by The cosmetics industry primarily involves the manufacturing and promotion of beauty and skincare products. Some key cosmetic products include foundations, concealers, lipsticks, eyeliners, hair dyes, hair sprays, moisturizers, cleansers, and fragrances. Rapid urbanization, rising health and beauty consciousness among people, and increasing disposable incomes in developing countries have fueled the sale of cosmetics. Social media platforms have also influenced cosmetic consumption as people increasingly care about physical appearances.
The global cosmetics market is estimated to be valued at US$ 438.5 billion in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The demand for beauty products is expected to be a key driver boosting the cosmetics market during the forecast period. Growing awareness about the availability of diverse cosmetic products through effective promotional activities on social media and e-commerce platforms has increased their popularity globally. In addition, the continuous introduction of innovative product offerings, such as herbal and organic cosmetics, is encouraging customers to purchase cosmetics regularly. The increasing working women population also supports the demand as women spend significantly on personal care products. However, stringent regulations pertaining to ingredients used in cosmetics may restraint the market growth.
Segment Analysis
The global cosmetics market is segmented by product type into skin and sun care products, hair care products, deodorants,fragrance, makeup and color cosmetics and others. The skin and sun care products segment dominates the market and accounts for around 30% share owing to increasing awareness about skin care among consumers and growing availability of anti-aging products.The makeup and color cosmetics segment is the fastest growing segment growing at a CAGR of around 7%during the forecast period due to the rising popularity of makeup tutorials on social media platforms and increasing working women population.
PEST Analysis
- Political: The cosmetics market is regulated by government agencies to ensure product safety.Stringent regulations related to ingredients and packaging negatively impact small players.
- Economic: Rising disposable incomes and growing middle class population in developing countries drive the market growth. Fluctuations in foreign currency exchange rates impact the profitability of multinational players.
- Social: Growing influence of social media, changing beauty standards and inclination towards natural/organic products influence purchase decisions. Increasing working women population boosts demand for premium and versatile cosmetic products.
- Technological: Advancements in formulation, packaging and digital marketing tools aid product innovation and promotion. E-commerce platforms help brands reach diversified customer base and expand geographically.
Key Takeaways
The global cosmetics market is expected to witness high growth at a CAGR of 5.3% during the forecast period. The global cosmetics market is estimated to be valued at US$ 438.5 billion in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030.
The Asia Pacific region dominates the market and is expected to grow at the fastest rate during the forecast period owing to the large population, increasing disposable incomes and growing awareness about personal grooming in countries like China, India.
Key players operating in the cosmetics market are L’Oreal S.A, Unilever plc., The Procter & Gamble Company, The Estee Lauder Companies Inc. L’Oreal holds the leading market share of around 10% with its strong brand portfolio and versatile product offerings.
