Luxury Cosmetics Market is valued at USD 45.80 billion in 2021 and is expected to reach USD 57.26 billion by 2026, by growing at a CAGR of 3.4% during the forecast period 2021-2026. Within the expanding cosmetics business, luxury products or luxury cosmetics have dominated the market with a diverse selection of products made with organic and high-quality materials.
Luxury cosmetics are those that are made with organic and high-quality components and are sold at a greater price than their drugstore counterparts. Skincare, makeup, hair care, and perfumes are all included in luxury cosmetics.
Because of expanding consumer purchasing power, the demand for luxury personal care and cosmetics has increased in recent years. The rise in demand for such products is mostly due to a shift in consumer lifestyles, particularly in developing nations such as the Asia Pacific. The trend of purchasing high-end cosmetics is especially strong in developed economies such as those in North America and Europe.
Due to rising disposable income and increased awareness of skin and hair care, demand for luxury cosmetics has increased in developing nations such as India and China in recent years. Previously, luxury goods were only targeted at an affluent and privileged customer class; however, this has recently changed.
The rise in disposable money among the urban populations of developing nations, along with an increase in health concerns, has resulted in an increase in demand for luxury goods made with organic and high-quality ingredients. This consumer behavior trend has largely fueled the global rise of the luxury cosmetics business.
Moreover, the increase of e-commerce as a result of internet adoption has aided the growth of the luxury cosmetics business, as it provides convenience, worldwide reach and allows consumers to choose from a diverse range of products at the same time.
The availability of counterfeit products, on the other hand, is a key impediment to the global luxury cosmetics sector. Consumer acceptance and demand for halal cosmetics are increasing around the world.
The pandemic has advanced once marginal technology, such as virtual try-on features, AI-enabled skincare analysis, and “waterless” cosmetic products. Beauty brands have had to develop from a one-dimensional industry to something more holistic and inclusive as the focus on health and wellness has increased.
Major beauty players trying to appeal to an increasingly eco-conscious society have prioritized sustainability and a focus on environmental impact: Some companies, such as L'Oréal and Estée Lauder, have set targets to become carbon neutral, while others have started experimenting with reusable packaging and refillable business models. Synthetic beauty elements are gaining popularity as well.
Perso, L'Oréal's AI-powered device for formulating and dispensing customized skincare, lipstick, and foundation, was unveiled recently. The Perso app uses data from an uploaded selfie, location data, and user-inputted skincare issues to deliver personalized formulae through the device.
Major Challenges in the marketplace:
Side effects about the chemicals used in the cosmetics by some of the manufacturers creating negative consumer views towards luxury cosmetics. Consumer perception of not spending a high amount on cosmetics is another challenge for the market. Increasing fake products in the market is creating a negative impact on the luxury cosmetic market.
Competition in the marketplace:
Large competition from local industry competitors is projected to create a threat to the business expansion of renowned businesses. To separate themselves from competitors and better cater to customers, companies are concentrating on developing hyper-personalized services.
Market Size Available
2021 – 2026
2021 - 2026
By Product Type, By End-User, By Distribution Channel
Various Analyses Covered
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities
North America, Europe, APAC, Latin America, Middle East & Africa
Market Leaders Profiled
L’Oréal Shiseido Company Limited Christian Dior Puig, Coty Inc. Kao Corporation Revlon, Inc. The Estée Lauder Companies Inc. Oriflame Cosmetics AG KOSÉ Corporation.
Luxury Cosmetics Market Segmentation:
By Product Type:
The global market is divided into skincare, haircare, makeup, and other product types. Due to a wide variety of skincare cosmetics such as skin tone boosters, moisturizers, skin lightening, and others, the skincare category is likely to hold a significant portion of the market, resulting in higher revenues. Furthermore, the growing popularity of anti-aging skincare products is projected to boost the expansion of such a market.
By end-users, the global market is divided into females and males. Females are more worried about their appearance and appearance, which leads to a higher demand for cosmetics among these customers. As a result, women account for a significant portion of the market. In addition, the increased number of women in the workforce is expected to promote segmental growth.
By Distribution Channel:
The market is divided into hypermarkets and supermarkets, specialty retailers, internet stores, and others based on the distribution channel. Users can purchase such luxury items as well as a variety of other daily-use grocery items from hypermarkets and supermarkets, which are likely to hold a significant portion of the market. Furthermore, the availability of discounts and coupons by these stores is likely to entice customers to purchase cosmetics from them, resulting in segmental expansion.
Because of the wide variety of brands, discounts, and ease of use for consumers, online distribution channels are expected to increase at the strongest rate.
Luxury Cosmetics Market-by Geography:
Due to their considerable consumer purchasing power, consumers from developed nations such as North America and Europe have been the primary consumers of luxury cosmetics. However, due to rising disposable income and increased awareness of skin and hair care, demand for luxury cosmetics has increased in developing nations such as India and China in recent years.
Europe, particularly in the skincare area, was the largest luxury cosmetics market by region in 2018. Consumers in this region are cautious when it comes to skincare regimens and choose products made with high-quality components.
The Asia-Pacific area, on the other hand, is predicted to grow rapidly, with a CAGR of 7.9% over the projection period. The Asia Pacific region's highest share is due to the region's population's widespread adoption of high-quality personal care products. Additionally, companies involved with cosmetics, such as The Proctor & Gamble Co., Puig, Alfred Dunhill Ltd., and others, are expanding their operations in countries such as China and India, which is propelling the market in Asia Pacific area.
In Latin America, the Middle East, and the Africa region, growing online shopping and growing demand for organic personal care and cosmetic products indicate that the market has a lot of room to grow in the coming years. The urbanization in the region is accelerating, which helps the growth of the luxury cosmetics market.
COVID-19 had an impact on the luxury cosmetics market by impacting production and demand directly, disrupting supply chains and markets, and having a financial impact on businesses and financial markets. COVID-19 resulted in the closure of about 30% of the beauty industry market due to the closure of premium beauty-product stores. But online sales increased due to the pandemic and growth of the e-commerce sector.
Major Key Players in the Market:
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 luxury cosmetics Market, By Product Type
6.1.1 Skin Care
6.1.2 Hair Care
6.1.5 Market Size Estimations & Forecasts (2021-2026)
6.1.6 Y-o-Y Growth Rate Analysis
6.1.7 Market Attractiveness Index
6.2 luxury cosmetics Market, By End User
6.2.3 Market Size Estimations & Forecasts (2021-2026)
6.2.4 Y-o-Y Growth Rate Analysis
6.2.5 Market Attractiveness Index
6.3 luxury cosmetics Market, By Distribution Channel
6.3.1 Hypermarkets & Supermarkets
6.3.2 Specialty Stores
6.3.3 Online Stores
6.3.5 Market Size Estimations & Forecasts (2021-2026)
6.3.6 Y-o-Y Growth Rate Analysis
6.3.7 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Identity Governance and Administration Market, by Region
7.2 North America - Market Analysis (2021 - 2026)
7.2.1 By Country
7.2.2 By Product Type
7.2.3 By End User
7.2.4 By Distribution Channel
7.3.1 By Country
126.96.36.199 Rest of Europe
7.3.2 By Product Type
7.3.3 By End User
7.3.4 By Distribution Channel
7.4 Asia Pacific
7.4.1 By Country
188.8.131.52 South Korea
184.108.40.206 South East Asia
220.127.116.11 Australia & NZ
18.104.22.168 Rest of Asia-Pacific
7.4.2 By Product Type
7.4.3 By End User
7.4.4 By Distribution Channel
7.5 Latin America
7.5.1 By Country
22.214.171.124 Rest of Latin America
7.5.2 By Product Type
7.5.3 By End User
7.5.4 By Distribution Channel
7.6 Middle East and Africa
7.6.1 By Country
126.96.36.199 Middle East
7.6.2 By Product Type
7.6.3 By End User
7.6.4 By Distribution Channel
8. Key Player Analysis
8.1.1 Business Description
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.2 Shiseido Company Limited
8.3 Christian Dior
8.4 Puig, Coty Inc.
8.5 Kao Corporation
8.6 Revlon, Inc.
8.7 The Estée Lauder Companies Inc.
8.8 Oriflame Cosmetics AG
8.9 KOSÉ Corporation.
9. Market Outlook & Investment Opportunities
List of Tables
List of Figures