Premium Cosmetics Market Size was valued at USD 11.37 Billion in 2023. The Premium Cosmetics market industry is projected to grow from USD 12.20 Billion in 2024 to USD 19.98 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.36% during the forecast period (2024 - 2032). Increased demand for high-end skincare and increased awareness among people regarding their skin are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Market CAGR for premium cosmetics is driven by the surge in demand because of the rising adoption of e-commerce platforms and increased knowledge about the benefits of cosmetic products. Manufacturers are making significant investments in the construction of digital sales channels, with a primary focus on social media marketing, due to the presence of a huge youth client base on various social media platforms. With the advent of retail e-commerce websites and social media platforms, there has been a sea change in the production and distribution of premium cosmetics. Players in the market are increasingly turning to social media marketing to sway consumers and urge advertisers and marketers to move brand conversations online. Brands like L'Oréal and Estée Lauder use social media platforms like Facebook, Instagram, and YouTube to inform customers about the advantages of using personal care products, announce new offerings, and encourage customer participation in contests and other giveaways.
Additionally, premium cosmetics companies reinvent themselves to satisfy customer needs and offer affordable luxury. Makeup has long been used to enhance one's appearance, and with modern culture placing a premium on outward beauty, the cosmetics industry is booming. The increased demand for long-lasting makeup products and anti-aging goods aids the growing beauty industry. An increase in women's economic independence has given them more spending power and helped propel the market forward. The market is expanding because of rising interest in product lifespan and the development of products with ethical, experimental, inventive, and authentic attributes. The business is partly fueled by a rise in consumer consciousness about the importance of personal grooming.
For instance, L'Oréal introduced UVMune 400, a product of UV filtering technology. The skin is shielded from harmful ultra-UVA rays thanks to this product. As a result, it is anticipated that demand for premium cosmetics will increase throughout the projection period due to rising skin awareness. Thus, the driving factor of the premium cosmetics market revenue.
The premium cosmetics market segmentation, based on product type, includes face products, eye products, lip products, perfumes, and others. In 2022, face products segment led the premium cosmetics market in revenue because of the growing number of skin problems, such as dry and aged skin, is the primary factor driving product demand.
The premium cosmetics market segmentation, based on distribution channels, includes store-based and non-store-based. The non-store-based catgeory is expected to develop at a CAGR of 7.30% over the projected period, making up the largest share of the market because the need for more online services and the increasing number of people with internet access is fueling the increase in sales. Most clients prefer buying online because of the competitive pricing and frequent sales that are always available. The supply of various other benefits, such as speedy delivery, an easy ordering process, and lower transaction and product pricing, largely fuels expansion in this industry.
Figure 1: Premium Cosmetics Market, by Distribution Channel, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American premium cosmetics market will dominate because increasing consumer education about the dangers of sun exposure has contributed to a rise in demand for these products in the Region. In addition, because of the expanding health and beauty business, it promises to boost regional demand for these items.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: PREMIUM COSMETICS MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe’s premium cosmetics market is the second-largest because increasing interest in organic and all-natural beauty products should boost the regional market. Further, the German premium cosmetics market held the largest market share, and the UK premium cosmetics market was the fastest-growing market in the European region.
The Asia-Pacific premium cosmetics Market is expected to grow at the fastest CAGR from 2023 to 2032. The regional market expansion is anticipated because the rising awareness of the importance of personal health and Increasing consumer awareness, changing consumer lifestyles, higher disposable money, and heightened health and environmental concerns are all factors expected to boost sales of premium cosmetics in the region. Moreover, China’s premium cosmetics market held the largest market share, and the Indian premium cosmetics market was the fastest-growing market in the Asia-Pacific.
For instance, Coty Inc., a worldwide cosmetics company, is the first to use alcohol manufactured from recycled carbon emissions to produce a perfume, the Gucci Where My Heart Beats Eau de Parfum.
Leading market players are investing heavily in research and development to expand their product lines, which will help the premium cosmetics market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the premium cosmetics industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer use in the premium cosmetics industry to benefit clients and increase the market sector. In recent years, the premium cosmetics industry has offered some of the most significant technological development. Major players in the premium cosmetics market, including The Unilever Group (UK), L’Oréal S.A. (France), Maesa Ecommerce Inc (US), The Estée Lauder Companies Inc. (US), Bare Escentuals Inc. (US), Shiseido Company (Japan), King Kylie LLC (US), Christian Dior SE (France), Anastasia Beverly Hills Inc. (US), Chanel SAS (France), and others are attempting to increase market demand by investing in research and development operations.
The Estée Lauder Companies, Inc. is an American multinational cosmetics company & leader in producing and distributing high-end cosmetics, fragrances, and hair care items. The Products under the Estée Lauder, Aramis, Clinique, Lab Series, Origins, MAC, La Mer, Bobbi Brown, Aveda, Jo Malone London, Bumble and Bumble, Darphin Paris, TOM FORD BEAUTY, Smashbox, AERIN Beauty, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, Too Faced, Dr.Jart+, and DECIEM family. In November 2022, Estée Lauder Companies Inc. A leader in the luxury goods industry has announced that it has entered into a definitive agreement to buy the TOM FORD brand. The Estée Lauder Companies ("ELC"), a long-time business partner of TOM FORD's, will now own the company and its associated intellectual property thanks to this historic arrangement.
L'Oréal S.A. is a French cosmetics and personal care corporation with offices in Clichy, Hauts-de-Seine, and Paris. We are a beauty industry leader with 8600 people in 150 locations across five continents. We have 36 brands worldwide, and we organize them into four distinct categories: Luxe, Consumer Products, Active Cosmetics, and Professional Products. Our 36 international brands include Kiehl's, Lancôme, Giorgio Armani Beauty, Yves Saint Laurent Beauté, Ralph Lauren, Clarisonic, Maybelline New York, Essie, Kérastase, IT Cosmetics, Prada Beauty, Biotherm, Shu Uemura, Viktor&Rolf, Maison Martin Margiela, Urban Decay, Redken, Vichy, La Roche-Posay, Diesel, Garnier, L'Oréal Paris, and more. L'Oréal is celebrating more than a century of being in the beauty business. The goal is to make everyone happy. Our mission is to appeal to the limitless variety of cosmetic and skincare requirements and desires of another billion customers worldwide via innovation and creativity. In April 2022, L’Oréal introduces YSL Rouge Sur Mesure. We are powered by Perso, the first-ever home gadget for creating customized lip colors. Designed by the L'Oréal Technology Incubator, this compact AI-powered device may be used with red, nude, orange, or fuchsia color cartridge sets from YSL's legendary universes.
Premium Cosmetics Industry Developments
January 2023: The Estée Lauder Companies (ELC) UK & Ireland introduced its Voice-Enabled Makeup Assistant (VMA) app, the first of its kind driven by artificial intelligence and designed to make applying makeup easier confidently for visually impaired users. The creation of VMA is part of ELC’s mission to aid the visually impaired community by facilitating greater avenues for self-expression and empowerment via makeup.
April 2023: Unilever (UK) company Radox has revitalized its line with new fragrances to lift spirits, highlighting the significance of fragrance in the cleansing category, the most sought-after benefit by consumers at the moment4. A new Strawberry and Raspberry 'Feel Radiant' variation will also be available in a striking hot pink color and a new fruity scent.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 11.37 billion |
| Market Size 2024 | USD 12.20 billion |
| Market Size 2032 | USD 19.98 billion |
| Compound Annual Growth Rate (CAGR) | 6.36% (2024-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product Type, Distribution Channel, and Region |
| Geographies Covered  | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
|   Key Companies Profiled   | The Unilever Group (UK), L’Oréal S.A. (France), Maesa Ecommerce Inc (US), The Estée Lauder Companies Inc. (US), Bare Escentuals Inc. (US), Shiseido Company (Japan), King Kylie LLC (US), Christian Dior SE (France), Anastasia Beverly Hills Inc. (US), and Chanel SAS (France) |
|   Key Market Opportunities  | ·        New product introductions in the high-end cosmetics |
|  Key Market Dynamics | ·        Rising consciousness about skincare among consumers ·        A growing interest in premium cosmetics care products for healthy, radiant skin.  |
Frequently Asked Questions (FAQ) :
The premium cosmetics market size was valued at USD 10.6 Billion in 2022.
The market is projected to grow at a CAGR of 6.36% during the forecast period, 2024-2032.
North America had the largest share of the market.
The key players in the market are The Unilever Group (UK), L’Oréal S.A. (France), Maesa Ecommerce Inc (US), The Estée Lauder Companies Inc. (US), Bare Escentuals Inc. (US), Shiseido Company (Japan), King Kylie LLC (US), Christian Dior SE (France), Anastasia Beverly Hills Inc. (US), and Chanel SAS (France).
The face products category dominated the premium cosmetics market in 2022.
Non-store-based has the largest share of the market.
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