United Kingdom Cosmetics Products Market - Growth, Trends, and Forecast (2023 - 2028)
United Kingdom cosmetics products market is projected to register a CAGR of 4.12% in the upcoming five years.
United Kingdom cosmetics products market is expected to experience solid value growth during the forecast period, despite economic uncertainties and Brexit. The growth of United Kingdom cosmetics market reflects the augmentation of the overall European market, characterized by a growing focus on quality, premiumization, and the increased presence of regional players. The gap between premium and mass products continued to widen, with a greater interest shown in premium products in the country, thereby benefiting the market.
The COVID-19 pandemic put pressure on the demand and supply chains of beauty and cosmetics products in United Kingdom. However, post-COVID, the market regained normalcy as the restrictions were lifted by the government. For instance, according to the Office for National Statistics, in Great Britain, retail sales of pharmaceutical, medical, cosmetic, and toilet goods increased by 10.2% in 2022 compared to 2021. Furthermore, following the COVID, United Kingdom saw an increase in demand for hygiene products. However, the demand for cosmetic anti-aging products is rising due to an increase in the senior population in the country, and the launch of new innovative products coupled with eco-friendly packaging designs is boosting the market’s growth in the country.
Key Market TrendsIncreasing Demand for Organic Cosmetic ProductsUnited Kingdom is a useful source of flora and fauna, mostly used in natural beauty products. United Kingdom is known for its wines. It also uses the Vitis vinifera complex found in grapes as an antioxidant. The rising popularity of products containing natural ingredients like plant extracts and herbs, aromatherapies, and fruit extracts is driving the adoption of organic and natural cosmetics products in United Kingdom, thus augmenting United Kingdom cosmetic products market. In United Kingdom, natural cosmetics products have witnessed a significant demand due to growing consumer awareness and the desire of cosmetics companies to replace synthetic ingredients with natural variants such as essential oils, oleoresins, vegetable saps and extracts, vegetable or animal-derived oils, fats and waxes, etc. Consequently, these perceptions have given rise to the demand for natural additives and ingredients used in cosmetics in place of chemicals, such as parabens, phthalates, and sodium lauryl sulfate, which are associated with health risks.
Increased internet penetration and popularity of e-commerce among the consumersOne of the biggest changes associated with United Kingdom retail industry has been the rapid growth of e-commerce sales, especially after the COVID-19 pandemic. United Kingdom has one of the highest rates of internet penetration in the world, and online shopping is more popular than in any other country. According to the International Trade Association, consumer e-commerce accounts for 30% of the total retail market in the United Kingdom (up from 20% in 2020), with over USD 120 billion in e-commerce revenue each year. As of 2021, 82% of the British population had purchased at least one product online. Factors attributed to the growth of online shopping include reasonable prices and various promotions used by online shopping portals; discounts and coupons available for the latest launched products; and online portals offering insights about new makeovers and beauty ideas.
Online beauty shoppers are increasingly moving beyond price and promotion to value the convenience of online shopping, reading product reviews, sharing online makeup tips, and receiving automatic refills of regularly used products. This builds an opportunity for brand owners and retailers to capture this growing market. Also, brand owners and retailers offer "an all-encompassing online category approach" through online portals. Such factors boost the online penetration of the European population for purchasing beauty and personal care products. Hence, factors such as the online availability of a wide range of items, a time-saving viewpoint, easy-to-navigate online shopping portals, hassle-free online payments, and in-home delivery are expected to rise and are expected to boost the sales of the online cosmetics market.
Competitive LandscapeThe United Kingdom cosmetics market is highly fragmented, with the presence of both local and international players. Key players in the market include L'Oreal SA, Kao Corporation, Kose Corporation, Oriflame Cosmetics Global SA, and Estee Lauder Inc. Product launches with multifunctional properties under each segment are one of the major strategies followed by companies in the region. The global giants are expanding their products on various online portals to increase their consumer base. The major players are acquiring small firms to consolidate their positions in the market.
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