Cosmetics & Personal Care Industry

The cosmetics and personal care sector is expected to grow in all segments in the next years. Sun protection and anti-aging goods are likely to see particularly high development as customers become more aware of the dangers of sun exposure and more concerned with maintaining a young appearance. Emerging markets hold enormous promise for foreign corporations, as they can provide higher-quality products to populations with rising income levels than can be supplied domestically.

• BEAUTY & PERSONAL CARE GLOBAL MARKET SIZE: 500bn USD
• MOST VALUABLE COSMETICS BRAND: L'Oréal Paris
• LEADING COSMETICS MARKET: Asia-Pacific

Consumers are more interested in product performance and ingredients utilized as their income rises, rather than cheaper products. As a result, rather than systematically striving to undercut market pricing, manufacturers focus on selling their products as superior to those of competitors. Cosmetics and personal care have moved online as a result of digitalization and the coronavirus epidemic, giving buyers access to a wide range of items, reviews, and delivery options.

The cosmetics and personal care market is usually divided into five main business segments: skincare, haircare, make-up, fragrances and toiletries. These segments are complementary and through their diversity able to satisfy all consumers’ needs and expectations with regard to cosmetics. Beauty products can be subdivided into premium and mass production segments, according to the brand prestige, price, and distribution channels used. As in many other consumer goods industries, natural and organic cosmetics and personal care products are widely available to consumers and make up a large share of the market.

Some of the market leaders within this industry include L'Oréal, Estée Lauder Companies, Proctor & Gamble, Beiersdorf, and Shiseido.

MARKET SIZE

Beauty and personal care market grows steadily year-on-year

The global beauty and personal care market was estimated to be worth around 500 billion U.S. dollars in 2019. This is an increase of around 87 percent since 2005, when the market was worth approximately 267 billion U.S. dollars. The ongoing growth of the industry displays the consumer's sustained interest in beauty and cosmetic regimes, as well as in basic personal care and hygiene practices.

MARKET SEGMENTS

Skincare makes up the largest share of the market

Skincare products made up 40 percent of the total global cosmetics market in 2019. Haircare and make-up ranked in second and third places, with market shares of 21 percent and 18 percent, respectively.

Skincare's share of the total cosmetics market has increased in recent years; the industry has witnessed a shift from demand from older consumers to a growing younger consumer base. People are beginning to use skin care at an increasingly young age in a bid to delay the signs of aging.

INDUSTRY TRENDS

All-natural products are important to consumers

Over 50 percent of surveyed U.S. households stated that they already buy all-natural skin care products, while some 35 percent want to start buying them. Other natural skin care product claims which were important to consumers included being free of synthetic chemicals, sustainable, organic, and plant-based. This trend follows one seen across many consumer goods categories - consumers are shopping in a more sustainable way.

INDUSTRY LEADERS

L'Oreal is ranked as the top global beauty manufacturer

L'Oreal's worldwide revenue totaled over 33 billion U.S. dollars in 2020, over 10 billion U.S. dollars more than their closest competitor - Unilever. Other leading beauty manufacturers include Estée Lauder Companies and Proctor & Gamble.

Founded in 1909, the L'Oréal Group has become the largest cosmetics and beauty company in the world. Globally, the company employs almost 88,000 people. Around 30,000 employees are located in Western Europe and just under 15,000 in North America.

REGIONAL OVERVIEW

The U.S. dominates the market

The United States takes the top spot for the largest beauty and personal care market globally, with a market value exceeding 93 billion U.S. dollars. China's market amounted to around 71 billion U.S. dollars, placing them in second place. Other key players in the market include Japan, Brazil, and Germany.

ADDITIONAL REPORTS & MARKET OUTLOOK (COVERING A BROAD RANGE OF SECTORS):

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