July 12, 2024

The Growing Global Demand for Cosmetics is Driven by Increasing Focus on Personal Care and Appearance

The cosmetics industry has witnessed significant growth in the past decade owing to the increasing purchasing power of consumers and growing personal care industry worldwide. Cosmetic products have become an integral part of daily life and are considered necessity rather than luxury. From makeup products to skincare and haircare, the cosmetics market offers a wide range of products that helps enhance one’s appearance and confidence. The demand for organic and herbal cosmetic products is also on the rise due to rising health and environment concerns among individuals.

The global Cosmetics Market is estimated to be valued at US$ 438.5 Bn in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period 2024-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends: One of the major trends observed in the cosmetics market is the growing demand for multifunctional and customizable products. Manufacturers are focusing on developing cosmetic lines and individual products that serve multiple purposes, such as tinted moisturizers that offer hydration with a hint of coverage. Furthermore, there is an emergence of customizable cosmetic products that can be blended as per one’s specific needs and skin concerns. This allows consumers to personalize products according to their preferences. Such innovative products are gaining traction among young consumers.

Porter’s Analysis

  • Threat of new entrants: The cosmetics industry requires high investments in R&D, production facilities, brand value and distribution network making the threat of new entrants moderate.
  • Bargaining power of buyers: The bargaining power of buyers is high as there are numerous brands in the market giving consumers variety of options.
  • Bargaining power of suppliers: Major raw materials used in cosmetics such as oil, colors, fragrances etc. are commoditized giving suppliers moderate bargaining power.
  • Threat of new substitutes: Threat from substitutes is low as there aren’t viable alternatives for cosmetic products that provide beautification.
  • Competitive rivalry: The industry has dominant global players competing intensely on the basis of quality, innovation, brand image and pricing keeping competitive rivalry high.

Key Takeaways

The global cosmetics market is expected to witness high growth. The global Cosmetics Market is estimated to be valued at US$ 438.5 Bn in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period 2024-2030.

The Asia Pacific region holds the largest market share currently and is expected to grow at the fastest pace during the forecast period. China, India and Japan are driving the market growth in the region supported by growing middle class, rapid urbanization and changing lifestyles.

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’Oreal is the leading player with wide range of brands across product categories.