Vegan Cosmetics Market by Distribution Channel, Type, and Geography - Forecast and Analysis 2023-2027

Vegan Cosmetics Market Forecast 2023-2027

The vegan cosmetics market size is estimated to increase by USD 5.87 billion and grow at a CAGR of 6.5% between 2022 and 2027. The growth of the market depends on several factors, including the increasing preference for cruelty-free cosmetics from consumers, the growth of the cosmetic industry, and the promotional and marketing strategies employed by cruelty-free cosmetics vendors.  The market is witnessing strong growth driven by the promotional and marketing initiatives of cruelty-free cosmetics brands. As consumer demand for ethically manufactured products rises, the cosmetics industry is experiencing notable expansion, especially in the skincare, haircare, and makeup sectors. Particularly, skincare products are at the forefront, showcasing consumers' heightened attention to skincare regimens and overall wellness. 

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

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Market Segmentation

This market report extensively covers market segmentation by distribution channel (offline and online), type (skincare, hair care, cosmetics, and others), and geography (Europe, North America, APAC, 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 Distribution Channel

The cruelty free cosmetics market share growth by the offline segment will be significant during the forecast period. The offline distribution channel segment comprises speciality stores, hypermarkets, supermarkets, convenience stores, clubhouse stores, and others (department stores, salons and spas, and drugstores). 

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The offline segment showed a gradual increase in the market share of USD 10.19 billion in 2017 and continued to grow until 2021. Offline shopping formats are highly capable of building trust in the consumers regarding the product by offering product demonstrations. A delay in receiving the shipment by a consumer is a major setback for online vendors. For most fast-moving consumer goods (FMCG) and cosmetics, consumers prefer offline shopping formats. Major retailers are setting up new stores in the local and regional markets. Colors and aesthetics, being the major attributes of cosmetics, are difficult to demonstrate through online sales channels. Cosmetics companies prefer opening brand outlets in major urban areas and offering free samples to potential customers. Consumers tend to purchase new cosmetics at retail stores. Thereafter, if the products are found to be highly satisfactory, they are bought online to avail themselves of promotional discounts. These factors have led to the dominance of the offline sales channel segment in the global cruelty-free cosmetics market. 

Key Regions

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Europe is estimated to contribute 36% 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 UK, Germany, France, and Russia are the leading cosmetics markets in Europe. The UK leads in terms of cruelty-free cosmetics sales in the European market. Cruelty-free cosmetics product launches have doubled in the past year, whereas the vegan population has increased by four times in the country over the last four years. Along with the preference for cruelty-free, significantly higher per capita expenditure on cosmetics (compared to the European average) has propelled the demand for cruelty-free cosmetics in the country.

One of the key requirements for obtaining vegan certification is that cosmetics should not be tested on animals. Europe bans the testing of cosmetics on animals. Thus, various cruelty-free cosmetics have been launched in the region. These cosmetics that comply with regulations and the presence of a large vegan population are likely to rapidly drive the regional cruelty-free cosmetics market during the forecast period. People for the Ethical Treatment of Animals (PETA) and the European Vegetarian Union (EVU) are two of the prominent organizations operating in Europe that award cruelty-free or vegan certificates to cosmetics and other consumer products. All these factors will drive the regional market during the forecast period.

Market Dynamics and Customer Landscape

The Market is experiencing rapid growth, driven by increasing consumer awareness and demand for cruelty-free products. As people become more conscious of animal welfare, they seek alternatives to traditional cosmetics containing animal-derived ingredients like milk, fat, and beeswax. Instead, they opt for plant-based alternatives such as organic oils and extracts, which offer benefits like vitamins, minerals, and antioxidants for healthier skin and body care. This shift is evident in the rise of vegan cosmetic brands like Freshian, Beauty Without Cruelty, and Billy Jealousy, catering to various skincare, makeup, and nutrition needs. With celebrities like Harry Styles endorsing veganism and consumers increasingly favoring products free from synthetic and animal-tested ingredients, the market is expanding globally, with notable growth in regions like South Korea and through e-commerce channels. 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 Market is experiencing robust growth, propelled by the promotional and marketing strategies of cruelty-free cosmetics vendors. With a surge in consumer demand for ethically produced products, the cosmetics industry has witnessed significant expansion, particularly in segments like skincare, haircare, and makeup. Notably, skincare products lead the market, reflecting consumers' increasing focus on skincare routines and well-being. The rising adoption of vegan cosmetics is driven by a paradigm shift towards high-quality, cruelty-free alternatives, fueled by lifestyle changes and increased disposable income. Furthermore, the burgeoning men's grooming category is amplifying growth opportunities, with male consumers embracing beauty and wellness products. As consumer behavior evolves towards sustainability and ethical consumption, the demand for vegan cosmetics is expected to soar, driving the global market's growth trajectory in the coming years.

Significant Market Trends

The growth of the e-commerce market is a major trend in the market. Globalization and liberalization policies have simplified cross-border trade and popularized business-to-business (B2B) and business-to-customer (B2C) businesses. Globally, advances in technology and increasing internet penetration have increased online purchases and sales of goods and services. A gradual shift toward online shopping has amplified the growth potential of the e-commerce market. Advances in information and communication technology, artificial intelligence, and other modern technologies have expanded the customer base and offered growth prospects to key market vendors. 

E-commerce is a platform for cosmetics companies operating at small or moderate scales to promote their products. Social media, the increasing internet penetration, and the growing adoption of smartphones allow customers to access a wide range of cosmetics and help them choose the most suitable products. During the forecast period, the online market for cruelty-free cosmetics will grow, owing to the increasing preference for online shopping, technological advances, and awareness about products. Steps were taken by key vendors to collaborate with major online retailers that will help vendors increase their market share. Such factors are expected to drive the growth of the global cruelty-free cosmetics market during the forecast period.

Major Market  Challenge

Stringent guidelines for obtaining vegan or cruelty-free certification is a major trend impeding the cruelty free cosmetics market growth. Manufacturers of cruelty-free cosmetics primarily target the urban population, as most urban consumers are aware of cruelty-free products. Consumers trust vegan and cruelty-free certifications more than advertisements. Cruelty-free certification ensures that the product is not tested on animals. The Leaping Bunny certification is awarded by Cruelty-Free International, a global organization. The cruelty-free logo is administered by the Vegan Awareness Foundation. Cosmetics companies must change the existing production layout and follow the necessary guidelines to obtain vegan certification.

Some of the guidelines for obtaining the 'Certified Vegan' logo are no use of animal products, no animal testing, no use of animal genetically modified organisms (GMOs), and details of the ingredient suppliers' verification for no animal product usage. Thus, earning a vegan logo requires capital and time, and vendors must efficiently market. Therefore, the existing cosmetics brands are apprehensive about adding cruelty-free to their product portfolio, which can become a major challenge for the growth of the global cruelty-free cosmetics market 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 Vegan 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 cruelty-free cosmetics market.

LOreal SA -The company operates under multiple segments, including consumer products and active cosmetics, among others, with a high focus on consumer products. The company under this segment operates four major global brands L'Oreal Paris, Garnier, Maybelline New York, and NYX Professional Makeup, and the deployment of its specialized and regional brands like Stylenanda, Essie, Dark, and Lovely. The company's key offerings include cruelty-free cosmetics.

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

• Coty Inc
• Debenhams Plc
• e.l.f. Beauty Inc.
• Kose Corp.
• Lush Retail Ltd.
• MAV Beauty Brands Inc.
• Milk Makeup LLC
• MO MI by Modern Minerals Inc.
• Natura International Inc.
• New Earth Beauty LLC
• New Milani Group LLC
• Pacifica Beauty LLC
• PHB Ethical Beauty Ltd.
• PUIG S.L.
• The Estee Lauder Co Inc

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 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. 

• Distribution Channel Outlook (USD Million, 2017 - 2027)
  • Offline
  • Online

• Type Outlook (USD Million, 2017 - 2027)
  • Skin care
  • Hair care
  • Cosmetics
  • Others

• Region Outlook (USD Million, 2017 - 2027)
  • 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 experiencing rapid growth, fueled by increasing consumer demand for cruelty-free and plant-based beauty products. Brands are harnessing natural ingredients like fat, honey, and organic oils while shunning animal-derived substances like beeswax and collagen. This shift towards veganism is driven by health consciousness and ethical concerns surrounding animal cruelty. Millennials, in particular, are driving this trend, seeking sustainable beauty options with sustainable packaging. Notable brands like Beauty Without Cruelty and Billy Jealousy are leading the charge, offering a range of skincare, makeup, and nutrition products free from harmful chemicals and synthetic ingredients. South Korea emerges as a key player, known for its innovative vegan cosmetics and mineral-based formulations. Retail channels ranging from hypermarkets to specialty stores are witnessing increased demand for vegan cosmetics, reflecting a growing preference for cruelty-free and eco-conscious beauty options.

Moreover, the market is experiencing a surge in demand as consumers increasingly prioritize ethical and sustainable beauty choices. With concerns over health issues and environmental impact, conscious consumers are gravitating towards organic, plant-based alternatives offered by vegan cosmetics brands. These products, free from animal-derived ingredients and animal testing, cater to a growing segment of the population seeking cruelty-free options. From lip balms to sunscreens and lipsticks, vegan cosmetics encompass a wide range of offerings, including body care, face care, and even baby care products. As major retailers like Hypermarkets/supermarkets, departmental stores, and Lotte Duty-Free expand their shelf space for natural and organic cosmetics, vegan brands are gaining prominence in the market. With celebrities like Harry Styles endorsing vegan beauty, the industry is poised for further growth, challenging traditional cosmetics and perfumes dominated by animal-tested and non-vegan alternatives.

Additionally, the market is experiencing robust growth, fueled by increasing consumer demand for organic, plant-based alternatives in the beauty industry. With rising awareness of the harmful effects of artificial ingredients and animal testing, cosmetic brands are shifting towards cruelty-free and vegan formulations. Freshian, a prominent plant-based skin and hair care brand, exemplifies this trend, offering products enriched with vitamins, antioxidants, and organic oils derived from plants. Moreover, luxury goods conglomerates are investing in natural skincare brands that prioritize plant-based ingredients and mineral-based cosmetics. Consumers are gravitating towards gluten-free and vegan cosmetics brands, emphasizing the importance of cruelty-free and vegan ingredients inspired by nature. As the market expands, makeup lines and distilleries are innovating with vegan and nature-inspired ingredients, driving the proliferation of vegan cosmetics globally.

Vegan Cosmetics Market Scope
Report Coverage	Details
Page number	163
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 6.5%
Market growth 2023-2027	USD 5.87 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	5.75
Regional analysis	Europe, North America, APAC, South America, and Middle East and Africa
Performing market contribution	Europe at 36%
Key countries	US, Japan, UK, Germany, and France
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Coty Inc, Debenhams Plc, e.l.f. Beauty Inc., Kose Corp., LOreal SA, Lush Retail Ltd., MAV Beauty Brands Inc., Milk Makeup LLC, MO MI by Modern Minerals Inc., Natura International Inc., New Earth Beauty LLC, New Milani Group LLC, Pacifica Beauty LLC, PHB Ethical Beauty Ltd., PUIG S.L., The Estee Lauder Co Inc, Unilever PLC, and Yes To Inc.
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 market research 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 Vegan Cosmetics Market 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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