The global cosmetics and skincare market, which was valued at $129.23 billion in 2020, is set to increase by $38 billion between 2020-2024, accelerating at a compound annual growth rate (CAGR) of 5%, researchers say.
The Covid-19 pandemic has had a lasting devastating impact on the beauty and cosmetics industry. Store closures due to strict lockdown measures globally have resulted in disastrous consequences, with sales decreasing by 60% - 70% from March to April 2020 on a global scale.
The flourishing e-commerce sector, however, is anticipated to once again boost market growth to pre-Covid levels. The pandemic shifted focus slightly away from cosmetics, with customers now looking to premium brands with a greater interest in skincare. This effect has helped premium skincare companies expand their market share and innovate, build digital appeal and prestige, and improve their credibility.
Dr Sabet Salahia CosmeSurge Jumeirah, says: “Companies have responded positively to the crisis by increasing production capacities and shifting focus to cater to immediate needs by offering hand sanitisers and cleaning agents. Research is showing that consumers now intend to spend more on skincare products, in lieu of traditional beauty and grooming products. We’re also now seeing a consumer base that is more knowledgeable than ever about skincare formulations, that is aware of ingredients and demands social and economic responsibility from the brands they purchase from.”
“Currently, there is an escalating demand for face creams, serums, sunscreens, and body lotions across the globe, as consumers learned to prioritise skincare over the various lockdowns when people were stuck at home. There are also many global ‘trends’ surrounding skincare, the most recent of which was the Korean skincare craze that pushed a lot of pre-pandemic sales. This increased demand for a flawless complexion is expected to have a positive impact on the market growth over the forecast period,” he added.
Face creams, moisturisers, serums, and sheet masks are increasingly gaining popularity as both men and women continue to place a high premium on physical appearance and looking their best.
Ease of access to knowledge online through Youtube, skincare blogs, and forums has also created awareness about easy-to-treat skin disorders, making it easier for customers to curate their own skincare routines.
Eco-friendly consumers, such as those opting for animal cruelty-free, vegan, and plant-based skin care products make up a significant chunk of the skincare market.
The online distribution model has significantly re-shaped shopping habits of consumers, as this channel offers benefits such as doorstep delivery, easy payment methods, heavy discounts, and the availability of a wide range of products from anywhere in the world, on a single platform.
Notable brands and distributors in the market are strategically launching e-commerce websites in large lucrative markets owing to rising internet penetration and a now largely digitalised mobile shopping consumer base. Skincare aficionados can expect to see more great skincare in the forecast period to come.-- TradeArabia News Service