Global cosmetics market – 2020 review
The beauty industry is widely presented on the Internet. Today we will review a short extract from the study www.marketwatch.com about the cosmetics market.
You can read the entire content of the study and conclusions under this link.
The value of the global cosmetics market in 2020 is estimated at $652 billion. According to forecasts, this value will increase to $805,61 in 2023 at a CAGR of 7,14%.
Skin and hair care products, perfumes, color cosmetics, deodorants, and oral hygiene and care products are the basic product categories on the cosmetics market. Skin care as the leading product category accounts for 39% of the global market. Hair products account for another 21%, makeup – 19%.
Skin care will also continue to be the most profitable category, expected to be worth $20,1 billion by 2023, with 40% of global skin care consumption occurring in the Asia-Pacific region.
Most cosmetics production is owned by a few global corporations - L'Oréal, Unilever, Procter & Gamble Co. , Estee Lauder Companies, Shiseido Company, Lancôme.
The leading cosmetics manufacturer is the L'Oréal brand, whose annual revenue reaches approximately $31,2 billion. Its daughter, L'Oréal Paris, also dominates the personal care market with revenues of $28,38 billion.
Globally, the cosmetics industry is one of the sectors least sensitive to economic fluctuations. The total value of sales may decrease slightly during downturns, but in terms of volume, sales remain at approximately the same level. This is mainly possible thanks to the fact that the consumption of cosmetics by both women and men is constantly and steadily growing.
Population aging is the main lever of market development
Over the last 20 years, the birth rate has been decreasing, which has resulted in an increase in the average age around the world. At the same time, the desire of women and men to maintain youth and vitality for as long as possible is driving the development of the cosmetics industry. An aging society creates a large and steadily growing demand for rejuvenating products designed to reduce wrinkles and other age-related skin imperfections, dehydration, as well as products to improve complexion and rebuild damaged hair. All this creates an almost unlimited field for innovation that accelerates the development of the industry.
According to forecasts, in 2050 the number of people over 60 years of age will reach 2,09 billion. Life expectancy for women will increase to 86,3 years and for men - to 83,6 years. We can already observe a visibly growing share of older people in total cosmetics purchases.
E-commerce is the fastest growing sales and distribution channel
Cosmetic products for skin and hair care and perfumes are the most sold products online. Against this background, companies are focusing more and more marketing activities on the Internet, hoping to achieve a significant increase in revenues at a relatively low cost. There is a visible tendency on the market to invest in the creation of creative and attractive websites and mobile applications, as well as intensive, sometimes even aggressive promotion in social media - Facebook, Twitter, TikTok. This sector is also benefiting significantly from the emergence of an increasing number of products available only in online stores. In addition, social networking sites such as Instagram, YouTube and TikTok are platforms that have a huge impact on younger and even middle-aged target groups, and create demand for specific product categories and, most importantly, help bridge the gap between the brand and the consumer. Various types of educational campaigns are slowly coming to the fore, helping customers, for example, properly select and combine make-up cosmetics or correctly use rare cosmetics or cosmetology products at home. Beauty bloggers and independent content creators are also a great driving force, generating interest in cosmetic brands on social media.
