Luxury Cosmetics Market

Global Luxury Cosmetics Market:

The global luxury cosmetics market size reached US$ 52.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 77.6 Billion by 2032, exhibiting a growth rate (CAGR) of 4.3% during 2024-2032. The rising disposable incomes in emerging markets, leading to increased spending on premium beauty products, along with the growing influence of social media and digital channels in shaping consumer preferences are primarily driving the market.

Luxury Cosmetics Market Analysis:

• Major Market Drivers: The inflating disposable incomes of individuals across the globe, along with their elevating levels of living, are primarily driving the growth of the market. Moreover, the increasing availability of luxury makeup products across online channels and escalating number of specialty stores are some of luxury cosmetics market recent opportunities. 
• Key Market Trends: The escalating demand for halal cosmetics among consumers due to the presence of powerful actives and proven vegan ingredients is positively influencing the market. Besides this, the rising utilization of luxury cosmetics to solve hair and skin-related problems, such as hair fall, dandruff, skin rashes, and acne, is offering lucrative growth opportunities to the market players. 
• Geographical Landscape: According to the luxury cosmetics market report by IMARC, Europe currently dominates the global market. Europe is renowned for its long-standing history in the industry, and it remains a global leader in beauty and fragrance. Moreover, the inflating disposable income of Europeans and elevating standards of living are also contributing to the region's growth.
• Competitive Landscape: Some of the leading luxury cosmetics market companies include Avon Products Inc. (Natura & Co.), Coty Inc., Estée Lauder Companies Inc., Kao Corporation, Kosé Corporation, L'Oréal S.A., LVMH Moët Hennessy Louis Vuitton, Oriflame Cosmetics AG, Puig, Revlon Inc., Shiseido Company Limited and Tatcha LLC., among many others.
• Challenges and Opportunities: Challenges include the increasing competition from indie and niche brands offering unique products and experiences, as well as the growing demand for sustainable and ethically sourced ingredients and packaging. However, luxury cosmetics market statistics indicate that there are opportunities in leveraging digital technologies and social media to create immersive and personalized brand experiences. Additionally, the shift towards natural and organic cosmetics products presents an opportunity for luxury cosmetics brands to expand their product lines and offerings.
   

Luxury Cosmetics Market Trends:

Changing Consumer Preferences and Lifestyle

The increasing spending capacities of individuals across the globe, the rising working population, and elevating standards of lifestyles are primarily driving the luxury cosmetics market growth. Considering this, various market players are increasingly investing in product innovations and mergers and acquisitions. For instance, in April 2023, a personal care and beauty brand, The Body Shop, launched its 'activist' product range in the Indian market. The new line strengthens the brand's sustainable commitment in the country with a selection of skin products and color cosmetics. Similarly, collaborations among leading cosmetic companies and giant makeup-selling marketplaces are also contributing to the market growth. For instance, Estée Lauder with Shoppers Stop opened an exclusive SS Beauty store in Mumbai. With this establishment, the two companies have strengthened their partnership in India. The SS beauty store will offer only Estée Lauder brands like MAC Cosmetics, Clinique, Bobbi Brown, Jo Malone, Estee Lauder, Smashbox, and Tom Ford. In addition to this, BALMAIN BEAUTY unveiled " Projet Confidentiel," a campaign teasing the brand's luxury fragrance experience, launching September 2024. Ahead of the Balmain fashion show on February 28, 2024, the Projet Confidentiel campaign debuted a series of striking assets featuring a matte black unlabeled fragrance bottle flanked by the iconic Balmain PB logo. Increasing product launches by such high-end premium brands are projected to contribute to the luxury cosmetics market share in the coming years. 

Ongoing Shift toward Natural and Organic Products

The growing concerns regarding the side effects of chemicals in personal care products, leading to skin irritation, allergies, and dullness, is bolstering the demand for natural and organic skincare products. Prolonged use of synthetic cosmetics may cause various health issues, such as irritation, hormonal imbalance, and toxicity. Considering this, numerous market players are launching cosmetic products made with organic ingredients, such as plant extracts and natural oils. For instance, in February 2022, a United Kingdom-based fashion company, Boohoo, launched a vegan beauty range of more than 50 products. Boohoo Beauty's cosmetics line includes highlighter sticks, blush, setting sprays, cosmetic palettes, and others available exclusively. Similarly, in April 2022, Shiseido revealed a new skincare brand, Ulé. It sources pesticide-free botanicals from local vertical farms. The increasing availability of such products is anticipated to propel the luxury cosmetics market revenue in the coming years. 

Rising Social Media Influence and Beauty Trends

Social media has transformed the way consumers discover, research, and purchase cosmetic products. Moreover, as per the luxury cosmetics market overview, platforms like Instagram, YouTube, and TikTok have become powerful marketing tools for cosmetic brands, allowing them to reach a global audience and engage directly with consumers. Furthermore, beauty companies are turning to influencers to increase their brand awareness and reach potential consumers. For instance, in September 2022, as part of its global expansion, the Honest Company, a clean lifestyle company, launched its business in China. To capitalize on the relatively small but rising demand for sanitary beauty products, the digitally native company created a flagship store on Tmall Global, Alibaba Group's cross-border e-commerce platform. Cosmetic brands are also collaborating with trending web series and celebrities to launch and promote the adoption of their products. For instance, in May 2022, Estée Lauder's M.A.C Cosmetics and Netflix collaborated to launch an exclusive Stranger Things makeup collection. The new products have unique shade names and limited-edition packaging inspired by the iconic Real World Hawkins High and The Upside Down. In line with this, the growing connectivity of youth with social media content creators is helping brands promote their products more effectively. This, in turn, will continue to contribute to the luxury cosmetics market demand.

Global Luxury Cosmetics Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global luxury cosmetics market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on product type, type, distribution channel and end user.

Breakup by Product Type:

• Skincare
• Haircare
• Makeup
• Fragrances
   

Skincare holds the majority of the total market share

The report has provided a detailed breakup and analysis of the market based on the product type. This includes skincare, haircare, makeup, and fragrances. According to the report, skincare holds the majority of the total market share.

The main factors that are driving the expansion of this segment include the growing emphasis on self-care, coupled with the rising awareness about the importance of skincare among the masses, which has significantly influenced consumer behavior. Moreover, various renowned fashion and apparel brands are also venturing into skincare to expand their product portfolio and increase their consumer base, which is positively impacting the luxury cosmetics market outlook. For instance, in 2023, Prada announced that it would venture into skincare and color cosmetics. It wasn’t the first time that a luxury house specializing in garments and accessories entered the beauty market. Tom Ford’s fine fragrances and makeup lines have also enjoyed significant success. It has also earned the respect of beauty insiders and enthusiasts. Heritage brands from Chanel to Hermès and Dior have carved out their names in the world of skincare, fragrances, and makeup artistry.

Breakup by Type:

• Organic
• Conventional
   

Conventional products currently exhibit a clear dominance in the market

The report has provided a detailed breakup and analysis of the market based on the type. This includes organic and conventional. According to the report, conventional products currently exhibit a clear dominance in the market.

The conventional segment encompasses a wide range of beauty and personal care products manufactured using a variety of synthetic chemicals and compounds. This segment has traditionally dominated the market in Europe, driven by its extensive product offerings, brand variety, and widespread availability. Conventional products are known for their long shelf life, diverse color palettes, and high-performance formulations. Despite the growing interest in natural and organic products, conventional makeup products continue to hold a significant market share due to their cost-effectiveness, established brand loyalty, and continuous innovations in product formulations.

Breakup by Distribution Channel:

• Supermarkets and Hypermarkets
• Specialty and Monobrand Stores
• Online Stores
• Others
   

Specialty and monobrand stores account for the largest market share

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes supermarkets and hypermarkets, specialty and monobrand stores, online stores, and others. According to the report, specialty and monobrand stores account for the largest market share. 

Specialty stores are a crucial distribution channel known for offering an extensive selection of beauty and personal care products. These stores specialize in beauty products and often provide a more premium shopping experience, with knowledgeable staff and a focus on customer service. Big beauty and cosmetic brands collaborate with specialty stores to market and sell their products more conveniently. For instance, Estée Lauder with Shoppers Stop opened an exclusive SS Beauty store in Mumbai. With this establishment, the two companies have strengthened their partnership in India. The SS beauty store will offer only Estée Lauder brands like MAC Cosmetics, Clinique, Bobbi Brown, Jo Malone, Estee Lauder, Smashbox, and Tom Ford.

Breakup by End User:

• Male
• Female
   

Female stores account for the largest market share 

The report has provided a detailed breakup and analysis of the market based on the end user. This includes males and females. According to the report, female stores account for the largest market share.

The increasing working population across the globe is primarily driving the growth of this segment. Moreover, the women's segment has traditionally been the cornerstone of the market, encompassing a wide array of products tailored specifically for women. Furthermore, luxury cosmetics market forecast indicated that the evolving societal standards and increased awareness regarding self-care are bolstering the demand for beauty and personal care products. In recent years, there has been a significant shift towards inclusivity and breaking traditional gender norms due to which people of all genders are taking care of their appearance and well-being. Consequently, beauty and personal care brands are now offering more gender-neutral and gender-specific products.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Europe currently dominates the global market

The report has provided a detailed breakup and analysis of the market based on the region. This includes North America, Asia-Pacific, Europe, Latin America, and Middle East and Africa. According to the report, Europe currently dominates the global market.

As per the luxury cosmetics market overview, Europe is renowned for its long-standing history in the industry, and it remains a global leader in beauty and fragrance. Moreover, the inflating disposable income of Europeans and elevating standards of living are also contributing to the region's growth. For instance, French consumers prioritize luxury and quality, making France a hub for high-end beauty brands. Similarly, Spain's market is characterized by a focus on sun care and skincare products due to its sunny climate. Sunscreen, moisturizers, and anti-aging products are particularly popular among Spanish consumers. Additionally, a strong e-commerce presence, with rising online sales, continue to bolster the luxury cosmetics market recent prices in the region.

Competitive Landscape:

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the top inflight catering companies include:

• Avon Products Inc. (Natura & Co.)
• Coty Inc.
• Estée Lauder Companies Inc.
• Kao Corporation
• Kosé Corporation
• L'Oréal S.A.
• LVMH Moët Hennessy Louis Vuitton
• Oriflame Cosmetics AG
• Puig
• Revlon Inc.
• Shiseido Company Limited
• Tatcha LLC.
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Luxury Cosmetics Market Recent Developments

• February 2024: BALMAIN BEAUTY unveiled "Projet Confidentiel," a campaign teasing the brand's luxury fragrance experience, launching September 2024. Ahead of the Balmain fashion show on February 28, 2024, the Projet Confidentiel campaign debuted a series of striking assets featuring a matte black unlabelled fragrance bottle flanked by the iconic Balmain PB logo.
• January 2024: Now owned by China's Yatsen group, Galénic, launched an endowment fund to stimulate research in dermatology. The company aims to strengthen its footprint in the luxury skincare market. 

Global Luxury Cosmetics Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the luxury cosmetics market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global luxury cosmetics market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the luxury cosmetics industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.