As per Fact.MR, a market research and competitive intelligence provider, the global color cosmetics market is slated to expand at a CAGR of more than 6% and be valued at over US$ 140 Bn by 2031.
Growing product penetration via online sales channels is a primary factor influencing the global market. Cosmetics sales via e-Commerce websites are anticipated to witness a surge owing to increased Internet usage and rising adoption of smartphones across regions, especially emerging markets.
This predicted progress is also attributed to wide accessibility of a diverse range of products as well as consumer ability to compare prices of different products offered through various e-Commerce websites. Advertisement and promotion through various mediums, including magazines, television, social media, etc., is also fueling market expansion. Campaigns and free sample offerings are major promotional tools being used by market players.
For example, The Estée Lauder Companies Inc. had US$ 14.29 Bn in revenue from all segments, where 89% of revenue came from cosmetic products. The company gets 23% of its total revenue from online platforms.
Key Takeaways from Market Study
- The U.S. is estimated to account for more than 80% of the North American market, supported by increasing working women population.
- According to Fact.MR’s analysis, China is estimated to account for more than 40% of the East Asian market share, supported by aggressive advertising and promotion activities.
- Germany is one of the potential markets in Europe, accounting for over 24% value share, supported by increased demand for premium colour cosmetic products.
- Lip products are anticipated to hold nearly 42% of the market in 2021, but nail products are expected to witness higher growth rate at a CAGR of 8.5% over the forecast period.
- Crème form in colour cosmetics reflects around 34% of the market in 2021.
“Aggressive advertising and promotional activities particularly featuring female celebrities as brand ambassadors, and rising consumer awareness related to the harmful effects of synthetic color cosmetic products, are the driving factors for the sales of color cosmetic products,” says a lead analyst at Fact.MR.
Increased Demand for Organic Color
There is a large consumer base with high income and preference for quality color cosmetic products such as organic color cosmetics. Consumers want to know how their beauty products are produced and from where they are sourced. Moreover, consumers are very concerned whether products are compatible with their skin or not.
Organic color cosmetic products are derived from organically produced or grown plants or animals and are not genetically modified organisms or GMOs. These factors are increasing consumer affection towards organic products across regions.
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