Colour Cosmetics Poised to Experience Growth With Continuous Innovations in the Beauty Industry
Colour cosmetics are utilized for enhancing the physical appearance of individuals. Common products include nail paints, blushes, eyeliners, and eye shadows among others. Evolving consumer lifestyle along with the increasing disposable income are driving the market growth.
Colour cosmetics constitute a significant share in the cosmetics industry. It is important for a manufacturer to take care that the colour of a make-up product looks good on the end-consumer. Hence, with humans having a wide range of skin tones, companies are continuously innovating their cosmetic products as per the evolving customer demands. As cosmetics come in different colors, it becomes necessary for companies to create reproducible and accurate colour recipes. This is because of the fact that more accurate recipes will lead to significant cost savings and thus will contribute to the reduction of research and development and production costs through minimizing the utilization of costly colorants when formulating recipes.
The market is predicted to grow in the forecast period 2020-2025 due to the increasing disposable income of the customers in the developing economies of the world, and the high disposable income of the people belonging to the developed regions. The rise in disposable income has further raised the willingness of the consumers to spend on premium colour cosmetics. This is further attributed to the evolving lifestyle of the individuals who are in constant search for cosmetic products that help in enhancing their physical appearance and make them look beautiful.
As per the National Bureau of Statistics of China, the per capita disposable income of residents in China grew by 0.8% from the first quarter of 2019 to achieve 8,561 Yuan in the first quarter of 2020.
Source: National Bureau of Statistics of China, per capita disposable income, in Yuan
Additionally, with the growing number of working women, the global color cosmetics market is set to grow with the increasing demand among this group of individuals. With women joining the major workforce, the family income has also significantly increased resulting in more than one member earning, further contributing to positively impact the market growth during the course of the forecast period.
It has also been noticed on a wide scale that in the developing economies of the world, there is an increase in the middle-income population, this group of individuals is providing a large consumer base, further providing high market growth opportunities during the forecast period. For manufacturers, the developing regions like the Asia Pacific region are promising markets for the sale of their colour cosmetic products. As per the OECD statistics, the global middle class is continuing to expand from 1.8 billion in 2009 to 3.2 billion by the end of 2020 and is predicted to achieve a population size of 4.9 billion by the end of 2030. It further predicts that maximum growth will arise from Asia countries, by the end of 2030, Asia will constitute around 66% of the global total middle-class population, and will account for around 59% of the total middle-class consumption at the global level, in comparison to 28% and 23%, as observed in 2009. In addition, the color cosmetics market is highly competitive and provides lucrative opportunities for high revenue generation for the new market players who seek to set up their bases in these regions.
Source: OECD, rising global middle class, in billion, 2009, 2020, 2030
The current novel coronavirus infection scenario has impacted the sales of skin care and makeup products including color cosmetics in a negative manner. This is due to the fact that consumers switched to essential consumer goods and this has resulted in a decline in the purchase of color cosmetic products. Furthermore, with the closure of beauty-product outlets, due to COVID-19, maximum sales of beauty products were restricted, hence, the market is predicted to experience a decline in 2020.
The growing cosmetic industry at the global level is further augmenting the market growth in the forecast period. The global cosmetics industry is considered to be quite dynamic and is driven mainly by the strong consumption growth potential. This is further attributed to the growing number of elderly citizens who are in constant search for products that fulfill their aspirations and their desire to remain beautiful. Also, the adoption of color cosmetics is widely been observed among young women at the international level. The major reason being, these women are highly interested in exploring a range of cosmetic products that are available in the market. Many independent brands have come up providing a range of innovative color cosmetic product portfolios and are contributing to meet consumer demands. Every new brand has a new idea of remaining beautiful, thus, gaining huge traction by women, young or old, further providing an impetus in propelling the global color cosmetics market growth along with the growth of the cosmetic industry. In addition to cosmetic products, it has been noticed that unique and attractive cosmetic packaging is also gaining attention as this strategy is helping manufacturers to trigger impulse buying among the customers worldwide.
Source: The World Bank, population aged 65 years and above, % of total population, 2016-2019
Furthermore, with the increasing penetration of e-commerce retailing along with the increasing internet penetration, the market is projected to grow at a significant pace during the forecast period. This is attributed to the fact that with the growing digitization, consumers find it quite convenient to shop online and with the provision of safe payment options. The increase in online sales is propagating due to the surge in the adoption of portable electronic devices like smartphones, tablets, and other mobile gadgets.
The younger generation is highly influenced by the digital mode of purchase and are contributing to soaring the sales of color cosmetics online. Additionally, many retailers in the world are moving to create an online platform for their beauty products apart from having an offline store. Hence, this has provided an alternative for consumers with a busy schedule.
ABOUT THE AUTHOR:
Vibha Saklani is a Market Research Analyst at KSI, working on the estimates and global reports on multiple industries spanning from IoT to food and beverages, with a special knack for healthcare, medical devices, and related markets. With the addition of her formal education in Biotechnology and having a research background, she is able to shed more light on the detailed analysis of the story. To read more articles by her, and for more information regarding multiple global markets, visit www.knowledge-sourcing.com.
