Cosmetics Market is Expected to Reach $390.07 Billion, Globally, by 2020
The growing demand for natural ingredients in cosmetic products is a major factor contributing for the growth of organic cosmetics.
According to a new report by Allied Market Research , titled «Global Cosmetics Market (Category, Distribution Channel, Gender and Geography) – Size, Share, Trends, Company Profiles, Demand, Analysis, Growth, Opportunities, and Forecast, 2014 – 2020», the global cosmetics market is expected to reach $390.07 billion by 2020, registering a CAGR of 3.7% during 2015 – 2020. Skincare, sun care and hair care products are widely used cosmetics, collectively accounting for nearly 3/5th of the global cosmetics market. Presently, the retail sale segment generates a larger share of the overall global market revenue. However, cosmetic sales through online platforms would grow at faster rate during the forecast period.
Rising awareness about overall appearance among individuals and increase in professional population coupled with rise in disposable incomes are some of the major factors driving the cosmetics market across the world. The introduction of advanced beauty treatments in the market and rising health concerns associated with the use of cosmetic products, are the main factors limiting the growth of this market.
A significant number of women use cosmetic products, contributing almost 4/5th of the total cosmetic sales in 2014. However, the market is also experiencing a rising trend of men using cosmetic products such as moisturizing lotions, skin whitening creams, facial wipes, deodorants and sunscreen lotions on a large scale. This will gradually increase the share of men cosmetic products in global cosmetics market through 2020.
The online platform is a preferred medium for the sale of cosmetics in United States. This sale medium accounted for around 60% of U.S. cosmetics market in 2014. The retail medium, for the sale of cosmetic products, is largely preferred in the Asia Pacific, Latin America, Middle East, and African countries. However, online platform, within these regions, would increasingly emerge as a preferred mode of sale for cosmetics in coming years. The global cosmetics market would grow due to improving lifestyles and increasing disposable income of individuals over the forecast period (2015 – 2020). Skin & Sun Care category is estimated to grow at the fastest CAGR of 5.6% during 2015 – 2020. The growing demand for natural ingredients in cosmetic products is a major factor contributing for the growth of organic cosmetics.
Presently, online medium of sale dominates the U.S. cosmetics market. Further, the trend is expected to gain traction in developing countries such as Japan, India and China. Online medium is expected to grow at a CAGR of 5.3% globally during the forecast period. The European region generates the highest revenue in the global market and would maintain its leading position during the forecast period.