The global Beauty & Personal Care Products Market size was estimated at USD 513.7 billion in 2023 and is projected to reach USD 830.2 billion in 2030 at a CAGR of 6.9% during the forecast period 2024-2030.
The beauty and personal care products market has seen substantial growth, particularly among millennials who increasingly incorporate skincare, color cosmetics, and hair care into their daily grooming routines. The surge in popularity of cosmetics made with natural, non-toxic, and organic ingredients has significantly bolstered market expansion. Furthermore, the easy availability of these products through a variety of sales channels, including specialty stores, pharmacies, and beauty salons, has driven value sales growth.
A notable trend within this market is the rising interest from male consumers in skincare and grooming products aimed at improving their physical appearance and maintaining healthier skin. This demographic shift presents promising growth opportunities. Additionally, increased investments in research and development for innovative and effective products are further propelling market growth.
Consumer awareness and demand for vegan, organic, natural, and eco-friendly cosmetics have encouraged manufacturers to launch new products and expand their market presence. For instance, in June 2022, the socially responsible French beauty company SO'BiO étic introduced its organic beauty line in the U.S., offering products free from glycol, parabens, silicones, nanoparticles, PEG, and chemical filters. This launch reflects the growing consumer preference for clean, safe, and environmentally friendly beauty products.
Despite the positive trends, the market faces challenges due to the potential adverse side effects associated with conventional beauty and personal care products that contain harsh chemicals. Long-term use of such products can lead to skin issues and hair problems, such as hair fall, premature greying, and dryness. This growing consumer awareness of the side effects of conventional products is one of the primary factors limiting their market growth.
Sustainability, natural and organic ingredients, health, and convenience are key consumer trends shaping the beauty and personal care market. There is a noticeable shift towards natural, organic, and vegan products as consumers seek to avoid the harmful effects of synthetic chemicals. This trend is driven mainly by Millennials and Gen Z, who show a strong preference for organic and natural beauty products compared to the general population. According to a blog by ESW in July 2022, 45% of consumers in these age groups prefer natural skincare, surpassing the 33% of the overall U.S. consumer population.
The COVID-19 pandemic significantly impacted the beauty and personal care market by disrupting production and supply chains. Strict movement restrictions, social distancing, and stay-home policies exacerbated the situation, leading to a halt in new orders from retailers and a significant drop in sales through both online and offline channels.
In summary, the beauty and personal care market is growing due to a shift towards natural, organic, and eco-friendly products. While the market faces challenges from the side effects of conventional products and the impact of the COVID-19 pandemic, ongoing innovations and evolving consumer demands are expected to drive continued expansion.
The beauty and personal care products market is experiencing robust growth driven by the widespread daily use of items such as fragrances, antiperspirants, soaps, and cosmetics, with high market penetration in most regions. This industry is essential, as evidenced by high usage rates among both men and women, demonstrating its broad appeal. The increasing global population provides a vast consumer base, fostering market expansion. Companies are diversifying their product portfolios and embracing digital transformation to meet dynamic consumer preferences, offering varied price ranges and key ingredients to enhance the buying experience.
The rise of new product releases and the development of online infrastructures, such as the launch of India's beauty e-commerce platform Tira by Reliance Retail, further bolster market growth. These strategies ensure that each consumer set finds relatable products in the commercial world, improving the buying experience even for those with specific preferences. Companies are increasingly investing in creating functional online buying spaces for consumers, leveraging the supply chain of existing e-commerce firms or developing in-house websites.
Furthermore, the focus on sustainability and natural ingredients aligns with evolving consumer demands for eco-friendly and health-conscious products. This trend is expected to drive innovation and sustained growth in the future. The market's ability to adapt to changing consumer expectations, alongside the development of a robust online and offline presence, positions it well for continued expansion. Overall, the beauty and personal care products market is poised for significant growth, driven by demographic trends, product innovation, and strategic investments in digital transformation and sustainability initiatives.
North America to Dominate the Market
