The global cosmetics market poised for growth on account of growing consumer demand for several skin-care care products such as face masks, peels, creams, etc. High demand for anti-aging products is expected to drive cosmetics demand considerably over the forecast period. The market has witnessed shift in demand towards organic and natural cosmetics, which also provides avenues for growth. Factors such as increasing consumer awareness and rise in disposable income are estimated to contribute significantly towards industry growth over the next seven years. Factors such as increasing consumer awareness and rise in disposable income are estimated to contribute significantly towards cosmetics industry growth over the next seven years.
Consumers today are well-informed as well as connected, and seek to use products that are less harmful in terms of chemical composition of a product Over the last few years there has been a considerable shift in consumer preference towards organic or chemical-free products. On account of which vendors focus more on providing organic skincare products to keep pace with this newly emerging trend.
Companies are often known to market these products devoid of any chemicals as organic or herbal products, which better meet the consumer requirements. Further, low consumption of products utilizing aluminum salts, phthalates, and parabens and growing need to provide sustainable products have largely contributed to cosmetics demand. However, factors such as fluctuations in raw material supply or price sensitivity associated with raw materials may pose a challenge to the industry growth.
The cosmetics market is highly driven by innovation underpinned by quality. New product development and provision of an assortment of products is the key strategy adopted by key players in order to capture a sizeable market share in this segment.
Rise in consumer disposable income along with improved living standards, particularly in developing countries such as China, India, and Malaysia is expected to fuel the Asia Pacific cosmetics market demand. North America is a mature market and is also expected to witness growth over the foreseeable future. This growth may be primarily attributed to high R&D developments and introduction of advanced and innovative products.
Skincare products represent the fastest-growing segment in the cosmetics market. Shampoos and other hair care products are expected to witness slow growth owing to market saturation and the presence of several companies offering similar products. In recent times, anti-aging products have emerged as the most popular segment owing to consumer demand to improve their appearance and look youthful.
Developing an effective sales channel plays a crucial role in this industry. Companies market their products primarily through e-commerce websites, departmental stores, supermarkets, wholesalers, etc. Presently online sales channels exhibit high growth opportunities in terms of sales owing to upsurge of several e-commerce websites. Digital revolution has played a crucial role in driving cosmetics demand worldwide. Online sales and marketing channels are adopted by several vendors enabling them to reach mass markets and foster closer relationships with the consumers. Digital or social media helps companies reach out to their customers, generate awareness related to the products, and attract new potential customers, which may further fuel cosmetics demand over the forecast period.
Presently, the global cosmetics market is dominated by several key players including Olay, Maybelline, L'Oréal, Lakme, etc. making entry of new players difficult. However, provision of organic or herbal products by these low-end players may pose a threat to the existing brands, making them revise or alter their product offerings on the basis of consumer demand.
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The sudden rise of COVID-19 to a pandemic level has severely impacted the demand patterns of cosmetics and also certain categories of personal care products. Furthermore, policies across the globe restricting the movement of people have also led to disruptions in the supply of personal care products. The availability of e-commerce platforms during these times has, however, offset the disruptions caused in the last-mile supply of customer purchases. From manufacturing stand, production stoppages due to the pandemic shall cast considerable stress on operational costs. The report will account for Covid19 as a key market contributor.