July 20, 2024

Cosmetic Serum Market is driven by the rising emphasis on personal care and beauty

Cosmetic serum is a skin care product used to treat specific skin concerns and improve the appearance of the skin. It contains highly concentrated active ingredients that work to repair, hydrate and rejuvenate the skin. Some common active ingredients found in cosmetic serums include vitamins A, C and E, hyaluronic acid, retinol, peptides, antioxidants and glycolic acid. With rising health and beauty consciousness among people, the demand for specialist skincare products to address specific skin issues such as hyperpigmentation, fine lines, wrinkles, dark spots etc is growing.

The global cosmetic serum market is estimated to be valued at US$ 5.43 Bn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends: One of the key trends in the cosmetic serum market is the growing popularity of natural and organic serums. Consumers are increasingly preferring products with natural actives that are less likely to cause any skin irritation. This has prompted serum brands to offer natural formulations containing plant-based ingredients and essential oils. Another trend gaining traction is the launch of multi-functional serums that serve the purpose of moisturizer as well as treat specific concerns. For example, serums containing hyaluronic acid, peptides, vitamins and antioxidants that hydrate, improve tone and texture of the skin in one product. Innovation of customized serums as per consumer skin needs through advanced technologies is also a notable trend in the market.

Porter’s Analysis

Threat of new entrants: The cosmetic serum market has moderate-high barriers for new entrants due to capital requirements for R&D and branding. The market is dominated by well established brands.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products and brand loyalty of customers. However, new products and innovations reduce bargaining power over time.

Bargaining power of suppliers: Suppliers have low-moderate bargaining power due to the availability of substitute raw materials. However, key ingredients command higher bargaining power.

Threat of new substitutes: Threat of substitutes is moderate as new beauty products constantly emerge, although customer loyalty takes time to shift.

Competitive rivalry: The market is highly competitive due to the presence of major international brands continuously innovating and expanding their product lines.

Key Takeaways

The global cosmetic serum market is expected to witness high growth over the forecast period. Growth is driven by increasing consumer preference for skincare products with added benefits beyond basic moisturizing. The global cosmetic serum market is estimated to be valued at US$ 5.43 Bn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030.

Regional analysis: North America dominates the cosmetic serum market currently due to heightened awareness about anti-aging products and natural skincare. Asia Pacific is expected to grow the fastest due to a rising middle class, increased spending on premium cosmetics and growing urbanization in countries like China and India.

Key players: Key players operating in the cosmetic serum market are L’Oréal S.A., Estée Lauder Companies Inc., Shiseido Company, Limited, Procter & Gamble Co., Johnson & Johnson Services, Inc., Beiersdorf AG, Unilever PLC, The Body Shop International Limited, Kao Corporation, Colgate-Palmolive Company, Amway Corporation, Avon Products, Inc., Mary Kay Inc., Clarins Group, Coty Inc. Players compete on the basis of brand, innovation and consistent product quality.