In recent research, Demand for cosmetics market 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 Key Players Profiled in the Report
- 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.)
Covid 19 Impact
The cosmetics market industry was negatively impacted by the COVID-19 pandemic. The manufacturers witnessed a decline in their sales, and the consumers’ purchasing patterns also witnessed a change. For instance, Estee Lauder’s report published in April 2020 stated that most of the retail stores had to be closed since mid-March 2020 across its operating regions, including The Americas and Europe, and the Middle East & Africa. Moreover, the company production unit in Whitman, the U.K., started manufacturing hand sanitizers under the company’s brands Jo Malone London.
According to L’Oréal’s 2020-annual-results published in February 2021, the company’s sales increased by 62% for e-commerce across all divisions and all regions, accounting for about 26.6% of the total company’s sales for 2020.
The global cosmetics market size is expected to gain momentum by reaching USD 415.29 billion by 2028 from USD 287.94 billion in 2021 while exhibiting a CAGR of 5.0% between” 2021 to 2028. In its report titled, “Cosmetics Market, 2021-2028,” Fortune Business Insights mentions that the market stood at USD 277.67 billion in 2020.
Highlight of Report
The market report provides a detailed analysis of several factors, such as the key drivers and restraints that will impact growth. Additionally, the report provides insights into the regional analysis that covers different regions, contributing to the growth of the market. It includes the competitive landscape that involves the leading companies and the adoption of strategies. To introduce new products, announce partnerships, and collaborate to contribute to the market growth.
Fashion goods are intended for everyday consumption. They cover several product portfolios, such as non-food and food categories in order to fulfil the unmet needs. The industry is flourishing rapidly owing to the rising demand for fast-moving consumer goods(FMCGs), such as cosmetics, over-the-counter drugs, processed food and beverages, footwear, household cleaning products, and pet-care products. Consumer durable goods, on the other hand, require few repeat purchases as they have longer life spans. Such goods include leisure equipment, kitchen appliances, and electronic goods. For progress and survival, the market is dependent on advertising through various media, as well as retail outlets, namely, online platforms, malls, discount stores, and franchise stores.
Beauty and Skincare Products to Drive
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.
Asian Pacific to dominate the market
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.
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 Partnership and New Launches
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.