High Costs of Skin Care Products to Hamper the Market Growth
The competition in skin care products market and the rising costs of products as a result of this is estimated to restrain the market growth in the coming years. The cost of organic and good quality products is high which is predicted to lead to a decreased customer base and therefore limit the market growth further.
The skin care products market is anticipated to record a CAGR of around 5.5% over the forecast period, i.e., 2019-2027. The market is segmented by product, by application, by distribution channel and by region, out of which, the product segment is further segmented into cleansers, exfoliators, face masks, body lotions, moisturizers, sunscreens, anti-ageing creams and others. The anti-ageing creams segment is estimated to grow as a result of growing ageing population and the anti-wrinkle and sun protection properties of the creams. On the basis of application, the market is bifurcated into face and body, out of which, the face segment is predicted to observe the highest market growth. This can be attributed to a larger demand for skin care products for face as compared to the body care products. Based on distribution channel, the market is segmented into supermarkets, general stores, pharmacies, online stores and others. The online stores segment is estimated to grow at the highest rate during the forecast period on account of rising preference of people for buying products online rather than from the stores.
Innovations in Skin Care Products to Boost the Market Growth
The growing demand for skin care products among both men and women is estimated to result in various innovations in order to create better and more effective products. There is a high demand for products that are ammonia, sulphur and parabens-free, which is further estimated to contribute towards the market growth over the forecast period. CLICK TO DOWNLOAD SAMPLE REPORT
Rising Awareness about Chemical-Free Products to Propel the Market Growth
The growing awareness among people about the benefits of using natural and organic products over chemicals-containing products is predicted to raise the demand for natural skin care products. For instance, the increasing awareness about the harmful effects of the UV rays and the need for protection from it is leading to the development of sunscreens and anti-tan creams with higher SPF, which is anticipated to be a growth driving factor for the skin care products market. According to the United States Environmental Protection Agency, the exposure to UV rays increases the risk for melanoma, the most serious form of skin cancer. It occurs among people between the ages 15 and 29. It accounts for around 3% of all cancer cases and over 75% of deaths by skin cancer.
Our in-depth analysis of the skin care products market includes the following segments:
By Distribution Channel
On the basis of regional analysis, the skin care products market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Skin care products market in Asia Pacific is anticipated to hold the largest share in the upcoming years as a result of growing population and increased spending on make-up and skin care products in the region. Moreover, the presence of a large number of organic ingredients in the region promotes their usage in these products in place of synthetically-derived substances and thus it is further estimated to result in the growth of skin care products market in this region. The market in Europe is estimated to witness substantial growth on account of presence of market players and highly advanced technology and developments in skin care products in the region.
The skin care products market is further classified on the basis of region as follows:
On January 10, 2017, Valeant Pharmaceuticals International announced that it entered into an agreement with L’Oréal to sell its three skincare brands - CeraVe, AcneFree and AMBI for USD 1.3 billion in cash. The brands collectively offer various skincare products including cleansers, moisturizers, acne treatments, creams and sunscreens.
On September 25, 2017, Unilever announced its agreement to acquire Carver Korea, a leading skincare brand in North Asia from Bain Capital Private Equity and Goldman Sachs for EUR 2.27 billion.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.