Over the past few years, increasing consumer awareness towards personal hygiene and health has boosted sales and now growing concerns regarding skin care is particularly fuelling the robust growth across all market segments and geographies.
Increasing demand for organic and natural cosmetic and toiletries products is also creating new growth opportunities in this field which is encouraging the emergence of new market players in this arena.
Cost effective
One of the major reasons behind the considerable growth of the global cosmetic and toiletries industry is the shifting of production units to cost effective Asian economies like India and China.
There is also the emergence of new distribution channels, like online retailing, that are also driving the growth.
Whilst the worldwide market for cosmetics and toiletries products was severely affected by the economic downturn, the global economy is recovering, and Transparency Market Research projects a significant growth will help it to reach a value of $19.2 billion by the year 2015.
It will not all be plain sailing however, as difficulty in obtaining credit and weakening consumer confidence are affecting consumer spending on cosmetics which is one of the major challenges faced by the industry.
Potential growth
Presence of large domestic markets is helping emerging economies to recover from the economic crisis, and this holds greater promise for strong growth in the future, according to the market researcher.
The US and Europe is the largest market for sun care and skin care products, as well as for natural and organic ingredients despite the high cost.
The major reason behind this increased demand of organic products is better health benefits offered by these products. Rising environmental concerns, the carcinogenic nature of synthetic cosmetic ingredients, and the increasing awareness about sustaining resources are some of the major factors propelling the growth of organic and natural ingredients in the cosmetic industry, says TMR.
SkinCare Ingredients 2013
This summer sees the return of the annual SkinCare Ingredients Virtual Trade Show, with its dedicated educational programme, providing insight into the current state of the market.
For more information on the upcoming show on June 12, 2012, and to register for free click here