Cosmeceuticals Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Global Cosmeceuticals Market is segmented By Key Ingredient (Vitamins, Polyphenols, Hyaluronic Acid, Peptides and Proteins, and Others), By Distribution Channel (Drug Stores, Specialty Stores, E-Commerce, and Others), By Product Type (Skin Care Cosmeceuticals (Sunscreen, Anti-Aging, Moisturizer, Skin Lightening, Others), Hair Care Cosmeceuticals (Shampoos and Moisturizers, Hair Growth Stimulants, Others), and Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Cosmeceuticals Market Size

Global Cosmeceuticals Market is expected to reach at a CAGR of 5.5% during the forecast period 2024-2031. Demand for multifunctional skin care cosmetic products in ‘Europe’ is growing. The competitive rivalry intensifies with novel skincare and haircare formulations and others active in the market.

Cosmeceuticals are a class of cosmetic formulations that are enriched with bioactive compounds purported to have therapeutic benefits. Cosmeceuticals formed the bridge between pharmaceutical and cosmetic grade bioactive compounds to have a beneficial effect on skin health and beauty. Vitamins, polyphenols, hydroxyl acids, and melatonin are some of the widely used active ingredients in cosmeceutical formulations. These are designed for topical use as cosmetics and are proven to pose a higher impact on human skin than cosmetic products. When applied to the skin, the active ingredients reach deep dermal layers of the skin and add nutritional benefits to the tissue. Also, hair cosmeceuticals are developed for improving hair growth and scalp control.

Cosmeceuticals Market Scope

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Cosmeceuticals Market Dynamics

The aging population and growing consumer awareness are driving the market growth

The growth of the cosmeceuticals market can be majorly attributable to the rising consumer interest in natural and nutrition-rich products both for health and beauty concerns. An aging population, increasing consumer spending and beauty consciousness are other factors supporting the sales. It has been observed that the demand is high among the people of the age group 30-45. Over the past decades, the decreasing mortality rate has given rise to the aging population all over the globe. People living longer and wanting to retain their youthful appearance are positively affecting market growth globally. Demand for anti-aging products to prevent hair damage, age spots, uneven skin tone, dry skin, and wrinkles is on the rise. This, in turn, has created opportunities for new introductions and innovations in the cosmetic industry, thus making the manufacturers focus on active anti-aging-based skin products. The rising male grooming industry is another key growth promoter in the global cosmeceuticals market. The share of male consumers in the dollar sales is likely to increase with growing demand for anti-aging and acne control cosmeceuticals among the male population.

However, the lack of proper regulatory approvals and health claims is hindering the penetration of these products in the health-savvy population. For instance, the Federal Food, Drug, and Cosmetic Act (FD&C Act) in the U.S. does not recognize the term cosmeceutical and included these under cosmetics. The regulatory system for cosmeceuticals products is complex and not stringent as compared to drugs. Most of the time, newly launched products are susceptible to the uncertainty of regulatory review. This uncertainty in the regulations leads to the launch of counterfeit goods in the market which hampers the credibility of cosmeceuticals in the market. Moreover, the evolution of nutricosmetics and the rising popularity of these beauty-from-within categories may affect the growth of cosmeceuticals in the future.

Cosmeceuticals Market Segmentation Analysis

Skincare is by far the largest segment and contributed significantly to global dollar sales in 2020

The global cosmeceuticals market is segmented by product type into skincare, hair care, and other categories. The wide range of skincare applications from moisturizing to anti-aging, scar and wrinkle removal, and acne control to hyperpigmentation are driving the growth of this segment. Moreover, the demand for multifunctional products is expected to fuel the growth of sun-care cosmetic products in the forecast period. For instance, BB creams can also function as sunblock creams, apart from a make-up serum and moisturizer. Products like these are becoming widely popular owing to their convenience, thereby driving the skincare category in this segment.

However, the hair care cosmeceuticals segment is estimated to grow at a faster rate owing to rising demand for anti-hair fall and hair growth stimulation products, and the male grooming industry. Benefits provided by shampoos such as the removal of dandruff, dirt, and environmental pollutants are making them a popular daily-use product. Also, eradication of unwanted build-up without flaking out much sebum to make the hair unmanageable drives consumers to buy branded hair care products.

Global Cosmeceuticals Market Geographical Share

Europe is expected to dominate the global cosmeceuticals market during the forecast period

By Geography, Europe is leading the global cosmeceuticals market owing to high beauty interest in countries such as France, Italy, the U.K., and Germany. Moreover, these countries have the largest population of people suffering from dry skin, considering their weather conditions. This is likely to spur the demand for beneficial and multifunctional skin care cosmetic products. Moreover, higher spending capacity in the region for better quality products is expected to positively impact market growth. Also, factors such as the aging population, high incidence of dry skin, and people's interest to look young have constituted a significant potential for cosmeceutical products in Europe.

However, the market growth over the forecast period will be majorly driven by the Asia Pacific region with countries such as India, Thailand, and Malaysia witnessing double-digit growth rates. Growing awareness regarding cosmeceutical and cosmetics products, such as anti-aging, sun care, and hair care products, coupled with rising disposable income is expected to drive the market growth. Besides this, advancements in technology and the advent of new ingredients have further added to the progress in the commercialization of cosmeceutical products globally.  For example, in 2016, over 2 billion people spent on premium personal care products instead of cosmetic surgeries in the Asia-Pacific region.

Cosmeceuticals Companies and Competitive Landscape

The global cosmeceuticals market is fragmented with the presence of a large number of companies. The high product differentiation is resulting in the entry of new companies into the market with novel skincare and haircare formulations. The market is turning competitive with business development strategies followed by global cosmetic giants. The companies are focusing on acquisitions to increase their distribution network and expand their product portfolio. Phytochemical-based natural skincare cosmeceuticals have been the key focus of most of the existing players owing to the large market potential across the globe. In June 2022, Sabinsa announced that the company had got the approval certification for Cococin, Saberry, and Nigellin Amer from Ecocert Greenlife. The company has successfully complied with the COSMOS standard to help consumers with transparent information on the content as the demand for natural ingredients in cosmetics is rising. In May 2022, Global Bioenergies announced that the company would be launching its LAST long-wear cosmetics brand in June 2022. To reduce the environmental footprint company’s products have been designed with around 90% natural ingredients and packaging. In February 2022, bioClarity, a 100% Vegan, toxin-free, cruelty-free skincare brand, announced a partnership with Ulta Beauty, the nation's largest beauty retailer. This partnership will help companies to create brand awareness and greater access to existing and new customers worldwide.

COVID-19 Impact on the Cosmeceuticals Market

Since the outbreak of Covid-19 in March 2020, the market of global cosmeceuticals products has shown declining results in the growth rate. Due to the lockdown situation going on across the globe cosmetic manufacturers had to shut down their production units as a result of the labor shortage. However, as the situation is getting improved globally, the market is set to revive and the sales are expected to recover in the coming years. Moreover, the leading companies are eyeing e-commerce as an opportunistic segment of the market as retail stores are predicted to have lesser consumer visits till the pandemic ends. Thus, skincare brands such as Olay have partnered with Shopee for a new digital campaign targeted at the millennial consumer demographic as part of its strategic e-commerce growth plans for South East Asia.