Skincare, Online Shopping To Drive the Prestige Cosmetics Market

The global prestige cosmetics market is expected to grow at a compound annual growth rate (CAGR) of 7% by 2029, according to a new report from FactMR.

Despite issues in global trade and worldwide economic uncertainties, the overall trajectory for the premium cosmetics market is largely positive, said the report. In the past few years, premium cosmetics brands have made substantial shifts in business strategy, which has been influenced by a number of factors including higher disposable incomes for the middle class, demand for high efficacy products, finances for women and consciousness about aesthetics among men.
 
Furthermore, factors such as greater brand recognition, digitalization and the rising awareness among consumers about premium ingredients in cosmetics account for a positive shift towards premium branded cosmetics, said FactMR. The surge in prestige cosmetics imports are driven by factors such as brand reputation, product pricing and safety standards, which will drive market growth in the near future.
 

Online Shopping, Skincare Lead the Way in Prestige Beauty

Skincare products currently hold the largest market share of 41%, and are expected to continue their dominance over the forecast period, owing to higher levels of consumption in the forecast period. Preference is high for products such as face creams, body lotions and sunscreens. 
 
Despite a larger market share being encompassed by skincare products, makeup and fragrance products are anticipated to grow at a faster CAGR in this period.
 
The online channel of distribution is set to register a higher CAGR of 8% during the forecast period. This growth can be attributed to rising use of the internet, ease of online product comparisons, and easy availability of a wider range of products prior to purchase. On the other hand, offline distribution channels will hold a larger market share of 90%, which will continue through the foreseeable future.
 

Global Beauty Markets to Watch in 2022

East Asia, South Asia and Oceania regions will cumulatively account for the largest and fastest growing regions for premium cosmetics products with CAGRs of 7% and 8%. Such prolific growth will arise from developing economies which are witnessing higher demand for premium cosmetics, particularly from Japan and China, said FactMR.
 
Easy availability of sweat and waterproof products—particularly in the makeup and fragrance segments‑are gaining traction in regions with higher temperatures and humidity, thus bolstering the demand for premium cosmetics products. Cumulatively these sectors account for more than 37% of the market share and are also the fastest growing segments in the industry.