“Beauty is only skin deep” might have been relevant in olden times. But as of 2021, the global skin care industry was valued at nothing less than $130.50 billion. According to Precedence Research, the global skin care products market size is predicted to surpass around $204.62 billion by 2030.
A recent study by Grand View Research revealed that the market for global beauty products for skin is set to grow at an annual CAGR of 4.6% from 2022 to 2030.
The Global Skin Care Market
Demand for face creams, sunscreens, and body lotions have always been consistent across the world. However, in the coming years, the industry is expected to balloon giving e-commerce a much-needed boost.
During Covid-19, the beauty products industry suffered colossal losses as shops had to be shut down and strict lockdown measures prevented customers from trying new products. Experts estimate a 60-70% decrease in sales from March – April 2020 globally. In the US, personalized skin care and facial care products have gained traction as people become environmentally-conscious and aware of chemicals used in beauty products.
Concerned about skin disorders and malignancies that arise as a result of prolonged use of chemicals, customers are switching to products with natural ingredients. As of 2021, the female segment had the biggest market share at 60% but the male segment is projected to rise by a CAGR of 5% from 2022 to 2030. Growing awareness amongst men about hygiene and grooming has led many to trying out beauty products fueling an expansion of men’s skin care products. Demand for anti-ageing creams and sunscreens are set to grow substantially in the coming months.
The Hallyu Wave and K-beauty
It is no secret that Korean TV series and Korean pop culture, also known as K-pop, has fueled a craze for K-beauty products that shows no signs of slowing any time soon. South Korean beauty products, often called K-beauty products, have long been lauded for their high beauty standards and use of natural ingredients. It is no secret that Koreans follow a rigorous beauty regime complete with multiple skin care products.
As the market is constantly innovating and launching new products, there is no dearth of skin care items that fit one’s skin type and needs.
In 2021, the K-beauty product market was set to be worth $10.3 billion and is expected to more than double at $20.8 billion by 2026. It is set to grow at a CAGR of 11.3% between 2021 and 2026. South Korea was the fifth largest exporter of cosmetic products at $8.5 billion in 2021. Global brands have taken notice of changing trends and either bought a stake in Korean cosmetic companies or invested in one. These include brands like Estee Lauder, Unilever, NIVEA, and L’Oreal.
Most K-beauty products are known for its use of unique and exotic ingredients, including but not limited to snail slime, bee venom, starfish extract, and pork collagen. A lucrative industry, the Korean wave has turned K-beauty products into a lucrative industry with customers around the world. People have also been enticed by Korean skincare as it focuses on prevention, which makes it more effective than Western techniques.
K-beauty products also vary based on skin type and seasons. This customized approach is a big draw for customers with sensitive skin as they are able to find products that cater to their individual needs. Korean beauty products focus on treating and prepping the skin as a clean canvas for makeup.
A systematic skin care routine to achieve a natural glow is one of the basic goals for most women. The increased consumption of Korean skin care and beauty products have created a niche market for both men and women. Advertisements by popular Hallyu stars and tutorial videos by influencers have generated great interest amongst discerning customers, leading to the growth of K-beauty products.
