Premium Cosmetic Market Report

Market Insights

The Global Premium Cosmetic Market is projected to grow from USD 126.3 billion in 2020 to USD 194.2 billion by 2026 at a CAGR of over 7.4% during the forecast period.

Figure: Global Premium Cosmetic Market Size, 2020-2026 (USD Billion)

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What are premium cosmetics?

Premium cosmetics are high-end cosmetics of superior quality and are relatively expensive than conventional cosmetics. These cosmetics possess a strong brand image and are built upon tangible and intangible attributes such as ingredients, attributes, and quality. Rising demand for natural organic cosmetics and wellness beauty products boosts the need for premium cosmetics. Also, increasing brand recognition as well as the influence of premium cosmetics via social media further propels the product demand.

Key Players

Key players operating in the global premium cosmetic market are-

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

Market Dynamics

Increasing awareness regarding premium ingredients and their positive effect on the skin is creating a consumer shift from conventional or mass-produced cosmetics to premium cosmetics.

Also, the growing preference for premium cosmetics for problems such as acne, age spots, and pigmentation is likely to boost the market expansion. Furthermore, the demand for imported and branded cosmetics is mainly driven by brand name, price, and product safety, which offers ample opportunities to the industry participants. However, the growing number of counterfeit products sold is a restraining factor to the premium cosmetics market growth.

Segment Analysis

Product Trends

Based on product, the global premium cosmetic market has been categorized into skincare, haircare, makeup, fragrance, 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 colour cosmetics to avoid skin irritation and infection.
• Also, the availability of sweatproof and waterproof produced particularly for humid and hot weather conditions are accelerating the demand for lipsticks, foundations, nail paints, powders, and bronzers, thus augments the segment growth.

Regional Trends

By region, the Asia Pacific market held the highest market share in 2020 and is estimated to register the fastest CAGR during the assessment period.

• The regional growth is mainly ascribed due to increasing women working for the population and 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.

COVID-19 Impact on Global Premium Cosmetic Market

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.

Critical Questions Answered in the Report

• What are the key trends in the global premium cosmetic market?
• How the market (and its various sub-segments) has grown in the last five years and what would be the growth rate in the next five years?
• What is the impact of COVID-19 on global premium cosmetic market?
• What are the key strategies adopted by the major vendors to lead in the global premium cosmetic market?
• What is the market share of the top vendors?

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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
• Premium cosmetic retailers
• Personal care companies
• Cosmetic R&D organization
• Fashion companies

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