Vegan Cosmetics Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, UK, Germany, France, Japan - Size and Forecast 2024-2028

Vegan Cosmetics Market Size 2024-2028

The vegan cosmetics market size is estimated to increase by USD 6.52 billion and grow at a CAGR of 6.78% between 2023 and 2028. The market is experiencing significant growth, driven by increasing consumer preference for cruelty-free and ethically produced beauty products. This trend is reflected in the strategic acquisitions and investments made by major players in the industry. However, the market also faces challenges, including the potential negative impact on humans and animals from the use of certain synthetic ingredients commonly found in vegan cosmetics. As consumers become more conscious of the ingredients in their beauty products, companies are under pressure to ensure transparency and haircare safety. Instead, they opt for plant-based alternatives such as organic oils and extracts, which offer benefits like vitamins, minerals, and antioxidants for healthier skin and body care. The market is expected to continue growing as more consumers make the switch to vegan cosmetics, driven by ethical and environmental concerns.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

By Distribution Channel

The vegan cosmetics market share growth by the offline segment will be significant during the forecast period. The offline distribution channel segment comprises speciality stores, hypermarkets, supermarkets, convenience stores, clubhouse stores, and others (department stores, salons and spas, and drugstores). 

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The offline segment showed a gradual increase in the market share of USD 10.64 billion in 2018 and continued to grow until 2022. Offline shopping formats are highly capable of building trust in the consumers regarding the product by offering product demonstrations. A delay in receiving the shipment by a consumer is a major setback for online companies. For most fast-moving consumer goods (FMCG) and cosmetics, consumers prefer offline shopping formats. Major retailers are setting up new stores in the local and regional markets. Colors and aesthetics, being the major attributes of cosmetics, are difficult to demonstrate through online sales channels. Cosmetics companies prefer opening brand outlets in major urban areas and offering free samples to potential customers. Consumers tend to purchase new cosmetics at retail stores. Thereafter, if the products are found to be highly satisfactory, they are bought online to avail themselves of promotional discounts. These factors have led to the dominance of the offline sales channel segment in the global vegan cosmetics market.  Hence, such factors are fuelling the growth of this segment during the forecast period.

Key Regions

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Europe is estimated to contribute 36% 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. The UK, Germany, France, and Russia are the leading cosmetics markets in Europe. The UK leads in terms of cruelty-free cosmetics sales in the European market. Cruelty-free cosmetics product launches have doubled in the past year, whereas the vegan population has increased by four times in the country over the last four years. Along with the preference for cruelty-free, significantly higher per capita expenditure on cosmetics (compared to the European average) has driven the demand for vegan cosmetics in the country.

One of the key requirements for obtaining vegan certification is that cosmetics should not be tested on animals. Europe bans the testing of cosmetics on animals. Thus, various cruelty-free cosmetics have been launched in the region. These cosmetics that comply with regulations and the presence of a large vegan population are likely to rapidly drive the regional cruelty-free cosmetics market during the forecast period. People for the Ethical Treatment of Animals (PETA) and the European Vegetarian Union (EVU) are two of the prominent organizations operating in Europe that award cruelty-free or vegan certificates to cosmetics and other consumer products. All these factors will drive the regional market during the forecast period.

Market Dynamics and Customer Landscape

The Market is experiencing rapid growth, driven by increasing consumer awareness and demand for cruelty-free products. As people become more conscious of animal welfare, they seek alternatives to traditional cosmetics containing animal-derived ingredients like milk, fat, and beeswax. Instead, they opt for plant-based alternatives such as organic oils and extracts, which offer benefits like vitamins, minerals, and antioxidants for healthier skin and body care. This shift is evident in the rise of vegan cosmetic brands for various skincare, makeup, and nutrition needs. With celebrities like Harry Styles endorsing veganism and consumers increasingly favoring products free from synthetic and animal-tested ingredients, the market is expanding globally, with notable growth in regions like South Korea and through e-commerce channels. 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.

Key Market Driver

The market is experiencing significant growth, driven by the promotional and marketing strategies of cruelty-free cosmetics companies. With an increase in consumer demand for ethically produced products, the cosmetics industry has witnessed significant expansion, particularly in segments like cosmetic skincare, haircare, and makeup. Notably, skincare products lead the market, reflecting consumers' increasing focus on skincare routines and well-being.

Moreover, the rising adoption of vegan cosmetics is driven by a paradigm shift towards high-quality, cruelty-free alternatives, fueled by lifestyle changes and increased disposable income. Furthermore, the burgeoning men's grooming category is amplifying growth opportunities, with male consumers embracing beauty and wellness products. As consumer behavior evolves towards sustainability and ethical consumption, the demand for vegan cosmetics is expected to soar, driving the global market's growth trajectory in the coming years. Hence, such factors are driving the market during the forecast period.

Significant Market Trends

The growth of the e-commerce market is a major trend in the market. Globalization and liberalization policies have simplified cross-border trade and popularized business-to-business (B2B) and business-to-customer (B2C) businesses. Globally, advances in technology and increasing internet penetration have increased online purchases and sales of goods and services. A gradual shift toward online shopping has amplified the growth potential of the e-commerce market. Advances in information and communication technology, artificial intelligence, and other modern technologies have expanded the customer base and offered growth prospects to key market companies. 

E-commerce is a platform for cosmetics companies operating at small or moderate scales to promote their products. Social media, the increasing internet penetration, and the growing adoption of smartphones allow customers to access a wide range of cosmetics and help them choose the most suitable products. During the forecast period, the online market for cruelty-free cosmetics will grow, owing to the increasing preference for online shopping, technological advances, and awareness about products. Steps were taken by key companies to collaborate with major online retailers that will help companies increase their market share. Such factors are expected to drive the growth of the global cruelty-free cosmetics market during the forecast period.

Major Market  Challenge

Stringent guidelines for obtaining vegan or cruelty-free certification is a major challenge impeding the market. Manufacturers of cruelty-free cosmetics primarily target the urban population, as most urban consumers are aware of cruelty-free products. Consumers trust vegan and cruelty-free certifications more than advertisements. Cruelty-free certification ensures that the product is not tested on animals. The Leaping Bunny certification is awarded by Cruelty-Free International, a global organization. The cruelty-free logo is administered by the Vegan Awareness Foundation. Cosmetics companies must change the existing production layout and follow the necessary guidelines to obtain vegan certification.

Some of the guidelines for obtaining the 'Certified Vegan' logo are no use of animal products, no animal testing, no use of animal genetically modified organisms (GMOs), and details of the ingredient suppliers' verification for no animal product usage. Thus, earning a vegan logo requires capital and time, and companies must efficiently market. Therefore, the existing cosmetics brands are apprehensive about adding cruelty-free to their product portfolio, which can become a major challenge for the growth of the global cruelty-free cosmetics market during the market forecast period.

Key Market Customer Landscape

The market 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 growth strategies.

Market Customer Landscape

Who are the Major Market Companies?

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 cruelty-free cosmetics market.

LOreal SA - The company operates four major global brands L'Oreal Paris, Garnier, Maybelline New York, and NYX Professional Makeup, and the deployment of its specialized and regional brands like Stylenanda, Essie, Dark, and Lovely. The company's key offerings include cruelty-free cosmetics.

The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Coty Inc
• Debenhams Plc
• e.l.f. Beauty Inc.
• Kose Corp.
• Lush Retail Ltd.
• MAV Beauty Brands Inc.
• Milk Makeup LLC
• MO MI by Modern Minerals Inc.
• Natura International Inc.
• New Earth Beauty LLC
• New Milani Group LLC
• Pacifica Beauty LLC
• PHB Ethical Beauty Ltd.
• PUIG S.L.
• The Estee Lauder Co Inc

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.

Segment Overview

The market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• Distribution Channel Outlook
  • Offline
  • Online

• Type Outlook
  • Skin care
  • Hair care
  • Cosmetics
  • Others

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The demand for organic oil and plant-based ingredients is rising, particularly in vegan skincare and vegan makeup. Products like lip balms and lipsticks are increasingly formulated without artificial ingredients and harmful chemicals such as parabens, phthalates, and sulfates. Beauty Without Cruelty and animal cruelty-free products are at the forefront of this shift, with brands leading the way in advocating for a cruelty-free lifestyle. Moreover, the market is expanding rapidly, driven by consumer consciousness and ethical implications surrounding animal cruelty. Products like organic oils, cushion compacts, and sunscreen are gaining popularity for their animal cruelty-free status and use of renewable, eco-friendly ingredients such as beeswax and honey. Major companies are embracing the shift towards vegan cosmetics and face care, avoiding animal by-products such as lanolin and carmine.

Furthermore, the natural and organic cosmetics emphasize the importance of animal-free safety assessments and regulatory acceptance. Animal-tested cosmetics and counterfeit products are being challenged by stricter regulations and a growing awareness of false and misleading labeling. Companies are increasingly aligning with the three pillars of education and training, environmental impact, and animal experimentation bans. Influencers and bloggers in mainstream culture play a significant role in promoting vegan lifestyles and beauty without cruelty, while the shift away from synthetic fragrances reflects a broader move towards natural and organic options.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2028
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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