luxury beauty Market Size, Share, Growth, and Industry Growth, By Type (Skincare, Makeup, Haircare, And Fragrances), By Application (Women, Men, And Kids), Regional Forecast From 2023 To 2030

Updated On: 13 November 2023

LUXURY BEAUTY MARKET REPORT OVERVIEW 

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The global luxury beauty market size was worth US$ 69240 million in 2021. The global COVID-19 pandemic has been unprecedented and staggering, with luxury beauty experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. As per our research, the market is projected to exhibiting a CAGR of 7.9% during the forecast period. The sudden spike in CAGR is attributable to demand returning to pre-pandemic levels once the pandemic is over.

Products manufactured using premium and organic quality ingredients are considered under the luxury beauty products category. The population uses various cosmetics to look good. The prevalence of various skin issues such as hair fall, skin acne, skin rashes, dandruff, and others leads to the rapid adoption of luxury beauty products. People frequently use cosmetics to enhance their appearance, make it more attractive, and boost their confidence. These products come in various formats, including oils, lotions, creams, gels, pills, and sprays.

The advent of multicolored, stylish, and expensive cosmetics has accelerated the market's expansion. Due to its greater authenticity & superior efficacy to other expensive cosmetics, customers choose to pick dermatologically tested and high-quality skincare products. Premium ingredients are used in the production of luxury cosmetics, which are widely distributed in chic packaging. These include skincare, haircare, makeup, and fragrance items that are more expensive than drugstore cosmetics. They provide premium quality, reliability, and longevity, all of which are apparent on the skin. Some of the variations can successfully clean the skin's epidermis without harming it and help lessen their negative effects on the environment.

COVID-19 Impact: Change On Consumer Lifestyle Impeded Market Growth

Several businesses, notably the luxury beauty market for high-end cosmetics, have been adversely affected by the COVID-19 epidemic. Business priorities have changed to inventory management and liquidation strategies while examining post-pandemic consumer habit changes because spending has stopped and stockpiles are building up in warehouses. The discretionary character of luxury cosmetics made it one of the most badly affected sectors by the pandemic, given the combined effect of store closures and frugality due to the rapidly deteriorating economic situation. Moreover, companies reported a fall in customer demand for luxury athletic cosmetics due to consumers delaying or reducing discretionary expenditure in response to the consequences of COVID-19, which was brought on by greater unemployment rates and weaker consumer confidence.

LATEST TRENDS

"Rising Demand for Premium Quality Products to Surge Market Growth"

The increased demand for high-quality and premium beauty and personal care products primarily drives the need for premium items. Also, the regular release of cosmetic products made with vegan components is expected to draw customers and spur market expansion. For instance, to meet the need of consumers for environmentally friendly beauty products, Avon Products Inc. developed a cannabis plant-based "Sativa oil" collection in April 2020. This collection includes items like day creams, cleansers, and hand & body lotions.

LUXURY BEAUTY MARKET SEGMENTATION 

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• By Type Analysis

By type, the market is segmented into skincare, makeup, haircare, and fragrances.

• By Application Analysis

The market is classified into women, men, and kids.

DRIVING FACTORS

"Growing Disposable Income to Augment the Demand for Luxury Cosmetic Products"

The demand for luxury beauty cosmetics is rising as people's disposable income levels rise, particularly in emerging countries. This is one of the main drivers influencing the market, along with rising consumer knowledge of the advantages of using high-end cosmetics. Also, internet use is becoming more widespread, which has led to a global expansion of the e-commerce sector. This accelerates the market's expansion and the broad availability of luxury cosmetics through online and offline distribution channels. Also, the industry is positively impacted by the rising consumer demand for halal cosmetics since they contain potent active components and reliable vegan ingredients.

"Changing Global Fashion Trends to Propel Market Growth"

The demand for novel types of high-performing color cosmetic products among fashion professionals is projected to be driven by shifting global fashion trends and boosting market expansion. Together with this, other elements like the growing urbanization rate and the income of the world's population also contribute to the demand for such goods. Major vendors in this business are also choosing to sell online platforms to gain a more diverse customer base because it enables them to advertise their products with significant discounts and incentives to entice customers. This is due to the development of numerous e-commerce organizations.

RESTRAINING FACTORS

"Availability of Counterfeit Products May Affect Market Growth"

The availability of cheap counterfeit products is estimated to impede the luxury beauty market growth. Counterfeit products are widely advertised and gain more customer base due to their low price, which will affect the luxury beauty market growth.

LUXURY BEAUTY MARKET REGIONAL INSIGHTS

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"Asia Pacific to Lead Market Due to the Rapid Adoption of High Quality Cosmetic Products"

Asia Pacific is estimated to hold a leading part of the luxury beauty market share attributable to the steady adoption of various high-quality personal care products such as shower products, bath products, luxury beauty cosmetics, and others.

Asia Pacific is estimated to show significant growth in the global market due to the rising expansion of companies linked with the cosmetics industry. The higher consumption of cosmetics in emerging markets is also predicted to increase regional growth. 

KEY INDUSTRY PLAYERS

"Key Companies to Emphasis On the Development of Advanced Technology"

Key market players are investing heavily on research and development of the product. Companies are also paying focus on launching advanced products. Emphasis on gaining collaborations, mergers, and acquisitions is increasing among leading players. The major market players are striving to maintain partnerships with other key players in the same industry. Gaining partnerships with other companies will develop a strong consumer base in the global market. The key competitors are adopting organic and inorganic growth strategies to surge their market share in the global market. 

List of Market Players Profiled

• L’Oreal (France)
• P&G (U.S.)
• Estée Lauder (U.S.)
• Shiseido (Japan)
• Unilever (U.K.)
• LVMH (France)
• Chanel (U.K.)
• Amore Pacific (South Korea)
• Sisley (France)
• Clarins (France)
• Kao (Japan)
• Shanghai Jawha (China)
• Coty (U.S.)
• Beiersdorf (Germany)
• Revlon (U.S.)

REPORT COVERAGE

The market research study offers thorough information on numerous market aspects. The growth drivers, restraints, geographical analysis, competitive environment, and challenges are a few of them. Additionally, it provides an analytical analysis of market trends and projections for various factors to show potential investment areas. The market is objectively assessed to determine its financial viability. The report's data was compiled using a variety of primary and secondary sources.