Beauty and Personal Care Products Market

Market Overview

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). 

Beauty and personal care products such as skin care, color cosmetics, and hair care are becoming integral to daily grooming among millennials. The market's expansion has been aided by the advent of cosmetics made with natural, non-toxic, and organic ingredients. The industry has grown in value sales due to the simple accessibility of these cosmetic products through numerous sales channels, including specialty shops, pharmacies, and beauty salons. Additionally, it is projected that there will be significant growth prospects due to the growing emphasis that male consumers are placing on skincare and grooming to improve their physical appearance and take better care of their skin. Growing financial commitments to creating innovative and competitive products also encourage market expansion.

Market Dynamics

Global Beauty and Personal Care Products Market Drivers:

Growth of Certified Organic and Natural Beauty Products

Due to growing consumer knowledge of the adverse effects of some chemicals, such as paraben and aluminum compounds found in skin care, hair care, and deodorants, the demand for natural and organic goods has increased in the beauty and personal care products market worldwide. 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.

The majority of firms are introducing products with natural components, such as premium botanical ingredients inspired by plants and those with multiple functions, as a result of the strong demand for natural ingredients. The primary factor driving the industry is customer demand for a presentable personal image, which also increases consumer awareness of personal hygiene practices. The region's demand for natural or organic products increased due to consumers' more significant attention to their health and cleanliness. These circumstances forced manufacturers to enhance their product lines to meet the constantly shifting needs of consumers.

Global Beauty and Personal Care Products Market Restraint:

Counterfeiting in the Cosmetics and Personal Care Sector

Consumers who purchase counterfeit cosmetics run a very high risk of developing allergies and irritations due to the use of inexpensive/synthetic components and the lack of licensed production facilities, laboratories with the necessary employees, or specialists. Since buyers mistake these fake goods for the real thing, this diluting of genuine brands is another effect of these counterfeit goods. As a result, the market's growing acceptance of fake goods impacts reputable businesses' sales and brand recognition. Additionally, luxury goods without warranties and with no resale value are increasingly being sold by unlicensed vendors. These sellers of counterfeit goods are exempt from paying federal excise taxes on their items. They can benefit more as a result than the original product's producers. Therefore, to solve this issue, established firms must sell their products at fair pricing by reducing profit margins, which impacts the expansion of the entire market under study.

Global Beauty and Personal Care Products Market Opportunities:

Inflated Demand for Damage Control Hair Products

Hair loss and an oily scalp are two of the many issues consumers encounter worldwide regarding hair care. These issues are primarily brought on by humid, hot weather, which causes people to wash their hair daily and strip it of its natural oils. The sebaceous glands generate more oil. As a result, they make the scalp greasy. Worldwide demand for damage-controlling hair care products such as shampoo, conditioner, hair oil, and various other products is significantly increased. As a result, many global hair care companies, including Emami, Parachute, and Garnier, gained a sizeable market share in the examined category by selling various damage-controlling hair care items. The players are implementing different marketing techniques to appeal to a more extensive consumer base and further improve their market share. Through an Instagram campaign, Vatika, a company that sells a variety of Hammam Zeit treatment products, raised awareness about the advantages of utilizing Hammam Zeit as a weekly hair care treatment.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global beauty and personal care products market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 6.38% during the forecast period. 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 because Indian consumers are becoming particular about care products, especially shampoos that are dermatologist-certified and are gentle to their hair. The most lucrative sector in India is the color cosmetics sector, which includes lip, face, and eye make-up categories. Due to the long-term skin health benefits of herbal/ayurvedic cosmetics, local businesses like the Shahnaz Husain Group only provide these products. China is one of the world's hottest spots and fastest-evolving beauty markets, which introduces ground-breaking breakthroughs and sets worldwide trends. A sizable portion of product launches was for claims including UV protection, long-lasting, moisturizing/hydrating, botanical/herbal, whitening, and anti-aging. Due to the widespread use of natural hair color to enhance hair styling and stylish statements, as well as the rising popularity of hair texturizing treatments, the market for hair care products with specialized functions (such as anti-aging) and natural hair colorants is expanding significantly.

Europe is expected to grow at a CAGR of 2.91% during the forecast period. Germany's demand for child sun care products is anticipated to rise as people take extra precautions to shield the sensitive skin of infants and children from prolonged sun exposure. The climate highly influences the demand for sun care products among adults. Many consumers, however, adopted a more comprehensive approach to sun protection, paying more attention to UV radiation levels and its potential effects on skin health and aging. Strong volumetric sales from nations like the Netherlands, Poland, Austria, Sweden, Belgium, Norway, and other European countries fuel the market for beauty and personal care items throughout the rest of Europe. The growing demand for better sun protection solutions is a result of increasing consumer demand for healthier, safer, and more effective sun protection, as well as published articles highlighting the risk of skin cancer from excessive sun exposure and the usage of lower SPF protection levels. In Sweden, pharmacy brands of sun care are successful, and more people are buying them at the expense of mass-market and pricier sun protection items.

The U.S. populace spends a lot of money on personal care items and is eager to test new goods, especially those that make clean-label and free-from claims. This is what propels the sales of self-care items in the nation. Due to this factor, most businesses choose the United States as their primary market. Women use facial makeup more frequently, which has been attributed to several factors, including anxiety over facial appearance, compliance with social norms, and public self-consciousness. They contend that facial makeup might make one appear more prestigious and in charge and healthier and likable. Le Teint, a division of French cosmetics company Lancôme, launched its custom-made foundation in Canada in 2017 to give customers a foundation base that is appropriately matched to their complexion. Offering 72,000 unique foundation combinations for every skin tone and type was the outcome of the company's collaboration with the R&D division of the L'Oréal Group to achieve excellent product quality and a broad product offering of personalized foundations.

South Africa is the most promising sector in color cosmetics, which includes make-up for the lips, face, and eyes. Due to its long-lasting health benefits on the skin, local businesses like Indigo Brands Limited and Connie Transform, among others, only offer herbal/ayurvedic cosmetics products. The market for vegan and cruelty-free beauty goods is anticipated to grow significantly over the coming years due to South Africa's startup sector's innovations in many industries. More than any other nation in the Middle East and ranked ninth globally, consumers in the United Arab Emirates spent USD 247 per capita on cosmetics and personal care. This shows that customers' preferences for high-end cosmetics are expanding. As a result, the market is anticipated to rise rapidly throughout the forecast period.

Segmental Analysis

The global beauty and personal care products market is segmented by product type and distribution channel.

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. Organic cleansers use the most potent herbs, clays, and fruit and vegetable extracts to deeply cleanse, heal, and nourish the skin without harsh chemicals. Businesses are putting their efforts into creating goods specifically made to meet the demands of different consumer groups, such as those with dry, sensitive, acne-prone, aging, oily, or normal skin. Additionally, it is projected that the market will rise in the following years due to a growing trend toward organic and natural products, particularly among younger generations with particular skin concerns and a heightened interest in innovative formulations due to social media exposure. Due to growing consumer knowledge of the adverse effects of specific ingredients, including paraben, silicone, sulfates, artificial dyes, and colorants contained in shower gels, there has been an increase in the demand for natural and organic products on the global market for shower gels. The market has seen substantial developments in the ingredients utilized, backed by numerous product launches by prominent producers to fulfill consumer demands in different formats. The key players' initiatives are further anticipated to fuel Beauty and Personal Care Products market expansion.

The category of facial cosmetics includes items like foundation, concealer, primer, bronzer, blush, and other things. Consumer preference is growing for the facial cosmetics market, particularly among working women. Additionally, light make-up kits are becoming more and more popular since they provide a natural, feminine appearance that consumers want. Retail shelves are now stocked with natural and cruelty-free products due to growing consumer demand for ecologically friendly products and shifting consumer attitudes about organic food and animal welfare. Due to the additional advantages of matte lipsticks, including their lengthy wear time and versatility, demand for them is growing more quickly globally. Younger consumers choose cream lipsticks because they combine the benefits of matte and lip gloss and come in various colors.

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 owns the highest market and is estimated to grow at a CAGR of 3.25% during the forecast period. Supermarkets and hypermarkets have consistently held a commanding advantage in the market for personal care and cosmetics sales. These channels have the added advantage of influencing the consumer's choice among the wide range of goods on the market thanks to their close vicinity, particularly in large cities and metropolitan areas. Due to the intense competition among the numerous types of beauty and personal care products sold on supermarket shelves, the producers are attempting to reposition their goods as premium goods packaged in premium packaging.

Some of the most effective methods for luring people into beauty and personal care items in convenience stores include reasonable/affordable offers, special pricing, and offering a wide range of helpful services, such as testing and sampling the products right away. Convenience shops now have a competitive advantage over the other channels in terms of brand awareness and retail spacing strategies because of these tactics. Convenience stores offer the perfect setting for beauty firms selling in developing nations to display their goods. Due to the enormous number of people who frequent these shops daily, brands can be noticed by a large audience there.

Based on category, the global beauty and personal care products market is bifurcated into mass and 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. Due to rising per capita spending on beauty products and significant growth in the number of women working and the employment rate for women, the market for mass beauty and personal care goods is anticipated to reach new highs during the projected period. Though the participants are attempting to add more natural/naturally positioned elements, which comes at a cost, the mass products market is impeded by chemical-based substances.

Premium beauty and personal care products are strongly preferred in market studies because they are thought to be manufactured from natural materials and lack any artificial additives. As a result, producers now have a fantastic opportunity to increase the range of products they sell to keep up with the current trend. A select group of well-known companies, including Unilever, Procter and Gamble Co., and other private-label brands, benefit from consumer interest in morally and environmentally responsible cosmetics and personal care goods. In addition, despite the existing wide-ranging product portfolios, they are concentrating on creating new products to keep consumers interested.

Recent Developments

• March 2022- Procter and Gamble made three acquisitions in the direct-to-consumer prestige beauty space in recent months: Skincare labels Tula, Farmacy, and hair care brand Ouai. 
• August 2022- The L'Oréal SA company's cosmetic branch primarily focused on skin care, hair care, make-up, hair colorants, and perfumes, generating almost 11 percent of L'Oréal's global cosmetic sales.