Premium Beauty & Personal Care Products Market: Global Size, Share, Trends, Growth and Forecast Outlook 2022-2032
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- Status : Published
- Published on: July 2022
- Report ID: KDMI-6855
- Available Format: PDF/Excel/DOC
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Premium Beauty & Personal Care Products Market: Overview and Definition
The global premium beauty & personal care products market was valued at USD 160.5 billion in 2021 and is expected to reach at 780.1 billion by 2032, growing at a CAGR of 6.7% between the forecast period from 2022 to 2032. The premium beauty and personal care products market refers to a segment of the cosmetics industry that caters to high-end, luxury products. These products typically command higher prices and are associated with premium quality, performance, and ingredients. The market includes products such as skincare, haircare, makeup, fragrances, and other personal care items. The market is driven by factors such as rising disposable income, changing lifestyles and beauty standards, and increasing demand for natural and organic products. The market is highly competitive and dominated by major players such as L'Oreal, Estée Lauder, Procter & Gamble, and Unilever. The market is expected to continue growing in the coming years, with increasing demand from emerging markets and new product innovations.
The willingness to spend on exclusive, superior quality goods has been becoming more popular with the global consumers. This “Premiumisation” is exclusively driving the demand for beauty and personal care products globally.
These premium products are products that are priced higher than the rest and intended to be more effective and safe. The intended benefits of these products can be on the account of more natural or organically-sourced ingredients, green production techniques, better packaging and many more.
This market is thriving and is one of the fastest growing consumer markets. The main factor owing to this strong growth is the generational shift with young consumers entering the market. As such, the global premium and personal care products market is expected to grow at a consistent rate during the decade.
Premium Beauty & Personal Care Products Market: Key Drivers
The premium beauty and personal care products market is driven by several factors, including:
Rising Disposable Income: As consumers have more disposable income, they are more likely to invest in premium beauty and personal care products, which are often more expensive than their mass-market counterparts.
Changing Lifestyles and Beauty Standards: Consumers are increasingly prioritizing self-care and wellness, which has led to a growing demand for premium beauty and personal care products that offer luxury experiences, natural and organic ingredients, and advanced technologies.
Increasing Demand for Natural and Organic Products: Consumers are becoming more health-conscious and environmentally aware, leading to a growing demand for natural and organic products. Premium beauty and personal care products that offer high-quality, natural, and sustainably sourced ingredients are particularly popular.
Branding and Marketing: The premium beauty and personal care market is heavily influenced by branding and marketing, with consumers willing to pay more for products that are associated with luxury, exclusivity, and innovation.
Emerging Markets: The premium beauty and personal care market is expanding rapidly in emerging markets, particularly in Asia and the Middle East, as consumers in these regions have more disposable income and are increasingly interested in high-quality beauty and personal care products.
The growth of this market is attributed towards major pertaining factors including the growing global population, growing affordability of consumers along with rising disposable incomes, increasing health & wellness awareness, more convenient access, rapid urbanization, changing lifestyles along with increasing desire to look good, growth in the FMCG sector, rising demand for premium products, companies engagement in the development of premium products, high penetration of smart phones and easy access to the internet etc.
Additionally, the global premium beauty & personal care products market is thriving on the back of the global fast-moving consumer goods industry. As the FMCG is one of the largest sectors in the world economy and generating billions of revenues every year, these products such as personal & healthcare products and others are witnessing assuring demand through the globe.
Moreover, E-commerce is emerging as a highly attractive channel for exploring new demographics for players in the premium beauty and personal care products market and also there is increase in investment of brands in training professionals who offer proper guidance and have knowledge of multiple products which combined with other factors propel the growth of this market.
Furthermore, the increasing female working population, rising middle-class population, increasing millennials, increasing focus on environmental sustainability, strong e-commerce growth, shift towards organic products is further anticipated to massively contribute in the scaling of this market.
Premium Beauty & Personal Care Products Market: Challenges
The premium beauty and personal care products market faces several challenges, including:
High Cost: Premium beauty and personal care products are typically more expensive than their mass-market counterparts, which can make them less accessible to some consumers, particularly those with lower incomes.
Intense Competition: The premium beauty and personal care market is highly competitive, with many major players vying for market share. This can make it difficult for smaller companies to break into the market and compete with established brands.
Product Safety and Regulations: Premium beauty and personal care products are subject to rigorous safety regulations, which can be costly and time-consuming to comply with. In addition, product safety concerns can damage a brand's reputation and erode consumer trust.
Environmental Concerns: The beauty and personal care industry is under increasing pressure to adopt more sustainable practices, such as reducing plastic packaging and using more environmentally friendly ingredients. Brands that fail to address these concerns risk being seen as out of touch with consumer values.
Changing Consumer Preferences: Consumer preferences and beauty standards are constantly evolving, and brands must stay attuned to these changes in order to remain relevant. This can be challenging for established brands with long-standing product lines and brand identities.
Premium Beauty & Personal Care Products Market : Report Scope
Base Year Market Size
Forecast Year Market Size
Premium Beauty & Personal Care Products Market: Segmentation
By Product Type:
- Premium Skin Care
- Premium Fragrances
- Premium Color Cosmetics
- Premium Haircare
- Supermarkets and Hypermarkets
- Specialist Retailers
- Independent Retailers
Premium Beauty & Personal Care Products Market: Regional Synopsis
The fastest-growing regional market is Asia-Pacific due to the growing consciousness of people towards personal appearance in countries, such as China and Japan that have a major impact on the growth of the market.
The U.S. and UK are highly established premium markets that contribute to significant shares in this market globally owing to consistent rise in premium brands along with the large customer bases in the U.S.
Also, developing countries have emerged as one of the most attractive investment destinations in the world due to increasing spending, rapid industrialization, and tremendous shifts in the shopping behavior.
Premium Beauty & Personal Care Products Market: Key Players
- Procter and Gamble Co.
- Beiersdorf AG
- Kao Corporation
- The Estée Lauder Companies Inc.
- Mary Kay
- Avon Products
- Shiseido Company
Premium Beauty & Personal Care Products Market: Recent Developments
In August 2020, The German cosmetics giant joined the bulk and refill bandwagon. In partnership with drugstore chain DM, Beiersdorf tested in Hamburg and Karlsruhe a refill station for Nivea shower gels. The focus was and is to reduce the quantity of plasticsthe company places on the market annually.
In September 2020, KSH Business Unit Performance Materials became the distribution partnerfor Eastman in the Asia Pacific region. Under the agreement, DKSH will provide marketing and sales, as well as distribution and logistics for Eastman’s broad range of specialty materials, which can be used in various hair and color care applications. Eastman has a long history of providing specialty ingredients to the personal care and cosmetics industry.
In October 2020, Dermavel, one of the world’s fastest growing destinations for premium beauty and personal care products announced the launch of its innovative and affordable mole & skin tag remover product, the Dermavel Plasma Pen, which utilizes the world’s most advanced technology. Through using the Dermavel Plasma Pen, consumers could reportedly experience blemish-free, glowing skin they’ve always dreamed of.
In November 2020, India’s leading e-commerce focused SaaS platform, Unicommerce announced its partnership with Flipkartto enable omnichannel selling for retailers.The company in its statement said, “The partnership will enable retail brands to sell faster by integrating the company’s offline stores. Retail brands using omnichannel solutions will be able to enjoy higher customer visibility and sell efficiently on Flipkart by getting Flipkart’s assured tag.
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