The global cosmetics industry size was USD 277.67 billion in 2020.The market is projected to grow from USD 287.94 billion in 2021 to USD 415.29 billion in 2028 at a CAGR of 5.0% during the 2021-2028 period.
In recent times, demand for makeup and skincare products has surged dramatically. Both men and women use it to enhance their overall appearance. The industry offers a wide variety of products, such as hair care, face care, lip care, and others. Additionally, the increasing demand for anti-aging creams and serums and the development of advanced tools and innovative packaging is attracting consumers. Besides, the new trend of personalized products for a specific person, based on their hair type, skin tone & texture, eye color, is generating traction. The manufactures are also trying to grab consumers’ attraction by coming up with sustainable packaging and chemical-free products to cater to the demand for every individual.
List of players profiled in this research are L’Oréal S.A. (Paris, France), Unilever (London, U.K.), Procter & Gamble Co. (Ohio, US), The Estée Lauder Companies Inc. (New York, U.S.), Beiersdorf AG (Hamburg, Germany), Shiseido Co., Ltd. (Tokyo, Japan), Coty Inc. (New York, U.S.), Natura & Co. (São Paulo, Brazil), Kao Corporation (Tokyo, Japan), Johnson & Johnson Services, Inc. (New Jersey, U.S.), and more players profiled
Availability of Customized Beauty & Skincare Products to Drive Market Growth
In recent times, demand for personalized skincare, hair care is promoting manufacturers on introducing personalization and digitalization in cosmetic products to increase customers. For instance, in February 2020, L’Occitane Group announced the launch of its new range of personalized range called Duolab. The range has a countertop device that functions artificial intelligence (AI) technology. This device helps in finding out one’s skin condition to provide it a face care solution in the form of freshly blended cream. Therefore, increased awareness regarding grooming coupled with technological advancements is expected to support the cosmetics market growth in upcoming years.
Asia Pacific to Dominate the Market Backed by Increasing Urbanization and Standard of Living
Asia Pacific is expected to dominate with market size of USD 102.55 billion in 2020. Increasing urbanization & standard of living, growing number of working women, and rising middle-class population are the key contributing factors for the growth of the market in this region.
North America on the other hand is expected to witness positive growth owing to the rising disposable income and high spending power of the population in the region. Additionally, an increasing number of beauty product stores in the region is also one of the major flourishing factors for the growth of the market during the forecast period. For instance, in February 2020, one of the largest cosmetics retail store Sephora announced its expansion plans, that included the opening of around 100 new stores across the North America region by 2020.
Key Players to Focus on Partnerships and New Launches to Strengthen Market Growth
This market is consolidated by major companies striving to maintain their position by focusing on new launches, collaborations & partnerships, and acquisitions. Such strategies taken up by key players are expected to strengthen its market prospects. Below is the industry developments:
- January 2020: Natura &Co announced the acquisition of Avon Products, Inc. Avon offers beauty and personal care products. Through this acquisition, Natura aims to expand its product portfolio.
- February 2021: Revlon made a partnership with MDR Brand Management to come up with new cosmetics products and increased consumer engagement across the EMEA, APAC, and America.