PUBLISHER: Arizton Advisory & Intelligence | PRODUCT CODE: 1598187
PUBLISHER: Arizton Advisory & Intelligence | PRODUCT CODE: 1598187
The global skincare market is expected to grow at a CAGR of 6.08% from 2023 to 2029.
SKINCARE MARKET TRENDS & OPPORTUNITIES
Shifting Preference to Clean Beauty and Natural Ingredients
The skincare market has shifted towards clean and natural ingredients as consumers become more aware of the health risks associated with conventional chemicals. This trend has led to a rise in the popularity of clean beauty brands that use organic ingredients and focus on sustainability. In April 2024, AFFOREST Green Beauty launched India's first Jackfruit skincare range, featuring a foaming cleanser, gel-cream moisturizer, under-eye cream, and bedtime serum. The new line focuses on combating pigmentation and hyperpigmentation with the high-performance benefits of jackfruit extracts. Furthermore, in November 2023, NUXE launched the Sweet Lemon range, a new line of organic skincare products designed for Gen Z, featuring a lemon meringue scent and eco-friendly formulas. The collection includes hand and nail cream, lipstick, and lip balm, which offer a fresh alternative to their existing lines. The company has increased its product portfolio and has attracted more market consumers.
Growing Adoption of E-commerce and Digital Channels
The surge in demand for e-commerce and digital channels is a transformative trend reshaping the global economy and consumer behavior in the skincare industry. The exponential growth of e-commerce is driven by several interrelated factors, including technological innovation, changing consumer expectations, and collaboration with influencers. In August 2024, Estee Lauder launched the Clinique brand on Amazon's Premium Beauty store, significantly expanding the brand's reach. The new storefront, introduced on March 27, has contributed to Clinique's growth in both moisturizers and makeup in the US. Estee Lauder's new Clinique Dermatologist Creator Council, featuring dermatologists on social media, has boosted influencer media value by 80%. The company also leverages AI with partners like Microsoft and Google Cloud to enhance its products and marketing.
INDUSTRY RESTRAINTS
Regulatory Hurdles
The skincare market faces significant challenges with regulatory compliance due to the complex and constantly evolving nature of regulations across different markets. In January 2024, California banned six beauty ingredients under its Toxic-Free Cosmetics Act due to health and environmental concerns. Lily aldehyde (lilial) and acetaldehyde are fragrances linked to potential skin irritation and possible carcinogenic effects in acetaldehyde's case. Cyclotetrasiloxane, a silicone, raises environmental worries due to its persistence in water and soil. Phytonadione (vitamin K1) may cause allergic reactions and lacks substantial cosmetic benefits. Formaldehyde, a known carcinogen, is used in some nail and hair products but poses significant health risks. Lastly, PFAS "forever chemicals" are banned because of their persistence in the environment and potential long-term health effects.
SEGMENTATION INSIGHTS
INSIGHTS BY PRODUCT
The global skincare market by product is segmented into creams, lotions, powders, sprays, and others. The creams segment holds the largest segmental market share in 2023 due to their versatility and effectiveness in addressing a wide range of skin concerns. They provide deep hydration and targeted treatments and offer various formulations suitable for different skin types and conditions. Their broad appeal, strong marketing, frequent use in daily skincare routines, and the ability to combine multiple benefits (like anti-aging and sun protection) contribute to their leading market share. Additionally, creams' innovations and premium product offerings continue to drive consumer demand and enhance their market presence.
Segmentation by Product
INSIGHTS BY CARE PRODUCTS
The global skincare market by care products is segmented into facial care, body care, and lip and eye care. In the care segment, face care accounts for the highest share of revenue in the skincare market due to its focus on addressing a wide range of concerns, from aging and acne to hydration and sensitivity. The face is often the most visible part of the body and is directly impacted by environmental factors, making its care a priority for many consumers. Additionally, face care products such as serums, face wash, and others are often marketed with strong claims and innovations, which drive high consumer spending and frequent repurchases. This focus on visible and immediate results contributes significantly to the overall revenue in the skincare market.
Segmentation by Care Products
INSIGHTS BY PACKAGING
The global skincare market by packaging is segmented into tubes, bottles, jars, and others. In the packaging segment, tube packaging holds the largest share of revenue in the skincare market due to its convenience, precision, and hygiene benefits. Tubes offer easy dispensing and control over the amount of product used, which minimizes waste and ensures a clean application. They also protect formulations from contamination and environmental factors, extending product shelf life. Additionally, tubes are lightweight and portable, making them a popular choice for consumers and manufacturers. This combination of practical benefits and consumer preferences drives their dominance in the skincare packaging industry.
Segmentation by Packaging
INSIGHTS BY CATEGORY
The global skincare market by category is segmented by mass and luxury. In the category segment, the mass category holds the highest share of revenue in the skincare market due to its broad accessibility and affordability. The mass category is driven by its extensive reach, cost-effectiveness, and strong brand presence, which makes quality skincare accessible to a larger population compared to premium or luxury segments.
Segmentation by Category
INSIGHTS BY DISTRIBUTION CHANNEL
The offline distribution channel holds the most significant share of the global skincare market. The segment holds the most significant share primarily due to its established presence and customer trust. Physical stores offer a tactile experience where consumers can test products, receive personalized advice from sales staff, and make immediate purchases. This direct interaction often enhances customer confidence in the products and allows for a more engaging shopping experience. Additionally, offline retail spaces benefit from strong brand visibility and the opportunity to showcase a wide range of products, which can drive higher sales volumes than online channels.
Segmentation by Distribution Channel
GEOGRAPHICAL ANALYSIS
APAC region accounted for the highest revenue share in the global skincare market. Particularly in South Korea and Japan, there's a growing interest in innovative, multi-step skincare routines and advanced formulations. Also, cultural attitudes towards beauty and skincare significantly shape demand in the APAC. Many APAC cultures have a long-standing tradition of valuing and investing in personal appearance and grooming. This cultural emphasis on beauty has been reinforced by media and advertising, further driving consumer interest in skincare products. For instance, in countries like China, traditional beauty practices and ingredients are often incorporated into modern skincare routines, creating a fusion of heritage and innovation that appeals to consumers.
In North America, there's a strong emphasis on high-tech, ingredient-focused products with a significant demand for anti-aging solutions. Also, the demand for skin care products in North America has increased robustly over the years, influenced by demographic shifts, heightened skincare awareness, advancements in product formulations, and evolving consumer behaviors. Furthermore, Europe, known for its rich skincare traditions, prefers natural and organic products, with sustainability being a key trend. Meanwhile, in Latin America and the Middle East, skincare market growth is driven by a burgeoning interest in premium and luxury skincare products.
Segmentation by Geography
COMPETITIVE LANDSCAPE
The global skincare market is fragmented, with diverse players ranging from multinational corporations to niche brands. Major multinational corporations such as L'Oreal, Estee Lauder, Procter & Gamble, Unilever, LVMH, Beiersdorf's, and others dominate the global skincare market with their extensive portfolios of well-established brands like Lancome, Clinique, Olay, and others. These companies leverage their vast resources to drive R&D, allowing them to introduce innovative products that cater to a broad spectrum of skin concerns. Their strength lies in their ability to invest heavily in marketing, distribution, and brand loyalty programs, ensuring their products remain visible and desirable to consumers worldwide.
Key Developments in the Global Skincare Market
Key Company Profiles
Other Prominent Vendors
KEY QUESTIONS ANSWERED: