The global cosmetics market comprises of products like skincare, haircare, color cosmetics, and fragrances which are used to enhance one’s appearance. These products provide benefits like skin rejuvenation, protection from pollution and nourishment. There has been rising demand for natural and organic skincare products which are formulated using plant and herbal extracts. They are considered safer with fewer side effects.
The global cosmetics Market is estimated to be valued at US$ 438.5 Bn 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 key trends:
The demand for natural skincare products is on rise owing to increasing consumer awareness about harmful effects of chemical ingredients present in conventional cosmetic products. Many consumers prefer products containing natural extracts, vitamins and antioxidants believing them to have better skin compatibility. Leading brands are launching natural ranges focusing on plant based formulation. For example, L’Oreal Paris launched ‘Age Perfect Cosmeceutical’ range containing natural active ingredients to cater to this growing segment. The trend reflects shifting preference towards cruelty free, sustainable products and is expected to gain further traction over the forecast period.
SWOT Analysis
- Strength: The cosmetics market is driven by strong consumer demand. Increasing focus on personal grooming and changing fashion trends boost the market growth.
- Weakness: Changing consumer preferences pose challenges to market players. Strict regulations and policies associated with product quality and safety also act as weaknesses.
- Opportunity: Emerging markets offer new growth prospects to manufacturers. Increasing spending power in developing regions opens new geographic opportunities.
- Threats: Threat of counterfeit products eating into genuine brand shares. Intense competition among existing players can also threaten individual company shares.
Key Takeaways
The global cosmetics market is expected to witness high growth over the forecast period of 2023 to 2030. The global cosmetics Market is estimated to be valued at US$ 438.5 Bn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030.
North America dominates the cosmetics market currently due to high per capital income and spending on personal care. Asia Pacific is expected to witness the fastest growth due to increasing spending power, rising beauty consciousness, and expanding retail landscape in countries like China, Japan and India.
Key players
Key players operating in the cosmetics market are L’Oreal S.A, Unilever plc., The Procter & Gamble Company, The Estee Lauder Companies Inc., Shiseido Company, Limited, LVMH Moët Hennessy, Kao Corporation., Oriflame Holding AG, Avon Products Inc., Revlon, Inc. These companies are focusing on new product launches and expansion in emerging regions to leverage growth opportunities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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