The cosmetics market remains a supply-led market driven by innovation, where consumers are always on the look-out for quality, performance and perceived results. The global cosmetics market is worth nearly €230 billion(1). It is a particularly robust market that has demonstrated a certain resilience in the current crisis and which has recovered strongly overall. The cosmetics consumer always looks for quality and novelty value, and puts a premium on leading-edge technology, trends and new ideas.
GLOBAL COSMETICS MARKET IN 2021(1)
BY GEOGRAPHIC ZONE
BY PRODUCT CATEGORY
In 2021, the beauty market grew by around 8%, almost regaining its 2019 level.
After 2020, when many points of sale and hair salons were closed, in 2021 points of sale reopened almost completely and online sales increased. The different distribution universes of the beauty market suffered contrasting effects, as did the different regions.
In effect, general public products, offered in mass-market retail channels were relatively spared during the crisis and growth was stable in 2021, at near-record levels; while luxury products were more heavily impacted by the closing of department stores and other selective channels, and so the recovery in this segment was more marked in 2021. Similarly, Travel Retail suffered greatly from the drastic drop in air traffic, and is still far from pre-crisis levels. Professional products declined sharply in volume due to salon closures; they also recorded a significant catch-up effect afterwards.
The Dermocosmetics segment stood out significantly, as its 2020 growth continued in 2021, driven by the strong demand for health-related products prescribed by dermatologists.
In terms of product categories, 2021 saw positive trends continue for skin care; this category remains the leading contributor to the growth of the beauty market. Haircare also recorded a strong performance this year, as demand held up during the global crisis. However, the recovery in the make-up category is not yet sufficient to offset the decline associated with the crisis.
The level of economic recovery varied in different regions of the world, which therefore had an impact on the recovery of the market.
- Europe was the region most heavily impacted by the crisis, to a lesser extent in the countries of Northern Europe, and the recovery remains limited;
- In North Asia, in some countries, such as China, where the epidemic was more rapidly contained, the markets did not decline during the crisis and continued to grow in 2021. Other countries, however, followed the global trend;
- Having fallen sharply in 2020, the US market recovered strongly in 2021, exceeding 2019 levels;
- Other markets (Latin America, Africa and the Middle East) are pretty close to getting back to their pre-crisis levels.
The acceleration of digitalisation, in online sales, communication and in sales via social media, continued in 2021, but at a slower pace than in 2020.