The prime reasons leading the growth of the skincare market are rising disposable income accompanied by facilities to sell/buy global skincare products to anyone/ from anywhere in the world. The skincare market consists of face and body products, meant for external use only, for nourished and hydrated skin. Moreover, constant exposer of skin to atmospheric pollution, cigarette smoke, sun heat and rays, and other particles result in skin damage, dryness, acne, pimples, clotting, and other problems. some severe impact includes skin cancer, eczema, and psoriasis. Pollution and pollutants in the atmosphere increase skin’s aging process and lead to inflammatory or allergic skin conditions. Excessive UV rays from the sun damage the skin, making it dull, darker, and solar elastosis, wrinkles, liver spots, actinic keratosis, and leathery skin.
Skincare products reduce the damage of these elements on the skin. Above that, these products moisturize the skin and help in oxidation. Creams and massages open skin pores and prevent cell radicals. Furthermore, the anti-aging benefits of skincare product make it quite popular among the female population, particularly female who uses chemical-based beauty products daily, smoke, or travel more. Skincare products have a significant millennial market share, with the younger generation demand technologically advanced products.
Face Skincare Dominates the Skincare Market
The market growth of facial skincare products, especially sun cream and face whitening creams, is anticipated to grow at an exponential level in the coming years. The prime reason behind the surge in growth of sun cream is depleting the ozone layer, due to riding green-house gas emission, accompanied by penetration of harmful UV rays that damage the skin. Face, in general, is the uncovered body part and its face skin is more prone to sun and pollution damage. Sun creams, in general, act as a thin layer against UV rays, protecting the skin but enabling it to take required nutrients from the sun’s heat.
Face whitening creams, on the other hand, are estimated to grow at a significant level, owing to orthodox obsession for white skin, especially among the female population. The blind believe that fair and white people are beautiful, drives in great market demand. The millennial population is also bound with these thoughts, increasing the demand for the segment. However, many NGOs along with beauty and skincare companies are working to remove this thought and remove colorism. Unfairandlovely was a social media campaign launched against colorism in India, named after India’s leading skin-lightening cream Fair and Lovely. As a response, the company renamed its product Glow and Lovely in early 2020.
Natural Skincare Products Has Humongous Market Potential
Over time, chemical-based skin care products are proven to be harmful to the skin in the long run. These products have led to some serious skin damage on certain customers, who demand clarity of ingredients and compensation. Johnson & Johnson portraits an example of harmful chemical products. The company’s talc caused ovarian cancer to certain customers, tagging the company with multi-million dollar charges and labels destroying its brand name. Hence, companies are switching towards natural products. Natural skin care products are safer than chemical products and are more effective. However, they are constrained by the comparatively higher cost of raw material and low shelf life of the product. Except these, natural skincare products are better than chemical-based as they contain anti-oxidants and reduce the aging process of the skin. Consumers at large also prefer natural products owing to their skin benefits.
An emerging natural skincare market is cannabidiol-based skincare products. Cannabidiol is a naturally occurring element, generally extracted from marijuana and hemp plant. CBD products are gaining fame owing to their skincare benefits. Furthermore, the adoption of CBD chemicals in skincare products diversifies the market. Organic or Ayurvedic skincare products are also gaining popularity, especially in the European and Asian regions.
Online Distribution and Sale of Skincare Product Will Surpass Offline Channel
The e-commerce distribution channel of a skincare product is predicted to lead the market, surpassing traditional retail sales. Increasing internet penetration along with usage of advanced technological devices such as tablets and smartphones is driving this segment of the market. Further, the construction of an online platform for the cosmetic industry has a huge impact on the development of this market. Industry-specific online platforms such as India’s Nykaa and Chinese Taobao increase the market size, making international brands available at one’s finger touch. Moreover, rising disposable income and increased standard of living have a significant influence on the market in the area. Social media as well, play a crucial role in the adoption of skincare and beauty routines, further widening the market.
The offline sale channel or the retail sale channel will have a noteworthy share of the market due to customization and the human habit of doubt leading to physical check before purchase. However, the coronavirus pandemic has grievously impacted the physical distribution and sale channel with shutdown and trade restrictions implemented to curb the spread of the virus. However, retail sellers are turning towards the online channel to sustain their sales.
Geographically, the market is segmented into North and South America, European Region, the Middle East and Africa, and the Asia Pacific region. The North American market holds a considerable share of the market owing to advance technology and its higher adoption. Boots Company PLC's pre-demand of its Advance Retinol product is proof of how the American region adopts skincare technology continuously. The European region will also hold a significant share as the area is home to the World’s leading skincare companies. The Asia Pacific region will be the fastest-growing segment. Rising disposable income and internet penetration are the key reason for growing the market.
The coronavirus pandemic severely impacted the offline channel of sales of skin care products due to a physical shutdown. However, considerable growth in online sales was noted along with a surge in demand for natural and ayurvedic skincare products.