Cosmetics Market Size & Share, by Product (Skin Care, Hair Care, Makeup, Fragrance); End-user; Distribution Channel- Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

Growth Drivers

• Increasing usage of natural ingredients in cosmetics - There is a growth in the usage of natural food ingredients in cosmetics owing to their positive effects and safety on skin health as well as the environment. Consumers highly demand biodegradable, chemical-free, and non-toxic products such as hair care, body care, and skin care.
  
  According to a survey done by the National Institutes of Health in 2023, more than 78% of people prefer natural cosmetics while only 22% of people are interested in purchasing chemical-based cosmetics.
• Rising concerns over personal care - The increasing usage of cosmetic products such as skin care, hair care, and many more for personal care is increasing driven by the growing awareness of the importance of hygiene and health; this has led to greater demand for personal care products. According to a report by WHO in 2024, an average individual generally spends less than 1 hour a year along with a health worker, whereas over 8700 hours a year in self-care.
  
  Moreover, customers are becoming more aware of the importance of personal care, so there is an increasing demand for self-care products to provide these products conveniently. This is set to augment the dispensing pump sector. As per Research Nester estimates, in 2023, more than 40% of facial skincare users were estimated to use products such as exfoliators, moisturizers, cleansers, and scrubs which in return acted as a growth driver for the cosmetics market demand.
• Growing preference for sustainable cosmetics - With the lucrative global population coupled with the augmenting economies, there is also a significant increase in demand for therapeutic formulations and organic products which are expected to be non-toxic and safe for the environment. According to a report published in 2023, more than 67% of consumers worldwide prefer sustainable cosmetic products over chemical ones.

Challenges

• Increasing awareness regarding side-effects - Sulfates and phthalates are only two examples of the many natural and synthetic compounds included in cosmetic formulas. Growing consumer awareness of certain compounds' toxicity and unfavorable health impacts is probably going to keep product demand in check. Preservatives, pigment molecules, and other synthetic compounds can have detrimental effects on the body, including allergic reactions, the development of black spots, acne, discoloration, and other conditions.
• Regular testing for ingredient safety - Strict regulatory requirements force thorough ingredient testing and safety procedures. This extends the time and increases the cost of product creation. This slows the introduction of new products, which hinders market growth. Compliance barriers cause marketing campaigns for cosmetics to be delayed. This reduces the industry's flexibility in responding to shifting consumer trends and tastes, which hinders market revenue share.