Nail Polish Market by Product (Regular Nail Polish, Gel Nail Polish, and Others), Distribution Channel (Hypermarkets & Supermarkets, Specialty Stores, E-commerce, and Others), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032

Nail Polish Overview

Nail polish is a liquid polish cosmetic item utilized to improve the appearance of nails. It comes in various colors and finishes, allowing individuals to customize the look of their nails. Nail polish contains film-forming agents, solvents, pigments, and additives. Film-forming agents help the polish adhere to the nail surface and form a durable coat. Solvents keep the polish liquid and make it easier to paint. Varnish coloring pigments and additives such as plasticizers, resins, and UV filters can be included to improve formulation flexibility, gloss, and longevity. Applying nail polish involves cleaning and shaping the nail, using a base coat, one or more clear coats of color polish, and a top coat. The base coat protects the nails and prevents recoloring, whereas the top coat includes sparkle and prolongs the shine. Nail polish is used for personal grooming, self-expression, and fashion accessories. It is available in beauty salons, stores, and for home use.

Global Nail Polish Market Analysis

The global nail polish market size was $15.23 billion in 2022 and is predicted to grow with a CAGR of 6.8%, by generating a revenue of $28.45 billion by 2032.

COVID-19 Impact on Global Nail Polish Market

The COVID-19 pandemic has had a significant impact on the nail polish market. With nail salons and beauty retailers' closure or limited operation, nail polish sales decreased. However, a shift towards at-home nail care led to an increased demand for nail polish products for DIY manicures and pedicures. People focused more on maintaining healthy nails than intricate designs, leading to a preference for nail care products over nail art. The pandemic also emphasized clean and natural formulations, with consumers seeking non-toxic and environmentally friendly options. Online sales became crucial during the pandemic, as physical stores closed, and brands with a robust online presence saw growth.

As nail salons began to reopen with the progress of vaccination efforts, there was a gradual recovery in the market. However, consumer behavior and preferences continue to evolve as the impact of the pandemic lingers.

Fashion and Beauty Trends to Drive the Market Growth

The nail polish market is driven by various factors influencing its growth and demand. Fashion and beauty trends play a significant role as consumers seek to follow the latest nail art and color trends. Increasing disposable income allows consumers to spend more on discretionary items like nail polish, fueling the market growth. The influence of social media is also prominent, with beauty influencers and online communities sharing recommendations and trends. Product innovation and variety, including new shades, textures, and finishes, attract consumers who crave novelty and choice. Growing awareness of nail care and its importance drives demand for nail polishes that offer aesthetic appeal and health benefits. Occasions like festivals, weddings, and holidays create spikes in sales as consumers look for specific nail polish options. Distribution channels, including physical stores and online retailers, are crucial in reaching consumers. Celebrity endorsements and collaborations enhance brand value and consumer interest. Male grooming trends have expanded the market, and the demand for safer, eco-friendly nail polishes is rising.

Regulatory Restrictions to Restrain the Market Growth  

Several factors restrain the nail polish market. First, regulatory restrictions imposed by governing bodies can limit the use of certain ingredients in nail polishes, affecting product formulation and availability. Health concerns related to chemicals found in nail polishes, such as formaldehyde and toluene, can lead to decreased consumer demand for products containing these substances. Changing fashion trends influence the market, as shifts in preferred colors, finishes, or nail art designs can impact sales. Economic factors, like downturns or instability, may result in reduced consumer spending on non-essential items like nail polishes. Competition from alternative products, such as gel manicures or nail wraps, can also affect market demand. Environmental concerns and the preference for eco-friendly or cruelty-free options can further influence consumer choices. Cultural or religious factors and seasonal variations in need can also restrict market growth.

Nail Art and Customization to Drive Excellent Opportunities

The nail polish market is likely to unlock several opportunities for growth and innovation. Nail art and customization have gained popularity recently, with consumers seeking personalized designs and intricate nail art patterns. Nail polish brands can tap into this trend by offering specialized products, such as nail art kits, tools, or nail polishes with built-in design features. Consumers increasingly seek unique and creative nail polish products, allowing brands to introduce new colors, finishes, and effects. The request for eco-friendly and non-toxic formulations is expanding, offering a niche market for safer and more environmentally friendly nail polishes. Geographic expansion into untapped markets and diversification of product lines, including complimentary nail care treatments, are potential opportunities for nail polish companies.

Global Nail Polish Market Share, by Product, 2022

The regular nail polish sub-segment accounted for the highest market share in 2022. Regular nail polish is also known as traditional or standard nail polish. It has dominated the nail polish market for several reasons. Firstly, it is widely available and affordable, making it accessible to a more extensive consumer base. Additionally, regular nail polish offers various colors and finishes, allowing individuals to find their desired shade and effect. It is a straightforward application, and its quick drying time makes it convenient for at-home use. Regular nail polish also provides flexibility for DIY nail art, enabling users to experiment with different designs and techniques. Moreover, its ability to withstand everyday activities without chipping easily, coupled with the ease of removal, adds to its appeal. Lastly, the influence of fashion trends and celebrity endorsements has solidified regular nail polish as a staple in the beauty industry.

Global Nail Polish Market Share, by Distribution Channel, 2022

The specialty stores sub-segment accounted for the highest market share in 2022. Specialty stores have emerged as dominant players in the nail polish market due to several key factors. Firstly, these stores offer a wide range of products, focusing exclusively on nail polish and related items. This extensive selection of colors, finishes, and brands surpasses what general retailers offer. Additionally, specialty store staff possess expertise and knowledge in nail care, providing personalized advice to customers and enhancing the shopping experience. These stores also stay at the forefront of trends, often collaborating with brands to launch exclusive collections, creating a sense of exclusivity and driving customer loyalty. Furthermore, specialty stores invest in creating visually appealing and immersive shopping environments, sometimes offering additional services like nail art demonstrations. They also build communities through events, workshops, and active social media engagement.

Global Nail Polish Market Share, by Region, 2022

The Asia-Pacific nail polish market generated the highest revenue in 2022. Asia-Pacific has risen as a dominant player in the nail polish market. Nations such as China, South Korea, and Japan have ended up manufacturing hubs for beauty care products, including nail polish, thanks to well-developed factories, copious raw materials, and a skilled workforce. In addition, rising expendable income in the region has increased consumers' purchasing power for consumer goods such as nail polish. The presence of a large and diverse consumer base, especially in countries such as China and India, greatly expands the nail polish market potential. The region's decisive fashion and beauty culture, combined with the influence of social media and beauty influencers, has further increased the demand for nail polish as a must-have accessory. Furthermore, Asian countries have been at the forefront of beauty innovation, developing new products, finishes, and colors that cater to evolving customer preferences. The Asia-Pacific region also boasts a well-developed distribution network, encompassing physical stores and online platforms, ensuring easy accessibility to nail polish products. Lastly, the export opportunities offered by Asian manufacturers, who provide competitive pricing, diverse product ranges, and reliable production capabilities, have further bolstered their dominance in the global nail polish market.

Competitive Scenario in the Global Nail Polish Market

Investment and agreement are common strategies followed by major market players. One of the leading market players in the industry is Sally Hansen. In March 2023, Sally Hansen partnered with marshmallow candy company, Peeps Brands, to launch a limited-edition nail polish collection. Sally Hansen's InstaDry X Peeps collection includes her seven new shades with a sugary texture reminiscent of sugar-coated marshmallow treats.

Some of the leading nail polish market players are Unilever, Estée Lauder, Shiseido, Revlon, Sally Hansen, Wella Operations US LLC (O.P.I.), Cosnova GmbH (Essence), NOTE Cosmetique, L'Oréal S.A., and Coty Inc.