The premium beauty and personal care products market soared to a value of US$ 496.63 Billion in 2022. Projections suggest an even more impressive growth, with an anticipated 4.6% Compound Annual Growth Rate (CAGR) propelling it to US$ 780.16 Billion by 2032, according to a recent report by Fact.MR. This surge is fueled by a heightened emphasis on health and self-care, spurred by the increasing focus on preventive healthcare due to a rise in various ailments. Moreover, the surge in demand for luxury items directly correlates with the influence of social media and a growing fascination among people for such products, often inspired by their favorite social influencers.
The burgeoning consciousness among consumers regarding their appearance contributes significantly to the expansion of the premium beauty and personal care products market. Millennials, in particular, are incorporating skincare, makeup, and hair care into their daily grooming rituals. The surge in cosmetics featuring natural, non-toxic, and organic elements further fuels this market growth. The escalating preference for organic ingredients worldwide propels the demand for organic personal care products, anticipated to steer market growth in the foreseeable future. Moreover, increasing awareness of the detrimental effects associated with chemicals and synthetic products acts as a catalyst for the premium beauty and personal care products market’s acceleration. The inclination of most consumers towards products bearing natural or organic labels serves as a pivotal driver in propelling market expansion.
Furthermore, the rising inclination toward night skin repair creams, sun care products, invigorating fragrances, hair dyes, and related items is anticipated to fuel the demand for premium beauty and personal care products. For example, findings from the ‘Sun Safe Behavior Survey 2018’ by the Canadian Dermatology Association revealed a notable increase in year-round sunscreen users in Canada, rising from 17% in 2015 to 26% in 2018.
Health concerns on the upswing serve as a pivotal driver for market growth, complemented by the global expansion of e-commerce, granting consumers international access to a diverse array of options. This, among other factors, propels the luxury cosmetics market forward. Additionally, the surge in demand for halal cosmetics, particularly from the Middle East, is poised to contribute significantly to the market’s expansion in the forecast period.
The heightened consciousness among consumers regarding personal appearance stands as another catalyst for market growth. Millennials, in particular, increasingly incorporate skincare, makeup, and hair care products into their daily grooming rituals. The advent of cosmetics formulated with natural, non-toxic, and organic ingredients has further augmented the market’s reach and appeal.
Germany’s Premium Beauty and Personal Care Market Set for 4.3% Growth from 2022 to 2032
In the coming decade, Germany’s premium beauty and personal care market are anticipated to surge, projecting a 4.3% value CAGR, as per Fact.MR. The growth trajectory is fueled by a wave of novel product launches meeting heightened consumer demand, shaping a substantial market expansion.
Key players such as Beiersdorf AG dominate Germany’s beauty and personal care landscape. The market’s potential is further fueled by a surge in beauty salons and a burgeoning population of millennials and Gen Z, amplifying the demand for diverse cosmetic offerings.
For example, as per The German Cosmetic, Toiletry, Perfumery, and Detergent Association’s Annual Report 2018-2019, between 2013 and 2018, the skin and face care products market enjoyed an average annual growth of 2.7%. Concurrently, the decorative cosmetics market experienced an even higher growth rate of around 4.1% annually in Germany.
Key Insights from the Market Analysis:
- The Premium Beauty and Personal Care Products market showed a 2.4% Compound Annual Growth Rate (CAGR) between 2017 and 2021.
- FY 2021 saw this market reach a valuation of US$ 474.7 Billion.
- Expectations indicate a 4.0% Year-on-Year (Y-o-Y) growth rate for the market in 2022.
- The premium skincare segment is projected to lead, forecasting a 4.5% value CAGR based on product types.
- Fact.MR anticipates a 4.4% CAGR for the US market in premium beauty and personal care products.
- Germany’s market is also poised for growth, with an anticipated 4.3% CAGR in sales of premium beauty and personal care products.
Overview of Competition in Premium Beauty and Personal Care
The Premium Beauty and Personal Care Products Industry showcases leading players capitalizing on the surging demand across diverse applications. These key players are expanding their presence through strategic collaborations, partnerships, and acquisitions across small, medium, and large-scale enterprises. Notable industry developments include:
May 2022 witnessed the joint venture between Estée Lauder and Shoppers Stop, unveiling the exclusive SS Beauty store in Mumbai. Strengthening their ties in India, this store exclusively features Estée Lauder brands like MAC Cosmetics, Clinique, Bobbi Brown, Jo Malone, Estee Lauder, Smashbox, and Tom Ford.
March 2022 marked Colgate-Palmolive Company’s launch of Visible White O2, an innovative toothpaste that tackles stains from within by releasing millions of warm oxygen bubbles with its advanced formula.
In January 2022, Procter & Gamble acquired Tula, a luxury skincare brand celebrated for its clean formulations infused with probiotic extracts and superfoods. This acquisition enhances P&G’s portfolio of prestige brands, with plans for continued support to fuel Tula’s growth, expansion, and innovation.
December 2021 saw L’Oréal’s agreement to acquire Youth to the People, an American skincare company based in California, further expanding its skincare portfolio.
These insights are based on a report on Premium Beauty and Personal Care Products Market by Fact.MR.
