The global cosmetics market encompasses a wide range of beauty products that includes skin and hair care products, fragrances, color cosmetics, and personal care items. Cosmetic products provide advantages such as improving aesthetics, hiding imperfections, protecting skin from environmental damages, nourishing hair and keeping them shiny. With growing awareness about personal hygiene and increasing disposable income, the demand for cosmetics is surging across the world.
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 growing trend of rising beauty consciousness among consumers, especially millennials across the globe is a major factor driving the cosmetics market. With rising western influence through social media and increasing awareness through beauty tutorials and blogs, people are more focused on self-care, grooming and enhancing physical appearance. Consumers are willing to spend more on premium and organic cosmetic products with natural and herbal ingredients to look good and feel confident. The trend towards adopting environment and animal-friendly products is also propelling many brands to increase their vegan and cruelty-free product ranges. Consumers are showing preference for products that not only improve aesthetics but also take care of their well-being with anti-aging benefits. The demand for customized products as per skin type and concerns through subscription models is also gaining traction in recent years.
SWOT Analysis
- Strength: The cosmetics market has a strong presence of established market players with strong brand visibility. Innovation in product development opens new opportunities.
- Weakness: Changing consumer preferences and growing demand for natural and organic products pose challenges. High research and development cost impacts smaller players.
- Opportunity: Emerging markets offer high growth potential. Increasing spending power of millennial consumers boosts demand. Digital and online marketing expands reach.
- Threats: Stringent regulations around ingredients and packaging increase compliance cost. Changing consumer loyalty and intense competition reduces margins.
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.
Regional analysis Europe dominates the global market currently due to high product awareness and dense population. Asia Pacific is expected to witness the fastest growth over the coming years led by China, India and other developing countries. Growing middle class, increasing disposable incomes and westernization drive the cosmetics market growth in the region.
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. Innovation, marketing investments and portfolio expansion remain key strategies among leading players to strengthen presence globally especially in high growth markets.
