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Lip Care Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global lip care products market was valued at USD 10.3 billion in 2022 and is projected to expand at a CAGR of 5.8% from 2023 to 2030. The rising demand for lip care products can be attributed to the increasing number of beauty-conscious consumers and the growing influence of social media. Moreover, the growing popularity of natural and organic products is further fueling the market growth. Consumers are increasingly shifting towards eco-friendly and natural lip care products, as they are free of harsh chemicals and artificial ingredients. Furthermore, the increasing preference for online shopping is expected to further drive the market growth.
In addition, the growing popularity of lip balms and lip oils is expected to boost the market growth. Lip balms and lip oils are used to protect the lips from environmental damage and to provide a soothing effect. Moreover, the use of lip balms for lip priming is aiding in the growth of the market. Lip priming helps to create a blank canvas for the application of lipsticks and lip glosses and helps to increase their staying power. Furthermore, manufacturers are introducing a wide range of flavors in lip balms to attract more consumers.
The increasing use of lip care products for medical purposes is also aiding in the growth of the market. Lip balms are used to treat several skin conditions such as chapped lips, cold sores, and angular cheilitis. Moreover, there is a rising demand for medicated lip care products to treat sunburns and allergies. Furthermore, manufacturers are introducing products with SPF protection to provide protection against the harmful UVA and UVB rays of the sun.
Moreover, the rising trend of personalization is also influencing the growth of the market. Manufacturers are introducing customized lip care products to cater to the needs of individual consumers. Consumers can choose the desired product from a wide variety of flavors, colors, and textures. Furthermore, the growing trend of gifting these products is also fueling the market growth. These products are becoming popular gifts for special occasions such as birthdays, anniversaries, and Valentine’s Day.
Product Insights
The lip balm segment is expected to hold the largest share in the lip care products market in 2022. Increasing consumer awareness regarding the benefits of lip balm, such as protection from sun damage, hydration, and moisturization is driving the demand for lip balms. Moreover, rising popularity of organic lip balms due to its natural ingredients with no harsh chemicals is further propelling the growth of the segment. According to an article published by SeerPharma, in June 2020, the global lip balm market was estimated to be worth USD 4.06 billion in 2019 and is expected to witness a CAGR of 3.2% over the forecast period.
The lip gloss segment is estimated to witness the highest CAGR of 4.3% over the forecast period. Lip glosses are used to add shine and texture to the lips, and are available in a variety of colors and finishes. Increasing consumer demand for lip gloss due to its hydrating and moisturizing properties is driving the growth of the segment. Furthermore, the introduction of innovative and multi-functional lip glosses, such as those with SPF protection, is expected to act as a major driver for the market.
Distribution Channel Insights
The supermarkets and hypermarkets segment accounted for the largest share of the lip care products market in 2022. The growth of the segment is attributed to the convenience offered by supermarkets and hypermarkets in terms of selection and availability of products. In addition, these large establishments provide a wide variety of products, allowing customers to compare and choose the product they prefer. Furthermore, increasing consumer preference towards supermarkets and hypermarkets for purchasing beauty and personal care products is also driving the growth of this segment.
The online segment is estimated to expand at the highest CAGR during the forecast period. The increasing penetration of internet and smartphones, and increasing consumer preference for purchasing products online are the major factors driving the growth of the segment. Moreover, the increasing availability of products on e-commerce websites such as Amazon and Flipkart is also contributing to the growth of the segment. In addition, the increasing number of discount offers and convenience of online shopping are also driving the growth of the segment.
Type Insights
The mass segment accounted for the largest revenue share of 68.2% in the year 2022. The increasing demand for lip care products and the surge in the growth rate of personal care products are major factors driving the growth of the mass segment. Furthermore, the availability of lip care products at lower prices is expected to attract a large number of price-sensitive customers in developing countries, thereby driving the growth of this segment.
The premium segment is anticipated to expand at the highest CAGR of 8.7% over the forecast period. The rising demand for luxury lip care products and the increasing popularity of natural ingredients in lip care products are key factors driving the growth of the premium segment. The presence of brands such as Kiehl’s, Chanel, and Christian Dior is expected to fuel the growth of the segment. In addition, the rising trend of online sales is expected to increase the availability of premium lip care products, thereby driving the growth of the segment over the forecast period.
Regional Insights
Europe is expected to be the leading region in terms of revenue share. This is due to the fact that the region has a large population base and a wide range of lip care products available. For instance, in April 2021, The Body Shop launched its first lip care line, Lip Love. Moreover, the rising trend of K-beauty and the presence of various international beauty brands in the region are expected to drive the growth of the market.
The Asia Pacific is expected to witness the fastest growth during the forecast period. This is primarily attributed to the increasing awareness about personal care products and the growing penetration of global beauty brands in the region. Moreover, the region is home to some of the world’s biggest beauty markets, such as China, India, and South Korea. For instance, in June 2021, Inglot Cosmetics launched a new range of lip care products in India.
Financial Projections
In this part of the Lip Care Products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your lip care products company. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main sources of revenues for a lip care products business come from sales of the products, subscription-based services, and advertising. Here you will find a list with a description of each of these income streams, as well as other possible sources of profit such as promotional activities and collaborations with influencers.
Projecting Expenses
In this section, all the regular expenses related to keeping the lip care business running will be described. The list of operating expenses includes raw materials, manufacturing costs, product packaging, wages, marketing, advertising, shipping and handling, product testing and regulatory compliance, and others.
Key companies & market share insights
Some of the key companies operating in the lip care products market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, L’Oréal launched their lip care range under the brand name ‘Soft&Care’. The product range includes lip balms, lip oils, lip scrubs, and lip masks.
– In August 2022, Maybelline New York launched their lip care range under the brand name ‘Plush Pout’. The product range includes lip balms, lip glosses, and lip tints.
– In September 2022, Revlon launched their lip care range under the brand name ‘Luscious Lips’. The product range includes lip balms, lip glosses, and lip tints.
Some of the prominent players in the lip care products market include:
– L’Oréal SA
– Unilever PLC
– Estee Lauder Companies, Inc.
– Maybelline New York
– Revlon, Inc.
– Beiersdorf AG
– Avon Products, Inc.
– Kao Corporation
– Shiseido Co., Ltd.
– Kao USA, Inc.
Global Lip Care Segmentation
This report forecasts 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 2030. For this study, Grand View Research has segmented the global lip care products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Lip Balms
– Lip Oils
– Lip Glosses
– Lip Scrubs
– Lipsticks
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Mass
– Premium
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What Factors are Driving the Lip Care Products Market?
[A]: The increasing awareness about personal care and hygiene, the growing premiumization of consumer goods, and the rising demand for natural and organic products are the major factors driving the growth of the global lip care products market. Additionally, the rising trend of e-commerce, increasing consumer spending on cosmetics, and the growing demand for chemical-free products are contributing to the growth of the market.
[Q]: Who are the Key Players in the Lip Care Products Market?
[A]: The key players in the global lip care products market include Avon Products, Inc., Estee Lauder Companies, Inc., L’Oréal SA, Shiseido Company, Limited, Procter & Gamble Company, Unilever Group, Kao Corporation, Beiersdorf AG, and The Clorox Company.
[Q]: What are the Major Segments of the Lip Care Products Market?
[A]: The major segments of the global lip care products market are product type, distribution channel, and region. The product type segment comprises lip balms, lip glosses, lipsticks, lip liners, and others. The distribution channel segment is further divided into hypermarkets/supermarkets, convenience stores, drug stores/pharmacies, e-commerce, and others.
[Q]: What is the Regional Outlook for the Lip Care Products Market?
[A]: Regionally, the global lip care products market is divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America is expected to dominate the market, while Asia Pacific is projected to witness the highest growth rate during the forecast period. This is mainly attributed to the growing demand for lip care products in countries such as India, China, and Japan.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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