Topical cosmetic and pharmaceutical products that are enriched with physiologically active substances to enhance skin quality are referred to as cosmeceuticals. They are also very good at repairing skin cells that have been harmed. Lip care, hair care, skin care, teeth whitening products, injectables, and ointments are a few of the often utilized cosmeceuticals. They are an abundant source of antioxidants, retinol, vitamins B, C, and E, alpha-lipoic acid, hyaluronic acid, and polyphenols, which support cellular replenishment, cleaning, and beauty. These products also shield the skin from UV radiation, exposure to the sun’s rays, and air pollution while delaying the appearance of aging.
The market worth of cosmeceuticals in 2021 was USD 45.56 billion and will reach USD 95.75 billion by 2030, growing at an 8.6% CAGR.
As people become more conscious about their appearance, the worldwide cosmeceuticals market will expand. Rising middle-class demand and an escalating urban population will propel the worldwide cosmeceuticals market. The existence of higher-grade and more expensive cosmeceutical products is one of the factors boosting the global cosmeceutical market.
Market Dynamics
Drivers
Due to rising consumer expenditure and worries about premature aging, the use of cosmetic items has rapidly increased. Additionally, the relocation of cosmetic manufacturing to countries like India, Thailand, and Vietnam is opening up a wide range of business prospects and providing access to a sizable population. The market for cosmeceuticals is driven by rising consumer awareness of natural and organic cosmetics during the projected period.
Restraints
The cost of goods from numerous well-known companies has increased, resulting in imitations of the actual goods. In the market, substitutes with the same brand name but lower quality standards exist. This may result in a decline in consumer demand for reliable brands, and the brand’s reputation may be destroyed.
Opportunity
The increase in money in emerging economies has made it possible for consumers to use a wide variety of cosmetic goods. Leading businesses in nations like India, China, Japan, Thailand, etc., have paved the way for the market’s expansion by developing new items. There are currently 680 million middle-class households in emerging markets, and by 2030, that number is expected to increase by 2.7%. Around 176 million homes in the industrialized world were classified as middle class in 2018, and by 2030 it will rise by 6.3%.
Market Segmentation
Product Insights
On the basis of product, the cosmeceuticals market segments are skincare, hair care, oral care, and lip care. The largest market share was contributed by the skin care segment, with 45% of the revenue share in 2020. This is due to a rise in the usage of antioxidants in cosmeceutical products, a rise in consumer knowledge regarding the need to protect skin from UV radiation, which can hasten the skin’s aging process and cause skin cancer, and an increase in the demand for personalized cosmeceuticals.
Distribution Channel Insights
On the basis of distribution channel, the cosmeceuticals market segments are the online platform and supermarkets & specialty stores. In 2020, the supermarket & specialty stores segment recorded a maximum market share of 80%. The active marketing and promotion tactics used by distributors and manufacturers at specialty stores, including discounts for bulk purchases and a rise in the average person’s disposable income in emerging nations, are expanding market growth.
Ingredients Insights
On the basis of ingredients, the market segment are retinoids, sunscreens, hydroxyl acids, antioxidants, skin-lightening agents, peptides & proteins, and botanicals. The antioxidants ruled the entire market and will grow at a rapid rate. Antioxidants shield the skin, and adding them to topical and ingestible treatments boosts benefits while shielding them from oxidative harm. As a result, these elements support the segment’s expansion.
Regional Insights
Asia Pacific recorded the largest market share in 2020, generating the largest share of USD 14.69 billion. The largest share is due to rising disposable income in developing nations and an increase in people’s concern with their physical appearance. Consumers looking for skin rejuvenation solutions have increased concerns about skin issues due to their hectic and stressful lifestyles and worsening environmental conditions. According to a survey issued by the beauty and personal care industry in India, the market is expected to be USD 12 billion in 2021, with body care accounting for 36%, hair care accounting for 5%, and face care accounting for 9%.
Key Players
- Croda International plc
- Johnson & Johnson
- Clarins (France)
- Avon Products Inc
- Procter & Gamble
- L’Oréal Group
- Estée Lauder Inc
- Beiersdorf
- Shiseido
- ELEMENTIS PLC.
- Allergan
- Unilever
- LVMH (France)
- Coty Inc. (U.S.)
The market worth of cosmeceuticals in 2021 was USD 45.56 billion and will reach USD 95.75 billion by 2030, growing at an 8.6% CAGR. Other variables that will influence the potential of the cosmetics market include a growing emphasis on personal care, increased accessibility of cosmetics, increased awareness of physical appearance on social media, and rising disposable income.