The global cosmetic products market was valued at USD 532.43 billion in 2017, and is expected to reach a market value of USD 805.61 billion by 2023, registering a CAGR of 7.14% during 2018-2023. The scope of the report is limited to various products, like hair care, skin care, oral care, color cosmetic, fragrances, soaps and shower gels, and sun care products. The study also emphasizes on various distribution channels, such as direct selling, supermarkets, specialty stores, pharmacies, and salons.
The cosmetics or beauty products industry, globally, is one sector which remains impervious to the ups and downs. Overall sales are affected in the event of an economic downturn. However, one can count on the sales of cosmetics to maintain a certain volume overall. This is because of continuing and growing usage of products by women, and increasingly by men across the world.
Aging Population is the Major Driver for the Market
Over the past two decades, declining fertility and mortality rates have resulted in a rise in the aging population, globally. Strong desire among men and women to retain youthful appearances has groomed and nurtured the cosmetics industry, worldwide. Rapidly aging demographics has led to a robust demand for anti-aging products in order to prevent wrinkles, age spots, dry skin, uneven skin tone, and even hair damages, creating room for new innovations in cosmetics, thus boosting the industry growth.
By 2050, the population over 60 years of age is expected to reach 2.09 billion. The life expectancy for women is predicted to rise from 82.8 years in 2005 to 86.3 years in 2050. Whereas for men, the expected increase for men in the corresponding period is from 78.4 to 83.6 years. Notably, the share of elderly people for cosmetic products is on rise.
E-commerce as a Distribution Channel is Expected to Grow Rapidly
Smartphone shipments increased to 1.53 billion in 2017, and is expected to grow till the end of the forecast period, thus increasing the e-commerce market. Cosmetic products, such as skin care, hair care, and fragrances are the most-sold products online. Thus, companies are increasingly focusing on online marketing campaigns that can increase their revenues with low investments. The market is witnessing a trend of multinational companies setting up websites and brand-specific Facebook accounts and Twitter profiles, in order to address the local taste. This sector is gaining prominence with the different products being available ‘only on online’.
Middle East & African Region is expected to grow with the Highest CAGR
The market is expected to gain prominence in the MEA countries, such as UAE, Saudi Arabia, and Israel. According to a recent survey, 21% of the people in this region admit to spending between AED 362 and AED 732 per month on health and beauty products, including the cost for maintaining hair and nails, and for hair removals, massages, and gym memberships, while a further 6.2% spend between AED 728 and AED 1125 to keep themselves looking appeasing.
UAE is a country with a high GDP per capita (USD 40,444 in 2012), and an administration which is modern, and yet has further growth to witness regarding women at workplace. As more women join the workplace, the need to look good, as well as purchase cosmetics has increased, and not just based on one’s preference. Furthermore, an increased influx of tourists has boosted cosmetic sales in the country.
Key Developments in the Market
January 2018 – L’Oreal Paris unveiled a new hair care line to revive damaged hair, Elvive. The collections within the Elvive hair care line are expected to be designed to directly address a women’s biggest hair care concerns: damaged, dry, and color-treated hair. The brand was launched as ‘Comeback,’ which was an integrated campaign that celebrated the fact that hair can make a comeback from damage.
September 2017 – Unilever acquired the Asian cosmetics firm Carver Korea. The Anglo-Dutch company bought the entire business from Bain Capital Private Equity, Goldman Sachs, and the firm’s founder, strengthening its foothold in the Asian beauty market. This acquisition is expected to strengthen the position of Unilever in South Korea, which is fourth-largest cosmetics market.
September 2017 – Procter & Gamble unveiled a USD 3 million quality control laboratory, Pines External Lab located in Berkeley Springs, launched in joint partnership with Morgan County and Blue Ridge Community & Technical College. This center is said to be used to evaluate raw materials using resources, such as gas and liquid chromatography, as well as in-process and end product samples. These tests are expected to ensure P&G products contain no foreign micro-organisms.
Major Players: L’OREAL GROUP, PROCTER & GAMBLE, BEIERSDORF AG, AVON PRODUCTS INC., UNILEVER, THE ESTÉE LAUDER COMPANIES INC., SHISEIDO, KAO CORP., REVLON INC., MARY KAY INC., YVES ROCHER, ORIFLAME COSMETICS GLOBAL SA, AND ALTICOR, amongst others.
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To know how the aging population acts as a driver for the global market scenario
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Regions that are expected to witness fastest growth during the forecast period
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Major points from Table of Contents:
2. Research Approach and Methodology
3. Executive Summary
4. Market Dynamics
5. Global Cosmetics Products Market Segmentation
6. Vendor Market Share
7. Competitive Intelligence – Company Profiles
8. Investment Analysis
9. Future of the Cosmetic Products Market