The global cosmeceutical market size was valued at USD 49.5 billion in 2018 and is anticipated to expand at a healthy CAGR over the forecast period. The market is anticipated to expand owing to the rising consciousness of the consumers about their physical appearance. The onset of cosmeceuticals has reformed the cosmetic and personal care industry. These products, unlike the makeup products, can resolve the origin of the imperfections rather than just covering them. This quality has resulted in a tremendous rise in product demand and has increased its share in the cosmetic and personal care industry.
There has been a remarkable rise in the demand for organic and natural commodities due to awareness regarding the harmful side effects of the synthetic elements in these cosmetic products. Manufacturers are seen taking advantage of this trend. For instance, companies such as Onlynaturals in England and LoveLula in the U.K. earn most of their revenue from natural skincare cosmetic products. Also, with increasing consciousness of skin-care beauty products owing to the sensitive skin of most Asian and American women, they are looking for cosmetic products that provide anti-inflammatory, anti-septic, anti-bacterial and moisturizing properties.
Furthermore, it has been observed that the demand is high among the people in the age group 30-45. Over the past decades, the decreasing mortality rate has given rise to the aging population all over the globe. People living longer and wanting to retain their youthful appearance are positively affecting market growth globally. Demand for anti-aging products to prevent hair damage, age spots, uneven skin tone, dry skin, and wrinkles is on the rise. This, in turn, has created opportunities for new introductions and innovations in the cosmetic industry, thus making the manufacturers focus on active anti-aging-based skin products.
Moreover, women are continuously coping with sedentary and hectic working lifestyles, hence getting very little time to put on make-up daily. This has compelled them to buy cosmetic products with medicinal benefits to avoid using make-up. Moreover, consumers all over the world are aware of the perks of anti-oxidants, organic ingredients, and peptides in the skin. Hence, increasing the beauty and health consciousness among wealthy and knowledgeable consumers had led to an increase in market growth. However, the emergence of counterfeit and cheap cosmetics may hinder this growth. These products are hazardous to the reputed original brands since they lose their share in the market to the substandard and low-quality products. This trend is mostly seen in developing countries.
The product type segment of the cosmeceutical market is classified as skincare, haircare, and oral care. The skincare category dominated the market with a share of 43.3% in 2018. Exposure to harmful ultraviolet radiation can cause premature skin aging or can even result in skin cancer. This awareness has increased the consumer’s focus on protecting their skin by using preventive skincare products. Moreover, the demand for multifunctional products is expected to fuel the growth of sun-care cosmetic products in the forecast period. For instance, BB creams can also function as sunblock creams, apart from a make-up serum and moisturizer. Products like these are becoming widely popular due to their convenience, driving the skincare category in this segment.
Haircare is expected to witness considerable growth in the future owing to an increase in the demand for products such as hair oil, hair color, shampoo, and conditioner. Benefits provided by shampoos such as the removal of dandruff, dirt, and environmental pollutants are making it a popular daily use product. Also, eradication of the unwanted build-up without flaking out much sebum to make the hair unmanageable drives the consumers to buy branded hair care products.
This segment comprises supermarkets and specialty stores, and an online platforms. The supermarkets and specialty stores segment held the largest market share in 2018. This is attributed to the aggressive promotions and various marketing strategies of the distributors and manufacturers in the specialty stores, such as offers on bulk purchases. Increasing disposable income in the developing countries of Asia Pacific is resulting in the consumer’s preference for bulk purchases at the supermarkets.
The online distribution channel is anticipated to witness significant growth over the forecast period owing to technology advancements and rising adoption of the technology among consumers. Apart from the key players of the market, the popular e-commerce platforms such as Amazon are encouraged to gain traction by selling these cosmetic products in certain areas having comparatively fewer specialty stores. This indirectly is increasing the sales of the products through the online platform. Moreover, discounts that are available online are comparatively more than that in the stores, thereby attracting the consumers and increasing product sales.
Europe held the largest share of 32.2% in 2018. The region continues to be the leading market owing to the obligation towards looking younger among the population of countries such as Germany, the U.K., Netherlands, and France. Moreover, these countries have the largest population of people suffering from dry skin, considering their weather conditions. This is likely to spur the demand for beneficial and multifunctional skincare cosmetic products. Moreover, higher spending capacity in the region for better quality products is expected to positively impact market growth.
The Asia Pacific is expected to witness the highest growth among other regions. The market in this region is gaining traction due to widely expanding developing economies. This has successfully paved the way for the manufacturers to open their branches in the highly populated countries in this region. The popularity of e-commerce or e-tailing in the region has helped the people reach out to better quality brands of these products. Besides, improving living standards in countries such as India, China, and Russia are predicted to drive the market in this region.
Manufacturers in the market are increasingly focusing on packaging as it plays a vital role in retaining the product quality, color, texture, medicinal benefits, and shelf life. They are focusing on the expansion of their geographical reach by engaging in mergers and acquisitions with other companies, carrying the objective of increasing their market share and cutting down their operational cost. The competitors mainly compete based on product quality, technological innovations, price, volume, and capacity.
Many manufacturers are engaging in collaboration with the medical community to increase awareness among their targeted customers, thereby making it a step towards eradicating counterfeit products worldwide. For instance, in February 2017, the Procter & Gamble Company divested the Hipoglos Brand to Johnson & Johnson Consumer Inc.
Key players having a presence in the global market are Johnson & Johnson, Procter & Gamble, Sabinsa Corporation, L’Oréal, Allergan, AVON, Estee Lauder, Unilever, Beiersdorf, Croda International Plc.
The market size value in 2020
USD 55.4 billion
The revenue forecast in 2025
USD 70.0 billion
CAGR of 5.1% from 2019 to 2025
The base year for estimation
2015 - 2017
2019 - 2025
Revenue in USD million/billion and CAGR from 2019 to 2025
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Product type, distribution channel, region
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
U.S.; U.K.; Germany; India; China; South Africa; Brazil
Key companies profiled
Johnson & Johnson; Procter & Gamble; Sabinsa Corporation; L’Oréal; Allergan; AVON; Estee Lauder; Unilever; Beiersdorf; Croda International Plc
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This report forecasts revenue growth at the global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For this study, Grand View Research has segmented the global cosmeceutical market report based on product type, distribution channel, and region:
Product Type Outlook (Revenue, USD Billion, 2015 - 2025)
Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)
Supermarkets & Specialty Stores
Regional Outlook (Revenue, USD Billion, 2015 - 2025)
Central & South America
Middle East & Africa
b. The global cosmeceutical market size was estimated at USD 52.4 billion in 2019 and is expected to reach USD 55.4 billion in 2020.
b. The global cosmeceutical market is expected to grow at a compound annual growth rate of 5.1% from 2019 to 2025 to reach USD 70.0 billion by 2025.
b. North America dominated the cosmeceutical market with a share of 32.3% in 2019. This is attributable to the majority of the population suffering from skin concerns as a result of varying climatic conditions.
b. Some key players operating in the cosmeceutical market include Johnson & Johnson, Procter & Gamble, Sabinsa Corporation, Lâ€™OrÃ©al, Allergan, AVON, Estee Lauder, Unilever, Beiersdorf, and Croda International Plc.
b. Key factors that are driving the cosmeceutical market growth include the rising consciousness of the consumers about their physical appearance and the growing demand among women consumers owing to their hectic lifestyles.
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