Report

The Global Skin Care Market has experienced significant growth in recent years and is expected to continue expanding in the future. This growth can be attributed to various factors, including increasing consumer awareness of skin health, rise of e-commerce and digital influence, growing demand from the aging population coupled with changing lifestyles and the expansion of the skincare market in emerging economies. The market was estimated at USD 144.21 billion in 2022 and is expected to reach USD 218.49 billion by 2030, growing at a CAGR of 5.33% for the forecast period between 2023 and 2030. There is a growing preference for natural and organic skin care products due to increasing concerns about chemicals and synthetic ingredients. Consumers are seeking products with natural and sustainable ingredients, driving the demand for organic and clean beauty products.
Moreover, millennials and GenZ tend to spend more on beauty and skincare products with cleansing, toning, and moisturizing (CTM) skincare routine being a basic practice. The process is widely followed by several skin conscious men and women across the regions which helps in eliminating dirt and contamination, fixing open skin pores, and eventually leaving the skin moist and hydrated. Large working population across the globe requires a basic self-care when it comes to their grooming. The routine being followed by most of the millennials has been driving the market demand for moisturizers, toners and cleansers which eventually leads to an increase in facial care products.
The industry is witnessing advancements in technology, such as the integration of artificial intelligence and personalized skincare solutions. Customized formulations and personalized recommendations based on individual skin types and concerns are gaining popularity. For instance, the Clarins Group unveiled Clarins Precious in March 2023, a breakthrough that expands the Clarins brand into a new segment of the beauty market: the premium category. The new line is intended to be a vision of luxury, putting responsible beauty front and centre with its formula inspired by plants and performance driven by science. La Lotion, La Creme Yeux Eye Cream, La Creme Moisturiser, and L'Outil Facial Massage Tool are all parts of precious range.
Growing Skin Concerns Resulting in Demand for Anti-ageing Products
Growing skin concerns are a significant driver for the global skin care market. With the global population aging, there is an increased demand for anti-aging skin care products. Concerns such as wrinkles, fine lines, sagging skin, and age spots drive the market for products that target these specific signs of aging. Environmental factors like pollution, UV radiation, and harsh weather conditions can have adverse effects on the skin. Acne and blemishes affect a significant portion of the population, cutting across age groups. Many individuals have sensitive or reactive skin, which can be prone to redness, irritation, and allergic reactions. Dry and dehydrated skin is a common concern, especially in certain climates and during certain seasons.
The growing awareness of these skin concerns and their impact on overall well-being drive the demand for skincare products that address specific skin needs. Brands that develop innovative solutions and effective treatments for these concerns are likely to thrive in the global skin care market. For instance, Kao Corporation under its brand name Kanebo, introduced the Smile Performer Sheet Mask in September 2021. The sheet mask makes the claim that it will give the skin more radiance and bounce, giving the appearance of a smile.
Online Channels Gaining High Momentum
Social media platforms and digital connectivity have played a crucial role in accelerating the spread of latest trends and influences in the skincare industry. Globalization and regional influences have brought about a greater variety of skincare products, ingredients, and beauty trends. The exchange of knowledge, practices, and preferences across cultures has enriched the global skincare market, providing consumers with more options and promoting diversity and inclusivity in the industry.
In line with this, sale of beauty products including skin care are largely being sold through online channels. Online retail channels, including e-commerce platforms and brand websites, have become vital for the skin care industry. The ease of product accessibility, wider product options, and online promotions have significantly boosted online sales. Social media platforms also play a crucial role in influencing consumer preferences and product discovery.
Online purchasing trend is rapidly growing in Asia-Pacific where more than 40% consumers in China and 35% in India prefers to buy beauty products online.
Globalization and Cross-Cultural Influences
Globalization has facilitated the exchange of beauty practices and skincare rituals across different cultures. Consumers are increasingly open to trying skincare products and routines from other regions, leading to a greater diversity of offerings in the market. For example, Korean beauty brands (K-beauty) and Japanese beauty brands (J-beauty) have gained popularity worldwide, influencing the development of new product formulations and skincare trends. Cross-cultural influences have played a role in shaping beauty standards and trends. As different cultures celebrate unique beauty ideals, there is a shift towards inclusivity and diversity in the perception of beauty. This has led to a broader range of products catering to diverse skin tones, textures, and needs.
For instance, in November 2022, Loreal Group announced to launch a new K-beauty brand named 'Shihyo' for the North Asian shoppers. This launch is in a joint venture named Loshian between Loreal Group and Hotel Shilla. The group targets to globalize the K-beauty, C-beauty and J-beauty trends by bringing in new products for the beauty product consumers.
Impact of COVID-19
The COVID-19 pandemic has had both positive and negative impacts on the global skin care market. with people spending more time at home and facing heightened stress levels, there has been a greater emphasis on self-care and personal well-being. As a result, many individuals have turned to skin care routines as a way to relax, pamper themselves, and maintain a sense of normalcy. The economic repercussions of the pandemic, including job losses and reduced disposable incomes, had an impact on consumer spending patterns. Some consumers became more cautious with their spending, particularly on non-essential items like premium or luxury skin care products. However, others continued to prioritize skin care as part of their self-care routine, leading to a mixed impact on overall market performance.
The impact of COVID-19 on the skin care market varied across regions and product categories. As the situation evolves and economies recover, market dynamics are likely to continue shifting. Monitoring consumer trends and adapting to changing demands will be crucial for businesses operating in the skin care industry.
Impact of Russia-Ukraine war
While the international cosmetics industry unites to support those most affected by the crisis, the devastating effects of Russia's invasion of Ukraine have not spared the country's cosmetics industry players. Many Western companies, brands, and federations had started to leave Russia in the wake of the ongoing crisis, severing ties with the nation. Numerous top retailers and brands in the personal care and beauty industries had also severed their business ties with Russia. The Estee Lauder Companies shut down all operations and stores earlier in March 2022. LVMH also announced that all Russian stores would be temporarily closed. Chanel closed all boutiques and suspended online sales. L'Oreal said it would temporarily halt investments. Sephora stopped all brick-and-mortar and online business operations in the country .
Key Players Landscape and Outlook
The global skin care market is highly competitive, with several key players driving the industry forward. To increase their market dominance, the major players are engaging in mergers and acquisitions. Market players are expected to continue investing in research and development, product innovation, and marketing strategies to stay competitive in this dynamic industry.
The focus on sustainability, natural ingredients, personalized solutions, and technology integration is also likely to shape the future of the skin care market. For instance, Tula, a high-end skincare company, was purchased by The Procter & Gamble Company in January 2022. Tula is a brand of natural skincare products that uses superfoods and probiotic extracts. P&G Beauty will help the Tula team to expand and innovate as part of the acquisition agreement, which will help the brand grow.
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