Global Cosmetics Market Report and Forecast 2024-2032

Global Cosmetics Market Size

The global cosmetics market value reached USD 343.37 billion in 2023. It is expected to grow at a CAGR of 5.2% in the forecast period of 2024-2032 to reach a value of approximately USD 541.89 billion by 2032.

Cosmetics Market Outlook

• There is a growing cosmetics demand towards premium products with high-quality ingredients that can boost skin health.

• Major brands and startups are increasingly following the trend of hyper-personalisation, adopting technologies such as AI, to offer products tailored to specific requirements and skin concerns of consumers.

• There is a surge in the adoption of cosmetic products developed using natural ingredients, eco-friendly packaging, and sustainable practices.

Cosmetics include several products that are predominantly available under different categories like skin care, hair care, fragrances and deodorants, makeup, and others. The demand for sun care products has increased significantly in the last few years due to the growing consumer awareness regarding skin care and the negative effects of direct exposure to UV rays, including premature ageing and the risk of developing skin cancer.

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Cosmetics Market Growth

The global market for cosmetics is being driven by the rising focus of the population on grooming and personal appearance. The new product launches, rapid urbanisation, and increasing per capita incomes are also contributing to the growth of the market. Over the forecast period, the increasing demand for natural and organic products and attractive marketing strategies and innovative packaging styles are expected to stimulate market growth.

As per cosmetics industry analysis, the advancement in biotechnology is encouraging researchers in the cosmetics sector to find ingredients that are non-toxic and safe for consumption. The increasing concerns regarding sustainability and environmental safety are further fuelling the adoption of products made from plant-based ingredients over chemicals.

Global Cosmetics Market Trends

Expansion of e-commerce; rising adoption of sustainable products; rising disposable incomes; and increasing personalisation of cosmetic products are the major cosmetics market dynamics and trends globally.

Recent Developments

Factors Affecting the Cosmetics Market Share

Cosmetics have become a vital part of the personal care, skincare, hair care, fragrance, and make-up segments.

• Productivity-enhancing production technologies and formulations are continuously in progress, increasing product efficiency levels and decreasing costs.

• Major companies such as L'Oréal, Estee Lauder, and Shiseido try to secure a consistent supply to meet demands across the globe, impacting the cosmetics demand forecast.

• As the number of cosmetics with ingredients that are friendly to the environment rises, and packaging becomes more environmentally friendly, the resulting carbon emissions fall, and the ESG-related value of the cosmetics business also rises.

High dependency on energy in the production of cosmetics leads to high costs and low competitiveness when energy prices vary.

• Environmental regulations are tight, raising costs for operators and their compliance burden, limiting the growth of the cosmetic industry

• Regional concentration risk: a large part of worldwide production takes place in a few regions.

• High investment in R&D and plants prevents companies, especially smaller ones, from expanding.

• Fluctuating raw material prices and economic instability may hit the production cost and profitability.

Ballooning population growth, rapid urbanization, and improving disposable incomes open huge opportunities for growth, mainly in emerging markets.

• Biotechnology and nanotechnology advances unveil several new potentialities for innovative product formulations and applications, boosting cosmetics market revenue.

• Sustainability drives consumption of 'green' ingredients and recyclable packaging, thus attracting potential consumers who are sensitive to environmental issues.

• With the proliferation of e-commerce platforms, the market reaches and accesses customers globally, thereby boosting sales.

Industry Outlook

According to the International Trade Centre, global imports of beauty or makeup preparation products (HS Code -3304) reached USD 75.95 billion in 2023, up from USD 62.60 billion in 2019, aiding the global cosmetic industry revenue. This represents a growth of over 21 percent within five years. China remained the largest importer, importing USD 14.43 billion worth in 2023 from USD 13.22 billion in 2019, thus depicting a stable rise in import value. The United States followed next with USD 6.83 billion worth of products imported in 2023, up significantly from USD 5.10 billion in 2019.

Imports for Hong Kong grew from USD 5.02 billion in 2019 to USD 5.81 billion in 2023. On the other hand, Singapore's imports increased to USD 2.99 billion from USD 3.21` billion in 2019, which reflects a strong market demand. In 2023, Germany, the United Kingdom, and France, in that order, registered USD 2.93 billion, USD 2.75 billion, and USD 2.61 billion in imports, respectively, from their gradual increases from the values for 2019.

This upward trend in imports characterizes an increasing consumer demand for cosmetics globally. Rising import values describe a bigger global market and increasing consumer spending power for personal care goods.

On the export side, the growth of cosmetics market was enhanced by global cosmetics exports that reached USD 72.94 billion in 2023, up from USD 63.77 billion in 2019. France is the largest exporter, with an estimated USD 11.98 billion exported in 2023, making it a powerhouse in the global beauty market propped up by its mature cosmetic and skincare sectors.

The Republic of Korea's exports surged to USD 7.18 billion in 2023, up from USD 5.32 billion in 2020, contributing to how far K-beauty is proving to make waves on the global stage. The exports from the United States grew from USD 6.08 billion in exports in 2019 to USD 6.24 billion in 2023. Singapore and Germany reported exports of USD 5.51 billion and USD 4.68 billion, respectively, in 2023.

Exports to China grew from USD 2.77 billion in 2019 to USD 3.75 billion in 2023, driven by strong production capabilities and increasing presence in the global cosmetics market. Growth in export values was also witnessed in Japan and Hong Kong with the same reaching USD 3.64 billion and USD 3.49 billion respectively in 2023.

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Cosmetics Industry Segmentations

Increasing focus of individuals on following an effective skincare routine is expected to drive the demand for skin care products

Based on category, the skin care segment is expected to dominate the cosmetics industry share globally. The increasing consumer awareness regarding skin health and the importance of following a simple yet effective skincare routine is driving the demand for products like serums, sunscreen lotions, face oils, and many others. Moreover, there is a surge in demand for plant-based/natural skin care products, which cause no side effects, encouraging market players to offer innovative plant-based solutions.

Rise of e-commerce to drive the sales of cosmetics through online channels

Based on the distribution channel, the e-commerce segment is expected to witness a robust growth over the forecast period. The growth can be attributed to the growing internet penetration in urban as well as rural areas. Owing to the rising inclination of consumers to purchase cosmetics online and the ease and convenience of online shopping, cosmetics sales through online channels have increased immensely. The online channels enable companies to reach a mass population and have a huge audience for their products. In recent years, the growing focus of major players on strategising online marketing campaigns to increase their revenues has significantly contributed to the growth of the segment.

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Competitive Landscape

Competing companies on a global level in the cosmetics market report include L'Oréal, Estée Lauder Companies, Procter & Gamble, Unilever, Coty Inc., Beiersdorf AG, Johnson & Johnson, Amorepacific Corporation, and Kao Corporation. Each of these companies has been aggressively battling for a continued and enlarged share of the market, striving to keep ahead in a competitive spirit, and possessing strengths commensurate with the dynamic and competitive environment.

Strategies

• Invest in research and development to develop new and innovative products as well as new formulations that will satisfy the consumer's emerging tastes.

• Sustain through eco-friendly materials, recyclable packaging, and a reduced carbon footprint that will appeal to the pocket of the green consumer, aiding the cosmetics demand growth.

• Win by targeting regional markets by coming up with specially developed products and marketing strategies that play off geographical and cultural peculiarities.

• Build presence by driving online sales through e-commerce platforms and digital marketing, which will increase the reach and customer engagement for more orders.

• Diversify product lines into a whole array of cosmetics—from skin and hair care—to increase market share and better satisfy changing consumer needs.

• Formulate strategic partnerships, acquisitions, and licensing agreements to gain better market visibility, leverage new technologies, and make inroads into new markets for better cosmetics industry analysis.

• Pave the path in sustainable beauty practices characterized by responsible sourcing, animal cruelty-free testing methods, and transparency to establish trust and brand loyalty.

• Drive innovation in the industry with continuous new product development, hard-hitting advertising, and dynamic market presence achieved through intense competition.

The market players are focusing on developing innovative products to support the growth of the cosmetics market. They are leveraging advanced technologies, further offering personalised solutions to address the skin concerns of individual customers.

Other notable players operating in the global cosmetics market include Shiseido Co., Limited, L Brands, Kao Corporation, Oriflame Cosmetics Global SA, Christian Dior SE, Beiersdorf AG, Groupe Clarins, Huda Beauty Limited, Revlon, Inc., and Coty Inc., among others. The manufacturers are upgrading their product portfolios and incorporating the latest capabilities to innovate their offerings and meet the evolving demands of consumers.

Cosmetics Market Regional Analysis

North America dominates the market in terms of revenue. The cosmetics market share in the United States has been witnessing rapid growth. In 2023, the cosmetic sector in the United States generated a revenue of USD 19.43 billion, while Europe generated USD 22.3 billion in revenue. The premiumisation of cosmetic products is driving the sales of luxury/prestige cosmetics in the United States. In Q3 2022, prestige cosmetic revenue reached a value of USD 2.1 billion. The United States has the presence of about 4.7 million prestige cosmetic and beauty shoppers. On average, the American population spend between USD 244 and USD 313 on cosmetics each month.

Meanwhile, due to the introduction of a variety of products and massive technological development, Europe accounts for a significant share of the market. The growth of the cosmetics industry in Europe has been driven by various factors like the escalating use of anti-ageing cosmetics and the increasing demand for premium and clean labelled products in the region. These cosmetics market opportunities can open up new avenues for growth in the region during the forecast period.

Key Highlights of the Report

Cosmetics Market Report Snapshots

Cosmetics Market Size

Cosmetics Market Growth

Cosmetics Market Trends

Cosmetics Companies

Cosmetics Market Regional Analysis