Global Premium Cosmetics Market: Regional Analysis and Competitive Landscape

The global premium cosmetics market size is expected to reach USD 238.0 billion in 2030 and is projected to grow at a CAGR of 6.3% from 2024 to 2030. Growing awareness regarding ingredients in beauty products and their effects on the body coupled with increasing demand for wellness beauty products is driving the market. Preference for premium cosmetics for problems such as age spots, acne, and pigmentation is expected to bode well for market growth. Also, the growing influence of brands on social media is creating more awareness among consumers. This in turn is creating demand for premium cosmetics.

Rising consumer preference for premium cosmetics, owing to a willingness to spend more on beauty products, especially across emerging countries, is expected to drive the market growth. The consumer preference for imported and branded cosmetics is majorly driven by brand name, product safety, and price. A rise in women's workforce and financial independence is expected to positively influence the market growth in the forthcoming years.

The trend of personalization is also supporting the demand for premium cosmetics among consumers. For instance, Face Gym, a European company, in 2017 launched the Make it Bar, where consumers can visit the studio and create their own face serums, suitable for their individual needs and lifestyle, with help from professionals.

The makeup segment of the premium cosmetics market is estimated to witness the fastest growth over the forecast period. The availability of waterproof and sweat-proof products manufactured especially for hot and humid climatic conditions is also boosting the demand. Skincare is estimated to be the largest segment over the forecast period, owing to the wide application for skincare. Consumers prefer facial creams, sunscreens, and body lotions to reduce acne scars, freckles, age spots, and discoloration, among other skin issues.

To boost the shopping experience and consumer interaction, premium cosmetic companies are upgrading their stores with advanced technologies. Along with on-hand assistance from beauty advisers, the companies are using Virtual Reality (VR) and Augmented Reality (AR) for better customer service. For instance, L’Oréal installed interactive displays in its Shanghai, Wuhan, and Changsha boutiques called as Magic Mirrors. The adoption of such technology also reduces the usage of sample products.

The market is oligopolistic in nature with the companies implementing various business strategies such as mergers and acquisitions to diversify the product portfolio and to expand their geographical presence. For instance, in 2018, L’Oréal acquired Stylenanda, a makeup and fashion brand focused on millennials in South Korea and China, to extend its business in Hong Kong, Singapore, Malaysia, and Thailand. L’Oréal also acquired Pulp Riot, an American brand operating in the professional hair color segment with a strong influence on social media.

Premium Cosmetics Market Report Highlights

Skin care products dominated the market with a revenue share of 41.1% in 2023
Color cosmetics contributed substantially to the market revenue in 2023
Women end-users dominated the premium cosmetics market with a revenue share of 79.4% in 2023.
Supermarkets & hypermarkets dominated the market with a revenue share of 35.7% in 2023. Premium cosmetics often emphasize luxury ingredients, textures, and application methods

Premium Cosmetics Market Segmentation

Grand View Research has segmented the global premium cosmetics market report based on product, end use, distribution channel, and region

Premium Cosmetics Product Outlook (Revenue, USD Billion, 2018 - 2030)

Skin Care
- Face Care
- Body Care
- Hair Care
Shampoo
- Conditioner
- Serums
- Others
Color Cosmetics
- Face Cosmetics
- Lip Cosmetics
- Eye Cosmetics
- Nail Cosmetics
Shower and Bath
Perfume/Fragrances