12.06.22
The color cosmetics industry is expected to expand at a CAGR of 5%, according to a new report by Future Market Insights, Inc.
By 2031, demand for natural and organic color cosmetics and facial makeup products will continue to rise, resulting in color cosmetic sales that will surpass $50 billion by that year.
Sales of color cosmetics have exploded thanks to the expansion of distribution channels and the increasing penetration of social media platforms. Additionally, it is anticipated that the growing demand for cruelty-free cosmetics will drive sales of vegan color cosmetics throughout the course of the projection period.
AI, Environmentally-Friendly Cosmetics Drive Demand
The market for color cosmetics will benefit from the rising demand for environmentally-friendly cosmetics and the incorporation of cutting-edge technology like artificial intelligence. Leading color cosmetic companies like L’Oréal and others are incorporating AI to improve the visualization and comparison of thousands of cosmetic color options.
Besides this, key players are investing extensively in research activities to include organic and natural color cosmetics such as face and eye makeup products in their portfolio. This is expected to bode well for the market. Per Future Market Insights, facial makeup segment is expected to remain dominant in the global color cosmetic market during the forecast period.
Key Takeaways
• Based on product type, natural and organic color cosmetic segment will account for nearly 49.9% of market share over the next five years;
• In terms of product category, sales in the eye makeup segment will total US$ 15 Bn by 2026;
• In terms of price, premium color cosmetic segment is expected to account for over 60% of global market share;
• China and South Korea are expected to spearhead the growth across East Asia color cosmetic market;
• Supermarkets are expected to remain the preferred distribution channel in the color cosmetics market, however, sales via e-commerce are expected to pick up at a higher pace;
• The US is expected to dominate the North America color cosmetic market, with sales of color cosmetics across North America surging at 2% CAGR through the assessment period.
Competitive Landscape
Top players are expected to account for over 30%-35% of global market share in 2021. The presence of numerous leading players in the market have led to intense competition. In order to gain competitive edge, key players are collaborating with social media influencers and e-commerce giants. Also, some of the manufacturers are introducing new products under the clean-label category in order to capitalize on surging demand for organic and natural color cosmetic products. They are also investing in research and development activities to develop products with extended shelf-life.
