If you’re interested in learning more about the cosmetics industry, read this article. You’ll discover the market size, growth trends, competitive landscape, and product categories. The information is relevant for all aspects of the industry, including product innovation. If you’re just starting out, start with this industry overview. It will provide you with an overview of the industry’s key players. Once you’ve finished reading this article, you’ll know how to find new market opportunities in your region.
Product categories
The cosmetics industry is segmented into various types and subsectors based on their function, distribution channels, and geography. For example, facial care products fall under the category of skin care. Fragrances and deodorants fall under the category of personal hygiene products. The market for fragrances and deodorants is estimated to grow at a CAGR of over 8.3% between 2014 and 2023. The market for hair care products is estimated to grow at a CAGR of 5.7% over the same period.
Among the different types of cosmetic products, women’s make-up accounted for the largest market share in 2019 and is expected to continue growing at a CAGR of 6.3% during the forecast period. The industry is largely driven by the convergence of beauty and technological advancements. As a result, this sector has seen steady growth in recent years, driven by the increasing population of beauty conscious women around the world. Product categories in the cosmetics industry include eye, skin, and hair care products, as well as anti-aging products.
As a result of these changes, consumer preferences for cosmetic products have shifted. Consumers favored quality cosmetics over price, according to a report by eMarketer. Fortunately, big-box stores and online retailers have made the switch to digital shopping, which is now at the center of the distribution strategy for most brands. The latest study from Kline Research reveals that digital shopping has moved from the periphery to the center of the industry, making it vital for the growth of a brand.
The 1990s were a time of change for the cosmetics industry, with pore strips and 2-in-one-shampoos becoming popular. The bath and body trend was popular, and celebrity and designer fragrances were prominent. In addition to this, the number of working women increased considerably. The competitive landscape was highly fragmented, and producers were split into three main categories: prestige, mass, and mass. Retail powerhouses like Sephora and Target grew.
Consumers have an increasing interest in personal grooming products. With increased awareness about the importance of healthy skin, a wider market for face and body care products is expected in the future. The beauty industry is expected to grow at a CAGR of nearly 2.7% between 2014 and 2024. In addition, digitalization and personalization are driving the growth of the cosmetics industry. For example, the L’Occitane Group recently introduced its Duolab facial care system, which is operated by artificial intelligence. This system can diagnose the skin condition on the spot when needed and provide a customized face care solution.
Market size
The market for cosmetics has been dominated by a few multinational conglomerates for more than a century. Examples of such companies include L’Oreal, Unilever, Procter & Gamble, and the Estee Lauder Companies. But, with the proliferation of e-commerce, competition is heating up and consumers are becoming more discerning. Moreover, consumers are increasingly willing to spend more for a high-quality product, such as a fragrance, so competition is becoming more intense.
The cosmetics industry is also fueled by the growing demand for presentable appeal. Various multinational companies are introducing innovative products and extensive marketing them in order to gain a competitive edge over their competitors. In addition to increasing demand for cosmetics, Europe leads the market and is expected to grow at a 2.8% CAGR over the next five years. This is due to the fact that consumers in Europe value cosmetics as part of a healthy lifestyle, and they demand a higher quality of life.
In terms of revenue, skin and sun care products accounted for the largest share of the global cosmetics market in 2019. The segment is forecast to grow at the highest CAGR during the forecast period. Deodorants and fragrances are projected to increase at a 7.2% CAGR during the same period. In the same period, growth will be highest in Asia-Pacific. It is attributed to rising concerns over hygiene and health and a desire for appealing personal appeal.
The growth of the cosmetics industry is attributed to the rising demand for beauty products among women and men. Rising customer disposable incomes and awareness of the benefits of herbal and synthetic cosmetics have aided this industry’s expansion. The market is predicted to double in size by the year 2014.
Growth trends
Consumers’ shifting preferences in buying beauty products are affecting the growth of the cosmetics industry. While big-box stores continue to dominate the market, challenger brands are becoming household names. With e-commerce sales growing at a rapid rate, manufacturers are scrambling to compete with these challengers. CPG manufacturers are responding to this challenge by acquiring or partnering with independent counterparts and launching private-label alternatives. Although COVID-19 has negatively affected the sales of beauty products, e-commerce sales will grow in the next two years and will continue to expand.
Digitalization and personalization are major trends in the cosmetics industry. In 2020, L’Occitane Group will launch a new technology called Duolab. This device has the ability to analyze your skin’s pH levels and prescribe a tailored face-care regimen. Consumers are increasingly concerned with grooming and will continue to demand individualized products to look their best. These trends will fuel the growth of the cosmetics industry for years to come.
The European beauty market is experiencing positive growth. The increased number of beauty salons and growing numbers of generation Z will fuel demand for cosmetic products in Europe. According to the German Cosmetic Association, a growing number of European consumers is driving growth in the market for face-care products. The cosmetics industry in Germany is expected to grow by 4.1% annually by 2020, making it one of the fastest-growing regions in the world. These trends indicate an opportunity for beauty brands looking to capitalize on these trends.
Consumer spending in the cosmetics industry will continue to grow despite the EU’s ban on 1,328 ingredients. Increased awareness about the dangers of sun exposure and growing demand for quality skin care products will drive the growth in this sector. This growth will be driven in part by increasing purchasing power of consumers in non-western countries, as well as by the emergence of non-western culture. Additionally, ethnicity and age are important factors in personal care shopping.
Men are increasingly interested in beauty and skincare products. In recent years, the industry has expanded to men, a demographic previously unrepresented in this industry. For example, popular make-up brands include Fenty Beauty, Armani beauty, L’Oreal, and ILIA beauty. Other emerging beauty segments include e-commerce-based make-up and skincare products. While this latter sector is growing rapidly, it is also the fastest-growing.
Competitive landscape
The global cosmetics industry is dominated by a few major international players, but the competition is intensifying among local companies and niche labels. The industry is also facing increased competition from local companies and niche labels, and alternative business concepts. Global beauty giants are responding to consumer demand for health-aligned and efficacious products by expanding their portfolios with dermocosmetic brands with a scientific backing. This type of product development is aimed at capturing a larger share of the industry.
The growth in demand for cosmetics is a clear indication of the growing popularity of the industry. The demand for these products is increasing, particularly for women, who are increasingly looking for affordable, effective, and healthy products. To satisfy the needs of the global market, manufacturers are focusing on improving the quality of their products by incorporating natural ingredients and enhancing their packaging. Products like cosmetic creams, lotions, hand sanitizer, perfumes, lipsticks, and nail polish are all examples of quality cosmetics.
Global sales of cosmetics products are estimated to be around $350 billion annually, with skin care products accounting for 30% of total market sales. The industry is constantly evolving, with new technologies, consumer preferences, and opportunities. The competitive landscape is characterized by three types of players: multinational companies, regional companies, and niche manufacturers. The competition within each segment is largely determined by geographical location. By region, North America holds the largest share in the cosmetics market, while Europe and Latin America are projected to experience the highest growth over the next few years.
The report provides detailed analysis of the global cosmetics market, focusing on key players, product categories, and distribution channels. The report highlights recent market trends and analyses key players and manufacturers. It also includes trends and analysis of the key players and their business strategies. Once you have a clear understanding of the competitive landscape, you can better plan your strategy for success. All the information in this report is designed to help you develop the best product for your target market.
According to Fortune Business Insights™ The global cosmetics industry Research provides a detailed analysis of several factors, such as the key drivers and restraints that will impact growth. Additionally, the Research provides insights into the regional analysis that covers different regions, contributing to the growth of the industry. It includes the competitive landscape that involves the leading companies and the adoption of strategies to introduce new products, announce partnerships, and collaborate to contribute to the industry growth.
