Cosmeceuticals Market - Global Outlook & Forecast 2023-2028

INDUSTRY OUTLOOK

The global cosmeceuticals market size was valued at USD 72.81 billion in 2022 and is expected to reach USD 120.31 billion by 2028, growing at a CAGR of 8.73%. Cosmeceuticals are skin, hair, and personal care products that claim to have both cosmetic and medicinal impacts. Cosmeceutical products contain active ingredients such as hyaluronic acid, Vitamin C, etc. Cosmeceuticals are used for various purposes, such as reducing skin aging signs, preventing acne, reducing scar appearance, and keeping the skin moist. The rising spending and increasing awareness about skincare and hair care products fuel the global cosmeceuticals market growth. Furthermore, the U.S. has one of the highest per capita expenditures on cosmetic products and generates high revenue through cosmeceuticals. The demand for cosmeceuticals is increasing due to the increasing concern about aging skin in the U.S. Moreover, the high use of smartphones and social media positively influences the awareness and attraction towards cosmeceuticals.

The cosmeceuticals market is dynamic and competitive. Under the cosmeceutical industry, several leading, domestic, and emerging market players compete with new trends, strategies, and consumer behavior and approaches associated with cosmeceutical products. The shift towards natural ingredient-based products offers a new and developing market space. Small and mid-sized vendors are coming with natural ingredient-based cosmeceuticals, and leading companies are expanding their product portfolio in natural cosmeceutical product categories. Most companies have decided to increase their natural ingredient-based cosmeceutical product portfolio by 90% in the upcoming time based on changing consumer behavior.

On another side, technology advancements such as AR and VR to enhance customer management and deliver personalized experiences offer new consumer base and revenue growth opportunities. More than 50% of the world's population is familiar with social media applications, the internet, and smartphones. These factors constantly influence new fashion and beauty trends that drive huge cosmeceuticals market growth worldwide. Moreover, a huge population suffers from skin and hair issues. It is one of the leading factors accelerating the medical prescription for cosmeceuticals. Millions of people generally visit dermatologists or medical professionals for skin and hair care treatments, accelerating the demand for cosmeceuticals.

Some Trending Factors in the Cosmeceuticals Market

• Innovation of natural ingredients.
• Significant penetration of internet, smartphone, and social media applications that attract potential consumer population.
• Constantly changing consumer behavior.
• Penetration of specialty active ingredients.
• Premium cosmeceuticals product entries.
• Plastic-free packaging.
• In skin care application categories, anti-aging products categories will be the next profit-delivering factor.
• The U.S., China, Japan, and Germany are current leading markets. On another side, India, Brazil, the U.K., France, and South Korea are rapidly growing market destinations.

Furthermore, the market classification based on application, consumers, and sale of cosmeceuticals offers huge market growth opportunities.

SEGMENTATION INSIGHTS

INSIGHTS BY APPLICATION
The global cosmeceuticals market by application is segmented into skin care, hair care, injectables, and others. The skin care segment accounted for the highest market in 2022. The haircare segment is a rapidly growing application segment across all regions and is expected to achieve huge market growth. The skin care segment growth is highly driven by the women population, which spends highly on skincare solutions. Compared to men, the women population followed a daily skin routine. In developed markets, women use more than five cosmetic and personal care solutions. In addition, the women are high spend on skincare cosmeceuticals. Sunscreen is one of the cosmeceutical products used by almost 50% of women worldwide. Currently, the majority of potential consumers are shifting towards natural ingredient-based products; vendors have the opportunity to offer natural cosmeceutical products.

INSIGHTS BY DISTRIBUTION CHANNELS
The drug store/ pharmacies distribution channel segment is the leading segment in the global cosmeceuticals market, accounting for over 40% in 2022. Cosmeceuticals products are developed with biologically active ingredients that deliver medicinal effects for hair, skin, and other cosmetic issues. Cosmeceuticals contain the same ingredients as drugstores. This major factor accelerates the demand for cosmeceuticals from pharmacies and other drug stores. The increasing aging population and a significant patient population visit dermatologists where the prescriptions generated for cosmeceuticals accelerate the segmental growth. On another side, the e-commerce distribution channel is a rapidly growing segment during the forecast period.

INSIGHTS BY AGE GROUP
The global cosmeceuticals market by age group is segmented into middle-aged, pediatric & young adults and older adults. The middle-aged adults segment accounted for the highest share in the global industry. The middle-aged population worldwide suffers from skin and hair issues due to the higher burden of work, physical activities, higher time spent on digital screens, and reduced collagen production. These factors negatively impact skin and hair health, personal life, and confidence. This is one of the major concerns among people, resulting in increasing demand for cosmeceutical solutions. Moreover, the middle-aged population is highly conscious about skin and hair appearance and spends more on personal care solutions. It is one of the leading factors that accelerates the segmental growth.

GEOGRAPHICAL ANALYSIS

APAC is one of the leading geographies for the cosmeceuticals market, with beauty influencers, rising expenditure on personal care, social media, and fashion trends. In 2022, APAC accounted for over 41% market share in the global cosmeceuticals market and dominated the other regions during the forecast period. APAC is the most rapidly growing and opportunity-delivering market landscape for cosmeceuticals. The constantly evolving cosmetic and beauty trends and constant innovation and products launched by small and major industry players propel the high industry growth in the region. Skincare is the most demanding factor across the region. In addition, haircare is set to be a new trend in the regional industry. Furthermore, online haircare searches witness an increment in 2022. A survey by Covalo in 2022 reported that around 55% of professionals across the region searched for haircare applications and active ingredients for hair care, compared to 36% worldwide.

VENDOR LANDSCAPE

The global cosmeceuticals market is highly competitive due to the presence of domestic, national, regional, and global industry players. The cosmeceuticals industry is part of the cosmetic industry. Several cosmetic, personal care, and beauty product manufacturing companies are in the global market, challenging the growth of cosmeceuticals. Cosmetic and beauty products give instant results; on another side, cosmeceutical products take time to heal and result in delivery. L'Oréal Group is one of the leading players in the global cosmeceuticals market. The company increasing competitiveness across the industry by offering higher-quality products. Also, with the increasing competition across the industry, the company shifted towards using natural ingredients that reduced the side effects and delivered higher results.