Lip Care Products Market - Growth, Trends, and Forecasts (2022 - 2027)

The lip care products market is projected to register a CAGR of 4.75% during the forecast period, 2022-2027.

The increasing awareness of the customers relating to their physical appearance is driving the market for lip care products globally. Millennials are constantly focused on increasing their use of personal care products including lip care products, increasing the demand in the market. Alongside, their easy accessibility in different online, as well as offline distribution channels, is escalating the market demand further.

However, due to COVID-19, the demand for lip care products was affected temporarily in the market, owing to the shut down of offline retail channels and strict government restrictions on social gatherings in different parts of the world. Moreover, the trade restrictions in different places also affected the supply chain of lip care products. To gain consumer attention, different players in the market introduced new products with innovative formulations. For instance, in March 2020, Hello CBD, a CBD-infused personal care brand introduced two new vegan lip balms in the United States. The product is prepared from coconut oil and olive oil and is available in vanilla mint and strawberry flavors. The product is distributed exclusively by Ulta Beauty, a beauty salon company in the United States, through its online as well as offline stores, to widen the reach of the products to the customers.

Additionally, the rising lip care problems, such as chapping, darkening, wrinkles, and splitting, caused by various reasons like allergies, dehydration, sun damage, and vitamin and mineral deficiencies, are anticipated to propel the market demand for lip care products further. Unhealthy lifestyle habits like smoking are increasing darker and wrinkled lip concerns, thereby, driving the growth of the market.

Key Market Trends

Rising Popularity of Organic Lip Care Products

The rising popularity of organic skin care products is influencing the high consumer preference for organic lip care products. Consumers are preferring lip care products having natural, organic, and clean-label ingredients, in comparison to synthetic and hazardous chemical-containing products. The changing lifestyle and increased smoking among modern individuals are driving the demand for organic lip care products. Consumers are preferring these products to nourish and repair their pale and darker lips caused due to smoking and various other reasons. This has led the major players in the market to formulate products with natural ingredients, along with mentioning their ethical and sustainable sourcing. Alongside, consumers are becoming more and more environment-friendly. Moreover, the preference for artisanal sustainable packaging, along with natural products is growing in the market. For instance, in July 2022, Last Forest introduced its range of new beeswax lip balm in India. The lip balms are prepared from 100% organic beeswax and available in different flavors like mint, chocolate, and strawberry. The product is made available in glass jars and comes in artisanal cardboard gift packaging.

Asia-Pacific is the Fastest Growing Region

The lip care products market is escalating in the Asia-Pacific region, owing to the increasing attention of the consumers towards their physical appearance. The increasing spending of customers on personal care products, along with beauty products is driving the demand for different lip care products like lip balm, lip scrub, lip oil, and sleeping lip mask, among others. Moreover, the innovation in the skin and personal care industry is supporting the market penetration of advanced categories like sleeping masks and scrubs. Many key players in the market are also launching various products, in collaboration with other companies, leading to offering huge variety to the customers. Alongside, the growing demand has led new players to enter the market, thereby, driving competition in the regional market. These new entrants are focusing on celebrity endorsement and promotions across social media platforms to reach a wider consumer base. For instance, in December 2021, Nayanthara, an actress in the Indian film industry, launched a range of lip balms under the company - The Lip Balm Company. This product launch was in collaboration with a dermatologist, Dr. Renita Rajan. The company focused on developing gender-neutral lip balms, owing to the rising number of men showing interest in beauty products.

Competitive Landscape

The global lip care products market is highly competitive with the presence of different global as well as regional players in the market. All these players focus on different strategies like product innovation, merger and acquisition, expansion, and partnership, to enhance their reach in the market and grab customers' attention. Many players are marketing their products in the market by partnering with companies from different industries. For instance, in August 2022, Pilgrim, a direct-to-customer beauty and personal care brand announced its partnership with MyFroyoLand, a premium frozen yogurt company, in India. The company promoted its Squalane lip care range as a part of this campaign. Major players in the market include L'Oreal SA, LVMH, The Estee Lauder Companies Inc., Unilever PLC, and Beiersdorf AG, among others, who hold a significant share of the market studied, expanding their visibility as well as a portfolio of offerings in the market, thereby, escalating the growth of the market.

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