Israel Cosmetics Products Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Israel Cosmetics Products Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Israel cosmetics products market is projected to witness a CAGR of 4.67% during the forecast period 2022 - 2027.

The COVID-19 pandemic is still transforming the growth of numerous industries; the market has experienced a negative trend due to consumers staying at home having less motivation to wear cosmetics with many consumers working from home and going out much less, and there was less demand for cosmetics, nevertheless, post-2021, the market has seen an upsurge due to the opening of industries.

High disposable income in Middle Eastern countries is responsible for the high penetration of luxury brands (like Dior, Guerlain, Clarins, Clinique, Lancôme, Estee Lauder, Shiseido, etc.). These brands are now paving their way into developing markets, like Israel and other middle eastern countries, at a fast pace, due to rising disposable income and an inclination to spend more on appearance.

The growing demand for anti-aging products and innovative and eco-friendly packaging designs are attributing to the market growth in the country. The online retail channels are also influencing sales of cosmetics in the country.

Key Market TrendsInclination Toward Vegan and Cruelty-free Cosmetics Products

The cruelty-free (no animal testing), vegetarian (no byproducts of animal slaughter), and vegan (no animal ingredients at all) beauty market has exploded in recent years globally and has been finding its space in the Indian market too. Moreover, with the advancement of vegan products in the country, Israeli consumers are paying extra attention to not only a particular shade of lipstick that suits them but also to how the lipstick is made. Animal-free alternatives may lead companies to produce lab-grown human skin samples for testing cosmetic products. The ability to create samples on demand not only reduces costs but also increases the accuracy of results. Advancements in techniques mean that samples can be used to replicate different skin ages and colors. The increasing demand for vegan cosmetics among millennials and technological advancements are driving the growth of the market studied.

Supermarket and Hypermarkets holds a Significant Share

Owing to high consumer demand, major supermarkets are expanding the range of cosmetics representing a diversity of products. The growth observed in the supermarket segment was led by the appeal it causes to boomers seeking for safe exploration of various cosmetic products formulated with innovative technology and packaging. The trend of bulk shopping is increasing due to the increased income and busy lifestyles of consumers. Selling the products through supermarkets signifies the transaction-building strategy of the seller as it leads to increased impulse purchases of the consumer. On the other hand, COVID-19 accelerated the shift to E-commerce sales, with many beauty retailers closed during lockdown; this has offset the negative impact of the pandemic. Major brands like L'Oréal, and Maybelline are available through local e-commerce beauty retailers which offer quick delivery, and many brands are operating through their own online stores.

Competitive Landscape

Major emerging market players targeting leading brands are making strategic acquisitions of the market leaders in more mature and sophisticated markets. Acquiring these brands enables diversification and gives these players access to stable cash flows and further growth opportunities. Key players in the market are Pharma Cosmetics Laboratories Ltd, Olea Essence, LOreal S.A., and Estee Lauder Companies Inc, among others.

Additional Benefits:

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

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