Global Coffee Beauty Products Market – Insights
Beauty products and personal care products (skin care, hair care, fragrances), are often infused with coffee bean extracts. Coffee beauty products are available in various forms such as creams, lotions, balms, oils, and others. Caffeine, an active ingredient present in coffee beans, has antioxidant, antimicrobial, and anti-aging effects, which are beneficial for skin, scalp, and hair. Therefore, such benefits of coffee bean extract are expected to drive growth of the coffee beauty products market during the forecast period.
Among product types, skin care segment is expected to show significant growth in the global coffee beauty products market during the forecast period, which can be attributed to growing cosmetics industry, globally. For instance, according to Cosmetic Toiletry & Perfumery Association, annual report 2017, cosmetics industry was valued at over US$ 12.30 billion in 2017, in the U.K., out of which 23.6% of the share was accounted by skin care segment.
Among distribution channels, online channel is expected to have significant share in coffee beauty products market during the forecast period, owing to increasing e-commerce business. According to India Brand Equity Foundation (IBEF), report on e-commerce published in July 2017, e-commerce market is expected to grow at a CAGR of 44.77% from 2016 – 2020, to reach US$ 63.7 billion by 2020, in India and is expected to reach US$ 188 billion by 2025.
The global coffee beauty products market was valued at US$ 520 million in 2017 and is expected to register a CAGR of 3.1% in terms of revenue, over the forecast period (2018 – 2026), to reach US$ 740 million by 2026.
Asia Pacific is expected to hold a significant market share in the global coffee beauty products market during forecast period, owing to increasing beauty and personal care industry in the emerging economies such as India. According to India Brand Equity Foundation (IBEF) report, published in January 2018, the beauty, cosmetics, and grooming market in India accounted to US$ 6.5 billion in 2017, and is expected to reach US$ 20 billion by 2025. Therefore, growing beauty products industry in Asia Pacific is expected to drive growth of the coffee beauty products market globally.
Figure 1. Global Coffee Beauty Products Market Share, By Region, 2017
Source: Coherent Market Insights, 2017-18
Europe is the fastest growing region and held significant share in the global coffee beauty products market in 2017, owing to growing cosmetics industry in the region. According to annual report 2016 of Cosmetics Europe, Europe is the world’s foremost producer of cosmetics and personal care products globally, accounting for US$ 87.38 billion out of the total US$ 295.05 billion in the global market in 2016, whereas the U.S. accounted for US$ 72.63 billion and China accounted for US$ 46.53 billion.
Furthermore, various key players are focused towards expanding its product portfolio by introducing new beauty products in the market. For instance, in July 2017, the Estée Lauder launched Advanced Night Repair Eye Concentrate Matrix, which contains caffeine as its core ingredient. This launch helped the company to strengthen its leadership in the eye treatment category.
Figure 2. Global Coffee Beauty Products Market Share, By Product Type, 2017
Source: Coherent Market Insights, 2017-18
Players operating in the global coffee beauty products market are adopting various growth strategies to attract the customer base. For instance, in September 2018, L'Oréal Paris launched a new virtual ‘Try-On Tool’ on its website. The online tool interface provide a photo-realistic color simulation, which allows users to virtually try out and experience L'Oréal Paris beauty products online in real-time including Blush, Eyeshadow, Eyeliner, Lipstick, Lip Liner shades etc., directly from the company website.
Major players operating in the global coffee beauty products market include Procter & Gamble, Estée Lauder Inc, Avon, Caudalie, L’ORÉAL PARIS, Unilever, JAVA Skin Care, LLC, Nails inc. limited, The Nature's Bounty Co, and Bean Body Care.