July 21, 2024

The Global Cosmetics Market is driven by rising demand for anti-aging products

Cosmetics are products used to enhance one’s appearance and include makeup, skin care, fragrances, personal hygiene, and hair care items. Cosmetics provide several functional and aesthetic benefits such as moisturizing and protecting the skin, hiding blemishes, enhancing natural features, and imparting a pleasant fragrance. Rising consciousness about physical appearance among both men and women has boosted the demand for products focused on anti-aging, skin lightening, and UV protection. Growing concerns over premature skin aging caused by pollution and hectic lifestyle has further accelerated the demand. The global cosmetics market accounts for a large portion of the beauty industry.

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:
One of the key trends in the cosmetics market is the growing demand for natural and organic cosmetic products. Consumers are increasingly looking for natural ingredients that are less likely to cause side effects such as allergies and irritations. Brands are responding to this demand by introducing more natural and organic ranges which are free from harsh chemicals, preservatives, dyes, and other synthetic ingredients.
Another trend gaining traction is multi-functional cosmetic products that provide 2-3 benefits in one product. This saves consumers time and money.Example include foundations with skin care benefits, tinted moisturizers with SPF etc. Rapid urbanization and increasing disposable incomes in developing regions presents lucrative growth opportunities for international brands.

Porter’s Analysis

  • Threat of new entrants: The cosmetics industry has high entry barriers due to high R&D costs, requirement of brand building, and competition from existing major players.
  • Bargaining power of buyers: Buyers have moderate bargaining power due to availability of numerous brands and new players regularly entering the market offering differentiated products.
  • Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of substitutes and dependence of suppliers on major players for bulk orders.
  • Threat of new substitutes: Potential threat exists from new emerging brands offering natural and organic substitutes to synthetic cosmetics and rising demand for herbal cosmetic products.
  • Competitive rivalry: The industry features strong competitive rivalry among major global players competing based on brand, marketing, innovation and geographic expansion.

Key Takeaways

The global cosmetics market is expected to witness high growth over the forecast period driven by rising disposable incomes, growing middle class population, and increasing spending on personal grooming products across regions.

Regional analysis: Asia Pacific holds the largest share currently and is expected to maintain its dominance over the forecast period fueled by large population, changing lifestyles, and rapid urbanization in major countries like China and India. North America and Western Europe are also major markets due to high per capita cosmetic expenditures.

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. L’Oréal S.A is the largest player globally with strong brand portfolio and established distribution channels across regions.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it