Global Industry Analysis and Forecast 2023-2030
Market Value (2022)
USD 296.83 Billion
Forecasted Value (2030)
USD 474.00 Billion
CAGR (2023 - 2030)
Fastest Growing Region (2023 - 2030)
Skin Care, Hair Care, Makeup, Fragrances, Others.
By Distribution Channel
Department Stores, Supermarkets, Brand Stores, Online Retailers, Others.
The global Cosmetics Market was valued at USD 296.83 billion in 2022 and is projected to reach USD 474.00 billion by 2030, growing at a CAGR of 6.03% from 2023 to 2030.
The cosmetics market has gained immense popularity among the young generation, especially women and girls, due to increased beauty consciousness and the abundance of skin care, hair care, and beauty products available. Some widely used cosmetic products are lipsticks, perfumes, lotions, eye shadows, and nail polishes. Recently, growing interest in natural and organic ingredients has increased user awareness and demand for skin care products, such as face masks, body scrubs, toners, and serums, as they emphasize a shift in the current skincare routine. Beauty companies and manufacturers are constantly introducing the personalization and digitization of cosmetic products due to the growing demand for personal skin care.
Moreover, the growing focus on sustainability and eco-friendly practices has influenced the growth trajectory of the skin care products market. Consumers are increasingly seeking products that are not only effective but also environmentally conscious. This has led to the development of eco-friendly packaging materials and the use of natural and organic ingredients in skincare formulations.
Analyst’s Review on Cosmetics Market
Innovations in the cosmetics industry have transformed beauty and personal care products, right from advancements in ingredients and formulations to new technologies and packaging. These innovations have significantly aided market growth. As consumer awareness and demand for organic and sustainable alternatives grows, cosmetic companies are introducing cleaner and more environmentally friendly formulations. These products are free of harmful chemicals, cruelty-free, and often contain organic and plant-based ingredients. The advancements in the realm of eco-friendly cosmetics have not only catered to the needs of environmentally conscious consumers but also prompted the beauty industry to embrace more sustainable approaches. Skin devices such as facial cleansing brushes and LED light therapy masks have become increasingly popular as they offer professional treatments at home. In addition, innovative packaging designs such as airless pumps and droppers help maintain product freshness and improve usability, bringing significant changes and improvements in product composition, technological integration, and packaging.
Cosmetics refer to products that improve beauty and personal hygiene. They include a wide range of products, including skincare, makeup, hair care, fragrances, and more. These products are used by individuals of all genders and ages to enhance their appearance and maintain good hygiene. Skincare products such as cleansers, moisturizers, and anti-aging creams help in nourishing and protecting the skin. Makeup products such as foundation, lipstick, and eyeshadow are used to enhance facial features and create different looks. Hair care products such as shampoos, conditioners, and styling products help in maintaining healthy and stylish hair. Fragrances, on the other hand, are used to add a pleasant scent to the body.
Overall, the cosmetics market plays a significant role in boosting people's confidence and allowing them to express their individuality. In addition to skincare, makeup, hair care, and fragrances, the cosmetics market offers a wide range of other products that cater to different beauty needs. For instance, there are specialized products for nail care, including nail polishes, nail strengtheners, and nail treatments.
The use of skin and personal care items has witnessed a substantial rise in recent times, leading to an increased demand for cosmetic products. Several factors attributed to this trend, include changes in beauty routines, consumer preferences, and a growing awareness of the advantages of skincare. People are now more conscious of the importance of maintaining healthy skin and addressing specific concerns such as aging, acne, and hyperpigmentation. As a result, they are searching for various skincare products, such as cleansers, moisturizers, serums, and masks, which cater to their specific needs. Moreover, consumer preferences have shifted toward placing greater emphasis on natural and organic ingredients in skincare and personal care products. This has resulted in an upsurge in the demand for cosmetics that are free from harmful chemicals, parabens, and sulfates. Consumers are becoming increasingly mindful of the potential consequences of synthetic ingredients and are opting for products that are gentle on both their skin and the environment.
The cosmetics industry is increasingly focusing on sustainability and environmental impact. Meeting sustainability goals and reducing the environmental footprint can be challenging, as it requires changes in packaging, ingredient sourcing, and manufacturing processes. Addressing these obstacles is essential for ensuring the long-term sustainability of the sector and fulfilling the needs of consumers who are mindful of their choices. One example of a cosmetics company addressing sustainability is Lush, which has implemented a "naked packaging" initiative where they sell products without any packaging to reduce waste. They additionally source their ingredients ethically and support various environmental causes, such as fighting against animal testing. By implementing sustainable practices, businesses can not only reduce their environmental impact but also gain a competitive edge in the cosmetics market.
The global cosmetics market is segmented based on product, distribution channel, end-user, and geography.
Based on product, the cosmetics market is segmented into skincare, hair care, makeup, fragrances, and others. The skin care segment accounted for the largest market share in 2022 owing to the wide availability of skin care cosmetics such as facial creams, powders, and various sun protection products in different varieties. The growing popularity of personal skin care products in advanced economies such as the United States, the United Kingdom, and other countries has contributed to the growth of the segment. The availability of skin care products containing active ingredients with healing and nourishing properties has further supported the growth of the segment.
Based on distribution channels, the cosmetics market is classified into department stores, supermarkets, brand stores, online, and others. The demand for cosmetics through online distribution channels is mainly driven by the digital and technological developments that have enabled manufacturers to reach a larger customer base. Online platforms have witnessed high demand in recent years as businesses seek to boost profits and sales. These online stores employ various marketing strategies such as discount coupons, seasonal sales, celebrity offers, and product customization, to further enhance their appeal. The ease of buying products online and having the product delivered to the customers' doorsteps has made shopping easier, thus driving the demand for online platforms.
Based on end-user, the cosmetics market is divided into men and women. The women segment registered a significant revenue share in 2022 due to the growing trend of women investing in beauty products. Women are more inclined toward protecting their skin from harmful UV rays, pollution, and other environmental stressors. This has increased the demand for cosmetic products that offer sun protection, anti-aging properties, and other skincare benefits among women.
Based on region, the global cosmetics market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.
North America is dominating the global market owing to the growing awareness of beauty and skin, and the expansion of the e-commerce sector. Population growth and improved lifestyles are the main factors driving the development of the cosmetics market in the region. The increased awareness of personal care among men has spurred the sales of cosmetic products. Additionally, unisex cosmetic products, such as deodorants, have become increasingly popular in the industry due to their benefits. Consequently, this trend is expected to contribute to the continued growth of the cosmetics market. In addition, the proliferation of social media and beauty influencers has significantly increased the demand for cosmetics. This exposure to many cosmetic products has increased consumers' curiosity and willingness to try different brands and products, propelling market growth across the region.
The cosmetics market is expected to grow rapidly in the Asia Pacific region. South Korea, Japan, Singapore, and many other countries boast top brands and product lines, providing manufacturers with multiple opportunities to showcase their products and services through different marketing strategies. Increasing awareness of the benefits of skincare has supported the growing use of personal care products. Changing beauty routines, consumer preferences, social media influence, and increasing awareness of skincare benefits have further contributed to this trend. As consumers prioritize their skin needs and look for products that meet their preferences and values, the cosmetics industry continues to respond by offering innovative and versatile options to meet growing demand across the region. These factors are expected to boost the cosmetics market in Asia Pacific over the forecast period.
The global cosmetics market study will provide valuable insights emphasizing the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion and investments are the major strategic initiatives adopted by companies in this sector. Industry players are investing extensively in R&D activities, building new manufacturing facilities, and supply chain optimization. The major players in the market are:
- Kao Corporation
- Shiseido Co.,Ltd.
- Procter & Gamble
- The Estée Lauder Companies
- Unilever PLC
- L'Oréal GROUPE
- Beiersdorf AG
- February 2023 (Agreement): Shiseido introduced Nars Cosmetics to the Indian market through a well-planned distribution agreement with Global SS Beauty Brands. The entry of Nars into India is a key element of Shiseido's overall strategy to enhance its brand and drive expansion in the Asia Pacific area.
- February 2023 (Partnership): Glossier collaborated with Sephora, bringing its products to Sephora stores in both the U.S. and Canada, as well as making them available online through Sephora.com and the Sephora app. This partnership holds particular significance for Glossier, as it marked its foray into retail and demonstrated the company's commitment to expanding its presence in the beauty industry.
The global Cosmetics Market is segmented as:
- Skin Care
- Hair Care
By Distribution Channel
- Department Stores
- Brand Stores
- Online Retailers
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- North Africa
- South Africa
- Rest of Middle East & Africa
- Latin America
- Rest of Latin America.