Global Premium Cosmetics Market Expected to Grow at a CAGR of 7% by 2029: FactMR

The global high-end cosmetics market is expected to grow at a CAGR of around 7% by the end of the forecast period (2019-2029), according to findings from market research firm Fact.MR.

Despite global trade issues and global economic uncertainties, the overall trajectory of the high-end cosmetics market is largely positive, according to the market research firm. In recent years, high-end cosmetics brands have significantly changed their business strategy, which has been influenced by a number of factors, including higher disposable incomes for the middle class, demand for high-efficiency products, women’s finances and men’s aesthetic consciousness.

Additionally, factors such as increased brand recognition, digitalization and increasing consumer awareness of premium ingredients in cosmetics are driving a positive shift towards premium branded cosmetics. The increase in high-end cosmetic imports is due to factors such as brand reputation, product price and safety standards, which will drive the market growth in the near future.

Key points to remember

Skincare products currently hold the largest market share at around 41% and are expected to continue to dominate over the forecast period, due to higher consumption levels over the forecast period. Preference is high for products such as face creams, body lotions and sunscreens. Although a larger market share is encompassed by skincare products, makeup and fragrance products are expected to grow at a faster CAGR during this period.

The online distribution channel is expected to register a higher CAGR of around 8% during the forecast period. This growth can be attributed to the increasing use of the Internet, the ease of online product comparisons, and the easy availability of a wider range of products before purchase. On the other hand, offline distribution channels will hold a larger market share of around 90%, which will continue in the foreseeable future.

The East Asia, South Asia and Oceania regions will cumulatively represent the largest and fastest growing regions for high-end cosmetics with CAGRs of approximately 7% and 8 %. Such prolific growth will come from developing economies that are seeing increased demand for high-end cosmetics, especially from Japan and China.

The easy availability of anti-sweat and waterproof products, especially in the makeup and fragrance segments, is gaining momentum in regions with higher temperatures and humidity, thus boosting the demand for high-end cosmetics. Cumulatively, these sectors account for over 37% of the market share and are also the fastest growing segments of the industry.

“Increasing consumer spending on premium and exclusive products, along with an accelerated impetus from internet retailing, is driving the growth of the premium cosmetics market across the globe,” said the report. analyst of Fact.MR.

Competitors push for product development to strengthen consumer base

Global high-end cosmetics is largely an oligopoly, with major players such as Estée Lauder and L’Oréal controlling most market developments. These companies are redoubling their efforts in technological innovations, mergers, acquisitions and new products to diversify and strengthen their geographic footprint. However, high price issues and the widespread influx of counterfeit products will continue to hamper the industry.

Go here to see the full report.

Donovan B. Sanford