Skincare Market Size is Projected to Generate a Revenue of $273.3 Bn by 2031

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The Global Skincare Market Size is predicted to be valued at $273.3 billion by 2031, surging from $146.7 billion in 2021, at a noteworthy CAGR of 6.7%.

Impact Analysis of COVID-19 on the Skincare Market

Numerous occupations, markets, and sectors were dramatically altered and affected by COVID-19. Since consumers spent more time at home and used masks in public, the skincare cosmetics business was particularly severely impacted. In addition, the use of any lip-related beauty product and to a lesser extent, face cosmetics were impacted by mask requisite during the pandemic. COVID-19 affected the markets, employment, and general course of the cosmetic industry. Since the cosmetics industry was at its peak in 2018, consumers may or may not notice a substantial difference. Once customers are certain that the goods and the internet store are authentic, they engage in online cosmetics purchasing. Influencer recommendations on social media and celebrity product endorsements have a significant impact on millennial customers' purchase decisions. However, a business have to use additional promotional activities in order to develop a consumer base. Pricing, product quality, after-sale services, and other factors have a significant role in how satisfied customers are with their online cosmetics purchases. Companies that sell cosmetics online need to be cautious about reviews as they have an impact on both the brand's reputation and consumers' purchasing habits.

Global Skincare Market Analysis

Skincare items are used to treat and improve the overall health and look of the skin, as well as to nourish it. They include cleansers, scrubs, toners, body lotions, moisturizers, face washes, and creams, as well as oils and serums prepared with hyaluronic acid, alpha-hydroxy acids, retinol, bentonite clay, aloe vera, and tea tree oil. They aid in the removal of dead skin cells, the preservation of suppleness, and the prevention of wrinkles, fine lines, and age spots. They also provide UV protection and help to prevent sun damage, blemishes, tanning, and hyperpigmentation. Apart from that, they protect people from hazardous microorganisms & allergens and keep their skin healthier, hence, the demand for skincare products is growing all over the world.

However, consumers prefer to concentrate on the brand name when purchasing items, ignoring other product characteristics that can harm their skin. Furthermore, a few products may cause allergic responses and the development of pimples owing to the use of substances that are not appropriate for the individual. Furthermore, excessive use might result in serious problems, such as skin cancer such as melanoma. As a result, these are some of the primary restraining factors preventing market expansion.

The expanding customer preference for natural and organic products, together with the growing acceptability of environmentally safe products, is expected to fuel market growth. Green chemistry and the green sector have seen tremendous expansion in recent decades as a result of organic product companies investing more time, money, and resources into organic product research and development. Another major factor boosting the industry's growth is the increase in usage of sunscreen, anti-tan, and anti-aging treatments. Furthermore, it is expected that demand for moisturizing lotions, face wipes, and creams is expected to boost the cosmetics industry, driving the rise of the global Skincare Market. As a result of increased development, it is expected that demand for skincare products, especially in the organic market segment, would remain high.

Global Skincare Market, Segmentation

The global skincare market is segmented on the basis of products, distribution channel, gender, packaging, and region.

Products:

The products segment is further classified into creams and moisturizers, powder, cleansers and face wash, and others. Among these, the creams and moisturizers sub-segment accounted for the highest market size in 2021. Creams and moisturizers are thick liquid or semi-solid that is applied to the skin. Creams can be cosmetic or medical in nature. Moisturizers aid in the cleansing, softening, and healing of the skin. Creams are a combination of water and oil. They are a mixture of water and a higher percentage of oil-water droplets in oil.

Distribution Channel:

The distribution channel segment is further classified into online and offline. The online sub-segment is anticipated to show the fastest growth during the forecast period. E-commerce is a widely popular sales channel driving the skincare sales digitally native businesses multiplying at an alarming rate across social media and digital purchasing channels. With digitally native businesses rapidly expanding across online and social purchase platforms, e-commerce remains the primary engine of global beauty sales. Makeup, cosmetics, skincare, and hair care products are all part of the global beauty sector. It even includes perfumes and deodorants. This is not constrained by age, gender, or cultural background. As a result, the skincare sector in e-commerce is expanding rapidly.

Gender:

The gender segment is further classified into male and female. Between them, the female sub-segment is anticipated to show the fastest growth during the forecast period. The growing beauty-conscious female population and availability of wide variety of skincare cosmetics is anticipated to drive the demand for skincare products among females. Also, there are variety of ayurvedic, herbal, and other cosmetic brands that specifically design the products to enhance the skin texture to reduce fine lines, blemishes, and wrinkles. Also, the popularity and use of natural ingredients in skincare products that do not harm the skin is rising rapidly. These factors are anticipated to boost the demand for skincare products among female population.

Packaging:

The packaging segment is further classified into tubes, bottles and jars, and others. Among these, the tubes sub-segment accounted for a dominant market share in 2021 and it is estimated to show the fastest growth during the forecast period. Tubes are one of the innovative packaging choices for cosmetic products. These containers are used to deliver, hold, and store beauty products to their intended audience. Product tubes are commonly used as primary packaging since they come into direct contact with cosmetics. This contains the beauty component and is secured by another box for safety reasons, referred to as secondary packaging. These tubes are used to support, protect, and store cosmetic goods.

Region:

The Asia-Pacific skincare market accounted for the highest market share in 2021 and it is anticipated to grow at a significant rate during the forecast period. Skincare products have are widely used in the Asia-Pacific countries namely China, Japan, South Korea, India, and others since long time. This is majorly owing to a surge in demographics, incremental disposable income, rise in personal well-being awareness, and the need to build & maintain a strong self-image & identity. Furthermore, increased awareness of physical appearance among Asian consumers, as well as increased demand for customized products and services, have fueled the expansion of the Asia-Pacific skincare products market. The region is home to some of the most prestigious beauty markets and generates massive cosmetics sales and expenditures, accounting for about half of the worldwide cosmetics market. Although South Korea has long been known for its beauty trends and booming cosmetics business, other Asia-Pacific countries are breaking into the Asia-Pacific cosmetics market. China, Japan, Indonesia, Malaysia, and Thailand are all gaining influence in the realm of beauty.

Key Players in the Global Skincare Market

Some of the leading skincare market players are

• L’Oréal Professional
• Unilever PLC
• Procter & Gamble
• Estée Lauder Inc
• Beiersdorf AG
• Shiseido Co. Ltd
• Coty Inc
• Kao Corporation
• Johnson & Johnson
• Avon Products Inc

For instance, in September 2022, L'Oréal has signed an agreement to acquire Skinbetter Science, which is the popular American skincare brand.