Cosmeceuticals Market Size, Share, Industry Analysis, Trends, Growth, Forecast 2030

Cosmeceuticals Industry Prospective:

The global cosmeceuticals market size was worth around USD 83.60 billion in 2022 and is predicted to grow to around USD 155.80 billion by 2030 with a compound annual growth rate (CAGR) of roughly 8.09% between 2023 and 2030.

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Cosmeceuticals Market: Overview

Cosmeceuticals are generated as an amalgamation of pharmaceuticals and cosmetics. These products are known to have medicinal properties and claim to deliver similar results that are expected from prescribed medicines. Cosmeceuticals are manufactured using active ingredients. They are defined as products made of ingredients that are specifically designed or known to target certain conditions that are related to hair, skin, lips, or other parts of the body. For instance, vitamin C is known for its antioxidant properties. When it is added to a skin care or body care product, the final commodity becomes a cosmeceutical.

In terms of labeling, products that contain words such as ‘marine extracts’, ‘botanical’, ‘peptides’, or ‘vitamins’ are classified in the cosmeceuticals category. It is important to note that the Food & Drugs Administration (FDA) authority does not have any specific classification for cosmeceuticals since currently it has only enlisted three categories that are soaps, drugs, and cosmetics. Furthermore, the industry for cosmeceuticals cannot be completely trusted as in the same case of pharmaceutical products due to several regulatory factors. Hence consumers have been warned by regulatory agencies to avoid completely trusting brands in terms of product claims and labeling.

Key Insights:

• As per the analysis shared by our research analyst, the global cosmeceuticals market is estimated to grow annually at a CAGR of around 8.09% over the forecast period (2023-2030).
• In terms of revenue, the global cosmeceuticals market size was valued at around USD 83.60 billion in 2022 and is projected to reach USD 155.80 billion, by 2030.
• The cosmeceuticals market is projected to grow at a significant rate due to the increasing social media marketing.
• Based on product type segmentation, skin care was predicted to show maximum market share in the year 2022.
• Based on distribution channel segmentation, online platforms were the leading segment in 2022.
• On the basis of region, Europe was the leading revenue generator in 2022.

Request Free SampleCosmeceuticals Market: Growth Drivers

Increasing social media marketing to help deliver high product demand

The global cosmeceuticals market is projected to grow owing to the increasing influence of social media marketing. Over the course of time, product marketing and advertising strategies have evolved especially since the explosion in the consumer electronics and digital technology industries. The higher consumption of digital electronics such as smartphones, tablets, or laptops and reduced Internet prices have introduced more people to social media platforms. Brands and businesses have leveraged the benefits of deep-penetrating social media influence to reach a larger group of audience with targeted marketing techniques. In addition to this, the emergence of social media celebrities on video and audio platforms such as Instagram and YouTube have further helped in the social media-oriented approach adopted by businesses, especially the ones operating in the consumer goods segment.

In 2021, as per official reports, beauty brands spent an average of 34% of the total marketing budget on digital advertisement. A 2019 survey concluded that the popular cosmetics brand Maybelline spends nearly 59.9% of ad dollars allocated for social media on Instagram. Such websites host billions of followers thus allowing an extensive range of potential customer base of the brands. Moreover, social medical platform makers are evolving with technology by integrating advanced technologies such as machine learning (ML) and artificial intelligence (AI) to track and predict the shopping preferences of its users. As more people continue to join social media tools, the demand for cosmetics will rise simultaneously.

Cosmeceuticals Market: Restraints

Irregularity in terms of quality control and perceived performance of cosmeceuticals may restrict market growth

The global cosmeceuticals market is expected to be restricted due to several irregularities that currently exist in terms of cosmeceuticals production and labeling. For instance, these products do not undergo the same stringent quality control process that pharmaceutical products are required to undergo. However, since they are marketed as cosmeceuticals, consumers may have incorrect perceptions related to quality control measures adopted for cosmeceuticals.

Companies operating in the sector have managed to carefully label products so that they do not fall into the drugs category thus avoiding quality regulations drafted by FDA and other welfare organizations.

Cosmeceuticals Market: Opportunities

Ensuring inclusiveness in brand range may deliver higher growth opportunities

The global industry for cosmeceuticals will gain higher momentum if companies operating in the segment can tap into a broader consumer group by ensuring that their product range is inclusive. They should be able to deliver products for all concerns that may be faced by buyers. For instance, a skin care brand can benefit more by developing products that either suit all skin types or creating several options with each option dedicated to specific skin concerns such as oily skin, consumers with skin sensitivity, acne-prone skin, and other issues.

By providing a sense of inclusivity, brands gain more confidence and loyalty from the customers. In October 2023, Crown Therapeutics launched two new ranges of PanOxyl® products. They are PanOxyl Adapalene 0.1% Gel and PanOxyl Clarifying Exfoliant with 2% Salicylic Acid. These offerings are meant for customers who have acne-prone skin.

Increasing research & development may aid a higher growth rate

The global cosmeceuticals market is projected to attain high growth due to increased research & development (R&D) activities adopted by brands operating in the segment. Brands are consistently trying to develop products that deliver expected results especially since the market has become more competitive in recent times. Additionally, as consumer expectations have evolved, brands must continuously strive to meet these demands for survival in the long run.

Cosmeceuticals Market: Challenges

Excessive consumerism encouraged by the industry may challenge market growth

The demand in the global cosmeceuticals industry is projected to be impacted by the increasing consumer awareness about excessive consumerism encouraged by the industry. Since most cosmeceutical products are made of active ingredients, it is required for them to be used along with other products to achieve the promised results.

For instance, if a user continues to use vitamin C-based skin care items, they will also have to invest in a good quality sunscreen to prevent unnecessary damage to the skin. Consumers are opting for simple hair care and skin care routines thus creating growth barriers.

Cosmeceuticals Market: Segmentation

The global cosmeceuticals market is segmented based on product type, ingredients, distribution channel, and region.

Based on product type, the global market is divided into oral care, hair care, lip care, and skin care. In 2022, the highest demand was witnessed in the skin care segment. Products available in the skin care segment are applicable to all people across gender and age groups. Skin care is an integral part of overall hygiene maintenance. Additionally, the growing focus on managing skin appearance as well as increased demand for skin care products that offer protection against environmental conditions such as ultraviolet rays and pollution further fuel segmental demand. As per official data, a skin care product user spends around USD 250 per month on maintaining healthy skin.

Based on ingredients, the global cosmeceuticals industry is divided into retinoids, sunscreens, botanicals, hydroxy acids, peptides & proteins, antioxidants, and others.

Based on distribution channel, the global market divisions are online platforms and supermarket & specialty stores. In 2022, the highest growth rate was registered in the online platforms segment. The emergence of e-commerce websites and the increased popularity of online platforms dedicated to personal care products including cosmeceutical products has triggered segmental revenue. In 2022, the website of Sephora, a personal care and cosmetic retailer, generated over USD 3 billion in revenue.

Cosmeceuticals Market: Report Scope

Cosmeceuticals Market: Regional Analysis

Europe to register the highest growth rate during the projection period

The global cosmeceuticals market is projected to register the highest growth rate in Europe. The region leads in terms of breakthrough innovations in the personal care and cosmetic sector. It is home to leading giants in the cosmeceutical industry. The presence of an informed consumer group as well as the personal care requirements of the European population aids regional growth. Furthermore, the prominent players in the European market have strategies diversified in terms of product offerings as well as territorial existence by entering new markets at the right time.

For instance, in January 2023, Oriflame, a European personal care company that operated at a multinational level, announced the launch of cosmeceutical products in the Indian market. The move came as a result of the company’s latest expansion strategy. Oriflame will offer products that suit specific customer requirements and promises to deliver visible results. Asia-Pacific holds a significant share of total market revenue. China, Japan, and South Korea are regarded as some of the largest countries with extensive users of personal care products. In May 2022, Japanese brand Shiseido launched its new Ulé line in France.

Cosmeceuticals Market: Competitive Analysis

The global cosmeceuticals market is led by players like:

• Estée Lauder Companies Inc.
• L'Oréal S.A.
• Shiseido Company Limited
• Procter & Gamble Co. (P&G)
• Amorepacific Corporation
• Johnson & Johnson
• Kao Corporation
• Unilever
• Avon Products Inc.
• Beiersdorf AG
• Colgate-Palmolive Company
• Allergan plc
• Coty Inc.
• Mary Kay Inc.
• Revlon Inc.

The global cosmeceuticals market is segmented as follows:

By Product Type

• Oral Care
• Hair Care
• Lip Care
• Skin Care

By Ingredients

• Retinoids
• Sunscreens
• Botanicals
• Hydroxy Acids
• Peptides & Proteins
• Antioxidants
• Others

By Distribution Channel

• Online Platforms
• Supermarkets & Specialty Stores

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa