The market for premium cosmetics is set to skyrocket by $51 billion in the next four years, according to market research firm Technavio.
There are a few variables in the premium cosmetics market that make specific predictions about brand popularity complicated, but in general, the demand is trending up. Technavio says that as a part of the consumer staples market, premium cosmetics will have a positive and superior impact on the market at large over the next four years. It’s estimated that the compound annual growth rate (CAGR) will jump 6.6% from 2021 to 2026. Key players in this market include Chanel and Beiersdorf AG, the multinational conglomerate that owns Eucerin, Nivea, and Coppertone. The Michigan-based multi-level marketing company Amway is also expected to be a big player in the premium cosmetics sphere.
Premium cosmetics is an umbrella term for multiple product categories, such as fragrances, color cosmetics, and hair care products. In particular, the category expected to experience the most growth is skincare, with women driving the most demand. Demand is anticipated to skyrocket globally as well as health-conscious consumers seek luxurious, environmentally-conscious products that enhance their beauty routines. Technavio predicts that premium skincare will hit peak popularity in the Asia-Pacific region, particularly in China and Japan, and anticipates the region will constitute 37% of this market’s global growth.
Technavio also predicts that lack of consumer reach in developing countries will be the biggest impediment to market growth. It’s imperative for cosmetics brands that they create interesting and engrossing marketing campaigns to bolster outreach. Online marketing is expected to have the highest return, but offline channels like posters, billboards, and word-of-mouth communication are also especially effective in this market.