Online Cosmetics Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)
The Online Cosmetics Market size is estimated at USD 13.79 billion in 2023, and is expected to reach USD 20.71 billion by 2028, growing at a CAGR of 8.47% during the forecast period (2023-2028).
New York, Aug. 09, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Online Cosmetics Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" - https://www.reportlinker.com/p06484477/?utm_source=GNW
Key Highlights
The strong Internet penetration has significantly contributed to driving consumer awareness about cosmetics. The rising number of active social media users around the globe on various social media platforms, including Instagram, Facebook, Snapchat, and Twitter, is supporting the demand for cosmetics via online mediums. Brands across the cosmetic industry are tapping into social media potential.
Social media networks are transforming the digital marketing landscape and driving user engagement globally. Additionally, the trend of social media influencers showcasing their beauty regimens has increased over the past few years, and both local and international beauty companies have been turning to influencers to increase their brand awareness and reach potential consumers. This is especially visible with major color cosmetic brands operating globally, with the highest growth attributed to the trend of publishing makeup tutorials on social media.
Rising consumer awareness about the safety of vegan and organic cosmetics encourages manufacturers to launch new offerings and expand their footprint in the emerging segment. For instance, in June 2021, SO’BiO étic, a socially conscious French cosmetics firm, launched an organic beauty line in the United States to provide environmentally friendly and healthful cosmetics. The company claims its products are free from glycol, parabens, silicones, nanoparticles, PEG, and chemical filters.
Moreover, the online sales of natural and organic cosmetics products are booming around the globe, owing to the wide availability of products on the e-commerce platform, which offers a wide range of products and choices to consumers. Thus, the manufacturers are launching new online stores to meet consumer demand.
For instance, in February 2022, NEXT, a British multinational retailer, built a partnership with a UK-based skincare manufacturer and launched a new beauty brand, ‘Woah,’ that consists of 16 vegan skincare products. Available online, the new beauty brand is designed to offer products including a melting cleansing balm, vitamin C serum, brightening toner, and hydration mask.
Online Cosmetics Market Trends
Growing Inclination Towards Natural/Organic Products
Although synthetic cosmetics products have a prominent share in the market, in recent years, consumers are shifting towards plant-based, cruelty-free, and natural cosmetics products due to increased health awareness. Growing concerns regarding the side effects of chemicals in conventional cosmetic products, which lead to ailments such as skin irritation, allergies, and dullness, have fueled the demand for natural and organic cosmetic products.
Prolonged use of synthetic cosmetics may cause various health issues, such as irritation, hormonal imbalance, and toxicity. However, cosmetic products made of organic ingredients, such as plant extracts and natural oils, do not harm the skin. Natural cosmetic products that are free from chemicals and transparent about the sourcing of the ingredients have been preferred by consumers, which is likely to drive the demand for natural cosmetic products.
To capitalize on this growing interest, the manufacturers in the market have been revamping and expanding their product offerings by introducing a wide range of organic skincare products containing plant-based, clean-label ingredients, with claims such as organic, vegan, natural, chemical-free, and cruelty-free, among others.
For instance, in April 2022, Shiseido revealed a new beauty brand Ulé, which sources pesticide-free botanicals from local vertical farms. The Shiseido-incubated French startup works with Tower Farm to procure exotic ingredients grown near Paris. Instead of shipping dried plant substances purchased in bulk, Ulé sources fresh botanicals from a vertical farm near Paris, where they are ’hand-harvested at their optimal potency.
Asia-Pacific is the Fastest Growing Market
Asia-Pacific region is experiencing significant demand for online cosmetics products due to the increased number of smartphone users accompanied by strong penetration of internet services. Emerging economies such as China and India exhibit the highest number of online shoppers, owing to the ongoing developments in the e-commerce ecosystem of respective countries.
For instance, according to recent research by the International Trade Administration (ITA) and the US Department of Commerce (USDoC), live streaming has significantly increased in popularity. It now accounts for around 10% of all Chinese cosmetic e-commerce as of 2021. Additionally, the improved standard of living owing to urbanization, and the increasing number of working women, push the demand for online cosmetic products.
The middle-class population will likely purchase beauty products as they evolve rapidly based on the significant changes in their preferences. Thus, the rising middle-class population in the region is responsible for the burgeoning demand for online cosmetic products.
Beauty products made from cruelty-free and vegan ingredients have recorded a high adoption rate in recent years and are becoming increasingly popular in Asian countries. Furthermore, several online players specialize in organic cosmetics, allowing a more comprehensive selection of both private label and international brands with one click from the comfort of the consumer’s home.
For instance, some of India’s well-accepted online cosmetics players include Vanity Wagon, The Glocal Store, Just Herbs, Nykaa, and healthandglow.com, among others.
Online Cosmetics Industry Overview
The online cosmetics market is highly competitive, with a strong presence of regional and global players. Demand is mostly driven by high consumer awareness of cosmetic brands and affinity for online purchases. In the market studied, some prominent players are launching/acquiring portfolios that claim to be natural, organic, and sustainable to have higher penetration across online channels.? Likewise, the key brands are partnering with e-commerce platforms and social media influencers to expand their reach and maintain their position in the market.
For instance, in July 2022, Homegrown beauty brand Nutriglow entered into a strategic partnership with e-commerce major Flipkart to sell its skincare and cosmetic products exclusively on the platform. Some of the major players identified in the market include Loreal SA, The Estee Lauder Companies, LVHM Moet Hennessy Louis Vuitton, Coty Inc, Revlon Inc, and more.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06484477/?utm_source=GNW
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