The global prestige cosmetics and fragrances market size was estimated at USD 72.8 billion in 2020 and is expected to expand at a CAGR of 4.3% from 2021 to 2028. The growing consumer focus towards grooming and personal appearance is considered to be the major driving factor for the market growth across the globe. Moreover, rising brand recognition and influence of prestige cosmetics and fragrances through social platforms are further projected to propel the market growth over the forecast period. The increasing awareness regarding the prestige ingredients and their positive effect on skin supports the inclination of consumers towards the product. However, rising availability of different varieties in mass produce products further projected to restrain market growth during the forecast period.
The Covid-19 pandemic has negatively impacted the global cosmetics & fragrances market due to the disruption in the supply chain, manufacturing, and government restrictions on opening retail stores across the globe. Moreover, the major players in the market experienced a decline in the sales revenue of cosmetics and fragrance products during the Covid-19 pandemic that further impacted the market. For instance, Estée Lauder Companies Inc. reported fragrance net sales decreased 13% in fiscal 2020, due to the challenging environment as a result of the COVID-19 pandemic. However, the global prestige cosmetics & fragrances market is projected to recover in the future and witness strong growth due to resumed activities including trade, and manufacturing across the globe.
The offline distribution channel segment dominated the market and accounted for the largest revenue share of around 70.0% in 2020. The major factor that contributed to the major share of the segment includes the high fondness of customers towards offline retail stores for cosmetics & fragrances products. Moreover, the easy availability of cosmetics & fragrance products in brick-and-mortar retail stores, including department stores, specialty-multi retailers, upscale perfumeries and pharmacies, and prestige salons and spas supported the expansion of revenue through the offline channel segment.
The online distribution channel is expected to register the fastest CAGR of 4.6% from 2021 to 2028. The major factor that propels the market growth includes the increasing e-commerce industry in emerging economies. In emerging economies, the online channel is gaining traction for beauty browsing and shopping. Moreover, the growing partnership between major e-commerce companies and prestige personal product manufacturers in emerging economies further projected to provide ample opportunities to the market in the near future.
The prestige fragrance segment dominated the market and accounted for the largest revenue share of more than 40% in 2020. The segment is expected to witness a CAGR of 4.3% from 2021 to 2028. The significant demand for fragrance products among celebrities and millennials supported the major market share. Moreover, increasing product development and innovation by the fragrance manufacturers are further creating significant opportunities for the market in the future.
The prestige skin care segment is expected to witness the highest CAGR of 4.7% from 2021 to 2028. The rising awareness regarding prestige skincare products and their positive effect on the skin is further acting as a driving factor during the forecast period. Additionally, growing financial freedom among women and beauty perception among men are other significant factors contributing to the skincare products demand over the forecast period.
North America dominated the prestige cosmetics and fragrances market and accounted for the largest revenue share of more than 40.0% in 2020. The U.S. is positively contributing to the growth of market revenue. The easy availability of the global prestige brands such as L’Oréal, Estée Lauder, Clinique, Chanel, and Mary Kay and others further contributed significantly to the market growth. Additionally, the presence of well-established offline retail chain for prestige cosmetics and fragrances in the US is another factor that drives the market.
In Asia Pacific, the market is expected to witness the highest CAGR of 4.8% from 2021 to 2028. China, Japan, and India are positively contributing to the growth of the market. The major factors that propel the market growth include the growing consumer spending on beauty products and the increasing trend of premium cosmetics & fragrances products among celebrities. Moreover, the significant growth in the per capita income in emerging countries such as China, India, and others further supporting to the growth of the market during the forecast period.
The market is characterized by the presence of various well-established players and several small and medium players. Vendors are focusing on product launches to meet consumer’s expectations considering new trends in the market. Additionally, vendors are trying to innovate new cosmetics and fragrance products to increase sales from the cosmetics & fragrances segment. Moreover, vendors are expanding to new geographic locations to increase the customer base. Some of the prominent players in the prestige cosmetics and fragrances market include:
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Report Attribute |
Details |
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Market size value in 2021 |
USD 75.1 billion |
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Revenue forecast in 2028 |
USD 100.8 billion |
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Growth Rate |
CAGR of 4.3% from 2021 to 2028 |
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Base year for estimation |
2020 |
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Historical data |
2017 - 2019 |
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Forecast period |
2021 - 2028 |
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Quantitative units |
Revenue in USD million and CAGR from 2021 to 2028 |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
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Segments covered |
Product, distribution channel, region |
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Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
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Country scope |
U.S.; Germany; France, U.K.; China; India; Brazil; South Africa |
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Key companies profiled |
Johnson & Johnson; Procter & Gamble Company; Unilever PLC; L’Oréal S.A.; Kao; Estée Lauder Companies Inc.; Shiseido Company, Limited; Coty Inc.; Beiersdorf; AmorePacific |
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Customization scope |
Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional, and segment scope. |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Million Insights has segmented the global prestige cosmetics & fragrances market report on the basis of product, distribution channel, and region:
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