In-Depth analysis of cosmeceuticals market

Cosmeceuticals are substances that have both cosmetic and therapeutic qualities and are good for health and attractiveness. These goods resemble cosmetics in many ways, but they also contain an active element supporting good health. Exfoliators are a few of the Cosmeceuticals that are extremely popular. 

The market worth of cosmeceuticals in 2021 was USD 45.56 billion and will be worth USD 95.75 billion by 2030, growing at an 8.6% CAGR during the forecast period.

Other factors influencing the potential of cosmetics include a growing emphasis on personal care, increased accessibility of cosmetics, increased awareness of physical appearance on social media, and rising disposable income. However, the potential of the global cosmetics market is restrained throughout the projected period due to the high costs of branded goods.

Market Dynamics

Drivers

Due to rising consumer expenditure and concerns over premature aging, the adoption of cosmetic items has seen a significant rise. Additionally, the relocation of cosmetic manufacturing to countries like India, Thailand, and Vietnam is opening up a wide range of business prospects and providing access to a sizable population. The market for cosmeceuticals is also driven by rising consumer awareness of natural and organic cosmetics during the forecast period.

Restraints

The emergence of replica goods as a cheaper alternative to expensive branded goods has significantly hampered product manufacturers in recent years. Due to the use of subpar raw ingredients, imitation items on the cosmeceuticals market damage the reputation of the real companies. The original brands suffer a loss of market penetration as a result. Therefore, such factors are likely to partially restrain market expansion.

Opportunity

The increase in money in emerging economies has made it possible for consumers to use a wide variety of cosmetic goods. Leading businesses in nations like India, China, Japan, Thailand, etc., have paved the way for the market’s expansion by developing new items. Around 176 million homes in the industrialized world were classified as middle class in 2018, and by 2030, it will rise by 6.3%.

Market Segmentation

On the basis of product, the cosmeceuticals market is segmented into skin care, oral care, lip care, and hair care.

With a revenue share of around 62.4% in 2021, the skin care segment ruled the entire market. The market has grown more quickly due to the increasing prevalence of skin-related issues. The use of skin care products has grown due to the impact of changing climate on the skin. Due to rising pollution levels in cities brought on by an expansion in industries, more people are using skin care products as a kind of protection. Additionally, this market will grow due to several efforts launched by organizations to increase public awareness of the adverse effects of UV rays and the use of sunscreen and other skin-protective creams.

On the basis of distribution channels, the market is segmented into online platforms and supermarkets, and specialty stores.

The supermarket and specialty store segment held the largest market position, with 58% of the revenue share in 2021. Due to the numerous marketing techniques employed by the producers and distributors, it is projected that demand for these products in supermarkets and specialized stores will rise. Aggressive marketing campaigns are also responsible for the market’s growth in the coming years.

On the basis of ingredients, the market is segmented into antioxidants, retinoids, sunscreens, botanicals, skin lightening agents, peptides and proteins, and hydroxy acids.

Antioxidants led the entire market with a steady CAGR. Antioxidants shield the skin, and adding them to topical and ingestible treatments boosts benefits while shielding them from oxidative harm. As a result, these elements support the segment’s expansion.

Regional Analysis 

Asia Pacific led the entire cosmeceuticals market in 2021, generating the largest revenue of USD 18.8 billion. The largest percentage in the Asia-Pacific area is partly due to rising disposable income in developing nations and increasing people’s concern with their physical appearance. Consumers looking for skin rejuvenation solutions have increased concerns about skin issues due to their hectic and stressful lifestyles and worsening environmental conditions. In terms of market size for skin care cosmeceuticals in 2021, China accounted for 64.5 percent.

Key Players 

• Croda International plc 
• Procter & Gamble
• Johnson & Johnson 
• Avon Products Inc 
• Estée Lauder Inc
• Shiseido 
• Beiersdorf 
• L’Oréal Group 
• Allergan 
• LVMH (France)
• Unilever 
• ELEMENTIS PLC.
• Clarins (France)
• Coty Inc. (U.S.)

The market worth of cosmeceuticals in 2021 was USD 45.56 billion and will be worth USD 95.75 billion by 2030, growing at an 8.6% CAGR during the forecast period. Rising middle-class demand and an escalating urban population are anticipated to propel the worldwide cosmeceuticals market. The existence of higher grade and more expensive cosmeceuticals products is one of the factors boosting the global cosmeceuticals market.