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Global Active Cosmetics Market - Outlook and Forecast 2022-2027
The global active cosmetics market was valued at USD 8.25 billion in 2021 and is projected to reach USD 16.85 billion by 2027, with a compound annual growth rate (CAGR) of 12.64% from 2022 to 2027. The market’s robust growth can be attributed to the increasing adoption of cosmetics that contain active ingredients. Several factors are driving the market’s expansion, including growing awareness of skincare, higher disposable incomes, and a significant rise in the number of consumers opting for natural and organic skincare products. People dealing with various skin and hair issues are increasingly turning to organic cosmetics, as these products are derived from natural sources and do not contain harmful chemicals. Active cosmetics are personal care products that either contain a high concentration of active ingredients or are made entirely of active ingredients. Common active ingredients found in these cosmetics include hyaluronic acid, vitamin C, vitamin E, and more.
Consumers prefer active cosmetics for their skincare and haircare needs, and these products are readily available through various distribution channels such as pharmacies, drugstores, and others. The COVID-19 pandemic has temporarily slowed down the growth of the active cosmetics market worldwide due to operational closures, labor shortages, and supply chain disruptions. However, online channels have provided manufacturers with an opportunity to maintain sales and distribution momentum. In recent years, consumers have increasingly relied on online platforms for purchasing cosmetics due to lower prices or promotional discounts. The COVID-19 pandemic has further accelerated the growth of online sales channels, both during and post-pandemic. Additionally, the active cosmetics market in the Asia-Pacific (APAC) region is experiencing rapid growth, driven by a rising population and increased awareness of such products.
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USD 8.3 billion in 2020
Product, Gender, Application, Distribution Channel, and Geography
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The market is segmented based on various factors, including product, gender, application, distribution channel, and geography.
Segmentation by Product
Segmentation by Gender
Segmentation by Application
Segmentation by Distribution Channel
Segmentation by Geography
North America – US, Canada
Europe – Germany, France, UK, Italy, Spain, Netherlands
APAC – China, Japan, India, South Korea, Australia
Latin America – Brazil, Chile, Mexico, Argentina, Columbia
Middle East & Africa – South Africa, Saudi Arabia, Turkey, UAE
Liquid active cosmetics is the dominant product category in the global active cosmetics market, accounting for the highest market share of 58.67% in 2021. This is due to the growing preference for skin, hair, and body care products that can glide effortlessly on the skin. A wide range of global, regional, and local players offer a diverse range of liquid cosmetics, making it the most preferred product type worldwide. The liquid segment is expected to grow at the highest compound annual growth rate (CAGR) of 12.94% during the forecast period.
Cream-based active cosmetics is the second leading segment, with a market share of 29.55% in 2021. Cream-based products are preferred because they require minimal quantity and blend well on the skin, reducing the number of products in makeup bags.
Other segments, including powder, bar, wax, or emulsion cosmetics, account for the third largest share. These products are mainly used in makeup as compact foundations to provide coverage and conceal blemishes. Some companies are also offering shampoos in bar form to reduce water consumption and make it more convenient for travel.
The female segment is the fastest-growing segment, with the highest market share of 67.75% in 2021. Females are the primary consumers of body care and makeup products, and their growing interest in skincare and organic/natural cosmetics drives the market growth.
Male consumers, particularly heterosexuals, are also showing a growing interest in cosmetic products for skin, hair, and body care. The Asia-Pacific region (APAC) is one of the fastest-growing regions for men’s grooming and cosmetic product use.
Skincare is the fastest-growing segment under the application section, accounting for the highest market share of 47.27% in 2021. The increasing awareness of health-promoting and self-care products, coupled with the aging population and the impact of pollution and busy lifestyles, drives the demand for skincare products. Consumers are also becoming more aware of the side effects of synthetic chemicals in cosmetics, leading them to opt for clean and toxin-free skincare beauty products.
Companies and distributors are increasingly shifting to e-commerce platforms to boost sales, making it easier for consumers to access products at discounted prices. The hair care segment is the second largest growing segment, driven by growing interest in hair maintenance and styling.
Drug stores/pharmacy accounts for the highest share of 35.63% in the distribution channel segment, as consumers prefer certified and safe cosmetics. However, during the COVID-19 pandemic, online distribution channels gained momentum due to lockdowns and supply chain disruptions. The online segment accounted for 22.90% of the global active cosmetics market in 2021.
APAC holds the largest share of the global active cosmetics market and is expected to grow at the highest CAGR of 14.33%. This growth is driven by rising disposable income among consumers and a focus on organic and natural cosmetics. The U.S. is the leading market with the highest revenue, followed by China and Japan. Latin America and the Middle East & Africa have seen growth due to rising skincare regimes, high purchasing power, and expanding distribution channels. However, challenges such as high product costs, government regulations, and industry standards hinder market growth in these regions.
The global active cosmetics market is characterized by its dynamic nature, with a plethora of key global players and numerous prominent vendors offering a diverse range of active cosmetics. Some of the major players in the market include L’Oréal, Shiseido, Givaudan, Croda International, and IFF. These companies are highly focused on developing various forms of active cosmetics such as powders and bars. L’Oréal, in particular, has a strong emphasis on developing dermo-cosmetics and holds a leading position in this area. In order to strengthen their portfolios, top companies in the market have engaged in multiple acquisitions in recent years. Additionally, companies are increasingly focusing on developing active cosmetics with plant-derived ingredients, driven by the rising demand for halal cosmetics in the Middle East countries and highly developed nations. Notably, many companies based in the Middle East, APAC, North America, and Europe have obtained halal certifications.
Active cosmetics vendors face significant competition from both established and emerging companies, prompting them to adopt strategic measures such as acquisitions, partnerships, and investment in research and development (R&D) activities. These strategies are crucial for expanding product portfolios, gaining market share, and maintaining a competitive edge. Moreover, vendors in the market are launching new products and conducting R&D initiatives to enhance their presence, drive market growth, and solidify their market position.
L’Oréal, as a leader in the highly competitive global cosmetics market, holds the top position in the global active cosmetics market. Its active cosmetics division is recognized as a global leader in dermo cosmetics, offering internationally acclaimed skincare brands recommended by healthcare professionals. Comprising six brands from France and the United States, the active cosmetics division accounted for a 12.2% share of L’Oréal’s overall cosmetics segments in 2021.
Key companies profiled in this report include L’Oréal, Givaudan, Croda International, International Flavors & Fragrances (IFF), Shiseido, Air Liquide, BASF Personal Care and Nutrition, Beiersdorf, Casida, Clariant, Coty, Cosmetics Bulgaria, DSM, Evonik, FOOTNESS, Gattefossé, Laboratoires Expanscience, LipoTrue, Lonza, Naolys, Nouryon, Robertet, Sabinsa, Scout Organic Active Beauty, Sober Care, Symrise.
Key Questions Answered
What is the market size of the global active cosmetics market?
The global active cosmetics market is projected to reach USD 16.85 billion in 2027, up from USD 8.25 billion in 2021.
What is the growth rate of the global active cosmetics market?
The global active cosmetics market is expected to grow at a compound annual growth rate (CAGR) of 12.64% from 2022 to 2027.
Who are the major players in the global active cosmetics market?
The major players in the global active cosmetics market include L’Oréal, Givaudan, Croda International, International Flavors & Fragrances (IFF), and Shiseido.
What are the latest trends in the global active cosmetics market?
The latest trends in the global active cosmetics market include a shift towards halal cosmetics, increased focus on nutricosmetics by active ingredient companies, and the emergence of nanotechnology in the field of active cosmetics.
Which region is expected to experience the highest growth in the global active cosmetics market?
The Asia-Pacific (APAC) region dominates the global active cosmetics market and is projected to have a CAGR of 14.33%. APAC is witnessing a growing demand for organic and natural beauty products, as well as an increase in disposable income among consumers, which is driving the industry in this region.