In 2031, the global cosmetics market will be worth $663 billion

By 2031, the global cosmetics market is projected to be valued at $663 billion (€613 billion), with an annual growth rate of 5%, as stated in a report by market research company Transparency Market Research.

The worldwide beauty sector, which is set to reach $451 billion by the end of 2023, compared to $432 billion the previous year, will be particularly boosted by the rapidly growing skincare segment, as well as the rise of the Asia-Pacific region.

The highly promising skincare segment

Desire for self-care, which has been reinforced during the pandemic and successive lockdowns, growing interest in natural beauty products, global aging of the population, and widespread use of sunscreen products; these are just some of the major trends driving the skincare market. This market alone is expected to reach $256 billion by 2031, representing an average annual growth rate of 4.6%.

Over the forecast period, the Asia-Pacific region holds the largest share of the global cosmetics market. The region is set to continue experiencing strong demand for makeup products, haircare products, and fragrances. The rise in living standards and new consumer expectations will particularly drive the market in China and India.

Asia-Pacific bolstered by e-commerce

In the region, e-commerce is also expected to continue playing a key role. According to the World Economic Forum, the Asia-Pacific region already accounts for 60% of global online sales, and this figure is projected to double by 2025, reaching $2 trillion. This trend is also benefiting the cosmetics industry. Additionally, according to Transparency Market Research, mergers and acquisitions in the beauty sector could accelerate in this region.

Until 2031, Europe is expected to experience what is described as stable growth. As the largest market for natural cosmetic ingredients, China could notably benefit from the increase in global demand.