Premium Cosmetics Market Analysis Report By Product, By Distribution Channel, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global premium cosmetics market size was accounted for USD 119.3 billion in 2018. The market is expected to witness a CAGR of 7.6%, during the forecasted years. This growth can be attributed to the rising demand for natural cosmetics and beauty products among the millennial population. Moreover, rising brand awareness and inclination towards the purchase of premium beauty products is expected to positively impact market growth.

Rising awareness about the usage of natural, organic, and premium ingredients has created a shifting trend towards the consumption of premium cosmetic products rather than mass-produced cosmetics. Moreover, various benefits like reduction of acne, pigmentation, and age spots can be achieved with such products. Thus, the demand for these products is anticipated to boost during the forecasted years, 2019 to 2025.        

Increasing demand for makeup accessories that can last long and anti-aging products are expected to drive market growth in the upcoming years. Moreover, consumers prefer using mini-sized products that can serve the purpose of the trial. In addition, the emerging concept of gender neutrality has paved the way for the consumption of these products even among men.

The rising concept of digitalization across the globe has paved the way for the online sale of such cosmetics products. In addition, the implementation of marketing strategies and social media campaigns is also acting as a major factor contributing to product and brand awareness among consumers. For example, Face Gym launched a Make it Bar in 2017, which allowed the consumers to develop their face serums on visiting their studio. This helped the consumers to select the exact product as per their needs.

Product Insights

In 2018, the makeup product segment is anticipated to register the highest growth with a CAGR of 8.1% from 2019 to 2025. This growth can be associated with rising demand for natural and organic color cosmetics which help in the reduction of skin irritation and infections. Moreover, sweatproof and waterproof products are being manufactured to sustain extreme climatic conditions.

The skincare product segment held the highest share across the global market in 2018, especially in the Asia Pacific. This growth can be attributed to its benefits like reduction in freckles, acne scars, discoloration, and age spots. Moreover, increasing demand for products that are being used for skin brightening is expected to positively impact market growth.

Distribution Channel Insights

The online distribution channel segment is expected to witness significant growth with a CAGR of 9.4% in the upcoming years. This growth can be associated with the rising influence of the internet, smartphones, and e-commerce platforms among the millennial population. Moreover, the increasing presence of e-commerce platforms like Alibaba and Amazon has paved way for the market growth for premium cosmetics through online mode. E-retailers have also started implementing various strategies like providing offers and discounts on online purchases to penetrate deeper into developing regions like APAC and MEA.

In 2018, the offline distribution channel segment held the highest share across the global market. This growth can be attributed to the rising number of offline stores like health and beauty retail stores, supermarkets, hypermarkets, and convenience stores. Moreover, emerging technologies like Augmented Reality and Virtual Reality are helping in conducting makeup trials across these stores.

Regional Insights

In 2018, the Asia Pacific region held the highest share across the global premium cosmetics market. The region is also anticipated to register the highest CAGR during the forecasted years, 2019 to 2025. This growth can be attributed to several factors like rising women workforce and boosting disposable income among the working population across countries like Japan and China. Moreover, the presence of major players across China has helped it in becoming the largest market for such products.

North America can be considered as the second largest market for premium cosmetics. This can be attributed to the rising inclination of consumers towards the fashion and personal care industry. Moreover, rising demand for premium cosmetic products among men is expected to drive the market in this region. Furthermore, the increasing trend for the usage of natural and organic ingredients is expected to drive market growth across countries like the U.S. and Canada.

Premium Cosmetics Market Share Insights

The market for premium cosmetics includes key players such as L’Oréal; Coty; Shiseido; Estée Lauder; LVMH; Dior Beauty; KAO Corporation; Elizabeth Arden Inc.; and Chanel. These players are constantly engaged in product development and innovation to boost the sales of their products. Moreover, a variety of marketing strategies and product launches are being implemented by these players to penetrate deeper into the emerging markets.

For example, Stylenanda has been acquired by L’Oréal in 2018 to expand its brand awareness across countries like Singapore, Hong Kong, Thailand, and Singapore. This acquisition also helped in creating brand awareness among the millennial population. In addition, Pulp Rio has been acquired by L’Oréal to increase its global presence.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global premium cosmetics market report based on product, distribution channel, and region:

• Product Outlook (Revenue, USD Billion, 2015 - 2025)
    • Skincare
    • Haircare
    • Makeup
    • Fragrance
    • Others

• Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)
    • Offline
    • Online

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)
    • North America
        • U.S.
    • Europe
       • Germany
       • U.K.
       • Italy
    • the Asia Pacific
       • China
       • Japan
    • Central & South America
       • Brazil
    • Middle East and Africa