Facial Serum Market

Market Overview

The global facial serum market size was valued at USD 5.5 billion in 2023 and is projected to reach USD 9.7 billion by 2032, registering a CAGR of 6.5% during the forecast period (2024-2032). The global use of face serums is driven by a growing understanding of skincare routines and the significance of utilizing high-quality ingredients to achieve superior skin outcomes.

A face serum is a concentrated, lightweight, and quickly absorbed liquid product that delivers a powerful blend of active ingredients directly into the deeper layers of the skin. Compared to conventional creams or lotions, these serums have a greater concentration of performance-enhancing ingredients, such as antioxidants, peptides, vitamins, and botanical extracts. Their main objective is to address skin issues like fine lines, wrinkles, hyperpigmentation, dryness, and acne while encouraging skin health and renewal. 

The need for clean beauty products, particularly face serums, is driven by consumer preference for natural and organic ingredients. The use of face serum is being driven by two main factors: the increasing worldwide aging population and a growing awareness of the need to safeguard and preserve healthy skin. Facial serums are formulated with potent chemicals, including retinol, hyaluronic acid, and vitamin C, effectively addressing specific skin issues.

Key Highlights

• Anti-aging serums generate the highest revenue share based on type. 
• Water-based accounts for the largest market share by form.
• Mass-market accounts for the largest market share by price point.
• Supermarkets and hypermarkets account for the largest market share by distribution channel.

Market Dynamics

Global Facial Serum Market Drivers

Heavy Investment and Advancements in Skincare Technology

Manufacturers are investing significantly in research and development to provide cutting-edge, cost-effective, and environmentally friendly clean-label skincare products that efficiently preserve skin health. Consumers are progressively searching for skincare remedies customized to their requirements and worries. Facial serums provide a focused approach, containing potent ingredients that can effectively tackle several issues, such as wrinkles, acne, hyperpigmentation, and dryness.

In February 2021, Swissforce Pharma AG introduced a novel facial serum designed to address the appearance of fine lines and wrinkles particularly. This recently introduced serum features an exclusive blend of 2% hyaluronic acid with low molecular weight, a collagen booster, retinol, collagen, and sweet iris stem cells. The serum effectively diminishes the visibility of wrinkles and fine lines while enhancing skin elasticity by densifying and tightening the skin.  These product introductions assist cosmetics firms in redefining their product strategy and meeting the needs of consumers seeking personalized skincare routines for specific skin issues and goals.

Additionally, progress in skincare technology has resulted in cutting-edge serums incorporating ethically sourced ingredients, advanced technologies, environmentally friendly packaging, and distinctive delivery methods. The encapsulation technique safeguards vital chemicals from deterioration and guarantees precise distribution for maximum effectiveness.

In October 2023, Plum Goodness, an Indian beauty brand that is 100% vegan and cruelty-free, introduced a new collection of products. This line encompasses hair care and beauty items, such as face serums, creams, sunscreens, moisturizers, lipsticks, mists, and monsoon hair care products. The 2% Encapsulated Salicylic Acid Face Serum contains pear extracts abundant in amino acids and potent antioxidants. These components aid in enhancing skin suppleness and strengthening the skin barrier.

Global Facial Serum Market Restraint

Increasing Number of Domestic and Niche Brands

The growing presence of domestic and niche brands poses a substantial obstacle to facial serum market expansion. The product endorsement cycles of established enterprises are often prolonged by cost-effectiveness and consumer loyalty. However, several local and specialized brands encounter competition from companies that operate in certain areas and provide products tailored to meet the specific requirements of consumers. Due to their apparent understanding of local consumers, their preferences, and their particular skin concerns, domestic brands are highly favored. As a result, numerous well-known brands compete for limited shelf space in big specialty stores, hypermarkets, and supermarkets.

Consequently, local cosmetics firms like Lotus Herbals and Jovees have many stock-keeping units (SKUs) for skincare goods in hypermarkets and supermarkets in India. Lotus Herbals offers a variety of skincare, sun care, hair care, and makeup products for both retail and professional markets in India. On the other hand, Jovees has a collection of approximately 125 skin, body, and hair care products extensively researched, developed, and manufactured at their advanced facilities in Noida and Rudrapur, India. Hence, increasing local and specialized brands can be a significant obstacle that could impede the market's expansion in the projected timeframe. 

Global Facial Serum Market Opportunity

Growing Prominence of Social Media Influencers

The increasing significance of social media influencers is a developing pattern influencing the market's growth. The swift proliferation of the internet and smart devices has been instrumental in the increasing significance of digital media as a primary communication and marketing platform. In advanced economies, skincare serum producers allocate resources towards social media campaigns in the United States to promote their products and expand their marketing efforts. Due to the widespread popularity of social media influencers in various countries, famous corporations like L'Oreal have formed strategic agreements with these influencers, specifically for their beauty and makeup goods. Recently, micro-influencers with follower counts ranging from 2,000 to 50,000 on various social media platforms have gained prominence as influential figures in the worldwide facial serum market. These individuals specialize in specific areas of interest, topics, or markets.

As a result, corporations like L'Oreal and Estee Lauder choose to invest in micro-influencers rather than expensive celebrity sponsorships. Micro-influencers are increasingly replacing celebrities as the chosen communicators for face cream goods due to their engaged fanbase, lower price point, more authenticity, and ease of marketing. Hence, the rising popularity of social media influencers is expected to bolster the growth of facial serum market in countries like India and China. Consequently, the increasing significance of social media influencers will propel the market's expansion throughout the projected timeframe.

Regional Analysis

The global facial serum market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Europe Dominates the Global Market

Europe is the most significant global facial serum market shareholder and is estimated to grow at a CAGR of 6.2% over the forecast period. Germany, France, and the UK are prominent participants, motivated by substantial discretionary incomes and well-established beauty regimens. The demand for facial serums made from natural and organic ingredients is being driven by the desire of customers in this region to pay a higher price for premium and luxury cosmetic products.  Euromonitor's Beauty Survey reveals that German participants seeking skincare products with "natural" attributes rose from 11% in 2021 to 13% in 2023. In 2022, the number of "natural" claims in the online SKUs of skincare products accessible in Germany experienced a 31% increase. Furthermore, the rise in skin care concerns and the expanding senior population have resulted in investments in proactive skincare products. Serums are now seen as focused remedies for issues such as aging, acne, and hyperpigmentation. 

Asia-Pacific is anticipated to exhibit a CAGR of 6.9% over the forecast period. The region encompasses many races and skin types, leading to many skin Issues. Sun damage and hyperpigmentation are widespread in Southeast Asia, but dryness and aging are frequent in Japan and South Korea. Consequently, versatile facial care serums are increasingly needed to target these issues. Prominent producers are creating efficient items to meet this demand. In August 2023, the Pink Foundry introduced Face Serum. This concentrated serum blends 12% Niacinamide and 3% PAD solution with skin-soothing ingredients like Green Tea and Liquorice – perfect for everyday use to give clear, blemish-free, healthy skin.

North America is a significant regional market. North American clients are increasingly embracing the trend of clean and natural beauty products. Technological advancements stimulate innovation in delivery systems, increasing the demand for facial serums and enhancing the market's potential for growth. Consequently, many companies are entering the market to offer state-of-the-art, natural products. This creates lucrative opportunities for growing investment possibilities in brands of organic face serums.

Segmental Analysis

The global facial serum market is segmented based on type, form, price point, and distribution channel.

Based on type, the market is categorized into anti-aging serums, skin-brightening serums, acne-fighting serums, hydrating and exfoliating face serums, and others.

Anti-aging serums dominated in 2023. The increasing elderly population in numerous countries has led to a continuously expanding need for anti-aging products, including serums and lotions. Consumers are becoming more aware of the significance of preventive skincare and taking proactive steps to combat aging. Moreover, the impact of celebrity endorsements and the effect of social media trends have significantly shaped consumer behavior, resulting in an increased demand for anti-aging serums.

The skin brightening serums segment is the fastest growing. Hyperpigmentation induced by sun exposure, acne scars, and hormonal changes is becoming increasingly problematic. Consequently, individuals seek efficient remedies to tackle skin tone irregularities, black patches, and hyperpigmentation. Skin-lightening serums are becoming increasingly popular due to their ability to provide precise and focused effects. Customers increasingly favor natural and organic skincare products, leading to the popularity of skin-brightening serums that contain botanical extracts and mild components such as vitamin C and Niacinamide.

Based on form, the market is classified into Oil Based, Gel Based, Water Based, and Others.

Water-based facial serums dominated the market in 2023. Water-based serums contain humectants like hyaluronic acid and glycerin that attract and retain moisture, resulting in plump and hydrated skin. Due to their lightweight texture and lack of oil, these products are ideal for preserving a well-balanced complexion. They may be effortlessly combined with other skincare items, such as moisturizers and sunscreen, without clumping or discomfort. In addition, numerous skincare manufacturers are developing serums with a water-based formula that explicitly addresses specific issues, including brightening, firming, and minimizing pores.

The oil-based facial serum segment is the fastest growing. The increasing demand for skincare products made from natural and plant-based ingredients is entirely in line with the popularity of oil-based serums.  Moreover, open and transparent communication regarding the precise oils utilized, their advantages, and any sensitivities fosters consumer confidence and empowers them to make well-informed buying choices. Erwachen introduced their Black Bee Honey and Alpine Rose Magical Facial Oil Serum in March 2020. This serum is made with essential oils, including Rosa alba, Rosa damascena, carrot seed oil, and patchouli leaf oil, giving it a luxury touch. They incorporate essential oils into skincare routines to preserve the skin's suppleness and firmness, slowing aging. Furthermore, the rising consumer inclination towards superior facial serums has resulted in a surge in the readiness to invest in luxury items.

The distribution channels divide the market into Supermarkets and Hypermarkets, Drugstores and Pharmacies, Specialty Beauty Stores, Online Retailers, and Others. 

Supermarkets and hypermarkets dominated in 2023. Supermarkets and hypermarkets possess an extensive array of stores strategically situated in handy areas, facilitating convenient access to their items for diverse clients. This is especially advantageous for individuals who prefer in-person shopping or make impulsive purchasing decisions.

Additionally, promotional efforts and strategic placement on shelves alongside related products, such as moisturizers and cleansers, can significantly enhance the effectiveness of facial serums. This enhances their prominence and stimulates purchases. In September 2022, Derma E introduced its dermatologist-endorsed Vitamin C line at Walmart shops, featuring their best-selling vitamin C concentrated serum brand. Implementing this plan would enable the company to expand its customer base nationwide and increase its facial serum market share in the face serum industry.

Online retailers are the fastest growing. Online retail platforms provide a more extensive range of serums than physical retailers. They effortlessly accommodate various wants and preferences while giving cost-effective prices due to decreased operational expenses. This appeals to cost-conscious consumers and stimulates price rivalry. Online purchasing offers round-the-clock access to a wide range of serums from international companies, surpassing the constraints of geographical location and the availability of physical stores. The COVID-19 epidemic has boosted segment growth due to the more significant impact of social media and the desire for online purchasing.

The market is fragmented by price point into Mass-Market, Premium, and Luxury.

The mass-market segment dominated in 2023. Mass-market serums have become more widely available due to their competitive cost and enormous product volumes, making them accessible to a broader range of consumers. This appeals to cost-conscious consumers or individuals who want to try out serums before committing to high-end choices. Mass-market companies are progressively integrating inventive components and technology, such as encapsulated retinol or plant-derived substitutes, to narrow the divide with high-end serums while still reasonably priced. Furthermore, the younger generation, consumers who prioritize value, and people new to serums are the most inclined to be attracted to mass-market choices, leading to a significant demand for these skin serums.

The luxury segment is the fastest growing. Luxury serums include cutting-edge components like plant-derived stem cells, marine collagen, and biocompatible peptides, which are in higher amounts than mass-market products, guaranteeing superior outcomes. Prestigious brands are progressively embracing sustainable methodologies, responsibly procured components, and employing eco-friendly packaging, attracting environmentally aware consumers.

The premium segment is the second largest. High-end face serums are showcased in an elegant and visually appealing packaging. Brands in the premium market openly disclose the scientific studies supporting their goods, instilling confidence in consumers regarding the effectiveness and outcomes of the serums.

Recent Developments

• March 2024 - L'Oréal Groupe introduced MelasylTM, an innovative compound specifically developed to target and treat specific areas of pigmentation, such as age spots and post-acne markings. Based on a significant global epidemiological study on pigmentary disorders, it was found that 50% of individuals experience at least one skin pigmentation issue. L'Oréal formulas incorporate the novel proprietary component function inclusively, regardless of skin tone, to target pigmented markings on the skin and enhance their visual aspect. Melasyl is the outcome of meticulous examinations encompassing 121 scientific investigations.
• January 2024 - VLCC, a leading company in the beauty and wellness sector and India's facial specialist, launched India's first-ever collection of serum facewashes. This range consists of 8 distinct varieties enriched with Salicylic Acid Serum, Vitamin C Serum, and Hyaluronic Acid Serum.