The beauty and personal care industry exceeded expectations in 2023, driven by the mass and premium segments, key beauty categories, premiumisation in personal care categories and rising consumption. The largest engines of growth were skin care, Asia Pacific, beauty specialists and e-commerce, and dermocosmetics. Wellness, ingredients and value creation are set to be key trends in 2024, as well as sustainability and artificial intelligence.
This report comes in PPT.
Skin care made up almost a quarter of total beauty and personal care’s absolute value gains in 2023, driven by dermocosmetics and facial care but also by premiumisation trends in body care. Heightened demand for clinically-positioned products and medical beauty drove dermocosmetics, given the segment’s focus on solutions and prevention.
Asia Pacific accounted for almost a third of the global market in 2023. Beauty and personal care in Asia Pacific rebounded 3% in 2023, stemming in large part to China’s 3% growth. Asia Pacific is expected to be a key force behind premium beauty and personal care into 2028, driven by the larger beauty markets of the region but also emerging markets of Southeast Asia.
Colour cosmetics and fragrances registered the next-highest gains after skin care in 2023. Demand for formulations with skin health benefits and growth in key categories such as foundation/concealer but also other facial make-up such as primer serums, while unisex, premium and sets/kits boosted fragrances, which benefited from strong association with wellness.
Beauty specialists witnessed double-digit growth in 2023 globally, fuelled by expanding appetites for fragrances, skin care and colour cosmetics. E-commerce grew high-single digits, benefiting from consumers’ increasing comfortability ordering skin care online in mass and premium.
The beauty and personal care industry in 2024 will continue to see polarisation of spending but also more optimism as consumers pivot to wellness-positioned products and look for features that add value. Ingredients will still be top of mind, but sustainability and AI adoption will further transform the industry.
This is the aggregation of baby and child-specific products, bath & shower, deodorants, hair care, colour cosmetics, men's grooming, oral hygiene, fragrances, skin care, depilatories and sun care. Black market sales and travel retail are excluded.
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