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Skin Care Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global skin care products market was valued at USD 97.3 billion in 2022 and is projected to expand at a CAGR of 5.2% from 2023 to 2030. The market is driven by the increasing awareness about personal hygiene, the growing influence of celebrities and influencers, and the increasing adoption of technology-enabled products. Moreover, the growing trend of veganism and the increasing demand for organic and natural skin care products are further driving the market growth.
The skin care product market is segmented into facial care, body care, eye care, and sun care, among others. Among these, the facial care segment accounted for the largest market share in 2021. This is attributed to the increasing number of products being launched in the market, such as anti-aging creams, cleansers, toners, and moisturizers, which are gaining popularity among the population. Furthermore, the rising demand for natural and organic skin care products is further driving the market growth.
The increasing prevalence of skin diseases, such as acne, is expected to provide a significant boost to the market growth. According to the World Health Organization (WHO), in 2020, acne was the 8th most common cause of disability in the world. As a result, people are increasingly opting for skin care products that are specifically designed for acne-prone skin. Furthermore, the rising demand for products that contain natural and organic ingredients, such as essential oils and plant extracts, is further driving the market growth.
The increasing demand for skin care products in the professional and salon segment is expected to boost the market growth. In recent years, the demand for facial treatments in salons has significantly increased due to a growing focus on personal appearances. Furthermore, the rising preference for technologically advanced skin care products is further boosting the market growth. For instance, in November 2021, L’Oréal launched its skin care product range, which includes a product with a built-in UV sensor, to help consumers stay protected from the sun.
Moreover, the rising demand for travel-friendly products is further driving the market growth. Companies are introducing smaller, more travel-friendly products, such as small tubes, which are convenient and easy to carry. For instance, in April 2021, Estée Lauder launched a range of travel-friendly skin care products, such as mini-sized cleansers and moisturizers, to meet the needs of frequent travelers. Furthermore, the increasing demand for luxury skin care products is also driving the market growth.
Product Insights
The facial skin care segment held the largest market share of 52.3% in 2022. Facial skin care includes a wide range of products like cleansers, toners, moisturizers, scrubs, and masks. The surge in the demand for facial skin care products is mainly fueled by the growing awareness among consumers about the importance of facial skin care and the increased popularity of natural skin care products. Additionally, the growing inclination towards clean beauty and growing demand for organic products is also driving the growth of the facial skin care segment.
The body skin care segment is anticipated to witness the highest CAGR of 6.4% over the forecast period. The increasing demand for natural and organic body skin care products is boosting the growth of the body skin care segment. Consumers are more conscious about their body and are increasingly taking steps to enhance their body skin care regimen, which is driving sales of body anti-aging, tanning, and other body skin care products. Furthermore, the growing trend of natural and organic skin care products is also expected to favorably impact the growth of the market.
Distribution Channel Insights
The supermarkets and hypermarkets segment dominated the market in 2022, with a share of more than 40.2%. Supermarkets and hypermarkets are the most popular distribution channel for skin care products in the market. This is attributed to the fact that consumers are more likely to buy skin care products after having a touch and feel experience at the store. Furthermore, supermarkets and hypermarkets provide a wide selection of skin care products and assist consumers in making quick purchasing decisions.
The online segment is expected to expand at the highest CAGR of 11.2% during the forecast period. The increasing penetration of the internet and the proliferation of e-commerce in the skin care market are driving the growth of the segment. To tap into the growing e-commerce market, various skin care companies are launching their own website and shopping apps. For instance, in October 2020, Neutrogena launched its e-commerce website in India to expand its presence in the online market. The website offers a wide range of skin care products and also provides expert advice and opinions on choosing the best skin care regime.
Type Insights
The mass segment accounted for the largest revenue share of 78.6% in the year 2022. The rising demand for mass skin care products due to increasing awareness about personal hygiene and beauty standards among individuals of all age groups is expected to drive the mass segment. Also, the increasing trend of using natural and organic products, which are generally available in the mass segment, is expected to further fuel the market growth. Companies such as L’Oréal, P&G, Unilever, and Shiseido are focusing on introducing new products in the mass segment to cater to the growing demand.
The premium segment is projected to expand at a CAGR of 7.8% during the forecast period. The introduction of sophisticated products with innovative ingredients is expected to fuel the growth of the premium segment. Furthermore, the rising use of premium brands in salons and spas is also driving the demand for the premium segment. Companies such as Estée Lauder and LVMH are focusing on launching new products in the premium segment to capitalize on the increasing demand.
Regional Insights
Asia Pacific held the largest market share in 2022 and is projected to remain dominant over the forecast period. This is attributed to the growing beauty consciousness among consumers, especially in countries such as South Korea, Japan, and China. The rising demand for anti-aging products, such as serums and creams, is expected to drive the growth in the region. For instance, in March 2021, The Face Shop, a South Korean skincare brand, launched its new anti-aging line called L’eau de Jeune, which includes a range of products such as creams, serums, and masks.
North America is expected to witness the second-fastest growth over the forecast period. The rising popularity of at-home facial treatments and increasing demand for organic and natural skincare products are the key factors driving the growth of the market in the region. For instance, in April 2021, Derma E launched its new Organic Skincare line in the U.S. The line includes a range of products such as cleansers, masks, oils, and serums.
Financial Projections
In this part of the skin 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 business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main sources of revenue for a skin care products business come from sales of product, subscriptions, and advertising. Here you will find a list with a description of each of these sources of profit as well as other possible sources of revenue such as online sales, wholesale orders, and sales of any additional services you may offer.
Projecting Expenses
In this section, all the regular expenses related to keeping the skin care products business running will be described. The list of operating expenses includes product cost, employee salaries, rent, utilities, marketing, advertising, taxes, and insurance.
Key companies & market share insights
Some of the key companies operating in the skin 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, Olay launched a range of skin care products for men, the product range includes a hydrating face and beard wash, clear shave lotion, calming post-shave balm and face and neck moisturizer.
– In August 2022, L’Oréal launched a line of anti-aging products targeted at the male demographic.
– In October 2022, Estée Lauder launched a line of skin care products specifically designed for men, which included a facial cleanser, a moisturizer and an anti-aging cream.
Some of the prominent players in the skin care products market include:
– L’Oréal SA
– Unilever
– Procter & Gamble Co.
– Estée Lauder Companies, Inc.
– Shiseido Co., Ltd.
– Beiersdorf AG
– Avon Products, Inc.
– Kiehl’s LLC
– Johnson & Johnson
– The Body Shop International PLC
Global Skin 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 skin care products market based on product type, distribution channel, end-user, and region:
1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)
– Facial Care
– Body Care
– Hand & Foot Care
– Sun Protection
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. End-User Outlook (Revenue, USD Million, 2017 – 2030)
– Men
– Women
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 Growth Drivers of the Skin Care Products Market?
[A]: Key drivers of the skin care products market include the increasing disposable income of consumers, rising demand for anti-aging products and other products that improve skin health, and the growing number of campaigns and advertisements that promote the use of skin care products. The increasing demand for organic, natural, and vegan skin care products is also driving the market.
[Q]: Who are the Major Players in the Skin Care Products Market?
[A]: Major players in the skin care products market are L’Oreal S.A., Unilever, Estee Lauder, Shiseido Company, Johnson & Johnson, Procter & Gamble, and Avon Products Inc.
[Q]: What are the Opportunities in the Skin Care Products Market?
[A]: Increasing demand for anti-aging products, rising health consciousness and awareness among consumers, and growing demand for organic, natural, and vegan skin care products are expected to create opportunities for the skin care products market.
[Q]: What are the Regional Segments of the Skin Care Products Market?
[A]: The global skin care products market is segmented into North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. Asia Pacific is expected to be the largest market for skin care products due to the increasing disposable income of consumers and rising demand for skin care products from countries such as China, South Korea, and Japan.
[Q]: What are the Trends in the Skin Care Products Market?
[A]: Key trends in the skin care products market include the increasing demand for natural, organic, and vegan skin care products, the introduction of innovative products, and the increased use of technology such as AI and IoT for product development. Additionally, the rising popularity of K-Beauty products is expected to drive the market in the coming years.
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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