Color Cosmetics Market Trends

Growth Drivers

• Growing Income Level of the Population - By 2022, 130 million families in the world were expected to have an annual income between USD 3000 and USD 9000, up from about 90 million households in 2019. People tend to spend more money on beauty goods when the average household income rises. Because of their higher standard of living, people become more aware of their appearance. As a result, it is predicted that this trend would increase the demand for color cosmetics and fuel market expansion.

• Rise in the Percentage of Older Aged People – As people grow older, they are faced with many skin-related issues such as pigmentation, wrinkles, fine lines, age spots, under-bag eyes, and others which could be corrected through color cosmetics. Thus, the burgeoning geriatric population is expected to bring lucrative opportunities for market growth. By 2030, one in six people worldwide will be 60 years of age or older as per the World Health Organization.

• Surge in Middle-Class Population - The number of persons in the middle class worldwide expanded from about 900 million to approximately 2 billion between 2011 and 2019, or by an average of 50 million people per year.

• Significant Investment in Advertising Cosmetic Products – Massive investments in advertising cosmetics products increase the awareness level of beauty and care products among the population. As a result, individuals are propelled to buy color cosmetics, thus, increasing its sales. According to estimates, in 2020, global beauty businesses spent approximately 40% of their advertising budgets on television, which is about 2 times more than the average brand, and about 17% of their advertising budgets on magazines, which is approximately 5 times more than the average brand.

• Online Distribution of Cosmetics Products - E-Commerce has made various color cosmetics products that were unavailable at local channels, easily available to the consumer. Hence, the adoption rate of color cosmetics is expected to increase. In 2021, personal care sales generated almost USD 55 billion which is equivalent to 12% of the total retail e-commerce sales in the United States.

Challenges

• Stringent Regulations by the Government of Nations Globally - Regarding the usage and applications of color cosmetics, each nation has its own set of regulations. Such national rules present a challenge for key players, which in turn discourages investment in the color cosmetics sector and restrains market expansion.
• Ill-Effects of Chemical-Based Cosmetics on Skin – Using color cosmetics for prolonged periods is estimated to have adverse effects on the skin. Ranging from clogged pores, oily skin, breakouts, allergic reactions, changes in skin color, infections, and maybe cancer in some rare cases, cosmetics can have serious ill effects on the skin owing to the chemical addition.
• Rising Awareness Regarding Environment and Animals