Cosmetics Market Research Report—Global Forecast till 2028

Cosmetics Market Research Report: Information by Product Type (Skin Cosmetics, Hair Cosmetics, Nail Cosmetics, Eye Cosmetics), Flavor Type (Organic, Natural), Category (Dairy-Based, Non-Dairy-Based), Distribution Channel (Store Based, Non-Store Based) and Region (North America, Asia-Pacific, Europe, South America, and the Middle East & Africa) —Forecast till 2028

ID: MRFR/CR/2290-CR | September 2022 | Region: Global | 100 Pages         

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Cosmetics Market

Cosmetics market size is anticipated to reach USD 395.14 million by 2028, registering a CAGR of 5.34% during 2021-2028.

Segmentation
By Product Type Skin Cosmetics Hair Cosmetics Nail Cosmetics Eye Cosmetics
By Category Organic & Natural Conventional
By Distribution Channel Store-Based Non-Store-Based
By Region North America Europe Asia-Pacific Rest of the World
Key Players
Companies Profiled   The Estée Lauder Companies Inc. (US)    Procter & Gamble Co. (US)    L'oréal Group (France)    Shiseido Co. Ltd. (Japan)    Beiersdorf AG (Germany)    Revlon Inc. (US)    Kao Corporation (Japan)    Coty Inc. (US)    Avon Products Inc. (UK)    Amway Corporation (US)    Skinfood (South Korea)    Yves Rocher (France)    Oriflame Holding AG (Switzerland)    Unilever (UK)    Church & Dwight Co. Inc. (US)
Drivers
Market Driving Forces   Increasing Consumer Spending On Cosmetics & Personal Care Products    Increasing Working Women Population In Emerging Countries    Growth Of The Organized Retail Sector In Asia-Pacific
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Cosmetics Market Overview


The global cosmetics market size is projected to register a CAGR of 5.34% and reach a value of USD 395.14 Million by 2028. Cosmetics are a mixture of chemical compounds. However, certain cosmetics are derived from natural sources as well. Cosmetics are applied for cleansing, beautifying, promoting attractiveness, and enhancing appearance. Cosmetics manufacturers are offering makeup products for both adults and children. There are various types of cosmetic products such as skin cosmetics, hair cosmetics, nail cosmetics, eye cosmetics, and others.


Increasing consumer spending on cosmetics and personal care products followed by an increasing working women population is majorly driving the market growth. The growth of the organized retail sector in Asia-Pacific is further boosting market growth. The growing trend of natural and organic cosmetic products is expected to create new opportunities for the vendors active in the global market. Also, the high influence of social media and marketing strategies provide a lucrative market to the existing players. However, side effects caused by chemicals is restricting the growth of the market.


COVID-19 Impact Analysis


The advent of the global pandemic, COVID-19, resulted in a global crisis. Impacting over 213 countries, the pandemic has created an economic backdrop worldwide and is deemed to create a chaotic environment, thereby resulting in the advent of global rescission. With the rapidly increasing number of cases, the Global Cosmetics Markets is getting affected in many ways.


The outbreak of COVID-19 has resulted in a lockdown across regions, border restrictions, and breakdown of transportation networks. The essential goods, such as sanitizers, masks, and household essentials like toilet paper and bread, were stocked up by customers. Most of the customer's budget was shifted to essential goods, and a major downfall in non-essential businesses was observed. As more cities went into lockdown, non-essential businesses were ordered to remain closed during the first half of the pandemic. Cosmetics being an essential personal care product, the demand for the same was not affected largely. However, the steps taken in most of the geographies to slow down the spread of the novel coronavirus affected the supply chain in the market


Market Dynamics


The global cosmetics market is expected to register a CAGR of 5.34% during the forecast period. Increasing consumer spending on cosmetics and personal care products followed by an increasing working women population is majorly driving the market growth. The growth of the organized retail sector in Asia-Pacific is further boosting market growth. The growing trend of natural and organic cosmetic products is expected to create new opportunities for the vendors active in the global market. Also, the high influence of social media and marketing strategies provide a lucrative market to the existing players. However, side effects caused by chemicals are restricting the growth of the market.


Drivers:

  • INCREASING CONSUMER SPENDING ON COSMETICS & PERSONAL CARE PRODUCTS


Cosmetics and personal care are one of the fastest-growing consumer product industries across the globe. In the recent past, the per capita spending on cosmetics & personal care products has increased at a significant rate due to the growing appearance consciousness among the consumers, particularly the young population, coupled with rising per capita disposable income. The high adoption of smartphones and easy access to the internet has further increased spending on personal care products through web portals. According to the India Brand Equity Foundation (IBEF), the Indian personal care and grooming market is expected to reach USD 20 billion by 2028 owing to rapid urbanization, a rise in per capita disposable income, and changing lifestyles. Also, according to a survey in 2020, the average annual expenditure on cosmetics amounted to approximately USD 190 per consumer in the US. The consumption pattern among the young population has changed with an aspiration to look good, which is expected to drive personal care products and, consequently, cosmetic products. Moreover, the growing youth population, increasing adoption of social media platforms, the launch of innovative products, and easy availability of products across the globe are also expected to support the growth of the global cosmetics market.


Restraint:

  • SIDE-EFFECTS OF HARMFUL CHEMICALS


There are harmful ingredients or chemicals present in professional and over-the-counter products that include resorcinol, ethanolamine (MEA), ammonia, persulfates, parabens, propylene glycol, and metals such as nickel. Some of these ingredients or chemicals can cause serious problems. For instance, resorcinol irritates the skin and interferes with normal hormone production. Propylene glycol is also known to cause dermatitis. Also, hair color consists of dyes, modifiers, antioxidants, and fragrances, in addition to a variety of chemicals existing in slight proportions that impart a specific quality to the hair, such as softening it. Many of the chemicals used in hair color might prove toxic to the end user leading to irritation or allergic reactions. Also, there are other damaging chemicals present in hair dye that can cause side effects, such as light tingling, itching and burning, allergic reactions, and blistering and rashes. Thus, the side effects and allergic reactions caused by some of the chemicals used in cosmetics are likely to hamper the growth of the global cosmetics market during the forecast period. Moreover, many eye-makeup products are found to contain harmful chemicals that can gradually hamper vision. The increasing adoption of chemical-free products is found to restrain the growth of the conventional eye-makeup products market. Coal tar dyes used in eye-makeup products are carcinogenic. Benzalkonium chloride is another chemical widely used in eye-makeup products that causes eye irritations. Increasing awareness of harmful ingredients present in cosmetics might restrict market growth. The adoption of organic and natural cosmetics will result in narrowing down the scope of the cosmetics market. Additionally, minimal makeup or nude makeup trends have encouraged consumers to adopt a makeup-free lifestyle due to which the cosmetics market is experiencing a slight downfall..


Opportunities:

  • INCREASING DEMAND FOR NATURAL & ORGANIC COSMETICS


The phenomenon of ‘returning to original nature is becoming a fashion statement with more and more people interested in buying only chemical-free products. The demand for natural and organic cosmetics is rising with the growing awareness of the health hazards and dangers of toxic chemicals in non-organic products among people. This, in turn, has raised the demand for organic and natural cosmetics. For instance, Urban Decay company lists its ink eyeliner as vegan and chemical-free. Other notable references can be taken from the sale of eyeliner with natural ingredients, including activated charcoal and various plant-based ingredients, such as meadowfoam seed oil, macadamia seed oil, jojoba seed oil, and vitamin E and C have increased the sale of the product amongst consumers having a high preference for natural and herbal ingredients. Thus, this trend creates an opportunistic market for the key players to expand their portfolio with natural and organic cosmetics to cater to the increasing consumer demand.Segment OverviewBy Product Type

  • Based on product type, the global cosmetics market has been segmented into skin cosmetics, hair cosmetics, nail cosmetics, eye cosmetics, and others. The skin cosmetics segment accounted for the largest market share of 40.97% in 2020 and is projected to register a CAGR of 4.92% during the forecast period, while the nail cosmetics segment is expected to exhibit the highest CAGR of 6.10% during the review period.


By Category

  • The global cosmetics market has been segmented, based on category, into organic & natural, and conventional. The conventional segment accounted for a larger market share of 71.22% in 2020 and is projected to exhibit a CAGR of 5.21% during the forecast period.


By Distribution Channel

  • The global cosmetics market has been segmented, based on distribution channel, into store-based and non-store based. The store-based segment has been divided into supermarkets & hypermarkets, convenience stores, specialty stores, and others. The store-based segment accounted for a larger market share of 79.67% in 2020 and is projected to exhibit a CAGR of 5.23% during the forecast period, while the non-store-based segment is expected to exhibit a higher CAGR of 5.76% during the review period.


Global Cosmetics Market Share, by Region, 2020 (%)
Cosmetics Market Share, by Region, 2020 (%)
Sources: MRFR AnalysisRegional Analysis

  • By region, the Global Cosmetics Markets has been divided into North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. The Asia Pacific accounted for the largest market share of 38.8% in 2020. Europe was the second-largest market in 2020 and is projected to exhibit a CAGR of 4.18% during the review period.


Asia Pacific

  • Asia-Pacific accounted for the highest market share of 38.81% in 2020 and is expected to be the most lucrative regional market for cosmetics during the review period. The regional market is projected to exhibit a CAGR of 6.38% during the review period. The growing popularity of cosmetics in developing economies, along with the increasing disposable income of the population, is anticipated to positively influence the growth of the market in Asia-Pacific. Increasing consumer spending on cosmetic products is likely to enhance the sale of cosmetics in Asia-Pacific. Key manufacturers of cosmetics find massive opportunities in Asia-Pacific. The manufacturers are introducing new products to capture the competitive market share in the region. The cosmetics market in Asia-Pacific is highly fragmented due to the presence of local and unorganized players. The rising working women population in the developing economies is considered to be the key factor for the rising demand for cosmetics in the countries of Asia-Pacific. Also, the growth of the organized retail sector in the region is fueling the growth of the market, with products being made readily available to consumers. China accounted for a significant share of the regional market in 2020 and is expected to retain its dominance throughout the forecast period. However, India is projected to register a substantial growth rate of 7.36% during the forecast period.


North America

  • North America is a lucrative market for cosmetic manufacturers. The region accounted for 23.68% of the market in 2020 and is projected to expand at a moderate growth rate during the forecast period, 2021–2028. Expanding product portfolio of cosmetics by the key manufacturers is one of the significant factors resulting in the growth of the cosmetics market in North America. Innovation in the product portfolio is another key factor, which is expected to positively impact the growth of the cosmetics market in North America. Moreover, key manufactures are emphasizing promotional activities to create strong awareness among the consumers regarding new product launches, which will accelerate the growth of the North American market. The US is a significant contributor to the growth of cosmetics in the region, accounting for 74.38% of the market in North America. The growth of the cosmetics market is anticipated to be driven by various factors. The advancements in technology have resulted in the introduction of a wide variety of cosmetics with different delivery formats and colors, thereby driving the cosmetics market in the US. The presence of key players in the region is also likely to uplift the growth of the market. Moreover, US consumers are inclined to adopt organic and natural products instead of chemically derived ones due to the adverse effects of the latter. Thus, manufacturers are coming up with organic or natural-certified products to increase their customer base..   


Competitive Landscape

  • The key players operating in the global Cosmetics Market include L'Oréal S.A (France), The Procter & Gamble Company (US), Unilever plc. (UK), The Estee Lauder Companies Inc. (US), Shiseido Company, Limited (Japan), LVMH Moët Hennessy (France), Kao Corporation. (Japan), Oriflame Holding AG (Switzerland), Avon Products, Inc. (UK), and Revlon, Inc. (US) dominate the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence. 


Recent Developments

  • Few developments that occurred in recent times influencing the market growth of confectionery fillings are listed below:

  • In January 2021, The Kao Corporation announced the launch of its global brand 'Biore' in India in partnership with Nykaa

  • In March 2021, Kao Corporation expanded its presence in the US through the launch of MyKirei personal care brand. Its product offerings include hand soap, shampoo, and conditioner.

  • In September 2020, Blue Bell Creameries launched a new flavor in their ice cream product line—Fudge Brownie Decadence. The investment increases the company's ice cream portfolio

  • In February 2021, Shiseido announced the plan to establish a new factory in Kurume City, Fukuoka Prefecture, Japan.


Scope of the ReportGlobal Cosmetics Market, by Product Type

  • Skin Cosmetics

  • Hair Cosmetics

  • Nail Cosmetics

  • Eye Cosmetics

  • Others


Global Cosmetics Market, by Category

  • Organic

  • Conventional


Global Cosmetics Market, by Distribution Channel

  • Store Based

    • Super marketS & hyper Markets

    • Convenience Stores

    • Specialty Stores

    • Others



  • Non-Storere based


Global Cosmetics Market, by Region

  • North America

    • US

    • Canada

    • Mexico



  • Europe

    • UK

    • Germany

    • France

    • Spain

    • Italy

    • Belgium

    • Rest of Europe



  • Asia-Pacific

    • China

    • India

    • Japan

    • Australia & New Zealand

    • Malaysia

    • Indonesia

    • Thailand

    • Rest of Asia-Pacific



  • South America

    • Brazil

    • Argentina

    • Rest of South America



  • Middle East & Africa

    • GCC Countries

    • South Africa

    • Rest of the Middle East & Africa




Intended Audience

  • Beauty Salons



Report Scope:

Report Attribute/Metric Details
  Market Size   USD 395.14 million
  CAGR   5.34%
  Base Year   2020
  Forecast Period   2021-2028
  Historical Data   2019
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Product Type, Category, Distribution Channel and Region
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   The Estée Lauder Companies Inc. (US), Procter & Gamble Co. (US), L'oréal Group (France), Shiseido Co. Ltd. (Japan), Beiersdorf AG (Germany), Revlon Inc. (US), Kao Corporation (Japan), Coty Inc. (US), Avon Products Inc. (UK), Amway Corporation (US), Skinfood (South Korea)
  Key Market Opportunities   Increasing Demand For Natural & Organic Cosmetics, Influence Of Social Media And Innovative Marketing Strategies
  Key Market Drivers   Increasing Consumer Spending On Cosmetics & Personal Care Products, Increasing Working Women Population In Emerging Countries, Growth Of The Organized Retail Sector In Asia-Pacific


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Frequently Asked Questions (FAQ) :

Cosmetics market can rise at 5.34% CAGR by 2028.

Cosmetics market is estimated to reach a valuation of approx. USD 395.14 Million by the end of 2028.

The major contenders in the global market are L'Oréal S.A (France), The Procter & Gamble Company (US), Unilever plc. (UK), The Estee Lauder Companies Inc. (US), Shiseido Company, Limited (Japan), LVMH Moët Hennessy (France), Kao Corporation. (Japan), Oriflame Holding AG (Switzerland), Avon Products, Inc. (UK), and Revlon, Inc. (US).

Rise in consumer awareness to support cosmetics market.

APAC cosmetics market revenue to rise at considerable pace in the review period.