Premium Cosmetics Global Market Report 2024

The premium cosmetics market size has grown rapidly in recent years. It will grow from $131.92 billion in 2023 to $145.64 billion in 2024 at a compound annual growth rate (CAGR) of 10.4%. The growth in the historical period can be attributed to shifting consumer preferences, the importance of brand recognition and prestige, the emergence of influencer marketing, the increase in disposable income, and the demand for a luxurious shopping experience.

The premium cosmetics market size is expected to see rapid growth in the next few years. It will grow to $214.36 billion in 2028 at a compound annual growth rate (CAGR) of 10.1%. The anticipated growth in the forecast period can be ascribed to an emphasis on personalization, an increasing demand in emerging markets, a growing interest in sustainable beauty, and the impact of social and environmental values, along with the dominance of e-commerce. Key trends expected in the forecast period encompass the integration of holistic beauty and wellness, a focus on inclusivity and diverse representation, the implementation of experiential retail and immersive brand spaces, elevated packaging design, as well as the utilization of limited edition and exclusivity strategies.

The anticipated surge in demand for natural cosmetics is poised to drive the expansion of the premium cosmetics market in the foreseeable future. Natural cosmetics refer to products crafted entirely from natural ingredients, with minimal or no synthetic additives such as petrochemicals and parabens. Given the perceived health risks associated with chemicals such as parabens, phthalates, and sodium lauryl sulfate, consumers are increasingly inclined towards natural compounds, believing them to be safer for both human health and the environment. As an illustrative example, the annual Organic Beauty and Wellbeing Market report from the Soil Association revealed that in 2021, sales of Soil Association-certified organic and natural beauty and wellbeing products in the UK witnessed a notable 15% growth, reaching €164 million (USD 170 million). Consequently, the escalating demand for natural cosmetics emerges as a catalyst for the premium cosmetics market's growth.

The growth trajectory of the premium cosmetics market is anticipated to be propelled by an upswing in personal income. Personal income, encompassing the total earnings of an individual or household from all sources before tax deductions, significantly influences consumers' purchasing power and their inclination to invest in high-end beauty products. As an illustration, in August 2023, the Bureau of Economic Analysis, a US-based government agency, reported a noteworthy increase of $87.6 billion (0.4 percent at a monthly rate) in personal income in the United States. Consequently, this uptick in personal income becomes a driving force behind the expansion of the premium cosmetics market.

Product innovations have emerged as a prominent trend gaining traction in the premium cosmetics market. Major companies operating in this sector are strategically focusing on innovative product development to secure a competitive advantage. An example of this trend is seen in Proven Skincare, a US-based developer of skincare products, which launched its first personalized eye cream duo in May 2022. The duo, consisting of Personalized Day Eye Cream and Personalized Night Eye Cream, utilizes Artificial Intelligence (AI) and big data to create personalized formulations tailored to each individual's skin type, lifestyle, and environmental conditions.

Companies in the premium cosmetics market are also intensifying their efforts to introduce new cosmetic collections in emerging countries, aiming to enhance their competitiveness. New cosmetic collections refer to recently launched sets of beauty and skincare products, often curated to align with prevailing beauty trends, seasonal themes, or specific consumer needs. For instance, in November 2022, Alix Avien Paris, a Turkey-based cosmetic company, unveiled premium beauty and cosmetic products in India, encompassing skin makeup, eye makeup, lip makeup, and nail products. This strategic launch is anticipated to provide Indian consumers with access to high-quality imported makeup products.

In October 2021, LVMH, a French-based luxury goods manufacturer, acquired Officine Universelle Buly for an undisclosed amount. This acquisition reflects LVMH's commitment to maintaining the distinctive expertise and personality of Officine Universelle Buly while fostering growth and development within the realm of a leading luxury company. Officine Universelle Buly, based in France, specializes in premium beauty products.

Major companies operating in the premium cosmetics market report are Johnson & Johnson Services Inc., LVMH Moët Hennessy Louis Vuitton SE, The Procter & Gamble Company, Christian Dior SE, Unilever PLC, L'Oréal S.A., Henkel AG & Co. KGaA, KAO Corporation, Chanel S.A., The Estée Lauder Companies Inc., Amway Corporation, Shiseido Company Ltd., Natura & Co., Ralph Lauren Corporation, LG Household & Health Care Ltd., Coty Inc., Amorepacific Corporation, Mary Kay Inc., Avon Products Inc., Yves Rocher Spol. S R.O., Kose Corporation, Beiersdorf AG, Revlon Inc., Oriflame Cosmetics Global SA, Elizabeth Arden Inc., Charlotte Tilbury Beauty Ltd., La Prairie Group AG, Groupe Clarins, Sisley Paris.

Asia-Pacific was the largest region in the premium cosmetics market share in 2023. Asia-Pacific is expected to be the fastest growing region in the forecast period. The regions covered in the premium cosmetics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the premium cosmetics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Premium cosmetics encompass different categories such as skin care, hair care, fragrances and perfumes, sun care, baby care, and others. The skin care market includes premium cosmetics designed to protect the skin, incorporating various procedures to maintain skin integrity, enhance appearance, and address skin disorders. Common prescriptions for skincare include tretinoin, topical vitamin C, regular sun protection, and various skin moisturizers. Premium cosmetics consist of natural, organic, and conventional ingredients, distributed through offline and online channels, catering to males, females, and unisex consumers.

The premium cosmetics market research report is one of a series of new reports that provides premium cosmetics market statistics, including premium cosmetics industry global market size, regional shares, competitors with a premium cosmetics market share, detailed premium cosmetics market segments, market trends and opportunities, and any further data you may need to thrive in the premium cosmetics industry. This premium cosmetics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The premium cosmetics market consists of sales of foundation creams, lipsticks and eye makeup. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.