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The premium cosmetics market size is forecast to increase by USD 67 billion at a CAGR of 9.75% between 2023 and 2028. The market is experiencing significant growth due to several key trends and factors. One of the primary drivers is the increased demand for high-end skincare products, as consumers seek effective solutions for aging and other skin concerns. Another trend is the adoption of multichannel marketing strategies, allowing brands to reach consumers through various channels, both online beauty and offline. However, challenges remain, including the lack of consumer reach and premium brand penetration in major parts of developing regions. Brands must navigate these challenges to expand their customer base and maintain their competitive edge in the market.
The market is experiencing significant growth due to the shifting lifestyle and consumer preferences towards opulent living. With disposable incomes on the rise, consumers are increasingly investing in luxury products such as premium cosmetics and organic skincare. Beauty trends, driven by influencer endorsements on social media, are playing a crucial role in this growth. Skincare, anti-aging goods, and ethical attributes are some of the key factors driving the demand for premium cosmetics. The population's growing focus on grooming, including stylish haircuts, waxing, facials, makeup, haircare, fragrance, and leading brands, is also contributing to the market's expansion. E-commerce platforms have made it easier for consumers to access a wide range of cosmetic products from the comfort of their homes, increasing the product lifespan and experimental attributes' appeal. The market for premium cosmetics is expected to continue its upward trajectory, fueled by the increasing economic independence of women and the desire for high-quality, effective, and sustainable cosmetic offerings.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The skincare products segment is estimated to witness significant growth during the forecast period. The market encompasses a range of high-end makeup and personal grooming products, including lip products such as lipsticks, luxury nail polishes, perfumes, powders, and skincare items. This market caters to consumers with middle-class disposable income, particularly in urban areas, who seek effective and sustainable solutions for their skin care issues and desire stylish appearances. Luxury cosmetics and men's premium grooming products are gaining popularity, with men increasingly focusing on personalization and customization. Companies are introducing innovative products, such as Chanel's microfluidic serum, Vichy's LiftActiv Supreme, Jurlique Herbal Recovery range, ReVive Skin Tone Serum, and Laura Mercier Infusion de Rose Nourishing Oil, to cater to the expanding potential customer base.
These offerings incorporate premium ingredients like resveratrol, UV filtering technology, and anti-aging properties. However, concerns regarding product efficacy, product counterfeiting, and sustainability are influencing consumer behavior. As a result, companies are focusing on product lifespan, transparency, and technological innovation to meet the evolving demands of consumers. Online retail, specialty retailers, and store-based retailers are leveraging social media to reach a broader audience and provide a seamless shopping experience. Men's grooming trends include stylish haircuts, waxing, and skincare, with an increasing focus on addressing skin infections and maintaining overall skin health. The skincare segment is expected to grow significantly, driven by the shifting lifestyle and increasing awareness of personal grooming.
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The skincare products segment accounted for USD 29.43 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market encompasses a range of high-end makeup and personal grooming products, including lip products such as luxury lipsticks, and nail polishes. These items are often infused with premium ingredients, like resveratrol, to enhance product efficacy and product lifespan. The shifting lifestyle trends towards personalization and customization have expanded the potential customer base beyond women to include men seeking men's premium grooming solutions. Luxury cosmetics and perfumes continue to be popular choices for those with middle-class disposable income. Online retail stores and specialty retailers have emerged as key distribution channels, allowing for product comparison and convenience. However, concerns over product counterfeiting and sustainability have led some consumers to prefer store-based purchases from pharmacies and drugstores.
Makeup and skincare, including powders and UV filtering technology, remain staples in the market. Skin care issues and infections have driven demand for effective skincare solutions. Technological innovation, such as stylish haircuts ,hair care products and waxing services, have also contributed to the growth of the cosmetics skincare industry. Social media plays a significant role in marketing and influencing consumer preferences, making it an essential tool for brands.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increased demand for premium skincare products is the key driver of the market. Women's economic independence has led to an increased demand for premium cosmetics, particularly skincare products. Professional skincare product manufacturers cater to this market by offering innovative, high-end treatments and premium products. Consumers are increasingly conscious of skincare concerns such as aging spots, acne, and pigmentation, and are willing to invest in superior-quality ingredients for effective solutions. The premiumization of skincare products is driven by the right combination of advanced ingredients and technologies that positively impact the health and appearance of women's skin. With rising disposable income, consumers are no longer hesitant to spend more on premium cosmetics. Brands differentiate themselves from pharmaceutical companies by investing in research and development, focusing on innovative ingredients and technologies that cater to the unique skincare needs of women.
Multichannel marketing is the upcoming trend in the market. The market has experienced significant growth due in part to the increasing economic independence of women. Social media plays a pivotal role in raising product awareness for this sector. Consumers turn to social networking sites and blogs for self-education on high-end cosmetics. companies leverage these platforms to engage with their audience and promote their offerings. Notable social media campaigns for skin care products include Procter and Gamble's "Your Best Beautiful" for Olay, Beiersdorf's "Nivea Tan Tag and Win" for Nivea, L'Oreal's "Rock Your Style" for Garnier, and "4,100 Miles 5 Tasks" for L'Oreal Paris, as well as Shiseido's "Beauty vs. You." These campaigns effectively utilize Facebook, Twitter, Instagram, and YouTube to reach and engage consumers, driving demand for premium cosmetics.
Lack of consumer reach and premium brand penetration in major parts of developing regions is a key challenge affecting the market growth. Premium cosmetics, including face oils and other high-end beauty and personal care products, have gained significant popularity among women seeking to enhance their appearance and assert their economic independence. Strategic distribution is crucial for manufacturers in this market, as premium cosmetics are primarily sold in specialty beauty retail stores, department stores, and through e-retailers. The highest penetration of these retail formats can be observed in developed nations and major cities such as New York City, San Francisco, Chicago, and Los Angeles in the US; London, Manchester, Bristol, Liverpool, and Leeds in the UK; Shanghai and Beijing in China; Tokyo and Osaka in Japan; Curitiba, Salvador, Rio de Janeiro, and Sao Paulo in Brazil; and Berlin and Hamburg in Germany.
Effective distribution networks are essential for manufacturers to reach their target audience and maintain a strong brand image in the competitive market.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Amway Corp. - The company caters to the market, providing a range of high-end beauty products. The product portfolio includes an extensive collection of skincare, makeup, and fragrance items, all formulated with the finest ingredients and innovative technology.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth due to increasing consumer preference for authentic attributes and ethical and inventive attributes in anti-aging cosmetic products. Age spots and hyperpigmentation are key concerns for consumers, driving demand for anti-aging goods. Consumers are willing to pay a premium for cosmetics with cosmetic antioxidant capabilities that help combat signs of aging. Beauty trends such as bronzers and carotenes continue to be popular, especially among females in the workforce. Economic downturns and health crises have led consumers to seek out value for money through e-commerce platforms and duty-free stores. However, the rise of counterfeit cosmetics is a concern, with consumers looking for ways to ensure the authenticity of high-end beauty brands.
Gender is no longer a barrier in the cosmetics industry, with grooming and haircare becoming essential for both men and women. Fragrances and experiential attributes also play a crucial role in consumer decision-making. Consumer preferences for eco-friendly and sustainable practices are also influencing the market. Irritation from cosmetics is a growing concern, with consumers seeking out products that are gentle on the skin. Overall, the market is expected to continue growing, driven by consumer demand for authentic, ethical, and inventive attributes in anti-aging and other cosmetic products.
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Market Scope |
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Report Coverage |
Details |
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Page number |
183 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.75% |
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Market growth 2024-2028 |
USD 67 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
8.66 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 46% |
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Key countries |
US, China, Germany, Japan, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Amway Corp., Avon Products, Beiersdorf AG, Chanel Ltd., Coty Inc., Groupe Clarins, Henkel AG and Co. KGaA, Honasa Consumer Pvt. Ltd., Johnson and Johnson Services Inc., Kao Corp., Laboratoires Expanscience, LOreal SA, LVMH Moet Hennessy Louis Vuitton SE, Natura and Co Holding SA, NUDE Beauty Brands, Revlon Inc., Shiseido Co. Ltd., The Estee Lauder Companies Inc., The Procter and Gamble Co., and Unilever PLC |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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