Premium Cosmetics Market

Premium Cosmetics Market Outlook (2023 to 2033)

Global demand for premium cosmetics has reached a market value of US$ 125.1 billion in 2023 and is predicted to increase rapidly at 7.6% CAGR over the next ten years. By 2033-end, the global premium cosmetics market is forecasted to increase to a size of US$ 261 billion.

Increasing aesthetic awareness among the general population has to led a substantial rise in demand for cosmetic and personal care products around the world, which is a primary factor for surging premium cosmetics demand. Growing awareness regarding the benefits associated with premium ingredients and the rising disposable income of people are also expected to boost sales of premium cosmetics in the future.

Rapid urbanization and digitization are also playing a crucial role in propelling the shipments of premium cosmetics at the moment and the increasing influence of social media is also projected to favour market development in the long run. The surging popularity of anti-aging products, adoption of skincare routines by an increasing number of people, high investments in R&D of novel luxury beauty products, and frequent launches of new luxury cosmetics are other prospects that are slated to promulgate premium cosmetics sales through 2033.

Expanding population of working women and increasing beauty consciousness among them is also a key aspect sculpting future market growth. The rising popularity of personalization in cosmetics is also anticipated to create lucrative business scope throughout the forecast period. Nutricosmetics and dermo-cosmetics are also anticipated to have a bright growth outlook in the future.

On the contrary, increasing availability of counterfeit products and the high costs of luxury beauty products are anticipated to be key restraints for the premium cosmetics market evolution over the next ten years. However, rising demand for men’s premium skincare and men’s haircare products owing to increasing awareness of personal care among men is projected to open up new frontiers of opportunities for established as well as incoming premium cosmetics suppliers going forward.

An expansive assessment covering market-influencing aspects such as supply chain management, local supply, product standards, safety regulations, and other trends has been mentioned in this latest premium cosmetics market research report by skilled analysts at Fact.MR, a market research and competitive intelligence provider.

Report Attributes	Details
Premium Cosmetics Market Size (2023)	US$ 125.1 Billion
Projected Market Value (2033F)	US$ 261 Billion
Global Market Growth Rate (2023 to 2033)	7.6% CAGR
United States Market Growth Rate (2023 to 2033)	7% CAGR
Market Share of Skincare Products (2023)	~40%
Key Companies Profiled	Coty Estée Lauder LVMH The Procter & Gamble Company (P&G) Revlon Inc. Avon Products Inc. Shiseido Chanel L’Oreal S.A. KAO Corporation Oriflame Holding A.G.

How are New Companies Thriving in the Premium Cosmetics Marketplace?

“Capital Raise and Favorable Incubation Initiatives”

Demand for premium cosmetics has been increasing at a notable pace in recent years and many new companies have entered the industry to satisfy this demand. There are some established companies in the marketplace but there is still plenty of room for aspiring premium cosmetics manufacturers to test their growth potential and acquire a substantial share of the global landscape.

Premium cosmetics are expensive to manufacture as compared to regular cosmetics owing to the high costs of premium ingredients used in them. The aforementioned factor necessitates the demand for higher investments, and hence, new premium cosmetics suppliers are focusing on raising finance.

• Makeup by Mario, a color cosmetics brand founded by Mario Dedivanovic, a renowned makeup artist, revealed that the company had raised US$ 40 million in minority growth investment from Provenance and Silas Capital. The company had plans to use this new capital to amplify its reach and grow its direct-to-consumer business potential.
• In November 2022, Augustinus Bader, a company founded in 2017 providing luxury skincare products, announced that it had raised around US$ 25 million in a strategic investment round led by General Atlantic and Impala. The investment was expected to be used to expand its business potential in the APAC region and bolster expansion in the United States as well.

The launch of several incubation programs and support initiatives are also expected to help the expansion of the start-up landscape in the future.

• In July 2022, Nykaa, a leading beauty e-Commerce company in India, announced the launch of a new start-up incubator program called 'Beauty&You' with Estee Lauder to help new beauty companies in India. Start-ups can get up to US$ 500,000 in funding through this program and also have an opportunity for acquisition in the future.

Contrastingly, the recent collapse of the Silicon Valley Bank completely shook the venture capital landscape and this is influencing the way beauty start-ups and other start-ups manage their money, which could hinder the start-up scene for incoming premium cosmetics companies in the long run.

Country-wise Insights

What Makes the United States an Opportune Market for Premium Cosmetics Vendors?

“Prominent Influence of Entertainment Industry”

The United States has the most prominent entertainment industry in the world and this industry has had a substantial influence on consumer behavior and consumer trends for a long time. The increasing urge of the general population to look aesthetically perfect as portrayed by their favorite celebrities from the entertainment world is a key aspect that is projected to boost sales of premium cosmetics in the United States across the forecast period and beyond.

High consumer spending potential, growing adoption of sustainable and vegan beauty products, and rising availability of luxury beauty products are other aspects that could govern premium cosmetics shipments over the coming years. The growing use of cosmetics by men is also a factor that could alter the future of premium cosmetics sales in the country.

Why are Premium Cosmetics Companies Flocking to Asian Countries?

“Rising Disposable Income and Rapidly Evolving Consumer Preferences”

Asian countries are anticipated to emerge as highly remunerative markets for premium cosmetics manufacturers in the future owing to changing consumer preferences and increasing per capita disposable income. China and India are expected to be the leading markets in the APAC region and exhibit highly attractive business scope throughout the forecast period and beyond.

The growing upper middle-class population and increasing adoption of a more luxurious lifestyle by Asian consumers are key aspects that are driving sales of premium beauty products in the aforementioned countries. Rising investments in research and development of novel cosmetics and growing aesthetic awareness among Asians are also projected to bolster shipments of premium cosmetics going forward.

Citing the expanding demand for premium beauty products in Asian countries, many cosmetic brands are focusing on partnerships and collaborations to penetrate the markets of countries such as India, China, Indonesia, and South Korea.

• In March 2023, Shoppers Stop, a renowned department store chain in India, revealed that it had signed a franchisee agreement with Nars Cosmetics, a leading Japanese premium cosmetics company. Through this agreement, Nars entered the Indian retail market, which was already witnessing high demand for Nars products through online channels.

Korean skincare has gained massive popularity around the world and this is projected to make South Korea a highly opportune space in the APAC region over the coming years. Korean beauty companies are expected to have a bright future as they focus on the launch of luxury beauty cosmetics and other premium personal care products in the future.

Will European Countries Be Lucrative Markets for Premium Cosmetic Manufacturers?

“Presence of Key Cosmetic Brands and Increasing Number of High Net-worth Individuals”

Europe is home to some of the most prominent brands in the cosmetics and personal care industry, which is a prime aspect anticipated to uplift sales of luxury beauty products over the coming years. The number of high net-worth individuals in European countries such as Germany has been increasing at a rapid pace in recent years and is projected to influentially augment the shipments of luxury beauty products in Europe throughout the forecast period and beyond.

Adoption of luxury lifestyles by these high net-worth individuals will foster demand for luxury products such as premium skincare range, premium lipsticks, premium moisturizers, luxury perfumes, etc. The increasing spending capacity of consumers, growing availability of novel luxury beauty products, and high investments in research and development of novel personal care and cosmetic products are other prospects that could benefit premium cosmetics sales in European countries through 2033.

Category-wise Insights

Which Cosmetic Products are Spearheading Market Expansion?

“Luxury Skincare Products Generating Majority of Sales Revenue”

Based on product type, the premium cosmetics market is segmented into skincare, hair care, makeup, fragrance, and others.

In the modern world of social media where appearances have become an essential aspect of one’s personality, cosmetics and skin care products have witnessed a substantial surge in demand around the world. The high influence of celebrities and social media influencers on the general population and the high demand to look aesthetically perfect are key drivers that are anticipated to boost sales of luxury skincare products in the future.

Increasing awareness regarding the benefits associated with premium ingredients in skincare and rising consumer spending potential are also expected to promote demand for premium skincare products across the forecast period.

• At present, nearly 40% of the global premium cosmetics sales are coming from skincare products.

Competitive Landscape

Top-tier premium cosmetics suppliers are also penning agreements new agreements to acquire and merge with new companies to expand their business scope and enlarge their share in the global landscape.

• In January 2022, Beiersdorf, a leading manufacturer and retailer of personal care products, announced that it had acquired Chantecaille, a premium cosmetics business founded in 1997. This acquisition strengthened Beiersdorf’s luxury skincare portfolio and enhanced its position in the global competitive landscape.

Additional new developments by leading premium cosmetics vendors have been listed and discussed in this latest Fact.MR research study.

Key Segments of Premium Cosmetics Industry Research

• By Product Type :

  • Skincare
  • Hair Care
  • Makeup
  • Fragrance
  • Others

• By Distribution Channel :

  • Online
  • Offline

• By Region :

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA