Global Beauty and Personal Care Products Market Grows Steadily at a CAGR of 4.35%

Introduction

Beauty and personal care products such as skin care, color cosmetics, and hair care are becoming integral to daily grooming among millennials. The introduction of cosmetics created with natural, non-toxic, and organic ingredients has also contributed to the market's growth. These cosmetic goods are easily accessible through various sales channels, such as specialized stores, pharmacies, and beauty salons, leading to increased value sales. The increasing importance that male consumers place on skincare and grooming to enhance their physical appearance and take better care of their skin is also expected to lead to considerable growth opportunities.

Market Dynamics

Growth of Certified Organic and Natural Beauty Products Drives the Global Market

The demand for natural and organic goods has grown in the beauty market and personal care products worldwide as consumers become more aware of the adverse effects of some chemicals, such as paraben and aluminum compounds found in skin care, hair care, and deodorants. Due to its use of only natural components, many customers prefer one brand over others. Recently, this has raised consumer demand for secure, all-natural, and organic deodorant products. Effectiveness, therapeutic benefits, and longer-lasting protection are considered when making purchases.

Natural components are highly sought after; as a result of which, most companies are releasing goods with natural ingredients, such as high-end botanical substances derived from plants and those with multiple uses. Customer desire for a presentable personal image, which also raises consumer knowledge of personal hygiene practices, is the primary driver of the industry. As consumers paid more attention to their health and cleanliness, the demand for natural or organic items in the area increased. Due to these circumstances, producers were compelled to expand their product offerings to satisfy consumers' desires.

Inflated Demand for Damage Control Hair Products Creates Tremendous Opportunities 

One of the many problems consumers face worldwide regarding hair care is hair loss. Another is an oily scalp. These problems are typically caused by humid, warm weather since it makes people wash their hair frequently, robbing it of its natural oils. The sebaceous glands produce more oil. They consequently make the scalp oily. The need for damage-reduction hair care items like shampoo, conditioner, hair oil, and other items has increased globally. Due to the availability of various damage-controlling hair care products, numerous international hair care firms, such as Emami, Parachute, and Garnier, increased their market share in the examined category. The players use various marketing strategies to appeal to a more extensive consumer base and increase their market share. Vatika, a business that sells a range of Hammam Zeit treatment items, used an Instagram campaign to spread awareness of the benefits of using Hammam Zeit as a weekly hair care treatment.

Regional Analysis 

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 6.38% during the forecast period. Indian consumers are becoming pickier about personal care products, especially dermatologist-certified shampoos and gentle on their hair. As a result, shampoo brands like Schwarzkopf and L'Oreal are introducing nutrient-infused shampoo with vitamin B3 to remove impurities while still being gentle enough for daily use. The color cosmetics industry, which comprises lip, face, and eye make-up categories, is the most lucrative one in India. Local companies like the Shahnaz Husain Group only offer herbal/ayurvedic cosmetics because of their long-term benefits for skin health. One of the world's most dynamic and hotly contested beauty markets, China introduces ground-breaking innovations and establishes global trends. Products with claims including UV protection, long-lasting, moisturizing/hydrating, botanical/herbal, whitening, and anti-aging made up a sizeable share of product launches.

Europe is expected to grow at a CAGR of 2.91%during the forecast period. As more individuals take extra steps to protect the delicate skin of newborns and children from prolonged sun exposure, there is expected to be an increase in the demand for child sun care products in Germany. The climate significantly influences the demand for sun care products among adults. However, many customers now take a more thorough approach to sun safety, paying closer attention to UV radiation levels and potential negative impacts on skin health and aging. The market for cosmetics and personal care products in the remainder of Europe is driven by robust volumetric sales from countries like the Netherlands, Poland, Austria, Sweden, Belgium, Norway, and other European states. In Sweden, pharmacy brands of sun care are popular and are being purchased increasingly frequently in place of mass-market and more expensive sun protection products.

Key Highlights

• The global beauty and personal care products market size was valued at USD 472.80 billion in 2022. It is projected to reach USD 693.60 billion by 2031, growing at a CAGR of 4.35% during the forecast period (2023-2031). 
• Based on product type, the global beauty and personal care products market is bifurcated into personal care products and cosmetics/make-up products. The personal care products segment is the highest contributor to the market and is estimated to grow at a CAGR of 4.35% during the forecast period.
• Based on distribution channels, the global beauty and personal care products market is bifurcated into specialist retail stores, supermarkets/hypermarkets, convenience stores, pharmacies/drug stores, online retail channels, and other distribution channels. The supermarkets/hypermarkets segment is the highest contributor to the market and is estimated to grow at a CAGR of 3.25% during the forecast period.
• Based on category, the global beauty and personal care products market is bifurcated into mass, premium. The mass segment is the highest contributor to the market and is estimated to grow at a CAGR of 3.22% during the forecast period.
• Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 6.38% during the forecast period.

Competitive Players

1. LOreal SA
2. Procter and Gamble Co.
3. Unilever PLC
4. Colgate-Palmolive Company
5. The Estee Lauder Inc.
6. Natura and Co.
7. Johnson and Johnson Inc.
8. Beiersdorf AG
9. Shiseido Company Limited
10. Oriflame Cosmetics Global SA.

Recent Developments

• April 2024 - According to a regulatory filing by the business, Cipla Health Limited (CHL), the wholly-owned subsidiary and consumer healthcare arm of Cipla, will pay Rs 130 crore to acquire the global distribution and marketing business of Ivia Beaute Pvt Ltd for cosmetics and personal care products, including the latter's brands Astaberry, Ikin, and Bhimsaini. CHL signed a business transfer agreement (BTA) to acquire Ivia Beaute. Cipla said on Monday that the decision aligns with its goal of expanding its consumer healthcare and wellness products line.
• May 2024 - Tira, a new business by Reliance Industries Ltd., announced that they are relying on artificial intelligence capabilities to attract clients and outperform competitors in the rapidly growing Indian beauty market by suggesting perfumes or cosmetics. According to Tejas Kapadia, head of marketing at Tira, a year-old startup with 12 stores across India and a website, the company, which was founded by billionaire Mukesh Ambani's conglomerate in April of last year, also uses electronic vending machines in its stores to give away free samples of skincare products.

Segmentation

1. By Product Type
   1. Skin Care
   2. Hair Care
   3. Color Cosmetics
   4. Fragrances
   5. Others
2. By Distribution Channel
   1. Specialist Retail Stores
   2. Supermarkets/Hypermarkets
   3. Convenience Stores
   4. Pharmacies/Drug Stores
   5. Online Retail Channels
   6. Other Distribution Channels
3. By Category
   1. Mass
   2. Premium