Lip Balm Market Size, Share, Trends, Growth 2030

Lip Balm Industry Prospective:

The global lip balm market size was worth around USD 890.76 million in 2022 and is predicted to grow to around USD 1,614.85 million by 2030 with a compound annual growth rate (CAGR) of roughly 7.72% between 2023 and 2030.

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Lip Balm Market: Overview

A lip balm is a consumer personal care product. It is a wax-like substance applied to the lips for moisturization and improving the overall lip texture. These products are applied to achieve relief from conditions such as angular cheilitis, dry lips, cold sores, stomatitis, and dry lips. The most commonly used ingredients for lip balm manufacturing are lanolin, carnauba wax, beeswax, cetyl alcohol, petrolatum, camphor, paraffin, and others. Modern lip balm manufacturing companies also provide scented or colored lip balms to appeal to a broader group of audience. Lip balms form a protective layer on the lip surface upon application thus providing a dual role.

For instance, they seal lip moisture content and also prevent any form of exposure to external harmful components. However, lip balms can also be applied to other parts of the body such as fingers and toes. Depending on the product ingredients and overall performance, certain products can also be used as a body moisturizer and lip balms. The production process for lip balms is extremely stringent and companies must adhere to regional regulations that govern product ingredients and labeling.

Key Insights:

• As per the analysis shared by our research analyst, the global lip balm market is estimated to grow annually at a CAGR of around 7.72% over the forecast period (2023-2030)
• In terms of revenue, the global lip balm market size was valued at around USD 890.76 million in 2022 and is projected to reach USD 1,614.85 million, by 2030.
• The market is projected to grow at a significant rate due to the rising purchasing power and higher product awareness
• Based on application segmentation, dry skin was predicted to show maximum market share in the year 2022
• Based on end-user segmentation, women were the leading segment in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

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Lip Balm Market: Growth Drivers

Rising purchasing power and higher product awareness may drive the market growth rate

The global lip balm market is expected to grow owing to the increasing disposable income of the general population. The rise in job opportunities and the growing number of job employment rates are leading reasons for the improved purchasing power of the population. As per official reports published by the Indian government, as of May 2023, India’s per capita Net National Income (NNI) has increased by 35.12% from 2014-2015 to 2022-2023. Similar statistics are observed across the globe, especially in emerging countries. In addition to this, customer awareness has increased rapidly in the last decade as more people have access to the Internet and other forms of connectivity.

Lip balms are considered basic and essential personal care items. They are gender-neutral products used by people of all age groups including senior citizens, adults, and children. Furthermore, most lip balms are inexpensive and do not cost as high as other forms of body or face moisturizers. The disposable attribute of lip balms also acts as a critical growth driver. Lip balms are generally compact. They can be easily misplaced or replaced with other products thus adding to the overall revenue in the lip balm industry.

Climate changes and lowering temperatures globally may push product application

The demand for lip balms is projected to be impacted by the increasing effects of climate change on weather conditions. For instance, in the last few years, summer temperatures have broken records, and similar statistics are observed during winter or snow season. In November 2023, all 50 states in the US registered winter temperatures below freezing point, especially in the last few days of the month.

During harsh environmental conditions, almost all people suffer from dry lips. Thus, promoting the use of lip balms. Additionally, lip chapping is a common side-effect of dehydration mostly experienced during high-temperature season. These factors are expected to drive the global lip balm market growth rate during the projection period.

Lip Balm Market: Restraints

Risk of excessive consumerism in the personal care sector may restrict market expansion

The global lip balm industry is projected to be restricted due to the growing concerns over excessive consumerism. Lips palms are dispensable products. Consumers can easily discard the product since they are typically low-cost products. In addition to this, the global personal care industry is currently being blamed for promoting overconsumption as buyers typically own more than one variant of similar personal care products. The growing consumerism rate is one of the leading environmental pollutants especially caused by plastic packaging that is an integral part of the personal care industry.

Lip Balm Market: Opportunities

Growing launch of new and improved products with comprehensive performance may drive market demand

The global lip balm market is projected to come across multiple growth opportunities due to the increasing launch of lip balms with superior performance. Manufacturers are developing lip balms with comprehensive performance. They are experimenting with creating a combination of lip oil and lip balm to deliver better results. Additionally, certain companies provide lip balms with a sun protection factor (SPF) for prevention against sun damage. On the other hand, there is a growing market for tinted lip palms as they offer color-induced lip products with moisturizing capabilities.

In August 2023, Rhode, a US-based skincare brand, announced the launch of Strawberry Glaze, a limited edition flavored lip balm range. The latest offerings are a part of Rhode’s Peptide Lip Treatment inspired by Krispy Kreme donuts. In recent times, there has been a high influx of celebrity-owned skincare brands. These companies generally start with daily essentials including lip care products.

Growing demand for lip balms for medical lip concerns may fuel the market growth rate

During the projection period, the global lip balm industry players can expect higher demand for lip palms suggested by dermatologists, especially for people requiring special lip care treatment. For instance, consumers with sensitive skin may be unable to use regular commercially available lip balms thus requiring products prescribed by medical professionals.

Additionally, the organic lip balms segment is expected to reach new heights during the forecast period. Consumers prefer personal care product manufacturers that promote sustainability. Organic lip palms do not contain any form of chemicals. They are free of animal-based ingredients and hence cater to the needs of consumers using natural products.

Lip Balm Market: Challenges

Health hazards associated with the consumption of lip palms could challenge the market expansion

The global lip balms market is projected to be challenged due to the health risks associated with the consumption of lip balms. They are formulated to be used for external applications only. Since they contain waxes and petroleum jelly, accidental consumption may lead to health risks. Additionally, the lip balms industry is highly regulated adding to the market challenges.

Lip Balm Market: Segmentation

The global lip balm market is segmented based on application, product, end-user, type, and region.

Based on application, the global market is segmented into sensitive skin, dry skin, and others. In 2022, the highest growth was witnessed in the dry skin segment. Lip balms are specifically used for managing or preventing dry lips. The content of these lip curing products ensures that lip moisture is maintained and further damage is not caused. The growing number of world population and increasing use of personal care products by the younger generation may lead to higher segmental demand. As per a recent survey, an average American spends over US$ 700 per year on personal care including skin care items.

Based on product, the global lip balm industry is divided into liquid gel lip balm and solid cream lip balm.

Based on end-user, the global market segments are women, men, children, and others. In 2022, the highest growth rate was registered in the women segment. The trend is a result of higher options for women-centric lip balm products including tinted options. The men segment is rapidly growing as a result of increasing grooming activities undertaken by the male population, especially in urban areas. As per market research, around 44.01% of men across the globe regularly undertake grooming exercises for personal hygiene.

Based on type, the global market is divided into scented, colored, and others.

Lip Balm Market: Report Scope

Lip Balm Market: Regional Analysis

Asia-Pacific to emerge as market leader during the forecast period

The global lip balm market is expected to register the highest growth in Asia-Pacific. India, China, and South Korea are the world’s most dominant countries in terms of personal care products. These countries have a high demand for skin care items including lip balms. China and India are emerging economies and a shift in consumer buying patterns can be witnessed across regional territories. The high urbanization rate has further fueled market demand since it is often associated with high consumer awareness and product access. The regional e-commerce industry and its rapid expansion have contributed to shaping the demand for lip balm products.

South Korea is internationally famous as the leading provider of affordable and effective personal care goods. India, on the other hand, is registering higher demand for organic lip care items. Europe holds significant control over total revenue. The European cosmetic and personal care industry is a pioneer in terms of product innovation. Furthermore, the colder climatic conditions of European nations and higher emphasis on physical well-being across gender groups aid the regional market growth rate.

Lip Balm Market: Competitive Analysis

The global lip balm market is led by players like:

• Carmex
• Burt's Bees
• Nivea
• EOS (Evolution of Smooth)
• Aquaphor
• ChapStick
• Maybelline
• Blistex
• Smith's Rosebud Salve
• Labello
• Clinique
• Vaseline
• Badger Balm
• Neutrogena
• Jack Black

The global lip balm market is segmented as follows:

By Application

• Sensitive Skin
• Dry Skin
• Others

By Product

• Liquid Gel Lip Balm
• Solid Cream Lip Balm

By End-User

• Women
• Men
• Children
• Others

By Type

• Scented
• Colored
• Others

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