The global cosmetics market is anticipated to witness significant growth in the coming years owing to growing need for anti-ageing products among men and women. Cosmetics are products or substances used by humans to enhance their appearance. Cosmetics are used for different purposes, such as cleaning and conditioning. Manufacturers are expected to introduce cosmetic products for both men and women as per their needs and skin types.
Skin-care products include creams, face masks, and peels, which reduce wrinkles and add freshness to an individual’s skin. Shift in consumer preferences from chemical based products towards organic and natural cosmetics can impel market growth as former can cause side effects, such as rashes and itching. Herbal based products are free from harmful chemicals and offer no side-effects. Low consumption of products containing phthalates, aluminum salts, and parabens can boost demand for organic and sustainable products. Hence, manufacturers are likely to produce natural products to gain traction among consumers, which can augment market growth in the coming years. Moreover, overall rise in GDP across various regions has led to an increase in disposable income among individuals, which could, in turn have a positive impact on market growth.
Irregular supply of raw materials used to make organic cosmetic products can hamper market growth. In addition, high cost of herbal or bio products can also obstruct growth of market in the coming years. However, rising adoption of R&D activities among manufacturers to develop natural products at lower cost can create lucrative opportunities for the market.
The market can be segregated on the basis of product type and distribution channel. Skin care, makeup and color, hair care, bath and shower products, and fragrances and deodorants are the key product types in the market.
North America is a leading region in the market owing to growing consumption of skincare products, which could be attributed to increasing number of working women. Working women are expected to use various skincare products to maintain their physical appearance, which could, in turn boost demand for cosmetics in the region. United States is a key contributor to regional market growth owing to presence of leading market players, such as Procter & Gamble, Revlon, and MAC. Moreover, presence of effective distribution channels, such as Tesco and Walmart, can have a positive impact on market growth. These mass outlets are likely to offer ample scope to manufacturers for merchandising their products, which could, in turn boost sales and increase market revenue. Launch of new and bio-based skin care products can further impel market growth in the region. For instance, Revlon launched PhantoGel, a new beauty product designed for women who do not wear makeup and are comfortable with their natural beauty. In addition, this translucent gel suits all skin types and is easy to apply.
Europe is likely to account for a prominent share in the market over the coming years due to increasing use of personal care products in countries, such as Germany, France, and United Kingdom. In addition, rising consumption of skincare products, such as soaps, shampoos, and sunscreens, among consumers on a daily basis to protect their skin can stimulate growth. Increasing R&D investments by manufacturers to develop new and advanced products can also propel regional market growth. Moreover, presence of major players, such as L’Oréal, offering a wide range of beauty products is anticipated to have a positive impact on market growth. For instance, the company launched its Disney makeup collection that includes eyeliner, eyeshadow palette, mascara, nail polish, and lipstick.
Asia Pacific is expected to emerge highly lucrative owing to rising demand for skincare and personal care products, such as sun screen lotions, face wash, facial wipes, and hair styling gels. Growing concerns for physical appearance among men and women is also likely to propel regional market growth. China is expected to hold a prominent share in the market in terms of skin care and sun care products. In addition, growing need for organic products among consumers can increase use of organic ingredients in cosmetic products. Hence, manufacturing companies, such as Skin Food, Himalaya, and Biotique are introducing natural products. For instance, Biotique offers a foaming face wash that is 100 percent soap-free gel blended with pure honey and extracts of Arjun tree, wild turmeric, and euphorbia plant.
Some of the leading companies operating in the cosmetics market are Procter & Gamble, Revlon, Loreal International, Maybelline, and Lakme.
Research Support Specialist, USA