The global premium cosmetics market was valued at US$ 74,312.5 million in 2019, according to Premium Cosmetics Market Report, by Product Type (Skin Care, Hair Care, Fragrances & Perfumes, Sun Care, Baby Care, and Others), by Distribution Channel (Online and Offline), and by Region (North America, Latin America, Asia Pacific, Europe, and Middle East and Africa), published by Coherent Market Insights.
The global premium cosmetics market is expected to surpass US$ 92,959.5 million by 2027, exhibiting a CAGR of 6.4% during the forecast period (2020-2027). The growing awareness about premium ingredients and their positive effect on the skin has led to a shift in consumer preference from traditional or mass produced cosmetics to premium cosmetics. Moreover, there is rising awareness among consumers about various skin problems such as aging spots, acne, and pigmentation which is driving the adoption of premium skincare cosmetics. Furthermore, the increasing prevalence of skin diseases is favoring demand for premium skin care products owing to the nutrition provided by the products to the skin and protection offered by sunscreen lotions from harmful UV-radiations, thus helping in the prevention of skin diseases and skin cancer.
However, governments of various countries are imposing regulations on trade of premium cosmetics for ensuring the safety of consumers. These restrictions hamper the trade of premium cosmetics across countries, thereby restraining growth of the market. For instance, on 1st October 2011, India introduced a compulsory registration requirement for imported personal care and cosmetic products. The imported cosmetic products need to be registered with the Central Drugs Standard Control Organization (CDSCO), an Indian licensing authority within the office of the Drug Controller General of India in the Ministry of Health & Family Welfare, Government of India (GOI).
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Browse 40 market data tables* and 20 figures* on "Premium Cosmetics Market” - Global forecast to 2027.
Key Trends and Analysis of the Premium Cosmetics Market:
- North America is accounted for a significant market share in 2019. The increasing awareness about skin health among consumers is driving demand for premium skin care products which protect the skin from dryness and damage caused due to exposure to the sun. Therefore, consumers prefer premium products such as sun screen lotions for maintaining the smoothness and softness of the skin. The growth of the premium cosmetics market in North America is also driven by factors such as the growing consumer preference for healthy and natural ingredients, along with the rising penetration of the internet in the region.
- Europe is another region which is expected to witness for a significant growth rate during the forecast period (2020-2027). There is increasing awareness about premium cosmetic products such as anti-ageing products and make-up products in Europe. This has led to significant per capita consumer spending on cosmetic products. For instance, as stated in a report published by the International Trade Administration on Asia Personal Care & Cosmetic Market, in 2014, the per capita spending on cosmetics in France was US$ 139. Furthermore, the presence of numerous premium brands in the region such as Chanel S.A., LVMH, and L'Oréal S.A. among others is driving growth of the premium cosmetics market.
Key Takeaways of the Market:
- Among product type, the hair care segment constituted for a significant market share in 2019. Hair care products such as shampoos, oils, and gels are gaining traction, as they help in enhancing the health, shine, texture, softness, color, and overall aesthetics of hair. Furthermore, the growing prevalence of hair related problems such as dandruff, hair loss, and split ends is fuelling growth of the hair care segment.
- According to the German Cosmetic, Toiletry, Perfumery and Detergent Association, the beauty products sector in Germany was valued at US$ 16.74 billion in 2016, which was a growth of 1.6% from 2015. Hair care products accounted for a major share of US$ 3.7 billion in 2016 in the beauty products market in Germany. Growth of the hair care segment is expected to favor growth of the premium cosmetics market during the forecast period.
- Major players operating in the global premium cosmetics market are Avon Products Inc., Chanel S.A., Coty, Inc., KAO Corporation, L'Oréal S.A., LVMH, Oriflame Cosmetics Global SA, Revlon, Inc., Shiseido Company Ltd. and The Estée Lauder Companies Inc.
Premium Cosmetics Market - Impact of Coronavirus (Covid-19) Pandemic
- The global premium cosmetics market is expected to witness sharpest decline in the near future owing to adoption of social distancing due to Covid-19 pandemic. Basic cosmetic products such as shampoos, among others are not expected to witness a major downfall. However, demand for nail care and fragrances, among others is expected to decline during the forecast period. Furthermore, factors such as high price of premium products and rising budget constraint among the middle class population during this pandemic is another factor which is expected to hamper growth of the global premium cosmetics market during the forecast period.