In FY 2021, the premium beauty and personal care products market reached a valuation of US$ 474.7 Billion, and is likely to register a Y-o-Y growth rate of 4.0% in 2022, closing at US$ 496.63 Billion. Furthermore, across the 2022-2032 period of assessment, growth is expected to accelerate at a whopping 4.62% CAGR, reaching US$ 780.16 Billion.
The trend of people taking care of their health and bodies has become more prominent with increasing focus on preventive healthcare in the wake of rising number diseases. Rise in demand for luxury products can directly be linked to the influence of social media and rising interest of people in such products in lieu of following social celebs.
Millennials are increasingly using 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 across the world are inclined toward organic personal care products, which is expected to drive market growth over the analysis period. In addition, the rising awareness about the harmful effects of chemicals and synthetic products is another factor accelerating the growth of the premium beauty and personal care products market. Most of the consumers tend to buy products with natural or organic labeling, which is driving the market growth.
Moreover, the increasing trend of using night skin repair creams, sun care products, refreshing fragrances, and hair colors, and others, is also expected to boost the demand of the premium beauty care and personal care products. For instance, according to the ‘Sun Safe Behavior Survey 2018’ of the Canadian Dermatology Association, the number of individuals using sunscreen all year round increased from 17% in 2015 to 26% in 2018 in Canada.
Growing health concerns are a critical factor driving market growth, as is the expansion of e-commerce through the infiltration of the internet, which has created international reach and allows consumers to choose from a variety of options, among other factors driving the luxury cosmetics market. In addition, the demand for halal cosmetics, particularly from Middle Eastern countries, will drive the growth of the luxury cosmetics market during the forecast period.
The increasing awareness of customers about their appearance is another factor that is boosting the market expansion. Millennials are increasingly using 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.
Advent of New Beauty and Personal Care Products in Germany to Boost the Market Growth
According to Fact.MR’s projections, the Premium Beauty and Personal Care Products Market in Germany is forecast to expand at a 4.3% value CAGR from 2022 to 2032. The premium beauty and personal care products market size in Germany is expected to see substantial increase as new product launches and increasing demand aids market potential over the decade.
The Germany’s market is characterized by leading players in the beauty & personal care industry, including Beiersdorf AG, and others. In addition, factors such as an increased number of beauty salons and a rising number of millennials and generation Z in the country are expected to propel the demand for various cosmetic products.
For instance, according to Annual Report 2018-2019 of The German Cosmetic, Toiletry, Perfumery and Detergent Association, between the years 2013 to 2018, the skin & face care products market witnessed an average growth of 2.7% per year, and it was about 4.1% per year for decorative cosmetics market in Germany.
Key Takeaways from the Market Study
- According to Fact.MR, a CAGR of 2.4% was recorded for the Premium Beauty and Personal Care Products market from 2017-2021
- In FY 2021, the premium beauty and personal care products market reached a valuation of US$ 474.7 Billion
- The market is likely to register a Y-o-Y growth rate of 4.0% in 2022
- By product type, the premium skincare segment is expected to dominate the market, documenting a 4.5% value CAGR
- As per Fact.MR’s projections, the market for premium beauty and personal care products in the US will likely expand at a 4.4% CAGR
- Germany market is expected to expand at a 4.3% CAGR with respect to premium beauty and personal care products sales
Prominent Premium Beauty and Personal Care Products Service Providers
- Revlon Inc.
- Mary Kay
- Shiseido Company Limited
- Procter and Gamble Co.
- Avon Products
- Beiersdorf AG
- Kao Corporation
- Estée Lauder Companies Inc.
- Loreal Group