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Premium Cosmetics Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global premium cosmetics products market was valued at USD 75.0 billion in 2022 and is projected to expand at a CAGR of 8.2% from 2023 to 2030. The increasing purchasing power of consumers, rapid urbanization, and the growing demand for luxury products are some of the major factors driving the growth of the market. Moreover, the growing trend of personalizing cosmetics products is also boosting their demand. For instance, in January 2022, Estée Lauder launched its 3D Virtual Shade Finder, allowing customers to virtually try different shades of Estée Lauder’s Double Wear Foundation and find their perfect match online.
The increasing demand for skin care products is expected to drive the growth of the market. Factors such as increasing awareness about the harmful effects of skin problems and concerns regarding premature aging are fuelling the demand for skin care products. Furthermore, the introduction of innovative product offerings is contributing to market growth. For instance, in April 2021, Estée Lauder launched its High-Performance Blurring Loose Powder, which is formulated with soft-focus optics to blur imperfections and absorbs oil.
The increasing demand for natural product offerings is also propelling the growth of the market. The rising demand for organic, vegan, and chemical-free cosmetics products is influencing the product launches by the market players. For instance, in May 2021, L’Oréal launched its Natural Origin Makeup range, which is formulated with ingredients sourced from natural origin. Furthermore, the rising trend of de-toxification and clean beauty is also boosting the demand for premium cosmetics products.
In addition, the increasing demand for multi-functional cosmetics products is also contributing to market growth. For instance, in March 2021, L’Oréal launched its Super Serum Skin Tint SPF 40, a serum-tint hybrid product that provides a sheer coverage of color with a lightweight feel. Furthermore, the introduction of new product launches to cater to the needs of the consumers is also supplementing the growth of the market. For instance, in August 2021, Estée Lauder launched its Foundation Finder, an online tool that helps customers to find their perfect foundation based on their skin tone and coverage preference.
The increasing number of influencers, bloggers, and vloggers on social media are also playing a significant role in driving the growth of the market. These influencers are providing unbiased product reviews and recommendations, which enhances their credibility and persuades consumers to buy premium cosmetics products. Furthermore, the growing trend of organic and eco-friendly products is also contributing to market growth.
Product Insights
The premium makeup segment held a significant share of the market in 2020. Rising disposable income, increasing popularity of online shopping, and increasing demand for organic and natural cosmetics are some of the key factors driving the growth of the market. According to an article published by Cosmetic Design Europe in June 2020, the global organic and natural cosmetics market is expected to grow at a CAGR of 8.3% during 2020–2027. Furthermore, increasing focus on product innovation and development of new products is further propelling the demand for premium makeup products.
The skin care segment is also expected to register a healthy CAGR of 8.0% over the forecast period. Increasing awareness about skin care and growing demand for organic and natural skin care products is driving the market growth. According to an article published by the Global Wellness Institute in October 2020, the global organic and natural skin care market is expected to reach USD 16.4 billion by 2022. Furthermore, availability of wide range of cosmetics products with attractive packaging is another factor driving the growth of the segment.
Distribution Channel Insights
The supermarkets and hypermarkets segment accounted for the largest share of the premium cosmetics products market in 2020. The segment is expected to remain dominant over the forecast period. The increasing preference of millennials and Gen-Z consumers towards physical stores over the online stores is further expected to drive the segment growth. Moreover, the increasing number of supermarkets and hypermarkets across the world is also driving the growth of the segment.
The online segment is anticipated to grow at the highest CAGR of 11.1% over the forecast period. The increasing internet penetration and the rising adoption of e-commerce platforms are expected to drive the growth of the segment. Moreover, the increasing number of online stores offering premium cosmetics products is further expected to boost the segment growth. In addition, the convenience offered by the online platform and the wide range of product availability are further expected to drive the growth of the segment.
Type Insights
The premium segment is anticipated to account for the largest revenue share of 79.3% in the year 2022. The growing trend of anti-aging products in the cosmetics segment and the increasing demand for premium makeup products is driving the demand for premium cosmetics products. For instance, in April 2022, Estée Lauder Companies Inc., a manufacturer of premium cosmetics, launched Double Wear Light Soft Matte Hydra Makeup, a lightweight matte foundation. This product is specifically designed to reduce the appearance of imperfections and provide a natural finish on the skin.
The mass segment is anticipated to expand at the highest CAGR of 8.1% over the forecast period. Companies operating in the mass cosmetics segment are increasingly focusing on developing innovative products to target different consumer segments. For instance, in April 2022, Coty Inc. launched a new range of mass cosmetics products called “Glow” that includes primers, foundation, and setting sprays. This product range is specifically designed to help women achieve a natural and flawless look. Furthermore, rising consumer preference for organic and natural products is expected to drive the growth of the mass segment.
Regional Insights
Europe is expected to be the dominant region in the global premium cosmetics market. The presence of prominent companies such as L’Oréal, Estée Lauder, and others that offer a wide variety of premium cosmetics products is driving the growth of this region. In addition, the rise in the number of beauty salons and spas in the region is also contributing to the growth of the market. Furthermore, increasing consumer spending power is expected to drive the market in the region.
Asia Pacific is expected to register the fastest CAGR during the forecast period. Factors such as increasing disposable income and the presence of major brands in the region is boosting the growth of the market. The rising number of beauty salons and parlors in the region is further providing an impetus to the growth of the market. For instance, in February 2022, The Body Shop opened its first-ever store in India, which offers a wide range of premium cosmetics products.
Financial Projections
In this part of the premium cosmetics 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 premium cosmetics products. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a premium cosmetics products business comes from the sale of products, subscriptions, advertising, and affiliate partnerships. Here you will find a list with a description of each of them and other possible sources of profit such as new product launches, special offers, promotional campaigns, and collaborations with influencers.
Projecting Expenses
In this section, all the regular expenses related to keeping the premium cosmetics products business running will be described. The list of operating expenses includes raw material costs, manufacturing costs, advertising, and marketing costs, wages, insurance policies, and other overhead costs.
Key companies & market share insights
Some of the key companies operating in the premium cosmetics market are increasingly focusing on product launches and expansion strategies to gain prominent visibility among consumers. Some of the initiatives are:
– In April 2022, Estee Lauder Companies Inc. launched its new premium skincare line, Estee Lauder Advanced Night Repair.
– In June 2022, Shiseido Company Ltd. launched its new line of premium cosmetics products, called ReVive.
– In August 2022, L’Oréal SA launched its new line of beauty products, called La Mer.
Some of the prominent players in the premium cosmetics market include:
– Estee Lauder Companies Inc.
– L’Oréal SA
– Shiseido Company Ltd.
– Coty, Inc.
– Kao Corporation
– Beiersdorf AG
– Unilever PLC
– Avon Products, Inc.
– Amorepacific Corporation
– Procter & Gamble Co.
Global Premium Cosmetics Market 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 premium cosmetics products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Skin Care
– Hair Care
– Face Makeup
– Eye Makeup
– Lip Makeup
– Nail Makeup
– Fragrances
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Specialty Stores
– Departmental Stores
– 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 are the key factors driving the premium cosmetics products market?
[A]: Factors such as an increase in disposable income, a surge in the number of working women, and the demand for quality products are the key drivers of the market. Growing awareness of beauty products among young adults and rising demand for organic and natural cosmetics are some of the other factors driving the market.
[Q]: What are the key trends in the premium cosmetics products market?
[A]: The premium cosmetics products market is witnessing a surge in demand for vegan and cruelty-free products, as well as for products with natural ingredients. In addition, the emergence of new product categories such as e-commerce and subscription-based models are set to create new opportunities for the market in the upcoming years.
[Q]: Who are the major players in the premium cosmetics products market?
[A]: Major players in the premium cosmetics products market include L’Oréal SA, The Estée Lauder Companies Inc., Avon Products, Inc., Shiseido Co., Ltd., Coty, Inc., Kao Corporation, Procter & Gamble Co., Unilever, AmorePacific Corporation, and others.
[Q]: What are the challenges faced by the premium cosmetics products market?
[A]: The availability of counterfeit products and the competitive pricing strategies adopted by various manufacturers are some of the major challenges faced by the market. Moreover, stringent regulations and the threat of product recalls are also hampering the growth of the market.
[Q]: Which region is expected to offer the largest opportunity for sales of premium cosmetics products?
[A]: Asia Pacific is expected to be the most lucrative region for premium cosmetics products, with an absolute dollar opportunity of $24.3 B (USD). The region is expected to be driven by the increasing demand for beauty products among young adults and the growing awareness of organic and natural cosmetics.
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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