The Beauty Market Part 1: Development, Trends, and Forecasts
6 min read
6 min read
To be beautiful and natural is the birthright of every woman.
Elizabeth Arden[1]
The cosmetics industry continues to grow with the increasing launching of new products and innovative bio-based ingredients. According to Euromonitor, this is a global business whose value is currently $250 billion[2]. Those who want to succeed in this fast-moving market and who want to play a key role must consider the latest digital strategies and current market developments. In this article, we give you an overview of the current state and the advantages of e-commerce in the beauty industry. We also throw light on the various ideals of beauty that exist in different parts of the world and their influence on the cosmetics industry as well as the new trends in natural cosmetics.
The cosmetics market has proven to be very stable and resilient over the years. In adverse economic conditions, the cosmetics industry was one of the least affected sectors, recovering slightly from the 2009 recession, demonstrating its ability to grow steadily.
Over the last 20 years, the beauty market has grown at an average annual rate of 4.5% per year, with annual growth rates of around 3% to 5.5%[3]. According to IKB, the German beauty and personal care product show a similar trend, with a total volume of approximately 17.0 billion euros in 2018. By 2022, it is estimated that the average annual growth will be 2.5% to a total of 18.7 billion euros[4].
The cosmetics market is divided into the following main business areas: skin care, hair care, make-up, fragrances, and toiletries. Sometimes cosmetic dentistry is considered as a separate area in the cosmetics industry. The global beauty market can be further subdivided into two sub-segments according to specific criteria such as brand prestige, pricing, and distribution channels – premium products and mass-produced products.
The regions with the largest share of worldwide sales are North America, Latin America, Asia-Pacific, and Western Europe. Gyan Research and Analytics report that the Latin American market currently offers tremendous growth potential [5]. Cosmetic companies have shifted their focus in this region to the mass market, which is dominated by the hair care and fragrance business. The BRIC countries (Brazil, Russia, India, China) have played an important role in the cosmetics industry since the turn of the last century and the beauty markets there are also growing rapidly and experiencing robust growth. In Europe, Eastern Europe was the second strongest growth region from 2013 to 2018, with Russia accounting for the lion’s share [6]. As early as 2010, these countries accounted for 21% of the global cosmetics industry[7]. The largest international cosmetics manufacturers are focusing on expanding their presence in exactly these countries.
Fifteen countries bought well over two-thirds (70.7%) of all cosmetics and skincare products imported in 2018. The fastest growing markets for beauty and skin care products since 2014 are China (up 351.6%), Hong Kong [8] (up 104.5%), Singapore (up 98.0%) and the Netherlands (plus 49.2%).[9]
The ideal of beauty is related to the culture and traditions of each country. The cosmetics manufacturers are adapting their beauty products accordingly to meet the requirements of their target group in different parts of the world. The cosmetics used reflects the image and understanding of life. An example of this is the desire for pale or beautifully tanned skin in different cultures. White skin was and still is a sign of prosperity and exclusivity in Asia and India. Paleness is associated with higher social classes, while brown skin is associated with field workers who were exposed to sunlight and thus come from a low class. [10]
From a medical point of view, the physiological components are more meaningful with regard to pale skin, as the signs of age in the different parts of the world become noticeable. The first sign of aging on Asian skin is pigmentation, not wrinkles – as is common in Western culture. This usually shows up as stains on the upper lid. In the western areas, freckles are associated with sunlight and often a sign of beauty. For Asians, this is not the case as it is a sign of aging, as in Western Europe wrinkles. Asians, therefore, want a product that softens the signs of aging – namely balancing the skin tone, like Dr. Zhang. Alain Khaiat says. [11]
Demand for skin lightening products continues to grow and the growth is forecasted to reach $31.2 million by 2024.
This is the result of a report by Global Industry Analytics[12]. Skin whitening and hydroquinone are inextricably linked: Hydroquinone is used as a remedy for hyperpigmentation in skin creams despite possible health hazards since the early 1990s[13]. To date, it is one of the most commonly used skin lightening agents. However, there are several countries and regions where hydroquinone is banned.
Self-tanning cream and skin whitening agents have become an important part of global cosmetics nowadays. The way they are sold in different countries and which beauty ideal is appreciated on in which continent is shown below. [14]
The health factor plays a major role in the field of cosmetics. For this reason, guidelines for products related to cosmetics have been set up in Germany since the 1920s, which can be found in the Food Law. In the book “Analysis of cosmetic products” all regulatory aspects regarding ingredients and cosmetic products are explained in detail. [15]
-Expect the sequel next week!-
[1] Elizabeth Arden. (2019) About Elizabeth Arden – a global prestige beauty fragrance cosmetics and skincare products company https://corporate.elizabetharden.com/mobile/about/ (Stand: 21.05.2019)
[2] McKinsey and Company. Kim A., Moulton J.: What beauty players can teach the consumer sector about digital disruption (https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/what-beauty-players-can-teach-the-consumer-sector-about-digital-disruption (Stand: 16.05.2019)
[3] Lopaciuik, A., Loboda M. (2013) Global Beauty Industry Trends in the 21st century (Stand: 18.05.2019)
[4] IKB. Beauty- und Körperpflege: Aktuelle Markttrends (2019) https://www.ikb-blog.de/beauty-und-koerperpflege-aktuelle-markttrends/ (Stand: 18.05.2019)
[5]Gyan Research and Analytics. Global Beauty Care Market (2014-2018)
[6]Gyan Research and Analytics. Global Beauty Care Market (2014-2018)
[7] Lopaciuik, A., Loboda M. (2013) Global Beauty Industry Trends in the 21st century (Stand: 18.05.2019)
[8] Hong Kong is being investigated separately, since Hong Kong has been a Chinese Special Administrative Region since its return to China and has a very liberalized market economy.
[9] WTEx: Beauty Cosmetics and Skincare Imports by Country (2019) http://www.worldstopexports.com/beauty-cosmetics-and-skincare-imports-by-country/ (Stand: 18.05.2019)
[10] Vorwerk-Gundermann, Liane (2019) Weiß ist beautiful oder die Angst vor brauner Haut: http://scienceblogs.de/beauty-full-science/2010/09/19/weiss-ist-beautiful-oder-die-angst-vor-brauner-haut/ (Stand: 20.05.2019)
[11] Cosmetics: Asia’s skin whitening market is often misunderstood (2015) https://www.cosmeticsdesign-europe.com/Article/2015/02/10/Asia-s-skin-whitening-market-is-often-misunderstood (Stand: 16.05.2019)
[12] Global Industry Analysts, Inc.: Obsession with lighter skin tones in Asia, the Middle East & Africa drives oppurtunities in the global skin lighteners market (2018) https://www.strategyr.com/MarketResearch/Skin_Lighteners_Market_Trends.asp (Stand: 18.05.2019)
[13] Academic: Quinol https://deacademic.com/dic.nsf/dewiki/1147821 (Stand: 20.05.2019)
[14] Quartz India. Madhok, D.: It just doesn’t add up – why do Indians buy so much self-tanner? (2014) https://qz.com/india/242311/it-just-doesnt-add-up-why-do-indians-buy-so-much-self-tanning-products/ (As of 18.05.2019) These results were published in a report by Euromonitor on personal appearance. The survey covered the responses of 6,600 online consumers in 16 emerging and industrialized countries.
[15] Salvador, A & Chisvert, A.: Analysis of Cosmetic Products (2018). Elsevir
