigate these trends and continue to captivate consumers worldwide.

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 55.50 billion
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 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 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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