The value of the global cosmetics, perfumes and toiletries market is expected to reach a value of USD 342.96 Bn by 2023, expanding at a CAGR of 4.53% during 2018-2023.
The cosmetics, perfumes and toiletries market can be classified into three primary segments based on type (skincare, haircare, makeup, fragrances, hygiene products and oral cosmetics), channel (online sales and offline sales) and preference (mass and premium).
The Asia-Pacific recorded the highest growth rate due to the increased demand from emerging economies like India, Indonesia, and others during, the forecast period.
This market is recession-proof.
However, during recession people generally opt for less expensive brands.
Increase in disposable income, economic growth, increased concern regarding skin maintenance and the vagaries of climatic conditions causing specific skin care needs, have been identified as the key reasons for the growth of this market.
The trends of using long-lasting products which give value for money, increased interest in products which have natural ingredients, and products which are multi-functional, are prevalent in this market.
Key Growth Factors
One of the major reasons for the expansion of this market is the rise in the aging population due to the declining mortality rates in the global economy.
It has led to a significant increase in the demand for anti-aging products to prevent wrinkles, dry skin, dark spots, and other age-related skin care issues.
In a nutshell, the desire to maintain youthful appearances gives an impetus to the market.
The population of people above 60 is rising and is expected to reach 2.10 Bn by 2050.
The life expectancy of women and men are expected to increase, leading to an increase in the demand for cosmetics and toiletry products.
There has been a considerable shift in preference from chemical cosmetics to natural products, thereby creating room for research and development in the cosmetics and toiletries market.
Since the organic products ensure better health benefits, it justifies why their demand is on the rise.
Moreover, the increase in the use of personal care products by men leads to more demand in this market.
Threats and key players
The cosmetics, perfumes and toiletries market faces stiff competition when it comes to making a mark in the market.
Therefore, consumers are spoilt by the countless choices available in the market due to the highly competitive nature of the market.
Also, there is a dearth of information about the key players in the market, resulting in consumers buying fake products from alternative mediums such as third party websites leading to a negative impression about the original products.
L’oreal, Unilever N.V., Gillette, The Procter & Gamble Company, Beiersdorf, Avon Products Inc, Shiseido, Kao Corp, Johnson & Johnson, and Kimberly & Clark Corporation are some of the key players in the market.
(Source: Open PR)