The global prestige cosmetics market size is expected to reach USD 27.77 billion by 2028, registering a CAGR of 3.1% over the forecast period, according to a new report by Million Insights. Increasing consciousness about beauty and appearance has been the major factor responsible for the high demand for prestige cosmetics in the global market. Owing to the high product demand, various manufacturers are changing advertising strategies and product branding to accelerate their sales. Thus, the market is estimated to have a steady growth over the forecast period. Product innovations and technological advancements by key players will also contribute to market growth.
Key players are focusing on providing the best-quality products; thus, the luxury segment is expected to witness significant growth during the forecast period. Due to the COVID-19 pandemic, product sales dropped drastically. For example, according to Jon R. Moeller, who is vice chairman of P&G, the Japanese brand of prestige cosmetics, the sales were declined drastically in the third quarter of the year 2020. Hence, the financial status of various cosmetics sectors had been jeopardized due to the outbreak of COVID-19. The decorative cosmetics segment accounted for the largest revenue share of over 61% in 2020 owing to the increased demand.
Decorative cosmetics are used to enhance the appearance. These products include nail polishes, foundation creams, lipsticks, pressed powders, mascaras, etc. Also, a growing number of celebrity endorsements and advertisements on various social media platforms has increased the demand for decorative cosmetics. The offline distribution channel segment dominated the market with the highest revenue share of more than 70% in 2020. The demand for prestige cosmetics is rising among customers due to the sustainability offered by these stores than any other channels.
The ease of hard cash transaction services and trustworthy relationships with domestic consumers are the other key factors that propel the segment growth. North America dominated the global market and accounted for more than 43% of the overall revenue share in 2020 due to the high product demand in the U.S and Canada. Increasing purchasing power of consumers in this region is another major factor boosting the market growth. In addition, a rising number of working individuals is also boosting the product demand in the region.
The report “Prestige Cosmetics Market Size, Share & Trends Analysis Report By Product (Decorative, Luxury Cosmetics), By Distribution Channel (Online, Offline), By Region (North America, APAC), And Segment Forecasts, 2021 - 2028” is available now to Million Insights.
Million Insights has segmented the global prestige cosmetics market on the basis of product, distribution channel, and region: