May 24, 2024
Skin Care Products Market

Skin Care Products Market is Estimated To Witness High Growth Owing To Rising Inclination Towards Natural Ingredients

The Skin Care Products Market is estimated to be valued at US$ 153.33 Bn in 2023 and is expected to exhibit a CAGR of 4.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Skin care products provide hydration and nourishment to the skin. They help in protecting the skin from external pollutants and improving its appearance. Skin care products contain ingredients such as vitamins, antioxidants, plant extracts and SPF that moisturize and improve skin health. The rising anti-aging concerns have boosted the demand for specialized skin care products.

Market key trends:
One of the major trends witnessed in the skin care products market is the growing inclination of consumers towards natural and organic ingredients. Chemical-based personal care products are increasingly being linked to various health issues. This has propelled consumers to switch to natural alternatives. Product manufacturers are focusing on developing organic skin care lines using natural ingredients such as plant extracts, oils and herbs. Additionally, multifunctional products catering to multiple skin concerns are also gaining popularity in the market. Manufacturers are launching innovative formulations combining anti-aging with skin brightening or anti-acne properties to suit diverse consumer needs. Further, the skin care market is also witnessing increased demand for vegan and cruelty-free products.

Porter’s Analysis

Threat of new entrants: The high capital requirements and economies of scale in production and marketing pose threats of significant barriers to entry.

Bargaining power of buyers: The presence of several substitute products and huge consumer base increases the bargaining power of buyers. However, brand loyalty and perceived quality curtails this power to some extent.

Bargaining power of suppliers: There are numerous suppliers of raw materials in the global market which reduces their bargaining power against industry giants like Johnson & Johnson and L’Oréal.

Threat of new substitutes: New natural and organic skin care brands pose threats of substitutes, diminishing the market share of existing players.

Competitive rivalry: Fierce competition exists between major global players for more market share and new customer acquisition.

SWOT Analysis

Strength: Vast distribution networks, strong brand loyalty, continuous innovation, and extensive R&D capabilities.
Weakness: High marketing and promotion costs, price sensitivity in certain markets, rising raw material prices.
Opportunity: Growing middle-class in emerging economies, rising skin care spending, demand for natural/organic products.
Threats: Stringent regulations, increasing trade barriers, impact of economic downturns.

Key Takeaways

The Global Skin Care Products Market Growth is expected to witness high growth, exhibiting CAGR of 4.3% over the forecast period, due to increasing awareness about skin care and rising spending on personal care products. The market size for skin care products is estimated to reach US$ 153.33 Bn in 2023.

The Asia Pacific region dominates the global market, with large emerging economies like China and India accounting for the major share. Rising incomes and expanding middle-class in these countries are fueling the demand for premium skin care brands. North America is another lucrative market, where the demand is majorly driven by anti-aging products.

Key players operating in the skin care products market are Unilever Plc, Coty Inc., Johnson & Johnson Inc., Proctor & Gamble Co., L’Oreal S.A., Revlon Inc., Kao Corporation, Avon Products Inc., Beiersdorf AG., Colgate Palmolive Company, Natura & co., and Estee Lauder Inc. Major players are focusing on new product launches, expanding into premium segments through M&A, and strengthening their e-commerce presence.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it