Over the years to come, the cosmetics and personal care industry is predicted to record gains all its segments. Particularly strong growth expected for sun protection and anti-aging products as consumers become increasingly aware of the dangers of sun exposure and more concerned with preserving a youthful appearance. Emerging nations represent huge potential for international companies, offering better quality products than locally produced goods to populations with rising income levels.
Rising income means that consumers are more concerned with product effectiveness and ingredients used rather than cheaper products. Manufacturers are, therefore, focused on advertising their products as superior to those of rival companies, rather than systematically seeking to undercut market prices. Digitalization and the coronavirus pandemic have shifted cosmetics and personal care into the online realm, where shoppers have access to a wide range of products, reviews, and delivery options.
The global beauty and personal care market was estimated to be worth around 500 billion U.S. dollars in 2019. This is an increase of around 87 percent since 2005, when the market was worth approximately 267 billion U.S. dollars. The ongoing growth of the industry displays the consumer's sustained interest in beauty and cosmetic regimes, as well as in basic personal care and hygiene practices.
Cosmetics industry worldwideSkincare products made up 40 percent of the total global cosmetics market in 2019. Haircare and make-up ranked in second and third places, with market shares of 21 percent and 18 percent, respectively.
Skincare's share of the total cosmetics market has increased in recent years; the industry has witnessed a shift from demand from older consumers to a growing younger consumer base. People are beginning to use skin care at an increasingly young age in a bid to delay the signs of aging.
Over 50 percent of surveyed U.S. households stated that they already buy all-natural skin care products, while some 35 percent want to start buying them. Other natural skin care product claims which were important to consumers included being free of synthetic chemicals, sustainable, organic, and plant-based. This trend follows one seen across many consumer goods categories - consumers are shopping in a more sustainable way.
Natural and organic cosmetics in the U.S.L'Oreal's worldwide revenue totaled over 33 billion U.S. dollars in 2020, over 10 billion U.S. dollars more than their closest competitor - Unilever. Other leading beauty manufacturers include Estée Lauder Companies and Proctor & Gamble.
Founded in 1909, the L'Oréal Group has become the largest cosmetics and beauty company in the world. Globally, the company employs almost 88,000 people. Around 30,000 employees are located in Western Europe and just under 15,000 in North America.
The United States takes the top spot for the largest beauty and personal care market globally, with a market value exceeding 93 billion U.S. dollars. China's market amounted to around 71 billion U.S. dollars, placing them in second place. Other key players in the market include Japan, Brazil, and Germany.
Cosmetics market in ChinaThe cosmetics and personal care market is usually divided into five main business segments: skincare, haircare, make-up, fragrances and toiletries. These segments are complementary and through their diversity able to satisfy all consumers’ needs and expectations with regard to cosmetics. Beauty products can be subdivided into premium and mass production segments, according to the brand prestige, price, and distribution channels used. As in many other consumer goods industries, natural and organic cosmetics and personal care products are widely available to consumers and make up a large share of the market.
Some of the market leaders within this industry include L'Oréal, Estée Lauder Companies, Proctor & Gamble, Beiersdorf, and Shiseido. Data on market size, segmentation, regional outlooks, shopping behavior, and company facts can be found on the Statista platform.
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