Cosmetics enhance the overall appearance of an individual and thus have become one of the essential products in everyday life. The cosmetics industry offers a huge variety of products, including lip care, hair care, and face care, which are essential for end-users to fulfill their particular requirements. The manufacturers of cosmetic products are increasingly focusing on developing and producing a diverse product portfolio to cater to particular requirements of every individual.
Impact of COVID-19 on the Industry
The global cosmetics market is anticipated to observe accelerating growth during the COVID-19 pandemic. This is majorly owing to the increasing manufacturing of hand sanitizers and cleaning agents by prominent players of the industry during the pandemic. In addition, the leading companies operating in the global market are entering into strategic partnerships and collaborations to sustain in the COVID-19 crisis. For instance, in June 2020, Coty Inc. and Kim Kardashian West proclaimed to have entered into a strategic relationship to further develop Kardashian West’s business globally. The aim of Kardashian West and Coty together is to enter into new beauty categories and globally expand the business beyond her existing product lines.
Key Developments in the Industry
The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, mergers & acquisitions, collaborations, and launches to acquire a robust position in the overall market, which is consequently helping the cosmetics market to grow exponentially.
For instance, in August 2018, L’Oréal entered into a strategic agreement to acquire Logocos Naturkosmetik AG, a German beauty company pioneered in natural cosmetics with the brand Sante and other brands Logona. All the brands of the company are vegan, and bio certified with a wide range of products using natural ingredients and their own plant extracts derived from organic farming.
In December 2018, Avon Products, Inc., a multi-level marketing company in household, beauty, and personal care categories, announced the launch of new K-beauty collection products with an extensive range of new & innovative products from Korea.
In September 2020, Nordic Cosmetics GmbH, a subsidiary of the European CBD product manufacturer, Nordic Oil, announced the launch of Nordic Cosmetics’ flagship e-commerce store on Tmall. Tmall is the business-to-consumer online retail platform which is operated by Alibaba Group. It is the first CBD flagship store that is approved on the invite-only Tmall platform.
Forecast Analysis of Global Cosmetics Market
The global cosmetics market is anticipated to observe a noteworthy growth over the forecast period, due to incorporation of nanotechnology into development of cosmetics to produce effective and most advanced beauty care products. Conversely, the availability of advanced beauty treatments to rejuvenate skin, prevent aging, and others is estimated to hinder the global market growth in the coming future.
The growing usage of natural ingredients in skincare products and the rising disposable income of individuals across the globe are the significant factors anticipated to fuel the growth of the global cosmetics market during the forecast period. According to a latest report published by Research Dive, the cosmetics market is expected to garner $457.8 billion over the forecast period by 2027. Geographically, the Asia Pacific cosmetics market is estimated to dominate the global industry, owing to growing awareness among the people regarding cosmetics and beauty care products in the region. The key players functioning in the global industry include Unilever, L'Oréal, ESTEE LAUDER, Coty Inc., Procter & Gamble, Shiseido Co. Ltd., Johnson & Johnson Services, Inc., Avon, Kao Corporation, and BEIERSDORF GLOBAL.