by Premium Cosmetics are cosmetic products that contain high-quality ingredients, innovative formulations and latest technologies that offer superior results, long-lasting effects and minimal side effects to the consumers. Premium Cosmetics consist of skincare and haircare products that hydrate, nourish and rejuvenate skin along with makeup products like foundations, concealers, contouring products, lipsticks, eyeshadows, etc. that enhance natural beauty.
The global Premium Cosmetics Market is estimated to be valued at US$ 123.39 Bn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing popularity of skincare and makeup trends among millennials and Gen Z consumers is a key trend propelling the growth of the premium cosmetics market. These consumers are more inclined towards natural and organic skincare and makeup products with functional ingredients that offer multiple skin and makeup benefits. They consider cosmetics as an investment and are willing to pay premium prices for innovative formulations, sustainably sourced ingredients and brands with strong ethical values. This has encouraged premium cosmetic brands to launch products catering to the evolving needs and preferences of younger consumers thereby driving the market growth over the forecast period.
SWOT Analysis
Strength: Premium cosmetics have high quality ingredients and manufacturing which enhances the sensory experience of using the products. They are positioned as luxury goods which boost the self-esteem and social status of customers.
Weakness: Premium cosmetics have very high prices which restrict the target audience to high income groups only. Frequent new product launches increase overhead costs for companies.
Opportunity: Emerging markets in Asia Pacific and Middle East regions provide scope for expansion. Innovations in ingredients, formulations and packaging attract new customers.
Threats: Economic slowdowns and recessions reduce discretionary spending on luxury goods. Counterfeits erode brand exclusivity and damage company reputation.
Key Takeaways
The global premium cosmetics market is expected to witness high growth over the forecast period of 2023 to 2030. The global Premium Cosmetics Market is estimated to be valued at US$ 123.39 Bn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030.
Regional analysis comprises- The Asia Pacific region dominates the market currently and is expected to grow the fastest due to rising incomes, expanding middle class, and increasing focus of global brands on countries like China, India and South Korea for business expansion.
Key players operating in the premium cosmetics market are L’Oréal, Estée Lauder Companies, Procter & Gamble, Shiseido, Coty, Chanel, LVMH Moët Hennessy – Louis Vuitton, Kering, Unilever, Beiersdorf. L’Oréal captured the largest market share in 2023 owing to its leading brands and expanding retail presence globally. Estée Lauder is diversifying its brand portfolio through acquisitions and leveraging online retail channels successfully.
