PUBLISHER: Arizton Advisory & Intelligence | PRODUCT CODE: 1168297
PUBLISHER: Arizton Advisory & Intelligence | PRODUCT CODE: 1168297
The global active cosmetics market is expected to grow at a CAGR of 12.64% during 2021-2027.
MARKET OUTLOOK
The market's healthy growth is attributable to the surge in the adoption of cosmetics formulated with active ingredients. The major driving factors of market growth are the growing awareness of skin care, higher disposable income, and a significant increase in the number of customers choosing natural and organic skin care products. People suffering from various skin and hair problems are focusing on adopting organic cosmetics, as these are derived from natural sources and are free from various harmful chemicals. Active cosmetics are personal care products that are either formulated/highly concentrated with active ingredients or is 100% active ingredient. The most common ingredients in active cosmetics include hyaluronic acid, vitamin C, vitamin E, and many more.
Consumers prefer active cosmetics for skin and hair care, which are readily available through various distribution channels, including pharmacies, drugstores, and many other channels. COVID-19 crisis has slowed down the growth active cosmetics market globally because of closed operations and, shortage of labor & supply chain blockage. Thus, online channels made it easier for several manufacturers to maintain a pace in sales and distribution. In the last few years, consumers have relied on online platforms for cosmetics shopping, which is also attributed to low cost or discounted prices and the COVID-19 pandemic. Hence, online sales channels have shown significant growth in terms of revenue during the COVID-19 pandemic and post-pandemic as well. Furthermore, the active cosmetics market in the APAC region is growing at the highest pace due to the rising population and increased awareness.
DRIVING FACTORS
SEGMENTATION INSIGHTS
INSIGHTS BY PRODUCT
Segmentation by Product
INSIGHTS BY GENDER
Segmentation by Gender
INSIGHTS BY APPLICATION
Segmentation by Application
INSIGHTS BY DISTRIBUTION CHANNEL
Segmentation by Distribution Channel
GEOGRAPHICAL ANALYSIS
APAC accounts for the largest share of the global active cosmetics market and is expected to grow at the highest CAGR of 14.33% and holds about 35.10% market share. A steady rise in disposable income among consumers and an increasing focus on organic and natural cosmetics drive the active cosmetics market in the Asia Pacific. China and Japan are the leading countries with high demand for active cosmetics. China is the leading APAC region, with the highest market share of 22.35%. It is expected to grow at the highest CAGR of 15.65% during the forecast period, attributed to the increasing aging population and their primary focus on natural ingredients for skin, hair, and body care.
The U.S. is the leading active cosmetics market, with the highest revenue of USD 1.83 billion in 2021, followed by China and Japan. The United States is the world's most valuable beauty and personal care market due to increasing per capita expenditure on personal appearance, robust regulatory framework, a high penetration rate of global brands, and growing demand for natural cosmetics. Moreover, online distribution channel has dramatically influenced the active cosmetics market's growth, mainly during the COVID-19 pandemic.
Rising skincare regimes among the young population, high purchasing power, and expanding distribution channels are the primary factors driving the market in Latin America and Middle East & Africa. Convenience, growing multiple brands, and discounts offered by online channels are driving online sales in these regions. With the growing digital adoption, e-commerce is becoming a significant channel. It is also creating lucrative opportunities for both single and multi-brand stores of beauty and personal care (BPC) products across the regions. The social media influencer's trends showcasing their care regimens have risen over the past few years. Both local and international beauty companies have been turning to influencers to increase their brand awareness and reach potential consumers. However, the growth of the active cosmetics market in Latin America and, the Middle East & Africa is hindered by the high cost of products and ingredients, specifically given the growing shift towards organic and natural products and strict government regulations and industry standards related to the use of components in the cosmetics market.
Segmentation by Geography
COMPETITIVE LANDSCAPE
The global active cosmetics market is dynamic, with several key global players and a large pool of other prominent vendors offering a wide range of active cosmetics. L'Oreal, Shisheido, Givaudan, Croda International, and IFF are some of the key players in the market. There is a high focus on developing active cosmetics in the form of powder, bars, and many more. L'Oreal is highly focused on developing dermo-cosmetics and is the leading company in dermo-cosmetics. Companies are highly focused on inorganic growth. In recent years, the top companies in the market have made many acquisitions to strengthen their active cosmetics portfolios. As the demand for halal cosmetics is rising in middle east countries and highly developed countries, several companies are now focusing on developing active cosmetics with active ingredients derived only from plants. Increasing halal certifications can also be witnessed among several companies based in the Middle East, APAC, North America, and Europe.
Active cosmetics vendors face massive competition from many established vendors and emerging companies to become highly competitive. The vendors actively engage in strategic acquisitions and partnerships for inorganic growth and invest in R&D activities. Strategic partnerships and acquisitions remain essential competitive strategies for key players to expand their product portfolio and gain market share. Furthermore, the industry is experiencing an increase in product launches from various vendors coupled with R&D activities, thus enabling vendors to expand their presence, enhance market growth, and sustain their market position in the global active cosmetics market.
L'Oreal is the leader of a globalized, highly competitive cosmetics market and is the global leader in the active cosmetics market. Its active cosmetics division is the world leader in derma cosmetics, with international skincare brands recommended by healthcare professionals. It is composed of six brands originating from France and the U.S. Active cosmetics held a 12.2% share in 2021 out of all its other cosmetics segments.
Key Vendors
Other Prominent Vendors
KEY QUESTIONS ANSWERED
LIST OF TABLES