Report

The Europe Beauty and Personal Care Products Market size is estimated at USD 131.66 billion in 2024, and is expected to reach USD 154.20 billion by 2029, growing at a CAGR of 3.21% during the forecast period (2024-2029).

Key Highlights
-Increased health awareness among consumers boosts the demand for natural personal care products. With the growing demand for organic ingredients, consumers are inclined toward organic personal care products, which is expected to drive market growth during the study period. Furthermore, the rising awareness about the harmful effects of chemicals and synthetic products is another factor augmenting the market's growth. Most consumers tend to buy products with natural or organic labeling, driving the market growth.
-Additionally, companies are reaching out to consumers through various distribution channels, such as online and other channels. For instance, in February 2022, United Kingdom-based online fashion retailer Boohoo Group Plc launched a vegan beauty range of more than 50 products. Boohoo Beauty's cosmetics line includes lip gloss, lipstick, highlighter sticks, blush, setting sprays, and cosmetic palettes.
-Consumer behavior towards maintaining a quality life makes Europe a potential market for innovations and launches in the beauty and personal care industry. Moreover, consumers in the region increasingly prefer items made with natural components. This change can be associated with consumers intentionally avoiding chemical-based products like sulfates and parabens, leading to hair problems, including frizz, flaky scalps, and split ends.
-For instance, in January 2021, the Estee Lauder Companies Inc. (Aveda), the plant-powered hair care brand, announced that all of its hair care, hair color, body care, makeup, and aroma products are 100% vegan in response to the growing demand for cruelty-free hair care products. Also, prominent cosmetics companies are developing products, including deodorants with zero artificial bactericides, to capture the growing demand for natural and organic products.
-Moreover, companies are focusing on offering these products fortified with vitamin E, aloe, chamomile, and other natural ingredients. The increasing demand for organic products through online stores for bio-cosmetic products is also expected to boost the growth of natural and organic beauty and personal care products


Europe Beauty and Personal Care Products Market Trends

Increasing Demand For Organic/Natural Beauty and Personal Care Products


- Beauty and cosmetic products are currently inundated with numerous harmful ingredients and toxic chemicals. Around 90% of the roughly 13,000 chemicals used in cosmetic products were not Food and Drug Administration (FDA)-approved in 2020.
- Moreover, several tests conducted by organizations and associations indicated that the presence of catastrophic heavy metals, such as lead, beryllium, thallium, and cadmium, are bragged as potential carcinogens and lead to serious health risks, including cancer, infertility, and Alzheimer's disease. Considering this factor, consumers are increasingly shifting to natural alternatives to avoid using conventional products on their bodies. This has suddenly raised the demand for organic personal and cosmetic products in the market.
- The region has witnessed an increasing demand for natural and organic products due to the rise in consumer awareness about the harmful effects of certain compounds, such as paraben and aluminum compounds, in skincare, haircare, and deodorants. A high percentage of European consumers choose one brand over others based on its natural formulation. This has increased the demand for safe, natural, and organic products in the last few years.
- The demand for natural ingredients has been quite evident in the market, leading to most companies launching natural-inspired products, such as vegan ingredients, plant-inspired, and premium botanical ingredients coupled with multi-functional properties. For instance, in October 2021, the Ayurvedic skincare and wellness brand Forest Essentials launched in the United Kingdom for the first time. Available on LookFantastic, an online British beauty boutique, the brand prides itself on creating ethical and sustainable traditional Indian skincare and wellness products.
- Consumers' growing awareness of health and hygiene has resulted in demand for natural and organic products in the region. Such factors have compelled manufacturers to improve their product offerings to meet changing consumer requirements. Companies are focusing on offering products that contain vitamins, aloe, chamomile, and other ingredients. Furthermore, the increasing popularity of organic concept stores specializing in organic cosmetics products among consumers is expected to further boost the demand and growth of organic and natural beauty and personal care products in Europe.


Germany Holds the Largest Share


- Germany is the largest cosmetic market in Europe, followed by France and the United Kingdom. The German cosmetics and toiletries market is mainly driven by women and younger consumers willing to spend more money on such offerings. Hair, skin, and face care products are the three categories with the highest turnover.
- Furthermore, the demand for child skin care products is expected to increase in Germany as consumers are taking extra care to protect the delicate skin of babies and children against extended exposure to sun rays. Among adults, the demand for skin care products depends heavily on the weather conditions. However, many consumers take a more holistic approach, paying more attention to ultraviolet levels and their possible impact on skin health and aging.
- Additionally, the players operating in the market are focusing on developing innovative lines or products to cater to the growing demand to achieve major market shares. For instance, in 2021, Beiersdorf personalized face care with the launch of its new brand, O.W.N (Only What's Needed), which uses ingredients that are specially formulated for individualized skin care needs. The launch focuses on personalized skin care innovations based on individual needs and scientific findings.
- Many prestigious brands in Germany have strengthened their position by acquiring smaller companies, thus driving the market. For instance, according to the Federal Statistical Office, the domestic and international revenue of the industry for the production of body care products and fragrances in Germany was EUR 3,580.1 (USD 4223 million) and EUR 2,560.08 million (USD 3020 million) in 2022.
- Moreover, companies are reaching out to consumers through various distribution channels, such as online channels, supermarkets/hypermarkets, convenience stores, and other distribution channels. Amazon is by far the biggest online store in Germany. Approximately 50% of the all-beauty brands in the country have online stores, and some also operate through Amazon stores.
- Online shopping is expanding beyond the desktop, as supermarket operators like Edeka and Rewe have rolled out app development for younger and busier consumers. Furthermore, the manufacturers are leveraging online platforms optimally by selling their products through their websites as well as by listing the products on popular e-retailing websites to improve their brand visibility and reachability of products.


Europe Beauty and Personal Care Products Industry Overview

Europe's beauty and personal care market is highly competitive, with a considerable number of regional and global players. The major players in Europe's beauty and personal care market include Loreal, Unilever, Procter & Gamble, Estee Lauder Companies Inc., and Johnson & Johnson Services Inc. Product launches with multifunctional properties under each segment are a major strategy the regional companies followed. Also, product innovation has been a prominent strategy among manufacturers where companies are mostly interested in delivering products that have a mixture of anti-aging and skin corrections. The global giants are expanding their distribution by launching their products on various online portals to increase their consumer base. The major players are acquiring small firms to expand their market.

Additional Benefits:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support