The global prestige cosmetics market size was valued at USD 22.19 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 3.1% from 2021 to 2028. Increasing consumer focus on personal appearance and grooming is considered to be a major factor driving the market growth. In addition, increasing brand recognition and influence of their products due to the rising penetration of the internet, smartphones, and social media are anticipated to fuel the market growth. Owing to the increasing product demand, various manufacturers are changing advertising strategies and product branding to boost their sales. Hence, the market is estimated to have a steady growth over the forecast period.
In addition, product innovations and technological advancements by key players will also contribute to market growth. Technological advancement and innovative colors in the cosmetics industry are boosting market growth. Key players are focusing on providing the best-quality products; thus, the luxury segment is expected to witness significant growth during the forecast period.
Due to the COVID-19 pandemic, product sales dropped drastically. For example, according to Jon R. Moeller, who is vice chairman of P&G, the Japanese brand of prestige cosmetics, the sales were declined drastically in the third quarter of the year 2020. Hence, the financial status of various cosmetics sectors had been jeopardized due to the outbreak of COVID-19.
The decorative cosmetics product segment accounted for the largest revenue share of more than 61% in 2020 owing to the increasing demand for these products. Decorative cosmetics are used to enhance the overall appearance. These products include nail polishes, foundation creams, lipsticks, pressed powders, mascaras, etc. Also, a growing number of celebrity endorsements and advertisements on various social media platforms has increased the demand for decorative cosmetics.
The luxury cosmetics product segment is estimated to register the fastest CAGR of over 3.1% from 2021 to 2028 due to the growing product adoption. These products are manufactured using premium-quality and organic ingredients. Luxury cosmetics products are sold at a higher price as compared to their counterparts. Increasing consumer disposable income levels in developing economies are boosting the demand for luxury cosmetics products.
The offline segment dominated the global market with the highest revenue share of more than 70% in 2020. The product sales through offline distribution channels are rising due to more sustainability offered by these offline stores than any other channel. In addition, the factors, such as the ease of hard cash transaction services and trustworthy relationships with domestic consumers, are expected to propel the growth of this segment over the coming years.
The online distribution channel segment is estimated to register the fastest CAGR of more than 3.3% over the forecast period. Online shopping portals offer various cosmetic products at discounted prices. Furthermore, these channels have other benefits, such as free shipping, coupon benefits, and doorstep delivery, which, in turn, drive the growth of this segment.
North America dominated the global market in 2020 and accounted for more than 43% of the overall revenue share due to the high product demand in countries, such as the U.S and Canada. Increasing purchasing power of consumers in this region is another major factor boosting the market growth. In addition, a rising number of working individuals is also boosting the product demand in the region.
In the Asia Pacific region, the market is expected to grow at the fastest CAGR of 3.8% from 2021 to 2028 on account of the increasing product demand. It is one of the dynamic markets for the cosmetic industry. Constant innovations and product launches in the decorative cosmetics segment will drive the demand further. Increasing consumer disposable income level is another major factor supporting the market growth.
The global market is competitive due to the presence of a few international and several local manufacturers. Companies are focusing on innovating new products to meet the increasing and changing demands of consumers across the globe. Various new players are entering the market due to low entry barriers. Some of the prominent players operating in the global prestige cosmetics market include:
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Report Attribute |
Details |
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Market size value in 2021 |
USD 22.46 billion |
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Revenue forecast in 2028 |
USD 27.76 billion |
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Growth rate |
CAGR of 3.1% from 2021 to 2028 |
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Base year for estimation |
2020 |
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Historical data |
2017 - 2019 |
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Forecast period |
2021 - 2028 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2021 to 2028 |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
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Segments covered |
Product, distribution channel, and region |
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Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
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Country scope |
U.S.; Germany; U.K.; France; China; Japan; South Africa; Brazil |
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Key companies profiled |
Johnson & Johnson; Procter & Gamble; Unilever; L’Oréal; Kao; Estée Lauder; Shiseido; Coty; Beiersdorf; AmorePacific |
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Customization scope |
Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope |
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 2017 to 2028. For the purpose of this study, Million Insights has segmented the global prestige cosmetics market report on the basis of product, distribution channel, and region:
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