Cosmetics Market size was over USD 363.1 Billion in 2023 and is likely to reach USD 808.6 Billion by the end of 2036, witnessing around 6.9% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of cosmetics is evaluated at USD 388.1 Billion.
The reason behind this boost is credited to the increase in social media users owing to the increasing internet penetration, as they promote several cosmetic services and products. According to a Research Nester analysis, by the end of 2024, there will be more than 5.15 billion users of social media globally, with an annual growth rate of about 5.6%. Moreover, marketing on social media is one of the most used promoting methods used by various industries and companies.
Growth Drivers
Challenges
Base Year |
2023 |
Forecast Year |
2024–2036 |
CAGR |
6.9% |
Base Year Market Size (2023) |
USD 363.1 Billion |
Forecast Year Market Size (2036) |
USD 808.6 Billion |
Regional Scope |
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Product (Skin Care, Hair Care, Makeup, Fragrance)
Skin Care segment in the cosmetics market is poised to grow at over 5.2% CAGR between 2024 and 2036. The segment's tremendous growth rate can be propelled by increasing awareness and importance given to skin care. According to market analysis, in 2023, people spent about 27% of their wealth, which is about USD 50 to 99 per year on beauty and health products.
Moreover, there is a high demand for packaging applications anticipated by the slated demand for eco-friendly and sustainable packaging, as renewable, recyclable, biodegradable packaging attracts more businesses and consumers to reduce their environmental footprints. As per a research from 2023, more than 64% of consumers in the UK are estimated to purchase a product if its packaging is sustainable. Consumers are also willing to pay more in this sector owing to the environmentally friendly process and packaging of these products.
End-user (Men, Women)
Women segment is expected to dominate over 63% cosmetics market share by 2036, due to the increasing women population along with the transforming shift which is highly influenced by national and international celebrities such as Lady Gaga, Selena Gomez, Rihanna who own beauty brands such as Haus Labs, Rare Beauty, Fenty Beauty, and many more.
According to a report by the UN in 2023, the female population constitutes about 49.7% of the population worldwide. In addition, working women along with young girls are exploring new beauty solutions.
Distribution Channel (Offline, Online)
The offline segment in cosmetics market is predicted to be in dominating as in this sub-segment consumers have the authority to test, touch and physically see the products. When it comes to purchasing cosmetics, skincare, fragrances, and many more, allowing the buyers to assess and test its suitability, scent, and texture is their priority. Additionally, a 2023 report stated that offline retailers showed a slated growth rate of about 6% in their offline sales as compared to the sales in 2022.
Our in-depth analysis of the global market includes the following segments:
Product |
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End-user |
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Distribution Channel |
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APAC Market Statistics
Asia Pacific cosmetics market is set to hold revenue share of more than 40% by 2036. The market expansion in the region is expected on account of the slated increase in the aging population and improved lifestyle in this region. According to a report by the UN in 2023, Asia Pacific is predicted to be a home for about 60% of the population worldwide.
China's ever-growing middle-class population is estimated to grow the cosmetics industry in this region attributed to the fancy ingredients, and flexible packaging. According to a report in 2024, the middle-income population in China crossed 500 million, which is expected to grow to 60% by 2025.
In Japan, there is a surge in urbanization and increasing demand for anti-aging, dark spot treatment, and anti-wrinkle products. According to the International Trade Administration in 2021, the skincare products in Japanese cosmetics dominated the market revenue share by about 53%.
North American Market Analysis
By 2036, North American cosmetics market is likely to account for around 26% revenue share and will hold for the second position attributed to the increasing adoption of beauty enhancers and skincare products. According to a report in 2021, the overall sales for Loreal cosmetics showed a slated growth of about 25.1%, this made North America their primary growth contributor.
The consumers at the United States are more aware of their cosmetics being chemical-free and sustainable and free from intoxicated chemicals such as mercury, methylene glycol, formaldehyde, and many more, as they can cause severe damage to the skin. Researchers at Research Nester observed that, about 40% of cosmetic consumers demand natural ingredients in their personal and beauty care products. Additionally, about 17% look for recyclable and reusable packaging.
There is an increase in innovations in cosmetic products in Canada according to the demand of consumers. The beauty brand Faces Canada in 2023, launched a nail varnish range that are designed to complement Pride Month spirit using their rainbow hues.
Most of the companies are continuously collaborating, expanding, making agreements, and joining ventures for the growth of this sector and are estimated to be the major key players in this landscape.
Author Credits: Parul Atri
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