Premium cosmetics are manufactured by utilizing certain specialty ingredients. These cosmetics are usually accompanied with some value addition such as organic ingredients including essential oils, plant extracts, microalgae, and pearl extracts. These products usually cost higher than other ingredients and thus are responsible for the high price of premium cosmetics. Premium products are made using organic ingredients such as essential oils, plant extracts, microalgae, and pearl extracts, which usually cost higher than other ingredients.

Increasing beauty consciousness among the populace in emerging economies is boosting growth of the premium cosmetics market. Increasing inclination of males towards overall body care coupled with social trends related to beauty and cosmetics, is also fueling market growth. According to Coherent Market Insights, the men’s grooming products sector is expected to witness significant growth, exhibiting a CAGR of 8.91% over 2018 and 2025. A major challenges faced by the premium cosmetics market include strict regulations regarding chemical ingredients used in premium cosmetics.

Global Premium Cosmetics Market – Market Taxonomy:

On the basis of distribution channel:

  • Hypermarket
  • Supermarket
  • Specialty Stores
  • Online
  • Others

On the basis of product type:

  • Skin Care
  • Make-up
  • Hair Care
  • Hygiene Products
  • Fragrances
  • Multifunctional
  • Others

Among distribution channels, the online segment is expected to garner significant traction over the forecast period. Growing online retail around the world is responsible for growth of this segment. According to India Brand Equity Foundation Report (IBEF), in 2016, over 62% of young consumers in major economies prefer online stores for buying beauty & grooming products. Moreover, ease of access and reliable services of giant online retail stores such as Alibaba Group (China), Amazon Inc. (U.S.), and Flipkart (India) play a major role in growth of the online segment.

Among product type, the skin care segment is expected to hold the largest market share over the forecast period. Leading market player such as L’Oreal S.A. generated 37% of its annual revenue in 2017 from its skincare segment. The company has identified the segment as a high growth segment and launched multiple products to boost its sales. Multifunctional products, which incorporate the properties of different products such as skincare, make-up into one are gaining significant traction. For example, Dior’s lip care product Color Reviver Lip Balm is designed to serve as both lipstick and lip gloss. Such products have piqued consumer interest and are projected to be a major driving factor for the premium cosmetics market.  

Global Premium Cosmetics – Market Outlook:

North America is expected to account for the largest market share in the global premium cosmetics market during the forecast period (2018-2025). The market in the region is supported by stringent regulations imposed on the use of harmful chemicals in cosmetics. For instance, various regulatory bodies such as United States Department of Agriculture (USDA) and Food and Drug Administration (FDA) are restricting the use of harmful chemicals in cosmetic products. For example, chemicals such as formaldehyde and hydroquinone which are banned in few countries around the world.

In Asia Pacific, a thriving retail sector will boost the market for premium cosmetics. According to Indian and Chinese government sources, the retail sector in India and China was valued at US$ 950 billion and US$ 11 trillion, respectively in 2017. Furthermore, growing urbanization in emerging economies in the region is expected to boost the market for premium cosmetics in the region. According to L’Oreal, China recorded US$ 77 spending per capita per person on cosmetics in 2016 with US$ 71 by consumers aged 14–18 years and US$ 85 by consumers aged 19–24 years. Increasing number of company are seeking investments in these countries due to high growth potential, this in turn, is increasing growth of the market for premium cosmetics in the region. For instance, L’Oreal’s invested in an acquisition of Magic Holdings International Ltd., in China in 2013, while it invested over US$ 150 million in India since 2011. In 2016, Coty Inc. completed a merger with the Specialty Beauty business of Procter & Gamble Company.

Major players operating in the premium cosmetics market include L’Oréal S.A., Avon Products Inc., The Procter & Gamble Company (P&G), Unilever plc, Oriflame Holding A.G., Revlon Inc., The Estee Lauder Companies Inc., Shiseido Company Ltd., and Coty Inc.

Key Developments:

  • In October 2019, Burberry Group PLC, a Britain-based luxury fashion product manufacturer had launched a line of premium perfumes for women.
  • In September 2019, Asquan Group, a manufacturer of applicators, cosmetics, accessories and packaging solutions for beauty & cosmetics brands in partnership with Pylote had launched antimicrobial makeup and mascara brushes at MakeUp in NewYork trade show.
  • In September 2019, Beiersdorf AG, a German consumer goods manufacturer had launched a skincare brand for tattooed skin. This new product range contains INKGUARD-Technology® to maintain tattoos on the skin for long.
  • In May 2019, Kylie Cosmetics had launched its new line of products – Kylie Skin, which offers vegan skincare products.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users