by The Color Cosmetics Market is estimated to be valued at US$ 77.17 Bn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Color cosmetics products include nail polish, lipstick, eye makeup, face makeup such as foundation, blush, bronzer, and concealer. These products are available in a wide range of shades, finishes and textures. Color cosmetics offer benefits like beautifying the appearance by enhancing natural features and covering imperfections. They are increasingly being preferred for personal care and enhancing self-confidence.
Market key trends:
One of the key trends driving the color cosmetics market is the rising demand for multifunctional and multifinished cosmetics. There is a shift towards products offering skincare benefits along with makeup. Consumers are drawn towards innovative formulations that moisturize, treat dark spots or wrinkles in addition to providing color. Also, demand for products having versatile finishes like matte, shimmer or satin is growing. Manufacturers are responding by introducing makeup cosmetic lines infused with active skincare ingredients as well as multipurpose compacts or pallets with varied finishes. The expanding options allowing personalized routines according to needs and occasions are favoring market growth.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the color cosmetics market requires large investments and brand loyalty restricts the scope for new players. However, e-commerce has lowered the entry barriers to some extent.
Bargaining power of buyers: The bargaining power of buyers is high due to the availability of substitutes. Buyers can easily switch to alternatives considering price and quality. This compels companies to offer competitive prices and better quality products.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key raw materials like pigments and preservatives have few substitutes and dominant suppliers. However, established industry players can negotiate pricing and quality standards.
Threat of new substitutes: The threat of substitutes is high as appearance-enhancing products from skincare and hair care segments can be used as alternatives for specific needs. Technological advancements continuously introduce novel products.
Competitive rivalry: Intense as major players compete based on brand image, innovation, pricing and promotions.
SWOT Analysis
Strength: Wide product portfolio and strong brand recognition of major players. Innovation is a key strength to cater changing consumer needs and trends.
Weakness: High dependency on demographic trends and consumer preferences which are constantly evolving. Vulnerable to economic slowdowns impacting discretionary spending.
Opportunity: Untapped rural markets and growing middle-class represent significant opportunities. E-commerce is enhancing accessibility.
Threats: Stricter regulations on ingredients and packaging could raise costs. Increased health awareness may cause consumers to shift to natural products.
Key Takeaways
The global Color Cosmetics Market Size is expected to witness high growth, exhibiting CAGR of 4.7% over the forecast period, due to increasing product affordability and premiumization. E-commerce has expanded reach while social media influencers have boosted trial.
Regional analysis: North America dominates currently owing to high disposable incomes and frequent product launches. However, Asia Pacific is poised to grow at the fastest pace due to rising consciousness about personal grooming in developing economies like India and China.
Key players operating in the color cosmetics market are Beiersdorf, Krylon, Estee Lauder Companies Inc., Amway, Avon Products Inc., CHANEL, Coty Inc, Johnson & Johnson, KRYOLAN, L’oreal S.A, Revlon, Inc., Shiseido Company, Limited and Unilever. Major players are focusing on celebrity endorsements and sustained marketing campaigns to strengthen their brand recognition in high growth markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
