According to the deep-dive market assessment study conducted by Growth Plus Reports, the global facial skincare market was pegged at ~US$ 110.54 billion in 2021. The market is expected to witness a CAGR of ~4.9% from 2022 to 2030.
The facial skincare market covers beauty products/cosmetics to enhance facial skin complexion & texture, resolve skin issues, and so on. The growing population of geriatric and young people around the globe has raised the utilization of beauty products, thereby increasing the market revenue. In addition, growing funds/investments in the R&D for developing new cosmetic products has in turn propelled the demand for such cosmetic products and procedures, thus contributing to the overall market growth. However, there are a few challenges that can hamper the market growth, such as the high cost of these products and probable side effects of certain cosmetics.
The growing awareness about aesthetic appearance and the beauty standards in society proves to be a beneficial factor for market development. People are fascinated by clear and healthy skin complexions resulting in increased adoption of these facial skincare products. Increasing consciousness for the appealing image among the people and especially in the working population has resulted in raising the demand for beauty cosmetics globally which in turn has impelled the growth of the market.
Growing demand for facial skincare products, especially specialty products has resulted in intensified innovation in this market. The growth of the facial skin care products market can also be attributed to the growing prevalence of skin-related problems in the youth, aging, and rising celebrity and influencer endorsements. Additionally, the proliferation of e-commerce in this industry has further assisted in promoting market expansion globally.
The increasing funding for beauty products also helps in the market growth. This attributes to the growing demands for efficient products and competition among the other suppliers. To tackle the ever-increasing competition, market players are consistently increasing funding in the R&D initiatives for the rapid commercialization of new products that have better results and are more efficient. Other aspects of focus of the market players are improving customer service and offering specialty product lines thereby propelling the revenue growth of the market globally.
However, there are some challenges to the market growth, such as significantly high prices of specialty and branded products, the threat of substitutes, the risk of side effects of certain cosmetics, and increasing preference for cosmeceuticals. Among these factors, the impact of expensive products is the most intense. Consumer groups in low- and middle-income countries still have limited-to-no affordability to specialty cosmetics and high-end brands. To avail benefits of specialty product lines, consumers often switch to cheaper alternative/substitute products that have a comparatively lower price with satisfactory results. Thus, the high cost of these specialty facial skin care products can hinder the growth of the facial skincare market to a certain extent.
The Asia Pacific region leads the facial skincare market with the largest revenue share. This growth can be attributed to the rising social media endorsement among the people, and the widespread presence of regional and local market players offering cheaper product ranges. Whereas North America is estimated to be the fastest-growing region in the market globally. Rising demands for specialty facial skincare products and greater affordability are attributed to the growing skincare cosmetics business in North America. In addition, the enormous expenditure of the working professionals on self-care, along with the high penetration of influencer culture through social media in this region further fuels the market growth. Furthermore, the growing number of working-class women and the rising adoption of evolving lifestyles are some of the factors that prove to be beneficial for the growth of the overall market value in North America.
Some of the prominent players operating in the global facial skincare market are Shiseido Company Limited, Johnson & Johnson (J&J), Procter & Gamble Co. (P&G), Avon Products Inc., L'Oréal SA, Revlon Inc., Estée Lauder Companies Inc., Unilever Plc, Revlon, Inc., Beiersdorf AG, Coty, and Oriflame Holding AG, Natura & Co. among others.