USD 117.45 billion
Luxury Cosmetics Market Size, Share, Growth Analysis, By Category Type(Skincare, Haircare, Makeup and Fragrances), By End-User(Men & Women), By Distribution Channel(Offline & Online), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG25S2056 |
Region:
Global |
Published Date: May, 2024
Pages:
223
|Tables:
86
|Figures:
76
Luxury Cosmetics Market Insights
Global Luxury Cosmetics Market size was valued at USD 117.45 billion in 2022 and is poised to grow from USD 121.27 billion in 2023 to USD 187.22 billion by 2031, growing at a CAGR of 6.14% during the forecast period (2024-2031).
Cosmetics have been a most important part of an individual's life and the market for luxury cosmetics market is expected to account for a larger growth in the upcoming years. The consumers have been spending trends indicate that a lot of users spend high on grooming, stylish haircut, waxing and facials. The growth of this market is rising majorly due to the increased awareness about premium ingredients and their impacts on the consumer. One of the main aspects of people going for luxury cosmetics are because of the status symbol added by those products. Understanding consumer preferences are key factors for the luxury goods so that they can tailor their products and marketing strategies effectively. The uniqueness of the product is the main element influencing their purchase, businesses are therefore focusing their creative designs on an affluent demographic.
The consumer shift towards sustainability has also drived the market’s path towards the use of eco-friendly materials to minimise the harm caused to animals and the environment. To keep up with the consumers’ changing style, brands always have to comeup with new ideas and trends. In this age of social media, it's both easy and hard to grasp the attention of the audience. The rising skin care and hair care awareness among men and increased purchasing power among women are regarded as the substantial factors contributing to the increased demand for cosmetic products.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Skin Care
Fastest Growth
Skin Care
Growth Rate
6.14% CAGR
Global Luxury Cosmetics Market ($ Bn)
Country Share for North America Region (%)
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Luxury Cosmetics Market Segmental Analysis
The Global Luxury Cosmetics Market is segmented by category type, end-user, distribution channel and region. Based on category type, the market can be segmented into skin care, hair care, makeup and fragrance. Based on end-user, the market is segmented into men and women. Based on distribution Channel, the market is segmented into offline and online. And lastly, based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Category Type.
Based on category type, the Global Luxury Cosmetics Market is segmented into various sectors. In 2021 skincare products, especially the sun care products sector held the major share of the cosmetics market. Increased awareness of the harmful effects of UV radiation on the skin has led to a growing emphasis on sun protection as an essential component of skincare routines. Consumers are becoming more vigilant about protecting their skin from sun damage, including sunburn, premature aging, and the risk of skin cancer. This heightened awareness has propelled the demand for sun care products such as sunscreens, sunblock, and after-sun treatments, driving growth within the skincare sector. Luxury skincare brands have capitalized on these advancements by introducing premium sun care formulations enriched with antioxidants, hydrating ingredients, and anti-aging properties, catering to discerning consumers seeking both protection and pampering. Luxury brands have responded to consumer demands by incorporating eco-friendly ingredients, biodegradable packaging, and cruelty-free practices into their sun care offerings, appealing to environmentally conscious consumers and further driving the market share of skincare products.
However, the fragrances market is anticipated to grow at fastest CAGR over the forecast period. An increase in beauty awareness and consciousness is further driving the demand for skin care products. There has been a notable increase in beauty awareness and consciousness among consumers, leading to a growing interest in personal grooming and self-expression through fragrance. Perfumes and colognes are not only seen as olfactory accessories but also as an integral part of one's overall style and identity. As individuals become more discerning about their personal scent preferences, they are increasingly seeking out luxury fragrances that offer unique and memorable olfactory experiences.
Analysis by End- User
Based on end-user the global luxury cosmetics market is segmented into between men and women.
The women's products typically lead in terms of market share and revenue. Women's luxury cosmetics encompass a diverse range of products, including skincare, makeup, fragrances, and haircare, catering to a wide spectrum of preferences and needs. Women are traditionally the primary consumers of beauty and cosmetic products and are often seeking luxury and personalization in their beauty routines. Luxury cosmetics companies invest heavily in research, development and marketing to appeal to female consumers, offering premium-quality products with sophisticated formulations, elegant packaging and captivating brand experiences. Additionally, the growing trend of self-care and wellness among women has further fuelled demand for luxury cosmetics, driving the growth of this segment in the market. As a result, women's luxury cosmetics continue to dominate the global market, representing a significant share of overall sales and driving innovation and competition in the industry.
The men's segment of the global luxury cosmetics market has emerged as the fastest-growing segment. Men are less inclined towards cosmetic and grooming products but shifting societal attitudes towards self-care, grooming and personal appearance have led to an increased acceptance and adoption of luxury cosmetics among men. Luxury cosmetics brands have responded to this trend by introducing innovative and targeted products specifically designed for men, including skincare, grooming, and fragrance lines. The men's segment is characterized by a growing demand for high-quality, efficacious products that address specific skincare concerns, such as aging, hydration, and sun protection. As a result, the men's luxury cosmetics market is experiencing rapid growth, presenting lucrative opportunities for brands to capitalize on this evolving consumer trend.
Analysis by Distribution Channel
The distribution channels for the global Luxury Cosmetics Market are segmented into two segments, offline and online.
The online channel is expected to grow at the fastest rate of 9.4%. The increased internet usage and the advantage of comparisons of benefits of online products before buying as well as the reviews are some of the drivers of online sales. Additionally, they also offer a wide range of products in a single place, just one click away. The concentration of premium brands is strong in developed economies such as the United States, China, Japan, and the United Kingdom. The growing penetration of luxury cosmetics in emerging nations, along with an increased preference for online buying, is fuelling premium cosmetics market growth.
Offline channels like retail stores, flagship stores etc are widely useful due to availability of in person trials. Offline channels have been experiencing rapid growth in the market. Despite the increasing prevalence of online shopping, offline channels offer unique advantages such as personalized shopping experiences, expert guidance from beauty consultants and the opportunity to sample products in-person. Luxury cosmetics brands are investing in creating immersive retail environments that engage and captivate consumers, offering interactive displays, exclusive events, and VIP services. Additionally, offline channels provide a sense of luxury that online shopping cannot replicate, appealing to consumers who value tactile experiences and human interaction. Moreover, the rise of experiential retail concepts, such as pop-up shops and flagship stores, has further fuelled the growth of offline channels by creating buzz, driving foot traffic and enhancing brand visibility.
Global Luxury Cosmetics Market By Category
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Luxury Cosmetics Market Regional Insights
Based on the geography, the global cosmetics market is segmented into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa.
Among these regions, the North American region holds a major part of the market. It is the hub for high-profile cosmetics brands. Consumers in this region prioritize skincare and anti-aging products, leading to robust sales of luxury skincare brands. Also, there is a strong culture of beauty and personal care in North America, with consumers placing high value on appearance and grooming. The region is also home to many affluent consumers who are willing to invest in high-end beauty products, driving demand for luxury cosmetics. Furthermore, North America has a highly developed retail infrastructure, with a plethora of upscale department stores, specialty boutiques and beauty salons offering luxury cosmetics from renowned brands. The presence of influential beauty influencers, celebrities and media further amplifies the popularity of luxury cosmetics in the region. The combination of affluent consumers, a strong beauty culture, and robust retail infrastructure places the North America at the forefront of the global luxury cosmetics market.
On the other hand, the Asia-Pacific region is the fastest growing region. Countries like China, Japan and South Korea have been witnessing a rapid economic development, urbanization and an expanding middle class with increased purchasing power. Additionally, there is a growing trend towards Western beauty standards and luxury brands in APAC countries, driven by globalization, urbanization, and exposure to international trends through social media and travel. Moreover, the increasing availability of luxury cosmetics through e-commerce platforms and the expansion of luxury retail channels have made these products more accessible to consumers across APAC.
In Europe, Paris, London and Milan are serving as global beauty capitals. In Middle East and Africa, especially Saudi Arabia and UAE shows a strong affinity for luxury cosmetics and fragrances and countries like Brazil and Mexico are also growing in the market.
Global Luxury Cosmetics Market By Region
- Largest
- Fastest
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Luxury Cosmetics Market Dynamics
Drivers
Economic growth and Increasing Wealthy Population.
- There has been increase in economic prosperity and raising disposable income will help in the expansion of the market. Luxury goods also serves as a social status and personal identity. According to Oxfam International released in January 2020, there were around 2,153 billionaires in existence worldwide who are wealthier than 4.6 billion individuals who makeup 60% of the world’s population.
Expansion of Distribution Channels.
- The expansion of distribution channels, including e-commerce platforms, specialty boutiques, department stores, and luxury spas, has increased accessibility to luxury cosmetics, reaching a broader consumer base and driving sales growth.
Restraints
Counterfeiting and Brand Protection
- The increase in generality of counterfeit and second-hand products poses a threat to original luxury items. Since these products are available for lower prices than the original prices which can cause a huge loss for them.
Competition from Mass-market Brands.
- Competition from mass-market beauty brands and indie beauty brands offering affordable luxury alternatives poses a threat to established luxury cosmetics brands. Consumers are increasingly seeking value-driven products that offer high-quality ingredients and effective results at a lower price point.
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Luxury Cosmetics Market Competitive Landscape
There is huge competition in the luxury cosmetics market with major key players like L'Oréal, Estée Lauder Companies, LVMH, Coty Inc., Shiseido, Chanel, and Revlon are at the forefront, each leveraging unique strategies to differentiate themselves. For example, L'Oréal and Estée Lauder focused on product innovation and brand equity across their diverse portfolios, encompassing renowned brands like Lancôme, MAC Cosmetics, and Clinique. Meanwhile, LVMH capitalizes on its prestigious image, with iconic names like Christian Dior and Givenchy. Shiseido focuses on skincare expertise and digital marketing, while Chanel stands out for its timeless elegance. Even Coty maintained significance with brands like Gucci Beauty and Burberry Beauty despite challenges. These competitors engage in fierce marketing campaigns, expand into emerging markets, and adapt to evolving consumer preferences, all in a bid to capture market share and sustain their competitiveness in the luxury cosmetics landscape.
Top Player’s Company Profiles
- Shiseido
- Chanel
- Coty Inc.
- Revlon
- Kao Corporation
- Unilever (with brands like Dermalogica and Hourglass)
- Clarins Group
- Amorepacific Corporation
- Beiersdorf AG
- Procter & Gamble (with brands like SK-II)
- The Hut Group
- Coty
- Puig
- Elizabeth Arden
- Johnson & Johnson (with brands like Neutrogena and Aveeno)
- Mary Kay Inc.
- Avon Products
Recent Developments
- In April 2022, L'Oréal Group unveiled Colorsonic, a portable, lightweight device that uses a novel, mess-free method to mix and apply hair color, delivering consistent hair color results for customers at home, and Coloright, an AI-connected hair color system for salon stylists that use Virtual Try-on to project desired shades and an algorithm that results in an on-demand, customized hair color.
- In March 2022, Kao Corporation and istyle Inc. announced to use of the sebum RNA monitoring technology developed by Kao and launched a joint initiative to develop a system that enables the efficient selection of cosmetics based on the skin RNA types.
Luxury Cosmetics Key Market Trends
- Rising online channels: With the rise in e-commerce platforms and digitalization, has changed the way consumers’ shopping behaviour for luxury goods. Luxury brands are investing more in online platforms and websites to enhance their online presence and to reach out to a broader audience of digital-savvy consumers.
- Influencer Marketing: Collaborating with influencers, celebrities, and beauty experts on social media platforms allows luxury cosmetics brands to amplify their brand presence, generate buzz, and influence consumer purchasing decisions, driving brand awareness and engagement.
- Emergence of Male Grooming Segment: The rising acceptance and adoption of grooming and skincare products among men have opened new growth opportunities in the luxury cosmetics market, leading to the development of specialized product lines and marketing strategies targeting male consumers.
Luxury Cosmetics Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our Global Luxury cosmetics market analysis, growth in wealthy population, increased awareness towards eco-friendly and sustainable products, changing makeup trends will help driving this market. People need variety of choices along with the touch of premium experience, increased wealthy population and disposable incomes are also some of the major factors driving the growth of the global luxury cosmetics market. Skin Care products holds a major part of this market at the same time Hair Care and frangrances, are also gaining their momentum. However the Luxury brands may face challenge due to increase in second-hand products as well as counterfeiting. Due to their low prices and easy availability, it has attracted a significant part of customers.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 117.45 billion |
| Market size value in 2031 | USD 187.22 billion |
| Growth Rate | 6.14% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Luxury Cosmetics Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Luxury Cosmetics Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Luxury Cosmetics Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Luxury Cosmetics Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Luxury Cosmetics Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Luxury Cosmetics Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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