Cosmetic Market Analysis and Global Forecast 2023-2033

Cosmetic Market Overview

The Cosmetic Market Size is expected to reach USD 8.65 Billion by 2033. The Cosmetic industry size accounted for USD 4.28 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 7.41% from 2023 to 2033.  The cosmetic market encompasses the production, distribution, and sale of beauty and personal care products, including skincare, makeup, haircare, fragrances, and hygiene products. It’s a dynamic and highly competitive industry driven by consumer trends, technological innovations, and cultural influences. Key players range from multinational corporations to niche brands, catering to diverse demographic groups. The market is segmented by product type, price point, and distribution channels, including online and offline retail. Sustainability, clean beauty, and inclusivity are significant trends shaping the industry, as consumers increasingly seek products that align with their values and lifestyle preferences.

Global Cosmetic Market Synopsis

COVID-19 Impact Analysis

The Cosmetic market experienced a positive impact due to the COVID-19 pandemic. The COVID-19 pandemic has led to supply chain disruptions leading to supply shortages or lower demand in the cosmetic market. The travel restrictions and social-distancing measures have resulted in a sharp drop in consumer and business spending and this pattern is to continue for some time. The end-user trend and preferences have changed due to the pandemic and have resulted in manufacturers, developers, and service providers to adopt various strategies to stabilize the company.

Global Cosmetic Market Dynamics

The major factors that have impacted the growth of Cosmetic are as follows:

Drivers:

⮚      Technological Advancements

Innovations in formulation, packaging, and delivery systems enhance product efficacy and user experience. Developments in personalized skincare, where products are tailored to individual needs, are particularly noteworthy.

Restraint:

• High R&D and Production Costs

Developing new and innovative cosmetic products requires significant investment in research and development. Additionally, the production costs for high-quality, safe, and effective products can be substantial. These costs can limit the entry of new players and the ability of existing companies to expand their product lines.

Opportunity:

⮚      High R&D and Production Costs

Opportunity: Investing in research and development to create novel, high-value products can justify higher price points and attract discerning consumers. Companies can also explore collaborations or partnerships to share R&D costs and access new technologies.

Cosmetic Market Segment Overview

By Product Type

Based on the Product Type, the market is segmented based on Skin Care, Hair Care, Nail Care, Color Cosmetics, Other. With its contribution, the skincare category held a market share above 40%. Skincare cosmetics like face creams, powders, and sunscreen lotions are growing in popularity due to their variety. When it comes to calculating market share, this is the most crucial factor.

By Gender

Based on the Gender, the market has been divided into Men, Women, Unisex. The cosmetic market, traditionally dominated by products targeted at women, is witnessing a significant shift towards gender-neutral and men-specific offerings, reflecting evolving attitudes towards beauty and grooming across diverse consumer demographics.

By Distribution channel

Based on Distribution channel, the market has been divided into Supermarkets, Specialty Stores, Pharmacies, Online Sales Channels, Others. Online sales channels are experiencing rapid growth, driven by convenience and an extensive product range, while specialty stores offer curated selections and personalized service, catering to discerning consumers’ preferences.

Global Cosmetic Market Regional Analysis

Based on region, the market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. The area of North America is anticipated to dominate the market for the usage of Cosmetic, followed by those in Asia-Pacific and Europe.

Cosmetic Asia-Pacific Market

Asia-Pacific dominates the Cosmetic market due to several factors. Asia-Pacific was the region with the largest market share during the research period, and it is expected to be the most lucrative regional market for cosmetics. It is anticipated that increased disposable income and the expanding appeal of cosmetics in developing countries will favorably impact market growth in Asia-Pacific. Sales of cosmetics are expected to rise in Asia-Pacific as a result of rising consumer spending on cosmetics. Manufacturers of cosmetics anticipate enormous opportunities in Asia-Pacific. Producing new goods is how manufacturers are trying to compete for market share in the area.

Cosmetic North American Market

The North American region has been witnessing remarkable growth in recent years. Between 2022 and 2030, the North American Cosmetics Market is anticipated to develop at the quickest CAGR. The diversification of products offered by well-known firms is a primary factor driving the growth of the North American cosmetics market. Product portfolio innovation is a significant determinant of the North American cosmetics market’s growth.

Competitive Landscape

The competitive landscape includes key players (tier 1, tier 2, and local) having a presence across the globe. Companies such as Shiseido Company Limited, The Estee Lauder Companies Inc., REVLON, INC., Procter & Gamble Company, and Unilever Plc. are some of the leading players in the global  Cosmetic Industry. These players have adopted partnership, acquisition, expansion, and new product development, among others as their key strategies.

Key Market Players:

• Shiseido Company Limited
• The Estee Lauder Companies Inc.
• REVLON, INC.
• Procter & Gamble Company
• Unilever Plc.
• L’Oreal S.A
• Kao Corporation
• Oriflame Cosmetics S.A.
• Yves Rocher
• Avon Products Inc.

Key development:

In November 2022, The Estée Lauder Companies Inc. established a partnership with Florida A&M University for the creation of a new talent and development program. The goal is to train the next generation of Black beauty professionals in travel retail. The company’s commitment to racial equity was supported by this development. As a result, the business was able to partner with Florida A&M University to develop a unique internship and scholarship program.

In November 2021, Procter & Gamble announced, that it had agreed to buy independent skin care company Farmacy Beauty. The corporation hopes to increase the number of skin care items it offers to consumers by making this acquisition. The company’s brand portfolio allowed it to target the older market with a fresh look.

Scope of the Report

Global Cosmetic Market, by Product Type

• Skin Care
• Hair Care
• Nail Care
• Color Cosmetics
• other

Global Cosmetic Market, by Gender

• Men
• Women
• Unisex

Global Cosmetic Market, by Distribution channel

• Supermarkets
• Specialty Stores
• Pharmacies
• Online Sales Channels
• Other

Global Cosmetic Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $8.65 Billion
CAGR	7.41% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Product Type, Gender, Distribution channel
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Shiseido Company Limited, The Estee Lauder Companies Inc., REVLON, INC., Procter & Gamble Company, Unilever Plc., L’Oreal S.A, Kao Corporation, Oriflame Cosmetics S.A., Yves Rocher, Avon Products Inc
Key Market Opportunities	• Growing Demand for Natural and Organic Cosmetics, Social Media Impact, and Novel Marketing Techniques
Key Market Drivers	• Rising Consumer Spending on Cosmetics and Personal Care Items, Growing Working Women Population in Developing Countries, and Development of the Asia-Pacific Organized Retail Sector

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Cosmetic Industry trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities analysis in the future
• Historical market size for the year 2021, and forecast from 2023 to 2033
• Cosmetic market share analysis for each segment
• Competitor analysis with a comprehensive insight into its product segment, financial strength, and strategies adopted.
• Identifies key strategies adopted by the key players including new product development, mergers and acquisitions, joint ventures, collaborations, and partnerships.
• To identify and understand the various factors involved in the global Cosmetic market affected by the pandemic
• To provide year-on-year growth from 2022 to 2033
• To provide short-term, long-term, and overall CAGR comparison from 2022 to 2033.
• Provide Total Addressable Market (TAM) for the Global Cosmetic Market.