The global cosmeceutical market was valued at US$ 76,875.0 Mn in 2022 and is forecast to reach a value of US$ 153,318.7 Mn by 2030 at a CAGR of 9.02% between 2023 and 2030. The global cosmeceutical market is experiencing strong growth due to the rise in prevalence of skin and hair disorders and rise in aging (geriatric) population around the world. Moreover, increasing demand for cosmeceuticals and rise in demand for skin care, hair care, and oral care products is expected to boost growth of the market. However, factors such as presence of counterfeit products and lack of awareness among people about cosmeceuticals and related benefits are expected to hamper growth of the global cosmeceutical market.
Global Cosmeceutical Market: Regional Insights
Based on geography, the global cosmeceutical market is segmented into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.
Among regions, Europe is expected to gain highest share in the market during the forecast period due to the rise in prevalence of skin and hair disorders, growing geriatric population, and increase in demand for cosmeceuticals in the region. For instance, growth of the cosmeceuticals market is majorly driven by the aging population and desire to stay healthy and look young. The population of older people (those aged 65 years or more) in the EU-27 will increase significantly, rising from 90.5 million at the start of 2019 to reach 129.8 million by 2050. In 2021, more than one fifth (20.8 %) of the EU population was aged 65 and over.
Asia Pacific is also expected to witness robust growth in the global cosmeceutical market owing to the growing geriatric population, increasing prevalence of skin and hair disorders, and increase in demand for cosmeceuticals in the region. For instance, Cosmetics is one of the fastest growing retail segments in India, and the booming Indian cosmetics market offers promising opportunities for domestic and international brands. This has successfully paved the way for the manufacturers to open their branches in the highly populated countries in this region. This in turn is expected to aid in the growth of the cosmeceutical market in this region.
Figure 1. Global Cosmeceutical Market Share (%), by Region, 2023
Global Cosmeceutical Market Drivers:
High prevalence of skin and hair disorders to propel market growth
One of the key factors expected to propel the growth of the global cosmeceutical market over the forecast period is the rise in prevalence of skin and hair disorders worldwide. Such a high burden of skin/hair disorders leads to an increase in demand for cosmeceutical products and it is expected to augment the market growth. According to the World Health Organization (WHO), skin diseases are among the most common of all human health diseases and affect over 900 million people across the world. The most common skin diseases in older people are eczema, skin infections, and pruritus (severely dry and itchy skin), driving the market growth.
Growing geriatric population worldwide to underpin market growth
Another factor which is driving the growth of the global cosmeceutical market is the rise in aging (geriatric) population around the world. For instance, the aging population is increasingly looking for ways or products to maintain and improve their appearance to look young and beautiful, with the rising awareness about anti-aging products. According to the UN DESA’s Population Division, one in six people in the world will be over the age 65 by 2050, up from 1 in 11 in 2019. In many regions, the population aged 65 will double by 2050, while global life expectancy beyond 65 will increase by 19 years. This in turn is driving the market growth.
Global Cosmeceutical Market Opportunities:
Increasing demand for cosmeceuticals around the world is expected to provide significant growth opportunities for players in the cosmeceutical market. For instance, with the increase in awareness among people about cosmeceuticals and its benefits, demand for cosmeceuticals is also increasing with a rapid pace, worldwide. In January 2023, Oriflame expanded its skincare offering in India and launched first range of ‘cosmeceutical’ products named ‘NovAge Proceuticals’. The cosmetics and beauty business’ new line is designed to address its customers’ specific skin challenges. This in turn is expected to drive growth of the market.
Increasing demand for skin care, hair care, and oral care products is expected to offer significant growth opportunities for players in the cosmeceutical market. For instance, the rising number of millennials (the first global generation and generation that grew up in the Internet age) around the world is spending more on cosmetic products to maintain their appearance, and they are leading the trend of beauty athleisure. According to the World Economic Forum (WEF), there are around 1.8 billion millennials around the world, equal to 23% of the global population. This in turn has increased the demand for skin care, hair care, and oral care products.
|Base Year:||2022||Market Size in 2023:||US$ 83,736.1 Mn|
|Historical Data for:||2017 to 2021||Forecast Period:||2023 to 2030|
|Forecast Period 2023 to 2030 CAGR:||9.02%||2030 Value Projection:||US$ 153,318.7 Mn|
Bayer AG, Henkel AG & Co. KgaA, Avon Products Inc., Johnson & Johnson Inc., Kao Corporation, Beiersdorf AG, Groupe Clarins SA, Revlon Inc., Shiseido Co. Ltd., Unilever PLC, Procter & Gamble, L'Oréal SA, Lotus Herbals Pvt. Ltd., and The Estée Lauder Companies Inc., among others.
|Restraints & Challenges:||
Global Cosmeceutical Market Trends:
Increase in awareness among people is a recent trend
With the increase in awareness among people about cosmeceuticals and its benefits, the demand for cosmeceuticals is also increasing rapidly, worldwide. Cosmeceuticals have both cosmetic and therapeutic effects, and are intended to have a beneficial effect on skin health. Moreover, the term 'cosmeceuticals' started gaining momentum across the globe, becoming one of the most preferred product categories. This trend is expected to continue over the forecast period, driving the growth of the global cosmeceutical market.
High demand for multifunctional products is another trend
With a diverse range of products having multi-purpose benefits like SPF content and anti-ageing properties in a single product, the market is growing rapidly, worldwide. Multi-benefit products is one of the key criteria a consumer seek out, while deciding on a product. Premium cosmetic brands have products (such as skin and hair care products) with active ingredients specifically for sensitive skin or scalp, and thus, there is an increase in demand for multifunctional products globally. This trend is also expected to continue during the forecast period.
Global Cosmeceutical Market Restraints:
Presence of counterfeit products to hamper market growth
One of the key factors expected to hinder growth of the global cosmeceutical market is the presence of counterfeit products. For instance, although, few countries recognize cosmeceuticals as separate entities, there is lack of unified regulation across the globe. This is particularly evident in the case of developing countries, like India and China, where there are multiple regulatory bodies, which have their own legislations for cosmetic products. However, with the increase in awareness among people, the demand for cosmeceuticals is also increasing.
Lack of awareness among people to hinder market growth
Another factor which is hampering the growth of the cosmeceutical market is the lack of awareness among people about cosmeceuticals and related benefits. Cosmeceuticals represent a new category of products placed between pharmaceuticals and cosmetics that are intended for the enhancement of both the health and beauty of skin. With the introduction of new products, the awareness among people is also increasing. However, the lack of awareness of potential hazards of cosmeceuticals might cause severe and even fatal adverse effects.
Figure 2. Global Cosmeceutical Market Share (%), by Product, 2023
Global Cosmeceutical Market Segmentation:
The global cosmeceutical market report is segmented into Product Type, Active Ingredient Type, and Region.
Based on Product Type, the market is segmented into Skin Care (Anti-ageing, Anti-acne, Sun Protection, Moisturizers, and Other Skin Care Product Types), Hair Care (Shampoos and Conditioners, Hair Colorants and Dyes, and Other Hair Care Product Types), Lip Care, Oral Care, and Injectable. Of which, Skin Care Segment is expected to dominate the cosmeceutical market over the forecast period and this is attributed to the growing geriatric population.
Hair Care Segment is also expected to witness significant growth in the near future and this is owing to the increase in demand for hair care products worldwide.
Based on Active Ingredient Type, the market is segmented into Antioxidants, Botanicals, Peptides and Proteins, Exfoliants, Retinoids, and Other Active Ingredient Types. Out of which, Antioxidants Segment is expected to dominate the market over the forecast period and this is attributed to the increasing demand for cosmeceuticals. Antioxidants are major ingredients used in cosmeceuticals, and are natural substances made of minerals and vitamins.
Botanicals Segment is also expected to witness significant growth in the near future and this is owing to the increase in demand for cosmeceuticals. Botanical extracts that maintain the texture, integrity of the skin, health, nails, and hair are extensively used in cosmetic formulations.
Global Cosmeceutical Market: Key Developments
In September 2021, Boddess launched Juice Beauty, a plant-based line of cosmeceutical products in India to cater to the increasing demand. The company will also tie up with other online omni-channel retailers to sell their products.
In August 2021, RAMICOS Cosmetics announced the launch of a new range of products with new formulas that are clean and vegan, freshly packaged products, and provide a whole new experience to its customers. The Start-up will offer access to both RAMICOS cosmetics and skincare brands with colour cosmetics for the first time.
In March 2019, Shiseido planned to introduce its Medicated Care-Hybrid Foundation across two of its brands. The Medicated Care-Hybrid Foundation is a new product meant to provide medicated skin care effects to the skin while acting as a foundation.
In September 2018, L'Oréal Paris launched a new virtual try-on tool for its online shoppers. The "Try On" augmented reality tool allows shoppers to virtually try on hundreds of beauty products, with a few clicks right on L'Oreal's website, without the assistance of an app.
Global Cosmeceutical Market: Key Companies Insights
The global cosmeceutical market is highly competitive. This is attributed to the rise in demand for cosmeceuticals around the world, as a result, players in the market are focusing on launching novel products in the market.
Some of the key players in the global cosmeceutical market are Bayer AG, Henkel AG & Co. KgaA, Avon Products Inc., Johnson & Johnson Inc., Kao Corporation, Beiersdorf AG, Groupe Clarins SA, Revlon Inc., Shiseido Co. Ltd., Unilever PLC, Procter & Gamble, L'Oréal SA, Lotus Herbals Pvt. Ltd., and The Estée Lauder Companies Inc., among others.
*Definition: Cosmeceuticals represent a new category of products placed between cosmetics and pharmaceuticals that are intended for the enhancement of the health and beauty of skin. They have both cosmetic and therapeutic effects, and are intended to have a beneficial effect on skin health.