Hand Cream Market

Market Overview

The global hand cream market size was valued at USD 484.1 million in 2022. It is expected to reach USD 838.9 million by 2031, growing at a CAGR of 6.3% during the forecast period (2023–2031).

Hand cream is a high-end cream that keeps hands hydrated, soft, and smooth for a longer time. In addition to repairing hand cream, protective hand cream, hand cream with SPF, scented hand cream, unscented hand cream, and others, there are numerous hand cream variations on the market. Due to increased consumer awareness of the benefits of moisturizing hands after washing and sanitizing them, the market is expanding exponentially. Additionally, the expansion of distribution channels, including online shops, grocery stores, hypermarkets, specialty shops, and others, has made these hand creams more readily available to consumers, supporting the expansion of the market.

Highlights

• The repair hand cream segment is the highest contributor to the market by product type
• The female segment is the highest contributor to the market by demographics. 
• The generation x segment is the highest contributor to the market by age group.
• Asia-Pacific is the most significant revenue contributor by region.

Market Dynamics

Global Hand Cream Market Drivers

Rising Awareness of the Benefits of Moisturizing Hands

The importance of hygiene and routine hand washing has increased among consumers in recent years. Consumers must now understand the importance of moisturizing their hands after washing them. Customers are now more interested in hand creams that help to moisturize hands and keep them soft and supple because they are concerned about the damaging effects of frequently using soap on their hands. The dryness that results from constant hand washing has increased the demand for hand care products. In turn, this has fueled the market's expansion in terms of value sales.

Increase in the Number of Working Women

According to the catalyst, the percentage of working women worldwide in 2019 was 39.0%. The number of working women worldwide is increasing, a significant market driver for hand cream. Since women are the primary consumers of hand care products, the number of working women and their increased purchasing power are to blame for the rise in female spending on upscale personal care items like hand cream. The market for hand cream has grown in terms of value sales as a result of this.

Global Hand Cream Market Restraints

Expensive Hand Cream

The hand cream has a high price because it contains an expensive ingredient. They are additionally anticipated to restrain the market for hand cream from expanding. Consumers are generally less brand loyal and more price sensitive, despite their willingness to pay for branded or premium goods. As a result, during the forecast period, sales volume growth of the market is anticipated to be constrained.

Global Hand Cream Market Opportunities

Increase in Demand for Skincare Products Made with Sustainable and Safe Ingredients

The market demand for hand cream made from natural ingredients has increased due to the growing demand for transparent manufacturing practices, the labeling of ingredients by manufacturers, and consumer preferences for hand care products made from natural ingredients. As consumers continue to adopt sophisticated skincare routines, companies like Himalaya produce various variants of hand cream with natural ingredients. Thus, during the forecast period, this will present a significant opportunity for the market's growth in value sales.

Regional Analysis

The global hand cream market is segmented by region: North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 5.6% during the forecast period. China, Japan, India, ASEAN, Australia and New Zealand, and the rest of Asia-Pacific are all included in the Asia-Pacific market analysis. During the forecast period, the Asia-Pacific market is anticipated to grow at the highest CAGR. Due to the massive demand for skin care products and numerous hand cream manufacturers in this region, the market in the Asia-Pacific is anticipated to expand significantly over the forecast period. The demand for hand cream has also increased due to increased consumer awareness of the benefits of moisturizing hands after washing and sanitizing them during an outbreak of the coronavirus disease. Additionally, the success of high-end skincare products, particularly in the anti-aging category, benefits the Asian skincare market. The market for anti-aging hand cream is then expected to benefit significantly from this during the forecast period.

North America is expected to grow at a CAGR of 7% during the forecast period. Mexico, Canada, and the United States all research the North American market. The region's market is growing due to increased hand washing frequency and rising consumer awareness of the advantages of hand cream. Consumers are increasingly interested in hand cream to keep their hands hydrated because of the coronavirus disease outbreak. This is because the skin on our hands becomes dry and rough from frequent washing and hand sanitizing. In terms of value sales, this fact has a sizable impact on expanding the market for hand cream in this area. Additionally, the growing use of smartphones and the internet positively affects the e-commerce industry, supporting regional hand cream sales online. Additionally, manufacturers have introduced new, inventive, organic, and various hand cream variants into the market as a result of rising personal wellness and appearance consciousness among consumers in this region. This is expected to support market growth in this region over the forecast period.

The hand cream market in the U.K., Germany, France, Italy, Spain, Russia, and the rest of Europe are all examined. The growth of the hand cream industry has aided the overall expansion of the European skincare market. In Europe, cosmetics for decorative purposes are growing at the fastest rate. Additionally, Europe will be a potential market for introducing fresh innovations in the personal care and beauty sector, including the market. Due to a rise in the European population's interest in unique care products, the market for hand cream is expanding rapidly in Europe. Additionally, as European consumers' disposable income rises, they can spend more on high-end goods like hand cream, which has fueled the market's expansion. Further, this region's overall hand cream sales are driven by the consistently rising consumer demand for skin care products. Additionally, during the forecast period, there is expected to be a significant opportunity for the market in value sales due to the rising demand for natural skin care products and male grooming items.

Brazil, Saudi Arabia, South Africa, Turkey, and the rest of LAMEA are all included in the LAMEA market analysis. It is anticipated that hand cream usage in LAMEA will increase significantly during the forecast period. Customers in this area are happy with prolonged skin hydration. Additionally, consumers in this region are more inclined to take good care of their bodies, with many using products like hand cream. This will likely fuel the market for hand cream during the anticipated growth period. Additionally, the official recommendations for customers to wash their hands or use hand sanitizer to clean their hands to stop the spread of COVID-19 have also fueled the demand for hand cream in this area as customers' hands dried out as a result of washing/sanitizing hands.

Segmental Analysis

The global hand cream market is segmented by product type, demographics, age group, and distribution channel.

Based on product type, the global market is bifurcated into repair hand cream, anti-aging hand cream, whitening hand cream, and overnight hand cream.

The repair hand cream segment is the highest contributor to the market and is expected to grow at a CAGR of 5% during the forecast period. Glycerin, niacinamide-rich shea butter, vitamin F, Omega-3 and -6, and other ingredients are found in repair hand cream, a moisturizing cream. It aids in moisturizing and repairing parched hands and offers hands a barrier of defense against dehydration and skin tears. As a result, the tightness and dryness of the hands are immediately relieved, leaving the hands soft and hydrated for hours. The increased use of hand sanitizer and hand washing throughout the day due to increased consumer awareness of maintaining hygiene has harmed hand skin. Additionally, exposure to extreme weather conditions during summer and winter has resulted in several dermal problems like excessive irritation, dryness, and hand rashes. Due to the convergence of these two facts, consumer demand for skin repair products has increased, which has boosted the need for effective repair hand cream globally.

Anti-aging is the process of preventing the signs of aging through various goods and services. Most anti-aging hand creams are moisturizer-based skin care products that make the user appear younger by concealing, reducing, or preventing the telltale signs of skin aging on their hands. The demand for anti-aging products, such as anti-aging hand cream, has increased as consumers' awareness of physical appearance has increased across the globe. These products can reduce scars and wrinkles on hands. The product's simplicity in moving through different distribution channels, such as online stores, specialty shops, and others, contributes to the increase in demand. To give their skin a better complexion, more excellent softness, and a more youthful appearance, middle-aged and older consumers are rapidly increasing their demand for anti-aging hand cream.

Based on demographics, the global market is bifurcated into male and female.

The female segment is the highest contributor to the market and is expected to grow at a CAGR of 5.9% during the forecast period. Worldwide, 49.6% of people are women. Cosmetics and skincare products are essential for women's daily grooming. Skincare products keep skin soft, smooth, wrinkle-free, and radiant In 2019, 39.0% of working women worldwide, according to catalyst. Higher education levels for women, exposure to foreign cosmetics and skincare brands, and knowledge of skin care basics favor market players. This rise in working women drives the market. As the working women's population grows, so does their purchasing power. This boosts women's demand for hand cream. The rise in the number of women worldwide and their preference for naturally derived skin care products, such as hand cream, is expected to boost market growth during the forecast period.

In the entire world, men make up 50.4% of the population. Manufacturers are prioritizing the launch of new products in the skincare category because male consumers are no longer restricted to using traditional men's grooming products like beard grooming oil, beard shampoo, and aftershave lotion. Various profoundly nourishing skin care products, including lotions, creams, and oils, have also been introduced to the market due to the rise in interest among male consumers in skin care products. In addition, men are more likely than women to develop whiteheads, blackheads, and acne because of a busy lifestyle and hot, humid weather.

The global market is bifurcated based on age group into generation x, baby boomers, millennials, and generation z.

The generation x segment is the highest contributor to the market and is expected to grow at a CAGR of 5.1% during the forecast period. The term "Generation X" refers to people over 40. Most Generation X customers favor traditional retail or specialty shopping. These consumers research products before making purchases, then decide whether to buy them based on the advice of others. The growth of the market is anticipated to be significantly aided by the expansion of physical retail stores. Consumers in Generation X have strong purchasing power and favor retail brand stores for their products because they offer a better shopping experience and better value. Additionally, because people in this age group place a high value on appearance, products like anti-aging creams and other creams that delay the aging process and enhance skin radiance are more popular with this generation.

People between the ages of 26 and 40 are considered millennials, also known as generation Y. The largest generation of young people purchasing skin care products is millennials. These customers are also tech-savvy and eager to try new products, making them the ideal target market for emerging players. Additionally, because they are pickier, they are seen as demanding, which increases the demand for customized skin care products. Social media sites like YouTube and Facebook are crucial to the market's expansion because millennials prefer content marketing to traditional advertising when learning about products.

Based on the distribution channel, the global market is bifurcated into supermarkets/hypermarkets, specialty stores, beauty salons, pharma and drug stores, and online stores.

The supermarket/hypermarket segment is the highest contributor to the market and is expected to grow at a CAGR of 4.9% during the forecast period. A supermarket is a sizable retail setting where customers can buy items logically arranged on the shelves. Products are arranged close together to make it simple for customers to compare items and decide which product to purchase. A hypermarket is also a sizable shopping center divided into a department store, typically more significant than a supermarket in terms of size. The market for skin care products has benefited more from the distribution of skin care products through supermarkets and hypermarkets. The advantage explains that consumers must be able to compare various skin care products according to their preferences. Additionally, the presence of store associates who can assist customers in selecting the appropriate product and offer product knowledge supports the segment's growth.

Retail establishments known as specialty stores specialize in selling a broad range of cosmetics, personal care, and related products. In addition to offering higher service standards and knowledgeable advice to customers, specialty store business operators maintain considerable depth in the type of product that they specialize in selling, typically at premium prices. Consumers are becoming more preoccupied with product quality than brand loyalty, which hurts beauty-specific retailers and positively impacts mass-market brands. Retail sales of skin care products through specialty stores are increased because specialty consumers typically prefer to research and evaluate a product before making a purchase.

Recent Developments

• March 2022- The skin care company Beiersdorf and World-Wide Fund for Nature (WWF Germany) expanded their collaboration and formed a strategic alliance. In addition to focusing on the crucial issue of climate protection, the partnership, which will initially last for three years, also focuses on regenerative water environments and fully circular resources, helping to promote a circular economy.
• September 2022- Coty, one of the biggest beauty companies in the world with a recognizable portfolio of brands, expanded its strategic alliance with Cruelty-Free International, the major international group fighting to end animal testing.