According to a new report from Allied Market Research, by 2026, the market of luxury cosmetics reaches of 81.24 billion U.S. dollars, is in this category, both decorative and skin care. Considering that in 2019, the value of the market for premium cosmetics is 55.6 billion, average annual growth from 2019 to 2026 will be 5.6%.
Analysts say that growth in retail sales on the Internet and the increasing demand for organic personal care products and cosmetic products will drive market growth. Several factors may also hinder the development of the market, in particular, high taxes and duties on imports for premium products, as well as the intervention of counterfeit products. However, it is expected that Halal cosmetics a luxury in the Middle East and growing demand for premium care products for the skin will create a lot of lucrative opportunities for key players in the industry.
The segment of premium cosmetics, skin care, secured more than two-fifths of the total market share in 2019 and is expected to dominate throughout the forecast period. Understanding the unique needs and skin characteristics and the use of personalized formulations of products for compliance with these requirements has become a major trend in the market of means on care of a skin, which in turn contributed to the growth of the segment.
In addition, growing demand for cosmetics made with organic and herbal ingredients, is the main growth factor.
The segment of “traditional” makeup in 2019 amounted to nearly three-quarters of the total profits of the market, and it is expected to maintain its dominant position during the next 7 years.
The organic segment will demonstrate the fastest average annual pace of 7.6% over the forecasted period. The widespread desire for a healthy lifestyle has allowed to expand the capacity of both natural and organic beauty market.
Europe took the major share in 2019, covering nearly a third of total market share. Products made using vegan recipes, created a growing trend in the German cosmetic market, particularly in the segments of hair care and skin care. At the same time the Asia-Pacific region can demonstrate the fastest average annual growth rate of 7.9% by 2026. This is due to the population growth of the middle class in the region, which is committed to quality and sophistication in the care of skin, hair and decorative cosmetics.
Leaders in the market of luxury cosmetics mentioned in this report are Christian Dior, L’oréal, Kao Corporation, Revlon, KOSÉ Corp., Coty, Estée Lauder Companies, Oriflame Cosmetics and Shiseido.