Cosmetics Market

Market Definition

The market comprises a diverse range of beauty & personal care products aimed at enhancing appearance, improving skin & hair health, and maintaining hygiene.

The market includes skincare products such as moisturizers, serums, and sunscreens; haircare items including shampoos, conditioners, and styling products; and color cosmetics such as foundations, lipsticks, and mascaras. The market is driven by evolving beauty trends, technological advancements, rising disposable incomes, and an increasing preference for organic and cruelty-free products.

Cosmetics Market Overview

The global cosmetics market size was valued at USD 295.36 billion in 2023 and is projected to grow from USD 311.62 billion in 2024 to USD 473.67 billion by 2031, exhibiting a CAGR of 6.16% during the forecast period.

The market is growing rapidly, driven by rising disposable incomes, increased consumer focus on personal grooming, and the expansion of e-commerce. Premium cosmetics are in high demand, due to the consumer preference for high-quality ingredients and luxury products.

Sustainable beauty trends, such as waterless cosmetics, are gaining traction as consumers seek eco-friendly alternatives. The market growth is also influenced by innovations in skincare, clean beauty, and personalized products, catering to evolving consumer preferences.

Major companies operating in the cosmetics industry are L’Oréal, Unilever, Estée Lauder Companies Inc., Procter & Gamble, CHANEL , Shiseido Company, Limited, Kao Corporation, Beiersdorf Global, LVMH, Natura&Co, Coty Inc., Revlon, Avon, Yves Rocher USA, and The Body Shop International Limited.

• In September 2024, Beiersdorf announced the launch of its first Epigenetic Serum under the Eucerin brand, marking a significant advancement in skin rejuvenation. This innovative serum features the active ingredient Epicelline, which reactivates youth genes to reverse signs of aging. The product is based on Beiersdorf's patented skin-specific age clock technology, an algorithm that measures the biological age of skin by analyzing epigenetic patterns.

The global market is anticipated to register heightened competition as leading companies invest in Research and Development (R&D), strategic acquisitions, and digital transformation to strengthen consumer engagement.

Additionally, emerging brands are gaining market traction by targeting niche segments, including vegan, cruelty-free, and gender-neutral beauty products. Companies that emphasize innovation, sustainability, and personalized experiences will be well-positioned to capitalize on growth opportunities in the market as consumer preferences evolve.

Key Highlights

1. The cosmetics industry size was valued at USD 295.36 billion in 2023.
2. The market is projected to grow at a CAGR of 6.16% from 2024 to 2031.
3. Asia Pacific held a market share of 36.52% in 2023, with a valuation of USD 107.87 billion.
4. The skincare segment garnered USD 117.14 billion in revenue in 2023.
5. The specialty segment is expected to reach USD 186.15 billion by 2031.
6. The market in Asia Pacific is anticipated to grow at a CAGR of 7.44% during the forecast period.

Market Driver

“Growing consumer preference for organic and sustainable products”

Consumers are increasingly shifting toward natural, vegan, cruelty-free, and eco-friendly beauty products, due to the growing awareness of health, environmental impact, and ethical considerations.

In response, brands are developing clean beauty formulations, utilizing biodegradable or recyclable packaging, and ensuring ethical sourcing of ingredients. This trend is particularly prevalent among younger consumers, who prioritize transparency and sustainability in their purchasing decisions.

Consequently, companies that focus on green beauty innovations and sustainability initiatives are gaining a competitive advantage in the cosmetics market.

• In June 2023,Biossance introduced an enhanced formulation of its Squalane + Probiotic Gel Moisturizer, designed to provide lasting hydration while addressing excess oil, redness, and congestion. This updated formula features encapsulated live probiotics to balance the skin's microbiome; sustainably sourced bisabolol to soothe irritation and reduce redness; and sugar-derived squalane for weightless moisture.

Brands that adopt eco-conscious practices are gaining consumer trust and long-term loyalty as sustainability becomes a key priority in the beauty industry. This shift not only benefits the environment but also drives innovation, pushing companies to develop greener alternatives without compromising product quality.

Market Challenge

“Consumer Skepticism & Misinformation”

Consumer skepticism in the cosmetics industry has increased, due to misleading marketing claims, misinformation on social media, and concerns regarding ingredient safety.

Many brands use terms such as “clean,” “natural,” or “chemical-free” without standardized definitions, creating ambiguity and confusion among consumers. Additionally, viral beauty trends and influencer endorsements often propagate exaggerated or false claims about product efficacy, leading to increased consumer caution.

Brands must enhance transparency by clearly disclosing ingredient lists, sourcing details, and the scientific foundation of their formulations to address consumer skepticism. Science-backed claims, supported by clinical testing and dermatological approvals, establish credibility and differentiate products from misleading marketing.

Precise labeling, avoiding unregulated terms like “chemical-free,” and obtaining recognized certifications such as EWG Verified or Leaping Bunny further reinforce consumer trust.

Additionally, investing in educational content, such as dermatologist-backed research and ingredient glossaries, empowers consumers to make informed purchasing decisions and mitigates misinformation within the cosmetics market.

Market Trend

“Rise of AI-driven Personalized Beauty”

Personalized beauty is transforming the cosmetics market, driven by advancements in AI, data analytics, and DNA-based skincare. Consumers increasingly seek customized formulations tailored to their unique skin type, tone, and concerns.

Brands such as Function of Beauty and Proven Skincare leverage AI-powered skin analysis to develop individualized products, enhancing consumer satisfaction and loyalty. As technology continues to evolve, the demand for hyper-personalized beauty solutions is expected to expand, transforming product development and marketing strategies within the industry.

• In January 2023, Perfect Corp introduced an AI-powered skincare quiz that delivers personalized skincare analysis within two seconds, validated by dermatologists. Using advanced AI and deep learning, the tool evaluates skin conditions such as wrinkles, spots, and hydration levels, providing tailored skincare recommendations. This innovation enhances consumer engagement and helps brands offer customized skincare solutions.

Brands that integrate AI-driven solutions will gain a competitive edge as personalization continues to shape the cosmetics industry. This shift not only enhances consumer trust but also drives innovation, making tailored skincare more accessible and effective. Moving forward, advancements in technology and data analytics will further refine customization, offering even more precise and adaptive beauty solutions.

Cosmetics Market Report Snapshot

Segmentation	Details
By Product Type	Skincare, Hair Care, Makeup and Color Cosmetics, others
By Distribution Channel	Department Stores, Specialty Stores, Online Retailers, Wholesalers & Distributors, Others
By End-User	Women, Men
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia Pacific
	Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Product Type (Skincare, Hair Care, Makeup and Color Cosmetics, others): The skincare segment earned USD 117.14 billion in 2023, due to the increasing consumer demand for anti-aging products, natural ingredients, and personalized skincare solutions.
• By Distribution Channel (Department Stores, Specialty Stores, Online Retailers, Wholesalers & Distributors, Others): The specialty segment held 37.65% share of the market in 2023, driven by consumer preference for exclusive products, personalized shopping experiences, and expert consultations.
• By End User (Women, Men): The women segment earned USD 173.64 billion in 2023, due to high demand for skincare, makeup, and personal care products, along with increasing beauty consciousness and product innovations.

Cosmetics Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

Asia Pacific accounted for a significant market share of around 36.52% in 2023, valued at USD 107.87 billion. The cosmetics market is driven by several factors, including rising disposable incomes, an increasing emphasis on beauty, and a robust presence of both local and international brands.

Notably, countries such as China, Japan, South Korea, and India play significant roles in this expansion. South Korea is particularly recognized for its innovations in skincare and the emergence of K-beauty trends, while China leads in overall sales due to its substantial consumer base.

Furthermore, the surge in e-commerce and the growing demand for organic & natural beauty products have contributed significantly to the market's development.

• In January 2025,Shiseido announced the development of the "4MSK/Fluid Penetration Technology," which enhances the skin's absorption of its proprietary brightening ingredient, 4MSK. This innovation involves combining 4MSK with trimethylglycine to maintain the ingredient in a fluid state, thereby increasing its penetration into the skin and enhancing its brightening effects.  

The cosmetics industry in Europe is poised to grow at a CAGR of 6.93% through the projection period, driven by the increasing demand for premium skincare, organic beauty products, and personalized cosmetics.

Leading markets such as France, Germany, and the UK contribute significantly to this growth, supported by the presence of established luxury brands, including L’Oréal, Estée Lauder, and Chanel.

Furthermore, the market is influenced by the rising adoption of clean beauty trends, stringent EU regulations on cosmetic ingredients, and advancements in biotechnology-based skincare formulations. The expansion of e-commerce platforms and the increasing adoption of direct-to-consumer (DTC) business models further support the market growth.

• On April 2024, Beiersdorf and Rubedo Life Science announced a multi-year strategic partnership to develop a breakthrough anti-aging solution for the global face care market. This collaboration combines Beiersdorf's expertise in skin care innovation with Rubedo's research in targeting cellular senescence. As part of the agreement, Beiersdorf also invested in Rubedo's recent Series A financing round through its Oscar & Paul Corporate Venture Capital Fund.

Regulatory Framework

• In India, the Drugs and Cosmetics Act, 1940, and Rules, 1945, regulate the safety, quality, and labeling of drugs and cosmetics in India. Overseen by CDSCO, it mandates licensing, prohibits adulteration, and ensures compliance with manufacturing standards. The law aims to protect consumers by preventing misleading claims and ensuring product efficacy.
• In Europe, the EU Regulation (EC) No 1223/2009 ensures cosmetic product safety, transparency, and compliance within the EU. It mandates safety assessments, responsible persons, banned hazardous substances, product documentation, and clear labeling. The regulation also enforces an animal testing ban, protecting consumers while ensuring high standards in the market.
• In the U.S., the federal food, drug, and cosmetic act, enacted in 1938, grants the U.S. Food and Drug Administration (FDA) authority to regulate the safety, labeling, and marketing of food, drugs, cosmetics, and medical devices in the U.S. It establishes manufacturing standards, prohibits adulteration/misbranding, and ensures public health protection through strict compliance requirements.
• The ASEAN Cosmetic Directive (ACD) is a regulatory framework established by ASEAN member states to standardize cosmetic regulations across the region. It ensures consumer safety, product quality, and seamless trade by aligning with international standards. The ACD mandates product notification, Good Manufacturing Practices (GMP) compliance, banned ingredient lists, labeling requirements, and post-market surveillance, ensuring that cosmetics meet strict safety and transparency guidelines.

Competitive Landscape

Brands must focus on innovation, sustainability, and consumer engagement to gain a competitive edge in the cosmetics market. This includes leveraging advanced formulations, AI-driven personalization, eco-friendly packaging, and ethical sourcing while maintaining regulatory compliance, transparent marketing, and a strong digital presence to build trust and ensure long-term success in a highly competitive industry.

• For instance, in June 2024,L’Oréal introduced Beauty Tech-powered innovations to enhance sustainability and personalization. The company focuses on AI-driven diagnostics, eco-friendly packaging, and water-efficient formulations to reduce environmental impact. These advancements align with L’Oréal’s commitment to sustainable beauty, reinforcing its leadership in innovation and responsible product development.

List of Key Companies in Cosmetics Market:

• L’Oréal
• Unilever
• Estée Lauder Companies Inc.
• Procter & Gamble
• CHANEL
• Shiseido Company, Limited
• Kao Corporation
• Beiersdorf Global
• LVMH
• Natura&Co
• Coty Inc.
• Revlon
• Avon
• Yves Rocher USA
• The Body Shop International Limited

Recent Developments

• In February 2025,L’Oréal Groupe announced a long-term, exclusive beauty partnership with Jacquemus, further solidified by a minority investment supporting the brand's independent development. Jacquemus has reimagined high fashion with ingenuity and imagination. This partnership aims to expand Jacquemus into the beauty sector, leveraging L’Oréal’s expertise in product innovation and global market reach.
• In January 2025, The Estée Lauder Companies announced a collaboration with the Langer and Jaklenec Labs at the Massachusetts Institute of Technology (MIT). This partnership focuses on advancing research in biotechnology and materials science, aiming to develop innovative solutions for the beauty industry.The collaboration seeks to explore cutting-edge technologies that enhance product efficacy, sustainability, and consumer experience in the cosmetics market.
• In August, 2024, L’Oréal Groupe announced the acquisition of a 10% stake in Galderma, a leading dermatology company. This strategic investment marks L’Oréal’s return to the esthetic dermatology market, strengthening its presence in skincare and medical beauty while expanding its portfolio in advanced dermatological solutions.
• In June 2023, BOLD, L’Oréal’s corporate venture capital fund, announced a minority investment in DebutBiotechnology, Inc, a U.S.-based biotechnology company. This strategic move aims to rapidly scale Debut's manufacturing platform to meet the growing demand for innovative ingredients in cosmetics, skincare, and packaging. The partnership underscores L’Oréal's commitment to integrating advanced biotechnology into its product development processes.
• In February 2023, Shiseido announced the launch of its global makeup brand, NARS Cosmetics, in India through a strategic distribution partnership with Global SS Beauty Brands Limited, a subsidiary of Shoppers Stop Limited. This expansion aims to strengthen Shiseido’s presence in the Indian market and meet the evolving beauty preferences of Indian consumers.