Premium Cosmetics Market are beauty and cosmetic products of superior quality and higher price point characterized by brand appeal, superior quality ingredients and attributes. Premium cosmetics provide multi-functional cosmetic benefits such as anti-aging, color cosmetics, hair care, skincare and fragrances. The growing influence of digital and social media is stimulating interest among consumers towards branded premium products for self-grooming and expression of personality.
The global Premium Cosmetics Market is estimated to be valued at US$ 123.39 Bn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Digital and social media marketing strategies adopted by key players are driving significant growth in the premium cosmetics market. Premium cosmetic brands are prominently utilizing platforms such as Instagram, YouTube, Snapchat and Facebook to target younger demographics for their luxury brands. Influencers on these platforms endorse premium makeup, skincare and haircare products to their followers, generating high awareness. Brands also conduct live tutorials, reviews and trials to engage consumers online. This has boosted purchase considerations for premium products through innovative digital marketing approaches. While traditional mediums remain important, digital and social media is transforming how premium cosmetic companies promote and sell their exclusive offerings.
Strength: Premium cosmetics have strong branding and marketing. Some premium cosmetics brands like L’Oréal, Estée Lauder Companies etc. have established strong brand image and loyalty over decades.
Weakness: Premium cosmetics are considered as luxury items and hence command premium pricing making them unaffordable for masses. Higher pricing can deter certain customer segments.
Opportunity: Growing beauty conscious youth population and rising disposable incomes in developing regions like Asia present new growth opportunities. International expansion into newer geographies.
Threats: Intense competition from private label cosmetics offering by retail giants offering similar quality products at lower prices. Increased popularity of natural/herbal and cruelty-free cosmetics pose threats.
The global premium cosmetics market is expected to witness high growth. The global Premium Cosmetics Market is estimated to be valued at US$ 123.39 Bn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030.
Regional analysis shows that the Asia Pacific region dominates the premium cosmetics market and is expected to grow at the fastest rate over the forecast period. Rising income levels and increasing purchasing power of consumers especially in China, Japan, South Korea, and India is fueling the growth of the market in Asia Pacific region.
Key players operating in the premium cosmetics market are L’Oréal, Estée Lauder Companies, Procter & Gamble, Shiseido, Coty, Chanel, LVMH Moët Hennessy – Louis Vuitton, Kering, and Unilever. These major players account for more than half of the total market share and are investing in R&D, new product launches and international expansion to strengthen their position in the market. For instance, Estée Lauder launched new skincare line AKILI with CBD infused skincare products.