Cosmetics Market Size Estimated to Reach USD 661.12 Bn by 2032
Precedence Research
11 min read
Precedence Research
The global cosmetics market size is estimated to reach around USD 661.12 billion by 2032, increasing from USD 398.03 billion in 2023, According to Precedence Research.
Ottawa, Dec. 08, 2023 (GLOBE NEWSWIRE) -- The global cosmetics market size was valued at USD 378 billion in 2022 and the sector is growing at a remarkable CAGR of 5.8% between 2023 and 2032. The rising utilization of social media platforms for the promotion of cosmetic products is observed to act as a growth factor for the market.
The U.S. cosmetics market size surpassed USD 87.70 billion in 2022 and is projected to hit around USD 150.50 billion by 2032, expanding at a CAGR of 5.60% from 2023 to 2032.
The Asia-Pacific cosmetic market was valued at USD 164 billion in 2022 is expanding growth at a CAGR of 6% in the forecast period.
The cosmetics market across the globe offers products designed to enhance or alter the appearance of the face, body, and hair. Cosmetics encompass a wide range of beauty and personal care products that individuals use for grooming, hygiene, and aesthetic purposes. The market is diverse, with various segments catering to different aspects of personal care and beauty.
Advancements in cosmetic technology, sustainability practices, and inclusivity efforts are key factors shaping the dynamics of the cosmetics market. The market is also flourishing with the integration of multiple social media platforms that promote sustainable, organic and green cosmetics.
Organic Harvest has introduced a new makeup collection in November 2023 that features cruelty-free and toxin-free formulations, joining the color cosmetics market.
The cosmetics market is further driven by consumer trends, cultural influences, fashion, and evolving beauty standards. Major multinational corporations and smaller niche brands contribute to the market's competitiveness. Retail channels for cosmetics include department stores, specialty beauty retailers, drugstores, online platforms, and direct-to-consumer models.
North America holds the dominating position in the cosmetics market. The cosmetics industry in North America is characterized by continuous innovation. Companies invest in research and development to introduce new formulations, ingredients, and technologies in skincare, makeup, and haircare products. The rise of e-commerce platforms and digital marketing has significantly impacted the cosmetics market in North America. Consumers increasingly prefer online shopping for beauty products, and brands leverage digital channels for marketing and engagement.
The cosmetics market in North America has embraced inclusivity and diversity. Brands that offer a diverse range of shades and products catering to various skin tones and types have gained popularity.
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Asia Pacific is observed to witness the fastest rate of growth during the predicted period. Urbanization and changing lifestyles in Asia Pacific have resulted in an increased focus on personal grooming and appearance. Consumers are more inclined to invest in a variety of cosmetics to enhance their beauty routines. The expansion of the middle-class population in many APAC countries has created a larger consumer base for cosmetics. The middle class tends to be more aspirational, seeking a higher quality of life, including beauty and personal care products.
Europe is another lucrative marketplace for the cosmetics market. The rising awareness about organic cosmetic products in the European countries acts as a major growth factor for the market. Approximately 36% of Gen Z and Millennial females in Western Europe are interested in testing organic products/ items, according to YPulse.
Consumers in Europe are becoming increasingly conscious of skincare and personal care, leading to a rise in demand for cosmetics products. Awareness regarding the benefits of skincare routines, anti-aging products, and natural or organic formulations has fueled market growth. The beauty and wellness industry has seen a surge in popularity, with consumers adopting a holistic approach to self-care. This trend has led to increased demand for skincare products, beauty supplements, and products promoting overall well-being.
Market Dynamics
Driver:
Demand for vegan products
The rise of ethical consumerism has led to a growing demand for products aligned with ethical and moral values. Vegan cosmetics, which do not use animal-derived ingredients and are cruelty-free, resonate with consumers who prioritize ethical considerations in their purchasing decisions. Vegan cosmetics are often associated with a commitment to environmental sustainability. The absence of animal-derived ingredients in these products can contribute to a perception of a reduced environmental impact, attracting environmentally conscious consumers.
Gen Z customers are a significant and rising sector in the vegan beauty industry. Research released in 2022 showed that 43% of Gen Z never consume beauty items that have been tested on animals, and data from The Vegan Society indicated that veganism is popular among students in the UK4. 4.1% of students said they are already vegan, more than double that of the general population.
Vegan cosmetics cater to a diverse and inclusive consumer base. The appeal of vegan products extends beyond specific demographic groups, as consumers from various backgrounds, beliefs, and lifestyles embrace these products. The demand for vegan cosmetics has driven innovation in formulations. Brands are investing in research and development to create high-quality, effective vegan products, dispelling the notion that vegan alternatives compromise on performance.
Restraint:
Highly competitive market
The cosmetics market is highly competitive, and it is difficult for a new product to gain sales. Consumers look for value, convenience, and quality in products when purchasing cosmetics. There are also many regulations that govern how companies can sell their products and the ingredients that are used in them.
The market may become saturated with numerous brands offering similar products, making it challenging for new entrants or smaller brands to differentiate themselves. Established brands may find it difficult to stand out and maintain a unique value proposition. To gain visibility and market share, companies may need to invest significantly in marketing and advertising. This can lead to escalating marketing costs, impacting the overall profitability of companies, especially smaller ones with limited budgets.
Opportunity:
Emergence of green cosmetics
Consumers are becoming increasingly aware of the environmental impact of beauty products. The rise of green cosmetics aligns with a conscious consumer base seeking sustainable and environmentally friendly options. The beauty industry is witnessing a shift toward sustainability.
The emergence of green cosmetics allows brands to adopt eco-friendly practices in ingredient sourcing, manufacturing, and packaging, meeting the demand for sustainable beauty options. Green cosmetics provide an opportunity for brands to showcase their commitment to ethical and transparent business practices. Brands that prioritize cruelty-free testing, fair trade sourcing, and environmentally friendly packaging can build trust and loyalty among consumers.
Report Highlights
Category Insights
The category segment may be further divided into skin care, hair care, fragrances, personal care, and so on. The skin and sun care products segment led the global cosmetics market in 2022. The wide popularity of skin care products holds the supplementary factor for the segment’s dominance. There is an increasing awareness and emphasis on overall skin health, driven by factors such as wellness trends, anti-aging concerns, and the desire for a radiant complexion.
Skincare products cater to these needs, offering solutions for various skin concerns. Skincare products offer both preventive and corrective solutions. Consumers use products not only to address existing skin issues but also to prevent future concerns, contributing to a year-round demand for skincare items. Continuous innovation in skincare formulations and the integration of advanced ingredients attract consumers seeking effective solutions. Ingredients like hyaluronic acid, retinol, antioxidants, and botanical extracts are popular for their perceived skincare benefits.
On the other hand, the hair care products segment is observed to grow at the fastest pace during the predicted timeframe. Hair care products encompass a wide range, including shampoos, conditioners, hair styling products, hair colors, and treatments. The diversity of products within the segment caters to various consumer needs, preferences, and hair types, contributing to its dominance.
Gender Insights
The cosmetics market is divided into three categories based on gender: men, women, and unisex. In terms of market share, the women's segment held the dominating share of the market in 2022; the segment will sustain dominance over the course of period. Women often use a variety of cosmetic products for different purposes, such as skincare, makeup, and haircare. The versatility and multifunctionality of cosmetics contribute to higher usage among women.
Distribution Insights
In 2022, the hypermarket/supermarkets segment is held the dominating position of the cosmetics market; the segment will continue to grow significantly throughout the forecast period. Hypermarkets and supermarkets offer a one-stop shopping experience, making it convenient for consumers to purchase cosmetics along with their regular groceries. The accessibility of these stores contributes to impulse purchases and increased sales of beauty and personal care products.
On the other hand, the online sales channels segment holds the potential to grow at a robust pace. Rising popularity of online shopping platforms, expansion of e-commerce services in developing countries and ease of shopping on online platforms create a significant potential for the segment to grow.
Related Reports:
Anti-Aging Cosmetics Market: The global anti-aging cosmetics market size was estimated at USD 50.48 billion in 2022 and it is expected to hit around USD 90.32 billion by 2032, poised to grow at a CAGR of 5.99% from 2023 to 2032.
Probiotic Cosmetics Market: The global probiotic cosmetics market size was estimated at USD 311.74 million in 2022 and is projected to be worth around USD 706.79 million by 2032, poised to grow at a CAGR of 8.53% from 2023 to 2032.
Functional Cosmetics Market: The global functional cosmetics market size was estimated at USD 3.5 billion in 2022 and is expected to hit around USD 6.06 billion by 2032, expanding at a CAGR of 5.7% during the forecast period from 2023 to 2032.
Premium Cosmetics Market: The global premium cosmetics market size was estimated at USD 116.3 billion in 2022 and is projected to hit around USD 197.76 billion by 2032 with a registered CAGR of 6.1% from 2023 to 2032.
Herbal Beauty Products Market: The global herbal beauty products market size was estimated at US$ 85 billion in 2022 and is expected to hit US$ 137.79 billion by 2032, foreseen to register a growth at a CAGR of 5% during the forecast period 2023 to 2032.
Recent Developments:
In December 2023, with the creation of a new line named "Zara Hair," in association with hairstylist Guido Palau, Zara is making a foray into the hair product industry. A gold gel, glitter spray, bobby pin, and comb are among the hair accessories and goods in the series that retail for US$49.90. According to Palau, Zara is teasing a wider range of hair products for the holidays with this initial release, which is part of their plans for next year.
In November 2023, the world-renowned specialised materials business Eastman and the top provider of cosmetic packaging solutions, ICONS|ICS, are happy to announce the introduction of a cutting-edge monomaterial cosmetic compact that redefines environmentally responsible packaging. The companies collaborated on a co-innovation project that produced the compact, which demonstrates their dedication to eco-friendly packaging options. The compact was nominated for a LUXE PACK in green Awards in the eco-conceived packaging category and was recently showcased by Eastman at LUXE PACK Monaco.
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