VEGAN COSMETICS MARKET ANALYSIS

Vegan cosmetics refers to a product made naturally without using any animal by product such as milk, fat, and others. The vegan cosmetics are made of extract from honey, beeswax, organic oil, and others. Now a day’s more consumers are focusing on sustainability, which can affect on cosmetic brands to rethink ingredients used in manufacturing. The manufactures are focusing sustainability to increase the production & sale of their product. In the Europe region, many countries have banned animal-based cosmetic products, which can helps to increase the vegan cosmetic product in the market.

The global vegan cosmetics market was valued at US$ 14.85 Bn and is expected to reach US$ 25.09 Bn exhibiting a CAGR of 5.9% during the forecast period 2022-2030.

Drivers:

Vegan cosmetics are  better for the skin as well as safer for the body that can attract customers to purchasing vegan cosmetics. Additionally the vegan cosmetics are derived from plants, they are considered to be a more nutritious and richest source of vitamins, minerals and antioxidants which are used to improve healthier looking skin.

For instance, in June 2022, a South Korea-based consumer goods company ‘LG Household & Health Care’, launched a vegan-certified color cosmetic brand ‘Freshian’, to attract Generation Y & Z beauty clients. They have launched two different types of cushion compacts, a variety of lip balms, and a sunscreen that can help to increase the market growth in upcoming years.

Figure 1. Global Vegan Cosmetics Market Revenue Share (%), By Region, 2021

Among region, Europe held a dominant position in the global vegan cosmetics market in 2021, accounting for 37.6% market revenue share, followed by North America and Asia Pacific.

Market Restraints

High cost of products such as lip balm, lipsticks, and others is one of the major restraining factors in the global vegan cosmetics market growth. As compared to animal by-product cosmetics, vegan cosmetics has an overpriced which can reduce the market in price sensitive countries such as India and China. Vegan cosmetic products are made and enhanced with artificial ingredients that cannot last as long which can hamper the market growth.

Market Trends

Rising awareness about the medical advantages of vegan cosmetics products can boost the market growth worldwide. For instance, in August 2022, a plant-based skin and hair care brand, ‘OrgaGlo’ has joined India's personal care and cosmetic industry with 18 different products, the products are categorized under baby care, hair care, face care, and body care. These vegan and animal cruelty-free products can help OrgaGlo to increase the sale of vegan cosmetics in the Indian Market. Additionally, in August 2020, Elf Cosmetic Company acquired the vegan cosmetic brand, ‘Clean beauty brand W3ll People’. The Elf cosmetic company helps to expanding the ‘Clean beauty brand W3ll People’ product in globally.

Furthermore, in November 2021, a South Korea-based consumer goods company, ‘LG Household and Health Care Ltd.’ launched seven new products in globe to complete their Belif and VDL vegan cosmetic product line up. This brand is certified by the Korean Agency of Vegan Certification and Services.

Figure 2. Global Vegan Cosmetics Market Revenue Share (%), By Product Type, 2021

Among product type, skin products held a dominant position in the global vegan cosmetics market in 2021, accounting for 34.8% market revenue share, followed by hair and lip product. Increasing demand for skin products worldwide and the benefits of vegan cosmetics is expected to drive the market growth over the forecast period.

Global Vegan Cosmetics Market - Impact of Coronavirus (COVID-19) Pandemic

COVID-19 has positively as well as negatively affected the cosmetics industry. Due to lockdowns, countries banned movement of people and materials and the shutdown of businesses reduced the economic and industrial growth of the developing countries. Disruption in raw materials supply chain during the pandemic led to lower growth of vegan cosmetics market.  However, the increased use of vegan products during COVID-19 drived the market growth, owing to different product type and benefits of these products. Due to COVID-19, consumers were more concerned about their health and they are now focusing on the skin and their health. Vegan cosmetics are more helpful and useful for skin conditions such as rashes, acne, and other skin disorders that can help to increase the sale of vegan cosmetics in upcoming years.

Competitive Section

Major players operating in the global vegan cosmetics market include Amway Corporation, Estee Lauder Companies Inc., Groupe Rocher, L’Occitane Group, L’Oreal S.A., LVMH Group, and MuLondon, Pacifica Beauty, Unilever plc. Weleda, Coty Inc., Beauty with Cruelty, Elf Cosmetic Company, Urban Decay, and Nature’s Gate.