Beauty and Personal Care Products Market - Growth, Trends, and Forecasts (2023 - 2028)

Beauty and Personal Care Products Market - Growth, Trends, and Forecasts (2023 - 2028)

The beauty and personal care products market is projected to register a CAGR of 6.9% over the next five years.

After the outbreak of COVID-19 faced issues related to the skin, like rashes and itching. Due to the excessive use of soaps and hand sanitizers, people also contracted diseases like hand dermatitis. The doctors reported having rashes because of PPE kits. Due to all these reasons, the personal care market has grown post-COVID as people take care of their skin with utmost priority. The increasing awareness of customers about their appearance is one of the major reasons driving market expansion. Millennials increasingly use beauty and personal care items such as skin care, color cosmetics, and hair care as part of their regular grooming routine.

The emergence of cosmetics with natural, non-toxic, and organic components has also aided market expansion. With the growing demand for organic ingredients, consumers worldwide are inclined toward organic personal care products, which is expected to drive market growth during the study period. Furthermore, the rising awareness about the harmful effects of chemicals and synthetic products is another factor augmenting the development of the market. Most consumers tend to buy products with natural or organic labeling, which is driving the market growth.

The growing concerns regarding the side effects of chemicals in personal care products, which lead to ailments such as skin irritation, allergies, and skin dullness, have been fueling the demand for natural and organic skincare products. Prolonged use of synthetic cosmetics may cause various health issues, such as irritation, hormonal imbalance, and toxicity. However, cosmetic products made of organic ingredients, such as plant extracts and natural oils, do not leave any harmful impact on the skin. Natural skincare and cosmetic products that are free from chemicals and transparent about the content have been preferred by consumers, which is likely to drive demand for natural skin care products. This factor has resulted in a shift in preference from synthetic skincare products to organic products among consumers.

To capitalize on this growing interest, the manufacturers in the market have been revamping and expanding their product offerings by introducing a wide range of organic skincare products containing plant-based, clean-label ingredients, with claims such as organic, vegan, natural, chemical-free, and cruelty-free, among others. For instance, in April 2022, Shiseido revealed a new skincare brand Ulé, which sources pesticide-free botanicals from local vertical farms. Thereby, the dissemination of knowledge related to the benefits of natural skincare has led consumers to seek eco-friendly, sustainable, natural skincare/personal care products that offer greater product ingredient transparency.

In the Asia-Pacific region, countries like China, India, Japan, Indonesia, and Vietnam present considerable growth opportunities for the market players, primarily due to the growing millennial population. Amid the growing prevalence of hair thinning, loss of volume, dryness, and several other hair-related concerns among consumers, hair care products are emerging as the most affluent and cost-effective way. Hence, the major players are intensely embarking on product innovation and mergers and acquisitions as their prime strategy to consolidate the market studied. For instance, in 2021, Kao Corporation, through its subsidiary Kao Salon Japan, launched its hair salon brand, Oribe, in Japan. The brand consists of 23 product line-ups that were made widely available in Japan.

Furthermore, growing awareness regarding cosmetics products, such as facial makeup and hairstyling and coloring products, is expected to drive the market’s growth in the near future. The demand for multifunctional products drives innovation as price-conscious consumers opt for products that provide hydration and skin protection. Companies are constantly advertising cosmetics that offer medicinal benefits, especially on social networking sites, such as Facebook, Twitter, YouTube, and Instagram, where beauty bloggers are trendy. Some of the major key players in the beauty and personal care products market in Asia- Pacific are Beiersdorf AG, L'Oreal Group, Procter & Gamble, The Estée Lauder Companies Inc., and Unilever, among others.

The global beauty and personal care market is highly competitive, with a strong presence of regional and global players in the market, where demand is mostly driven by more adaptation toward skincare routines and consumer awareness about brand know-how. The most active companies in the market include key players, like Procter & Gamble, Unilever, L'Oréal SA, Colgate-Palmolive Company, and The Estée Lauder Inc. L'Oréal SA is one of the most active companies, with numerous brand offerings and a broad range of beauty and skincare products across the region.

The companies have spent considerably on improving quality and product innovation in terms of ingredients, functionality, and packaging. The key players are embarking on merger and acquisition and product innovation as their key strategies to achieve consolidation and optimize offerings. Moreover, these players merge with local players to gain dominance in the local markets.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support