Despite issues in global trade and worldwide economic uncertainties, the overall trajectory for the premium cosmetics market is largely positive, the market research firm finds. In the past few years, premium cosmetics brands have made substantial shifts in business strategy, which has been influenced by a number of factors including higher disposable incomes for the middle class, demand for high-efficacy products, finances for women and consciousness about aesthetics among men.
The online channel of distribution is set to register a higher CAGR of roughly 8% during the forecast period. This growth can be attributed to rising use of the internet, ease of online product comparisons, and easy availability of a wider range of products prior to purchase. On the other hand, offline distribution channels will hold a larger market share of about 90%, which will continue through the foreseeable future.
East Asia, South Asia and Oceania regions will cumulatively account for the largest and fastest growing regions for premium cosmetics products with CAGRs of roughly 7% and 8%. Such prolific growth will arise from developing economies which are witnessing higher demand for premium cosmetics, particularly from Japan and China.
“Increasing consumer spending on exclusive and superior quality products along with an accelerated internet retailing impetus, drives the growth of premium cosmetics market across the globe,” said the Fact.MR analyst.
Competitors Push for Product Development to Bolster Consumer Base
The global premium cosmetics products are largely an oligopoly, with major players such as Estee Lauder and L’Oréal holding control over most of the market developments. These companies are increasing their efforts towards tech innovations, mergers, acquisitions and new products to diversify and boost their geographic footprint. However, issues of high pricing and the widespread influx of counterfeit products, will continue to hamper the industry.
Read More: Global Premium Cosmetics Market Expected To Grow At A CAGR Rate Of 7% By 2029: FactMR