Premium Cosmetics Market Report 2025

The premium cosmetics market size has grown strongly in recent years. It will grow from $142.9 billion in 2024 to $156.9 billion in 2025 at a compound annual growth rate (CAGR) of 9.8%. The growth in the historic period can be attributed to changing consumer preferences, brand recognition and prestige, rise of influencer marketing, increased disposable income, luxury shopping experience.

The premium cosmetics market size is expected to see rapid growth in the next few years. It will grow to $235.04 billion in 2029 at a compound annual growth rate (CAGR) of 10.6%. The growth in the forecast period can be attributed to emphasis on personalization, rising demand in emerging markets, growing interest in sustainable beauty, impact of social and environmental values, e-commerce dominance. Major trends in the forecast period include holistic beauty and wellness integration, focus on inclusivity and diverse representation, experiential retail and immersive brand spaces, elevated packaging design, limited edition and exclusivity strategies.

The growing demand for natural cosmetics is anticipated to drive the expansion of the premium cosmetics market in the future. Natural cosmetics are products formulated entirely from natural ingredients, containing only minimal amounts of synthetic additives like petrochemicals and parabens. Due to concerns about health risks associated with chemicals such as parabens, phthalates, and sodium lauryl sulfate, consumers tend to view natural compounds as safer options for both personal health and environmental sustainability. For instance, in December 2023, the India Brand Equity Foundation, an India-based organization, reported that the global cosmetics industry is growing at a compound annual growth rate (CAGR) of 4.3% and is projected to reach $450 billion by 2025. Consequently, the increasing demand for natural cosmetics is expected to significantly boost the growth of the premium cosmetics market.

The growth trajectory of the premium cosmetics market is anticipated to be propelled by an upswing in personal income. Personal income, encompassing the total earnings of an individual or household from all sources before tax deductions, significantly influences consumers' purchasing power and their inclination to invest in high-end beauty products. As an illustration, in August 2023, the Bureau of Economic Analysis, a US-based government agency, reported a noteworthy increase of $87.6 billion (0.4 percent at a monthly rate) in personal income in the United States. Consequently, this uptick in personal income becomes a driving force behind the expansion of the premium cosmetics market.

Product innovations have emerged as a prominent trend gaining traction in the premium cosmetics market. Major companies operating in this sector are strategically focusing on innovative product development to secure a competitive advantage. An example of this trend is seen in Proven Skincare, a US-based developer of skincare products, which launched its first personalized eye cream duo in May 2022. The duo, consisting of Personalized Day Eye Cream and Personalized Night Eye Cream, utilizes Artificial Intelligence (AI) and big data to create personalized formulations tailored to each individual's skin type, lifestyle, and environmental conditions.

Companies in the premium cosmetics market are also intensifying their efforts to introduce new cosmetic collections in emerging countries, aiming to enhance their competitiveness. New cosmetic collections refer to recently launched sets of beauty and skincare products, often curated to align with prevailing beauty trends, seasonal themes, or specific consumer needs. For instance, in November 2022, Alix Avien Paris, a Turkey-based cosmetic company, unveiled premium beauty and cosmetic products in India, encompassing skin makeup, eye makeup, lip makeup, and nail products. This strategic launch is anticipated to provide Indian consumers with access to high-quality imported makeup products.

In January 2024, Puig, a Spain-based fashion and beauty company, acquired Dr. Barbara Sturm for an undisclosed sum. This acquisition is intended to bolster Puig's portfolio in the high-end skincare sector. Dr. Barbara Sturm is renowned for its innovative and effective skincare products, especially those that leverage science and technology to tackle a variety of skin concerns. Dr. Barbara Sturm operates as a skincare company based in Germany.

Major companies operating in the premium cosmetics market include Johnson & Johnson Services Inc., LVMH Moët Hennessy Louis Vuitton SE, The Procter & Gamble Company, Christian Dior SE, Unilever plc, L'Oréal S.A., Henkel AG & Co KGaA, KAO Corporation, Chanel S.A., The Estée Lauder Companies Inc., Amway Corporation, Shiseido Company Ltd., Natura & Co, Ralph Lauren Corporation, LG Household & Health Care Ltd., Coty Inc., Amorepacific Corporation, Mary Kay Inc., Avon Products Inc., Yves Rocher Spol. S.R.O., Kose Corporation, Beiersdorf AG, Revlon Inc., Oriflame Cosmetics Global SA, Charlotte Tilbury Beauty Ltd., La Prairie Group AG, Groupe Clarins, Sisley Paris.

Asia-Pacific was the largest region in the premium cosmetics market share in 2024. Asia-Pacific is expected to be the fastest growing region in the forecast period. The regions covered in the premium cosmetics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the premium cosmetics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Premium cosmetics denote cosmetic products made from organic and high-quality components, sold at a higher price compared to their drugstore counterparts. In response to consumer demand and a shift toward more environmentally friendly raw materials, companies are substituting synthetic chemicals with natural components. These premium cosmetics not only enhance our mood, improve our appearance but also boost our self-esteem.

Premium cosmetics encompass different categories such as skin care, hair care, fragrances and perfumes, sun care, baby care, and others. The skin care market includes premium cosmetics designed to protect the skin, incorporating various procedures to maintain skin integrity, enhance appearance, and address skin disorders. Common prescriptions for skincare include tretinoin, topical vitamin C, regular sun protection, and various skin moisturizers. Premium cosmetics consist of natural, organic, and conventional ingredients, distributed through offline and online channels, catering to males, females, and unisex consumers.

The premium cosmetics market research report is one of a series of new reports that provides premium cosmetics market statistics, including premium cosmetics industry global market size, regional shares, competitors with a premium cosmetics market share, detailed premium cosmetics market segments, market trends and opportunities, and any further data you may need to thrive in the premium cosmetics industry. This premium cosmetics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The premium cosmetics market consists of sales of foundation creams, lipsticks and eye makeup. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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