Lip Care Products Market Size, Share & Trends Analysis Report By Product (Lip Balm, Lip Scrub), By Distribution Channel (Hypermarket & Supermarket, Specialty Store), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global lip care products market size was valued at USD 1.98 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 5.9% from 2021 to 2028. Growing concerns related to prolonged sun exposure, dryness, premature aging, and lip darkening have resulted in an increased demand for high-quality products among consumers. Moreover, there has been an increasing focus on organic and natural lip balms as consumers are seeking safer alternatives that are free from synthetic and toxic chemicals. The ongoing trend of personal grooming and wellness is driving an increasing number of male consumers to adopt these products. The COVID-19 pandemic has massively impacted the sales of lip care & beauty products through major offline retail stores.

Several mass markets stores, brick-and-mortar stores, and other retailers reported a decline in sales in the same year. For instance, The Boots Company PLC reported a decline in the sales of beauty products by two-third between March and April 2020. However, DIY and self-care beauty products are an emerging trend in the market, which is expected to recover during the forecast period. The demand for these products is rapidly increasing in the U.S. as the consumers are opting for organic products owing to the shifting inclination towards vegan products. Several manufacturers in the region are focusing on creating sustainably-sourced lip care products due to the increasing concerns related to plastic reduction and waste disposal. For instance, in June 2021, Ethique, Inc. launched a new range of lip balms in the U.S. The product contains naturally derived plant-based ingredients, which are plastic-free and has 100% home compostable tubes.

According to the article released by the U.S. PIRG in February 2018, nearly 81% of women and 39% of men use lip care products, such as balms. Moreover, the frequency of application of these products is higher among American women. On average, an American woman will apply these products up to 2.35 times per day, which may exceed up to 14 times a day. These indicators create a positive outlook for the market in the U.S. in the upcoming years.

Several international and regional product manufacturers are offering unique flavors in lip balms, scrubs, and masks among others owing to the surge in popularity and increased attention on lip care and self-care, particularly among women. The growing availability of tinted, and organic lip balms in a cost-effective range is driving their adoption at a faster pace.

Market players are focusing on research & development of such products to introduce skin-friendly and premium lip care products. The launch of natural & organic lip care treatments without chemicals like sodium laureth sulfate or aluminum is witnessing significant growth. For instance, in 2020 Anastasia Beverly Hills introduced vegan and cruelty-free lip balm in variants like coconut, strawberry, and mango. Such product offerings are expected to positively influence market growth.

Product Insights

The lip balm segment held the largest revenue share of 45.0% in 2020 and is expected to maintain dominance over the forecast period. The growth of the segment is attributed to the increasing number of new product launches by major players to capture a larger consumer base. For instance, in February 2019, The Estee Lauder Companies, Inc. launched its lip care collection including color replenish lip balm, potion, and volumizer.

However, the other segment, which includes various types of lip butters, masks, and oils, is projected to register the fastest CAGR during the forecast period. Consumers’ attention is gradually inclining towards innovative products, which is driving the others segment. The increasing availability of gel-& water-based and collagen lip masks are gaining immense popularity among consumers.

The lip scrub segment is estimated to register a steady CAGR from 2021 to 2028. Lip scrubs are widely adopted for better exfoliation and dead cell removal, which is driving their adoption at a faster pace.

Distribution Channel Insights

The hypermarket & supermarket distribution channel segment accounted for the largest revenue share of more than 48% in 2020 and is estimated to retain the leading position throughout the forecast period. These stores offer significant advantages to consumers, such as low product prices and enhanced visibility of international brands as well as local brands, which makes them a suitable platform for all segments of customers.

The specialty store distribution channel segment is projected to register the fastest CAGR during the forecast period. Consumers choose to buy products from these stores because of the ease of purchase, extensive network, and availability of an exclusive range of products at affordable prices. Moreover, these stores also take advantage of the popularity of niche items that are organic, natural, cruelty-free, and vegan.

The online segment is projected to register the second-fastest CAGR from 2021 to 2028. The product sales through online channels are estimated to witness a rise during the forecast period. Prominent e-commerce giants, such as Amazon, Anastasia Beverly Hills, Kinship, Inc., Sephora, and Walmart, are the leading online retailers of lip care products. The COVID-19 pandemic has led to an increase in the sales of these products through e-commerce, which has positively impacted the segment growth.

Regional Insights

Asia Pacific accounted for the largest revenue share of more than 37.1% in 2020. The regional market is estimated to retain the leading position growing at the fastest CAGR during the forecast period. An increasing number of consumers are suffering from issues, such as lip pigmentation and darkening, particularly in India, owing to sun exposure, which is driving the demand for these products.

Europe is estimated to be the second-largest regional market while Central & South America is projected to register the second-fastest CAGR from 2021 to 2028. Manufacturers in the Central & South America region are engaged in the development of lip care products that contain a mixture of natural and organic ingredients in an attempt to tap into new customer demographics.

Key Companies & Market Share Insights

The market is characterized by the presence of a few established players and new entrants. Market players are focusing on new product launches to expand their product portfolios, widen their consumer base, and gain a competitive edge over others. For instance, in May 2021, Summer Fridays launched a new range of lip butter balms, which is available on retail websites like Sephora and Revolve. Some of the key players operating in the global lip care products market include:

• L'Oreal S.A.

• Unilever

• Beiersdorf AG

• The Colgate-Palmolive Company

• The Estée Lauder Companies, Inc.

• Johnson and Johnson

• Avon Products, Inc.

• Shiseido Co., Ltd.

• The Procter & Gamble Company

• Revlon, Inc.

Lip Care Products Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the globallip care products market report on the basis of product, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2028)

  • Lip Balm

  • Lip Scrub

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2016 - 2028)

  • Hypermarkets & Supermarkets

  • Pharmacy & Drug Store

  • Specialty Store

  • Online

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

  • Europe

    •  Germany

    •  U.K.

    • France

  • Asia Pacific

    •  China

    •  Japan

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa