ID: MRFR/CR/3024-HCR | February 2021 | Region: Global | 110 pages
Premium Cosmetics Market is expected to register a growth rate of 3.9% during the forecast period. The market is expected to garner a value of approximately USD 16.8 billion by the end of 2024. Premium cosmetics products are witnessing a surge in market growth due to the changing fashion trends. Cosmetics characterized by exclusivity, brand, durability, statuses, and various megatrends have contributed to bringing new premium attributes way beyond the price point. Higher demand for premium cosmetics is supported by personalization and customization, which has a pivotal role in boosting market growth.
As per the premium cosmetics market outlook, continuous innovations in premium cosmetics and new product announcements attract many consumers. Deep-rooted internet penetration and a big figure of active social media platform users also raise awareness of cosmetics-related products. This has resulted in propelling the potential of the market. The cosmetics industry is evolving as many new players are entering the Market, and the established ones are constantly bringing out developments in this domain to elevate the market size. Nowadays, consumers are becoming more bothered about their skin health and appearance. Such concern has escalated the demand for premium cosmetics and pushed sales to greater heights.
Most consumers with sensitive skin are inclining towards premium cosmetics as these have better quality. Various brands are also emphasizing research and development to prepare premium cosmetics that fulfill consumer requirements and concerns. All these have led to the expansion of premium cosmetics market size. Premium cosmetics had a higher demand in the past and will also have a greater demand in the future due to the rising consumer needs. The upsurge in disposable income among various emerging economies having urban populations has increased the premium cosmetics demand, especially for those with high-quality ingredients. These changing trends in consumer behavior have fuelled the growth of the market.
The premium cosmetics market analysis has portrayed that the increased market demands and new products growth have created multiple segments. In the segment of product type, there are a plethora of premium cosmetics, including face products, eye products, lip products, contouring, etc. Out of all these face products, the segment will have higher growth during the forecast period and boost the global market. Also, the store-based segment that includes supermarkets and hypermarkets will have much greater growth thus, influencing the growth of the global cosmetics product market in the upcoming years.
Covid 19 Analysis
After the sudden surge of the COVID-19 pandemic, global economic growth slowed down. Businesses have to bear financial losses and have to witness several challenges. The lockdown restrictions have put manufacturing processes and various operations at a halt. Moreover, the disturbance in the supply chain and scarcity of manpower left the premium cosmetics market devastated. The lockdown, travel ban, shattering retailing businesses changed consumer behavior and sales. However, the relaxation in lockdown restrictions has helped the market revenue substantially rise.
The rise in the market demand due to increasing concern about skin health has propelled the Market even in tough times. In addition, market players' efforts in making innovations and various premium cosmetics market trends helped the Market sustain and have normal growth. The Market is expected to grow to optimum levels in the post-pandemic period.
Major Drivers of the Market
Consumers across the globe have become more conscious about their appearance, which is a primary factor for boosting the sales of premium cosmetics market. Various skin-related concerns have prompted consumers to opt for high quality and reliable products. The growing skin diseases and conditions like rosaceous, acne, and atopic dermatitis have made consumers more cautious about purchasing cosmetics products. As per the AAD or American Academy of Dermatology Association data, 16 million Americans have rosacea, and 50 million Americans have acne. This data show reflects that skin issues are rising rapidly, so the consumers are inclining to products that are best in quality. All these are exhilarating the global market share.
The rising number of active users in social media platforms and the influence of social media are increasing the market growth. The changing fashion trends are also contributing to boosting market sales.
Significant Opportunities for the Market
With the constant innovations and new premium cosmetics market trends, consumers are inclining towards premium cosmetics. The inclusion of new players with competitive pricing and better products has led the market to rise higher. Moreover, the key market players emphasize research and development to create cosmetics products that cover all consumers' concerns and needs. This attracts more and more consumers to invest in products that have great reliability and enhanced quality. Thus, it boosts the market growth.
Furthermore, the consistent changes in the beauty industry and consumers' growing interest in looking good are also major opportunities to propel the premium cosmetics market revenue during the forecast period.
Although the premium cosmetics market has innumerable opportunities, it possesses certain limitations that can constrain expected market growth. The coronavirus pandemic effects are the biggest restraint for the Market. Manufacturing processes got restricted, and the supply chain was disrupted, which has created a greater financial loss, and the market growth slowed down. However, the market size will rise to its peak again after the pandemic.
Market Growth Challenges
Several factors are boosting the market growth. However, some challenges can become an obstacle in the estimated potential of the Market. The cost of premium cosmetics products may seem expensive to many, hampering the overall market revenue. Another challenge is the rising counterfeit products in the Market.
Cumulative Growth Analysis
As per the premium cosmetics market analysis, the value of the Market will attain its maximum position during the forecast period due to the increased demand. The market revenue in the upcoming years will reach around USD 16.8 billion. The Market will also grow at a rate of 3.9 percent and surpass its historical growth.
The global market is fragmented into multiple segments based on distribution channel, product type, and Region.
By Distribution Channel
This market segment is further segmented into store-based and non-store-based. This store-based segment is further bifurcated into hypermarkets, specialty stores, and supermarkets. Compared to the non-store-based segment, the store-based segment will have better growth in the forecast years.
By Product Type
This premium cosmetics market segment is divided into three segments: lip products, face products, and eye products. The face product segments consist of face powder, foundation, contouring products, and others. In the eye products segment, there are eye shadow, eyeliners, mascara, others. The lip products segment includes lip balm, lipsticks, others. Out of all these, the face product segment is estimated to have higher growth.
The premium cosmetics market is analyzed on various geographies like North America, Asia-Pacific, Europe, and the remaining parts of the world.
The premium cosmetics market analysis is done in different regions such as North America, Asia-Pacific, Europe, and the remaining parts of the world. North America is expected to have major market share due to the growing personal care and beauty industry which will eventually increase the product consumption in the Region. The Asia-Pacific region will have the highest CAGR due to innovations and elevating skin concerns, which encourage consumers to purchase products.
The prominent players of premium cosmetics market are:
In 2021, Sephora and Kohl's, two big companies, collaborated to announce more than 125 beauty brands.
In 2019, Coty partnered with Kylie Cosmetics to develop Kylie's into a powerhouse brand.
The premium cosmetics market forecast report sheds light on the growth and valuation of the Market in the upcoming years. It mentions the impact of Covid-19 on the premium cosmetics products industry. The report contains market dynamics, including the factors driving market growth and restraints. It also includes various segments and regional analyses. The report discusses the recent developments in the premium cosmetics product’s domain and the competitive landscape.
Frequently Asked Questions (FAQ) :
Premium cosmetics market is projected to grow at a 3.9% CAGR between 2020-2027.
North America is expected to dominate the premium cosmetics products market.
Premium cosmetics market is predicted to touch USD 16.8 billion by 2024.
Face products will lead the premium cosmetics market.
Altering fashion trends and rising skin-related concerns are the key factors driving the premium cosmetics market.