Cosmetics Market Trends: Shifting Consumer Preferences And Innovations

The global cosmetics market is flourishing, projected to reach a value of USD 295.95 billion in 2023 and is expected to grow at a substantial rate of 6.1% annually until 2030. A key driver of this growth is the increasing emphasis on personal appearance, particularly among millennials who view skincare, color cosmetics, and hair care as integral parts of their daily routines. The rising demand for natural, non-toxic, and organic cosmetic products further fuels market expansion.

Personal care products (PCPs) encompass a diverse range of items designed for personal hygiene, grooming, and appearance enhancement. This category includes hair and skincare products, sunscreens, facial cleansers, insect repellents, fragrances, soaps, detergents, shampoos, conditioners, and toothpaste.

Soap, a fundamental skincare product, plays a crucial role in maintaining skin cleanliness and overall health. Consumer Reports highlights that individuals often exhibit distinct preferences when selecting bath products. Environmental consciousness and sustainability concerns significantly influence consumer choices regarding skincare and haircare products. 

Distribution Channel Segmentation Insights

The sales of cosmetics through offline channels were a significant contributor to the industry's revenue in 2023, accounting for 72.2% of the total. Consumers often prefer offline channels for cosmetic purchases as it allows them to physically examine products, assess their texture, scent, and suitability for their skin or personal preferences.

The online sales of cosmetics are poised for substantial growth in the coming years. To cater to the increasing online demand, Sephora, as reported in an August 2023 article by Ellie Conley, has introduced dedicated sections on its website for new product launches. This strategic move aims to provide customers with easy access to the latest beauty, skin, hair, and makeup products. Sephora's website currently categorizes its offerings into seven sections: Makeup, Just Dropped, Skin Care, Bath and Body, Fragrance, Hair, and Tools and Brushes.

Order a free sample PDF of the Cosmetics Market Intelligence Study, published by Grand View Research.