The global premium cosmetics market is expected to value at USD 199.2 billion by 2025, expanding at a CAGR of 7.6% during the forecast period. Rise in awareness for premium ingredients for wellness and beauty products stand pivotal for product demand. In addition, consumer preference and willingness to spend highly on beauty products is anticipated to drive the market growth. Consumers are appreciative of innovative products that is further encouraging manufacturers to produce user friendly products on a large scale.
In terms of consumer trends, personalization has remained popular owing to the wide application of wellness products that comply with individual needs and lifestyle. Moreover, social media and other platforms have a huge impact on consumer mind. Apart, retail markets are well performing segments driven by consumer awareness. Technological adoption such as virtual reality and personal assistant have been shaping consumer trends. For instance, L’oreal makes use of interactive displays for consumers under the tag of Magic Mirrors wherein the technological adoption is expected to lessen the use of sample products
Companies are adopting robust business strategies to expand and diversify their portfolio and geographical presence. Many companies such as L’oreal and Garnier are spreading their base across markets in Asia Pacific. Other American brands such as Revlon, and Avon are anticipated to capture a high consumer share within Asia Pacific.
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The cosmetics industry has suffered amid the imposed lockdown in the first quarter of 2019. This has led towards shift in consumer preference for buying online products over retail counters. Consumers are now demanding more reliable products that are free from any viral contamination. As economies resume in various countries hygiene practices are been followed with utmost care to ensure zero contamination during the packaging. Many brands are pursuing robust practices to improve and strengthen the supply chain.
Further Findings From the Report Suggest:
l Skincare is expected to be one of the large growing segments attributing to the high demand and larger revenue share as compared with other segments
l Online distribution channels are expected to register high growth attributing to the presence of key players and high competitiveness among them
l Offline distribution channel is expected to lead with a high market share attributing to the technological progress
Asia Pacific is anticipated to have a high impact on the regional market owing to the fast growing markets for premium cosmetics in China, Japan and India
Rising consumer preference for premium cosmetics, owing to a willingness to spend more on beauty products, especially across emerging countries, is expected to drive the market growth. The consumer preference for imported and branded cosmetics is majorly driven by brand name, product safety, and price. A rise in women’s workforce and financial independence is expected to positively influence the market growth in the forthcoming years.
The trend of personalization is also supporting the demand for premium cosmetics among consumers. For instance, Face Gym, a European company, in 2017 launched the Make it Bar, where consumers can visit the studio and create their own face serums, suitable for their individual needs and lifestyle, with help from professionals.
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The makeup segment of the premium cosmetics market is estimated to witness the fastest growth over the forecast period. The availability of waterproof and sweat-proof products manufactured especially for hot and humid climatic conditions is also boosting the demand. Skincare is estimated to be the largest segment over the forecast period, owing to the wide application for skincare. Consumers prefer facial creams, sunscreens, and body lotions to reduce acne scars, freckles, age spots, and discoloration, among other skin issues.
To boost the shopping experience and consumer interaction, premium cosmetic companies are upgrading their stores with advanced technologies. Along with on-hand assistance from beauty advisers, the companies are using Virtual Reality (VR) and Augmented Reality (AR) for better customer service. For instance, L’Oréal installed interactive displays in its Shanghai, Wuhan, and Changsha boutiques called as Magic Mirrors. The adoption of such technology also reduces the usage of sample products.
The major market players include Coty; Estée Lauder; L’Oréal; LVMH; Shiseido; Chanel; Dior Beauty; Elizabeth Arden Inc.; KAO Corporation; and The Procter & Gamble Company (P&G). The market is oligopolistic in nature with the influence of a few major companies. The companies implement various strategies, such as new product launches, technological innovation, and mergers and acquisitions, to diversify the product offering and expand their geographical presence.
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l Estee Lauder
l Elizabeth Arden Inc
l KAO Corporation
l The Procter & Gamble Co
Grand View Research has segmented the global premium cosmetics market on the basis of products, distribution channel:
Premium Cosmetics Product Outlook (Revenue, USD Billion, 2015 – 2025)
Premium Cosmetics Distribution Channel Outlook (Revenue, USD Billion, 2015 – 2025)
About Grand View Research
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