The luxury cosmetics market is expected to reach $81.24 billion globally by 2026. The market categories include both makeup and skincare.
The team at Allied Market Research published this report, which also states that the market is expected to register a CAGR of 5.6% during the forecast period from 2019 through 2026.
What's Fueling Growth?
An increase in online retail and a rise in the demand for organic personal care and cosmetic products will fuel market growth, researchers say.
Several factors may also hamper growth, such as high taxation and import duties, as well as the interference of counterfeit products. However, halal luxury cosmetics in the Middle Eastern countries and rise in demand for luxury skincare products are expected to create an array of lucrative opportunities for the key players in the industry.
Skincare Rules, And Conventional Makeup
In terms of revenue, the skincare category will "rule the roost" researchers say, within the luxury cosmetics market. Based on product type, the skincare segment contributed to more than two-fifths of the total market share in 2019 and is expected to dominate throughout the forecast period.
In addition, a rising demand for makeup cosmetics manufactured using organic and plant-based ingredients is a major factor driving growth.
Based on type, the "conventional makeup" segment accounted for nearly three-fourths of the total market revenue in 2019 -- and is anticipated to maintain its dominance throughout the estimated period.
Conventional luxury cosmetics are manufactured using stable formulas such as synthetic oils, silicones, emulsifiers, stabilizers, and synthetic antioxidants, which are known to help these makeup formulas last longer when compared to natural products.
Organic Cosmetics Will Grow the Fastest
Simultaneously, the organic segment would cite the fastest CAGR of 7.6% during the study period.
The widespread drift of health and wellness lifestyle has enabled to expand the potential of natural as well as organic beauty market.
The leaders in the luxury cosmetics market, which are covered in this report, are Christian Dior, Puig, L'Oréal, Kao Corporation, Revlon, KOSÉ Corp., Coty, The Estée Lauder Companies, Oriflame Cosmetics, and Shiseido.
Photo: Dior Beauty's 5 Couleurs Eyeshadow Palette, via Nordstrom