Rising awareness for external appearance and consistent efforts of individuals to adopt regular care routines for the body, hair, and skin are uplifting the demand for a variety of cosmetics in the market. Skincare and haircare necessitate suitable products, considered major factors contributing to market growth. Consumers favor cosmetic products that enhance skin texture, pigmentation, and underlying issues. Moreover, the rise in dermatologists' consultation all over the globe positively influences market growth.
The increasing trend of clear glass skin, colorful frizz-free hairs, and body polishing are shifting people’s attention toward various skin-improving ingredients. In addition, several cosmetic brands are putting efforts into developing innovative and customized cosmetic products, boosting the growth opportunities in the cosmetic market. Moreover, there is a high preference for natural and chemical-free products for enhancing beauty as per SPINS. Such trends further led to the field of nutricosmetics, which is growing nowadays and expected to propel market stakes in the coming years.
With evolving consumer preferences, technological advances, and strategic agreements, the global cosmetics market is experiencing notable growth avenues. According to Grand View Research, the market is set to expand from USD 295.95 billion in 2023 to USD 445.98 billion by 2030, with a 6.1% growth rate.
Major Drivers: Uplifting Growth of the Cosmetic Market
• Rise in Inclination Toward Bodycare Regimes: Consumers are shifting their focus on following proper skincare, haircare, and bodycare routines, leading to a surge in demand for products such as creams, lotions, serums, and masks. This trend is supported by the desire to use natural ingredients and maintain healthy skin, improving market growth.
• High Demand for Premium Products: There is increased favor for premium products due to their superior quality and effectiveness in the market. Moreover, the trust factor and integrity of premium products attract consumer’s attention toward them. This shift further contributes to market expansion.
• Increased Focus on Organic and Sustainable Ingredients: Manufacturers are more inclined towards the development of natural and sustainable cosmetic products to support environmental awareness and market reach. Such efforts are further enhancing growth opportunities in the market.
How Does the Blend of Technology Supporting the Cosmetic Market?
As technology spans each sector in the world, the cosmetic product market is no exception.
Artificial Intelligence (AI) for Personalized Skincare Products
Various cosmetic brands are integrating AI to present customized skincare solutions as per individual needs to fulfill customer satisfaction and needs.
Augmented Reality (AR) for Real-time Product Experience:
This advancement helps to enhance online shopping and the popularity of products. Companies such as L’Oréal use AR to allow customers to try on products, such as hair colors, virtually to ease their purchasing experience
Latest Product Additions in the Cosmetic Market:
• In December 2024, L'Oréal Groupe collaborated with Swiss retail group Migros for the acquisition of Dr.G, the Korean skincare brand. This agreement was made to fulfill the increasing demand for K-Beauty and scientifically developed, efficient, pocket-friendly skincare products.
• In September 2024, KAO launched the Kanebo Fusioning Solution for the skin refinement of consumers. This gel was developed using the advanced technology and novel concept of “Kanebo Fusion-Ing Solution” to reinforce brand appeal and recognition across the whole region.
Regional Insights
In the global scenario, North America and Europe are significant players due to higher consumers’ preference for cosmetics. As per Natural Products Insider, U.S. residents are now more inclined toward nutricosmetics, which in turn increases its demand in the region. Furthermore, the presence of established manufacturers such as Procter & Gamble and Unilever, concurrently with a growing number of retailers, accelerates market growth.
Regulatory Support
Regulatory authorities play a crucial role in shaping the cosmetic market. This includes the U.S. Food and Drug Administration (FDA) which releases new guidelines to ensure consumer safety. It also engaged itself in a number of international cosmetic activities. Additionally, it works with regulatory authorities in other countries through the International Cooperation on Cosmetics Regulation (ICCR), for cosmetics from various regions such as the United States, the European Union, and Asia. According to its latest update, it came up with The Modernization of Cosmetics Regulation Act of 2022 (MoCRA), which reinforces the safety of cosmetic products for routine use.
What Future Holds for Cosmetics Market?
With the evolving landscape, the cosmetic market is set to build a strong base in the global market, due to the development of premium, organic, and customized cosmetic products as well as technological advances and regulatory initiatives.
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