Cosmetics Market

The market forecasting for beauty products 2022

A lot of people see opportunities in the market of beauty products. Today people compete with each other on social media on an increasingly rate, while some others find social media as an opportunity to build a new brand. This development of digitalization has brought forth new opportunities for everyone, but the main concern of this article is how the cosmetics industry will be impacted in the years to come, and the opportunities that you should take advantage of.

What will be the cosmetics market Size From 2021 to 2027?

In the next few years we can expect that the global cosmetics market size will grow at a CAGR (compound annual growth rate) of 4.5% from $165 billion in 2017 to reach $230 billion by 2027. The market of beauty products is expected to be dominated by North America, followed by Europe, Asia-Pacific region, Latin America and Middle East & Africa regions. However, the rise of e-commerce companies such as Amazon or Alibaba have had a huge impact on the traditional retail sector. In fact, these two companies control more than 50% of the global online sales. According to Statista, the US is projected to lead the world’s beauty market until 2020, when it will be overtaken by China. While we believe our reporting to be accurate and taken from trusted sources there are other reports that you may be interested in. Read more on the dedicated website on the global cosmetics industry.

The global cosmetic market Size By Product Type:

• Skincare – The skincare segment is expected to account for about 30% of the total market share. It is also expected to become one of the fastest growing segments over the forecast period.

• Hair care – The hair care segment is expected to account around 17% of the total market. In addition, it is expected to exhibit significant growth throughout the forecast period.

• Makeup – The makeup segment is estimated to account for 16% of the overall market. It is expected to show steady growth throughout the forecast period due to its popularity among women.

• Fragrance – The fragrance segment is expected to account approximately 12% of the global market during the forecast period.

Market Share Of Cosmetic Brands By Region:

North America – U.S. – This region is expected to dominate the global cosmetics market in terms of volume and value. The U.S. was the first country to legalize the sale of cosmetics in 1938. In addition, there is a high demand for beauty products in the U.S., which is why the U.S. is considered to be the most important market for the global cosmetics market. As a result, the U.S. accounts for nearly 40% of the global market.

Europe – Germany – The German market represents a large proportion of the European market. In fact, it is the largest consumer of cosmetics in Europe.

Asia Pacific – Japan – Japan is another major player in the cosmetics market. There is a high demand for skin care products in Japan, which is why the Japanese market is expected to account for 13% of the global market by 2023.

Latin America – Brazil – Brazil is another important market for the global market. With a population of 210 million people, Brazil is the second most populated country in South America.

Middle East & Africa – Saudi Arabia – Saudi Arabia is another important market for cosmetics. In fact, the country is the third largest producer of cosmetics in the world.

Global Cosmetics Market By Distribution Channel:

Direct Selling/Online Retailers – Direct selling/online retailers accounted for approximately 45% of the global market in 2017, and this figure is expected to increase to 56% by 2023. These types of retailers sell their product directly to consumers via websites, social media platforms, mobile apps, etc. The main advantages of direct selling/online retailers include offering discounts and promotions, allowing customers to choose their preferred color, and providing free samples.

Supermarkets/Hypermarkets – Supermarkets/hypermarkets accounted for approximately 15% of the global market, and this number is expected to decrease to 11% by 2023. They offer a wide range of products including both food items and cosmetics. Their key strength lies in their ability to provide a variety of products at affordable prices. However, they have many limitations such as limited shelf space and lack of customer service support.

Drugstores – Drugstores accounted for approximately 10% of the global market and this number is expected grow to 9% by 2023. Drugstores offer a wide range of cosmetic products, but their primary focus is on prescription drugs rather than cosmetics.

Beauty Salons – Beauty salons accounted for approximately 5% of the global market (5% in 2017), and this number is expected increase to 6% by 2023. A beauty salon offers various services related to hair, makeup, skin care, nail care, tanning, etc.

Retail Stores – Retail stores accounted for approximately 4% of the global market share in 2017, and this number is estimated to increase to 5% by 2023. Retail stores are similar to drugstores; however, they do not carry any prescription medications.

Cosmetic Shops – Cosmetic shops accounted for approximately 3% of the global market for beauty products in 2017, and this percentage is anticipated to increase to 4% by 2023. Cosmetic shops are small businesses that specialize in selling cosmetics.

Personal Care Products – Personal care products accounted for approximately 2% of the global market. This segment includes different types of personal care products such as deodorants, antiperspirants, shampoos, conditioners, soaps, toothpastes, etc.

Others – Other distribution channels included other online retailers, mass merchandisers, department stores, convenience stores, grocery stores, etc., and these accounted for less than 1% of the global market each.

Cosmetics Market Size, Share, Growth Rate, Trends and Forecast 2018-2023

Market size analysis is provided for all segments based on volume and value. Volume analysis provides information about the total units sold within the year under review and also gives an idea about whether the growth rate has been increasing or decreasing over time. Value analysis helps determine the average price paid per unit. The market size data is further analyzed using numbers and percentages to generate overall revenue and volumes. The market is estimated and forecasted from 2018 to 2023 with respect to four major regions: North America, Europe, Asia Pacific, and Rest of World (RoW).

Market Segment Analysis

North America was the largest market for beauty products in 2016, accounting for more than 40% of the global market in terms of value. In addition, it is projected that North America will continue to be one of the leading markets for beauty products throughout the forecast period. The U.S. was the biggest contributor to the growth of the North American market in 2016. For instance, the U.S. contributed nearly 42% of the total sales in North America. Furthermore, Canada, Mexico, and Brazil were among the fastest growing countries in the region during the same period. However, the Middle East & Africa region is expected to witness significant growth due to rising disposable incomes and rapid urbanization.

How to enter the cosmetics market and fund your startup?

There are many ways to start a business, and while the current politics show signs of market growth in the US, this may be the best time for your entrepreneurial spirit to shine. You could start a beauty product store, sell beauty products wholesale, or even become a distributor. Wholesale distributors purchase raw materials at low prices, process them into finished products, and then resell those products to retail stores. Distributors may work directly with manufacturers or buy their products through middlemen.

You should consider starting a beauty product store if you want to earn money immediately. Retail stores typically offer products at higher prices than wholesalers. If you decide to open a beauty product store, you’ll need to find a location that offers good visibility to customers. Many cities have malls and shopping centers where you can set up shop.

You can also choose to sell beauty products wholesale. As a wholesale distributor, you buy products in bulk and sell them to retailers who pay you a commission. This type of business model allows you to make a profit without having to spend much capital. However, you must ensure that you have enough storage space to keep inventory before selling it to retailers.

If you plan to distribute beauty products yourself, you’ll likely need to invest some money upfront. A distributor usually purchases raw materials from suppliers and sells them to other distributors. They might also provide packaging services or help buyers source ingredients from manufacturers.

If you don’t know which route to follow, you can always opt for a hybrid distribution strategy. This involves working as a distributor while also investing in manufacturing facilities. Some other way to get established in market is to find big player in the market that belive in your vision and are willing to invest in your ideas. If you don’t get other people involved then you will need to finance your company by yourself and make all the necessary connections. One way to find the most suitable business loan is by going online to a website that searches through a big database, for the best offer in market from all banks.

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