Premium Cosmetic Market Analysis | 2021-2026

“The Premium Cosmetic Market was estimated at US$ 126.3 billion in 2020 and is expected to grow at a CAGR of 7.4% during 2021-2026 to reach US$ 192.6 billion by 2026.”

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Market Dynamics

Introduction

Premium cosmetics refer to high-quality, luxury beauty products that are typically priced higher than conventional cosmetics. These products are often associated with well-established brands renowned for their exceptional formulations, advanced technologies, and superior ingredients. Premium cosmetics emphasize product performance, and efficacy, and often boast innovative features, setting them apart from regular beauty offerings.  

Customers are willing to invest more in these products due to their perceived higher value, exclusivity, and the promise of enhanced results. Premium cosmetics encompass a wide range of products, including skincare, makeup, haircare, and fragrance items. Their target audience is typically discerning consumers who seek luxurious experiences, specialized solutions, and premium packaging that reflects the brand's status and commitment to excellence.

Market Drivers

The premium cosmetics market is driven by the following factors-

• Increasing awareness of premium ingredients and their positive effects on the skin is shifting consumer preferences from conventional or mass-produced cosmetics to premium cosmetics.

• Growing preference for premium cosmetics to address problems like acne, age spots, and pigmentation is likely to boost market expansion.

• Demand for imported and branded cosmetics is mainly driven by brand name, price, and product safety.

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COVID-19 Impact

The COVID-19 pandemic has substantially affected the cosmetic industry across the globe with the temporary or permanent shutdown of production units. L’Oréal witnessed sharp declines in Western Europe with sales down at 7.7%, 3.7% in the Asia Pacific, and 4.8% in North America. Moreover, due to the limited movement of people and work-from-home lifestyle, women and men are confined in their homes with their work, which results in the demand for makeup and related premium cosmetics, affecting the market expansion.

Segments Analysis

Product Trends

“Makeup segment dominates the market during the forecast period.”

The global premium cosmetic market has been categorized into skincare, haircare, makeup, fragrance, and others.

• Among these, the makeup segment is likely to register the highest CAGR during the review period.

• This is mainly attributed to the growing demand for natural and organic color cosmetics to avoid skin irritation and infection.

• Also, the availability of sweatproof and waterproof products particularly for humid and hot weather conditions is accelerating the demand for lipsticks, foundations, nail paints, powders, and bronzers, thus augmenting the segment growth.

Regional Analysis

“Asia-Pacific market held the highest market share and is estimated to register the fastest CAGR during the assessment period.”

• The regional growth is mainly ascribed due to the increasing number of women working for the population and the increasing purchasing power of the middle-class population.

• Also, increasing financial independence among both men and women coupled with rising beauty consciousness propels regional market growth.

• China is the leading contributor due to the presence of a large number of foreign players.

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Key Players

The market is highly populated with the presence of several local, regional, and global players. Most of the major players compete in some of the governing factors including price, product offerings, regional presence, etc. 

The following are the key players in the global premium cosmetic market (arranged alphabetically).

• Chanel (France),
• Coty (The U.S),
• Dior Beauty (France),
• Elizabeth Arden Inc. (The U.S),
• Estée Lauder (The U.S),
• KAO Corporation (Japan), and
• L’Oréal (France),
• LVMH (France),
• Shiseido (Japan),
• The Procter & Gamble Company (P&G) (The U.S).

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Target Audience

Here is the list of the group of customers that the market hopes to have the greatest opportunity to convert-

• Premium Cosmetic Companies
• Retailers
• Personal Care Companies
• Cosmetic R&D Organization
• Fashion Companies

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. 

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data. 

We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

Customization Option

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players).
• SWOT analysis of key players (up to three players).

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.