The cosmeceuticals market comprises skincare and healthcare cosmetic products containing ingredients that are claimed to have medical or drug-like benefits. Cosmeceuticals help to improve the appearance and overall health of the skin. They contain antioxidants, peptides, growth factors, and other bioactive ingredients that help reduce the signs of aging, lighten dark spots and pigmentation, treat acne or rosacea, and alleviate various skin conditions. The increasing consumer demand for multi-benefit cosmetic products that nourish, rejuvenate and repair the skin is fueling the growth of the cosmeceuticals industry. The Global Cosmeceuticals Market is estimated to be valued at US$ 83.95 Bn in 2024 and is expected to exhibit a CAGR of 9.2% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the cosmeceuticals market are Bayer AG, Henkel AG & Co. KgaA, Avon Products Inc., Johnson & Johnson Inc., Kao Corporation, Beiersdorf AG, Groupe Clarins SA, Revlon Inc., Shiseido Co. Ltd., Unilever PLC, Procter & Gamble, L’Oréal SA, Lotus Herbals Pvt. Ltd., and The Estée Lauder Companies Inc. Consumers are increasingly seeking beauty products that can effectively deliver anti-aging benefits and products with natural and clinically proven ingredients are in high demand. Technological advancements have allowed manufacturers to develop novel delivery systems and precise formulations that improve the efficacy of active ingredients in cosmeceuticals.
Market Trends
The rising geriatric population base that is highly conscious about aging signs is fueling the demand for anti-aging cosmeceuticals. Manufacturers are developing products containing ingredients like hyaluronic acid, peptides, retinol, coenzyme Q10, and ceramides that helps reduce wrinkles, dark spots and fine lines. Sustainable and eco-friendly ‘green cosmeceuticals’ made from natural and plant-based extracts are gaining popularity due to rising health and environmental concerns.
Market Opportunities
The growing men’s grooming industry opens up opportunities for male-specific anti-aging cosmeceuticals and skincare lines. The increasing adoption of digital-first strategies by brands and the rise of beauty content on social media platforms are helping companies market and distribute products more effectively and reach younger consumer demographics. E-commerce has further facilitated the increased accessibility of cosmeceutical products globally.
Impact of COVID-19 on Cosmeceuticals Market Growth
The COVID-19 pandemic has negatively impacted the growth of the cosmeceuticals market globally. During the pandemic, people spent more time indoors and focused less on personal care and cosmetic products. The demand for cosmeceuticals declined significantly as socializing, meetings and other outdoor activities were limited. Retail stores selling cosmeceutical products witnessed a major drop in footfall and sales. Manufacturing and supply chain operations were disrupted due to lockdowns and restrictions imposed across many countries. This posed challenges in the production and distribution of cosmeceutical products.
However, the cosmeceuticals market is recovering gradually post-pandemic. With economies reopening and socializing increasing, the demand for cosmeceuticals is rising again. Manufacturers are focusing on innovative product formulations, expanding digital presence and implementing strict safety measures across facilities to boost consumer confidence. They are developing skin care ranges offering anti-aging and sun protection benefits to cater to changed consumer priorities. Several new companies have also entered the market during the pandemic recognizing the long term growth opportunities. The demand for herbal and natural cosmeceuticals is increasing globally. If managed efficiently, the market is projected to surpass pre-COVID levels in the coming years through introduction of advanced products and solutions.
Geographical Concentration of Cosmeceuticals Market
North America represents the largest regional market for cosmeceuticals in terms of value. The United States alone accounts for over 30% of the global cosmeceuticals market revenue. A growing culture of personal grooming and rising demand for multifunctional, results-oriented skincare and hair care products are major factors driving market growth in the region. The availability of cutting-edge innovations and strong promotional activities by leading brands also contribute to market concentration in North America.
Another fastest growing regional market for cosmeceuticals is Asia Pacific excluding Japan. The Asia Pacific region offers immense opportunities for cosmeceuticals market, spearheaded by nations like China, South Korea and India. Rising disposable income, increasing working women population, growing awareness about cosmeceutical benefits and expanding middle class population are stimulating market expansion across Asia Pacific. The launch of locally customized, affordable products has further propelled the Asia Pacific excluding Japan region to become a dominant hub for cosmeceuticals market in recent years.
