Global Cosmetics Market to Reach $493,258.5 Million by 2027 despite the COVID-19 EmergencyDownload Sample Reports Overview
According to a recent analysis by Research Dive, the global cosmetics market forecast may surpass $493,258.5 million by 2027, growing at a 5.4% CAGR from $323,857.8 million in the year 2019.
Cosmetics Market, COVID-19 Impact:
The global cosmetics market has responded positively due to constant developments by the market players during the pandemic. For example, in October 2020, Shiseido unveiled Sustainable Beauty Actions (SBAS) as a part of the global initiative to implement a wide range of sustainable activities and innovative products in the beauty industry. The SBAS initiative has been designed based on three major pillars, MOTTAINAI (recycle & reuse), HARMONY (with the environment & society) and EMPATHY (resonate with all activities) to support and create a more beautiful and sustainable beauty future. This aspect is estimated to impel the cosmetics market growth in the emergency period.
Cosmetics Market, Overview:
Constant developments in the cosmetics sector by incorporating most advanced technologies such as Internet of Things (IoT), augmented reality (AR), and artificial intelligence (AI) is estimated to accelerate the market growth in the forecast period. Some of the manufacturers are implementing several strategies such as new technology introduction by investing into R&D activities to gain a competitive edge in the global market. For instance, in 2018, Perfect Corp, a global leader in beauty tech solutions provider, launched YouCamMakeUp application at Consumer Electronics Show in Las Vegas. This app, combining augmented reality and artificial intelligence technologies, enables the users to capture a photo of themselves and add virtual makeup looks to the image. It further enables real time AR in hair coloring and allow users to try different shades. This factor is further predicted to propel the growth of the cosmetics market in the review period. In addition, adoption of bio-engineered ingredients such as sustainable and natural ingredients in the manufacturing of personal care and cosmetic products is further estimated to drive the opportunities for the market growth in the forecast time. However, environmental impact of the beauty care products is predicted to limit the market growth in the forecast period. Currently, sustainability has become a major concern for the personal care and cosmetic industry because of users being more concerned about wellness and health issues associated with cosmetics, which is estimated to hinder the market growth in the forecast time.
Cosmetics Market, Segmentation Analysis:
Haircare product sub-segment was the second highest revenue contributor of the cosmetics market in 2019 and is estimated to rise at a healthy rate of 5.7% during the forecast time. Rising number of hair related problems, such as excess oiliness, dryness, hair fall and other issues, among women and men will drive the demand for hair care products in the forecast time. Increasing adoption of natural ingredients in hair care products manufacturing to produce effective products is estimated to fuel the market growth in the estimated time.
The premium category is expected to grow at a faster rate with a CAGR of 5.9% and is predicted to account for $210,773.0 million by 2027. Growing awareness on brand recognition along with influence of social media on premium cosmetics is predicted to propel the market growth in the forecast time.
The overall market for online sales channel sub-segment will witness to rise at a remarkable rate of 6.5% and is estimated to account for $52,676.0 million till 2027. Currently, cosmetic and beauty care products consumers are interested in buying products over the internet and e-commerce platforms to discover novel ways for user friendly shopping experience. This aspect is estimated to bolster the growth of the cosmetics market in the estimated time.
Cosmetics Market, Regional Insights:
Asia-Pacific generated for significant cosmetics market share in the previous decades, which was 39.6% and is expected to reach a revenue of $210,621.4 million till 2027. Rapid growth in the demand for specialized cosmetic and beauty care products that are manufactured based on natural ingredients such as herbal, organic and ayurvedic products is predicted to propel the market growth in the estimated time.
Download the sample report to delve into the North America, Europe and LAMEA share in the global cosmetics market.
Cosmetics Market, Significant Market Players:
The significant cosmetics market participants are Unilever, Procter & Gamble, Shiseido Co.,Ltd., Johnson & Johnson Services, Inc., Kao Corporation, L'Oréal, ESTEE LAUDER, Coty Inc., Avon and BEIERSDORF GLOBAL among others.
Porter’s Five Forces Analysis for Cosmetics Market:
- Bargaining Power of Suppliers: This market has high number of suppliers and the price difference between suppliers expected to be moderate, delivering moderate selling power. Thereby, the bargaining power of suppliers is MODERATE.
- Bargaining Power of Consumers: Cosmetics market has high concentration of consumers, and price of cosmetics products is high, resulting in HIGH negotiating power of the consumers.
- Threat of New Entrants: Huge spending is required for developing of luxury and professional cosmetics and rising consumer demand is creating huge investment opportunities and resulting in MODERATE threat of new participants.
- Threat of Substitutes: High price of luxury cosmetic products is resulting in MODERATE threat of substitutes.
- Rivalry Among Market Players: Cosmetics market has high number of key manufacturers. These key manufacturers are emphasizing on product launches and investments to fortify their position in overall marketplace, delivering HIGH rivalry among the market participants.