Premium Cosmetics Market Size, Share, Growth, and Industry Analysis by Type (Colour Makeup Is Tasted, Hair Care Products, Sunscreen, Deodorant, Baby Products and Bath Products) By Application (Men and Women), Regional Insights, and Forecast From 2024 To 2031

Updated On: 22 April 2024

Premium Cosmetics Market Report Overview

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The global premium cosmetics market size was USD 133150 million in 2021 and is expected to reach USD 394128.24 million in 2031, exhibiting a CAGR of 11.4% during the forecast period.

The premium cosmetics market refers to the segment of the cosmetics industry that offers high-end, luxury beauty products. These products are typically priced higher than mass-market cosmetics and are positioned as exclusive, high-quality, and often targeted towards a more affluent consumer base.

The premium cosmetics market has experienced significant growth in recent years, driven by the rising disposable income of consumers, increased awareness of skincare and wellness, and the desire for luxury experiences. However, the market is highly competitive, with numerous established and emerging brands vying for consumer attention and loyalty.

COVID-19 Impact: Shift in Consumer Behavior to Limit the Market Demands

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre- pandemic levels once the pandemic is over.

During the pandemic, there was a significant shift in consumer behavior. Many consumers reduced their spending on non-essential items, including premium cosmetics. With restrictions on social gatherings and remote work becoming the norm, the demand for cosmetics, especially luxury and high-end products, declined. As brick-and-mortar stores faced closures or reduced footfall, the cosmetics industry witnessed a surge in e-commerce. Consumers turned to online platforms to purchase cosmetics, including premium brands. This shift to online shopping provided an opportunity for premium cosmetics brands to reach a wider audience and expand their digital presence.

LATEST TRENDS

"Digital Transformation to Augment the Market Growth"

The demand for clean and sustainable beauty products continues to rise. Consumers are increasingly looking for cosmetics made with natural, organic, and non-toxic ingredients. Brands are focusing on eco-friendly packaging, cruelty-free practices, and transparency in their sourcing and production methods. Personalized cosmetics are gaining popularity. Companies are utilizing technology, such as artificial intelligence and machine learning, to create personalized skincare and makeup products tailored to an individual's specific needs and preferences. This includes custom foundation shades, skincare regimens, and personalized beauty routines. The premium cosmetics market is embracing digital transformation. Brands are leveraging social media platforms, influencer marketing, and e-commerce to engage with consumers and drive sales. Augmented reality (AR) and virtual reality (VR) technologies are being used to offer virtual try-on experiences, allowing customers to visualize products before making a purchase.

Premium Cosmetics Market Segmentation

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• By Type Analysis

By type, market is segmented into colour makeup is tasted, hair care products, sunscreen, deodorant, baby products and bath products. The colour makeup is tasted type segment will dominate the market in the coming years.

• By Application Analysis

Based on applications, the market is classified into men and women. The men segment will lead the global share through 2028.

DRIVING FACTORS

"Growing Awareness of Skincare and Wellness to Push the Market"

Rising disposable income levels among consumers in various regions have led to an increase in their purchasing power. As a result, consumers are more willing to spend on premium cosmetics, which are often associated with higher quality and luxury. Consumer preferences have shifted towards premium cosmetics due to various factors such as a desire for better product quality, efficacy, and packaging. Consumers are increasingly seeking products that provide unique formulations, advanced ingredients, and innovative technologies, which are often found in premium cosmetics. The beauty and personal care industry has seen a surge in the awareness of skincare and wellness. Consumers are becoming more conscious of the importance of maintaining healthy skin and are willing to invest in high-quality products that offer superior skincare benefits.

"Product Innovation and Advanced Formulations to Boost the Market Demands"

The rise of social media platforms and the increasing influence of beauty influencers and celebrities have played a significant role in driving the demand for premium cosmetics. Consumers often look to these influencers for beauty inspiration and recommendations, which can have a substantial impact on their purchasing decisions. Premium cosmetics brands often invest heavily in research and development to create innovative products and advanced formulations. This includes incorporating cutting-edge ingredients, developing new textures and finishes, and utilizing novel technologies. Such innovations attract consumers seeking unique and high-performing products. The market for natural and organic cosmetics has witnessed significant growth in recent years. Consumers are increasingly concerned about the potential adverse effects of certain chemicals and ingredients on their skin and health. As a result, they are opting for premium cosmetics that are formulated with natural and organic ingredients, free from harmful additives.

RESTRAINING FACTORS

"Price Sensitivity and Sensitivity to Slow the Market Growth "

Economic downturns or unstable economic conditions can impact consumer spending habits. During times of financial uncertainty, consumers may prioritize essential items over premium cosmetics, leading to a decrease in demand. Premium cosmetics are generally priced higher compared to regular cosmetics. Price sensitivity among consumers can limit their willingness to spend on luxury beauty products, especially if they perceive similar benefits from more affordable alternatives. The premium cosmetics market is highly competitive, with numerous brands vying for consumer attention and market share. Intense competition can make it challenging for individual brands to maintain their market position and attract new customers. Counterfeit products pose a significant challenge for the premium cosmetics market. The availability of counterfeit versions of luxury cosmetics at lower prices can impact the sales and reputation of authentic premium brands.

Premium Cosmetics Market Regional Insights

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"North American Market to Grow Exponentially with the Forecasted Period"

North America is one of the largest markets for premium cosmetics. The region is characterized by a high level of consumer awareness and disposable income, which contributes to the growth of the premium beauty sector. The United States is the dominant market within North America, driven by a strong demand for luxury and high-quality cosmetics products.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead in the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolio.

List of Market Players Profiled

• Coty (U.S.)
• Estee Lauder (U.S.)
• L'Oreal (France)
• LVMH (France)
• Shiseido (Japan)

REPORT COVERAGE

The market research study examines the worldwide market in detail, focusing on important elements such as leading players, product/services or type, and leading end-use applications. Aside from that, the research analyses major advancements and provides insights into lighting market trends. In addition to the causes indicated above, the paper includes a number of other factors that have contributed to recent growth.