Cosmeceuticals Market Research Report and Outlook by 2028

The global cosmeceuticals market, including India, is projected to expand from approximately US$ 45,916.66 million in 2021 to around US$ 81,753.36 million by 2028, reflecting a compound annual growth rate (CAGR) of 8.7% from 2022 to 2028.

This report outlines the current trends and key factors propelling market growth. The surge in demand for anti-aging products and the increasing popularity of male grooming items are significant contributors to this growth. However, the ongoing effects of the COVID-19 pandemic pose challenges to the market's expansion.

A primary driver of the cosmeceuticals market is the growing consumer preference for natural and nutrient-rich products that address health and beauty needs. Additionally, the aging demographic, rising consumer expenditure, and heightened beauty awareness are further bolstering sales. Notably, individuals aged 30 to 45 exhibit a strong demand for these products. Over recent decades, a decline in mortality rates has contributed to a larger aging population worldwide. As people live longer, their desire to maintain a youthful appearance significantly influences global market growth. The increasing need for anti-aging solutions to combat issues such as hair damage, uneven skin tone, age spots, dry skin, and wrinkles is evident. This demand fosters opportunities for innovation and new product introductions within the cosmetic sector, prompting manufacturers to concentrate on active anti-aging skin care products.

Another vital factor driving growth in the global cosmeceuticals market is the evolving culture of male self-care. The share of male consumers in overall sales is expected to rise, driven by a growing interest in anti-aging and acne treatment products among men. Influencers and brands are actively working to challenge the outdated belief that men should avoid self-care practices. The market is likely to see further segmentation in men's grooming, especially in developed regions, presenting opportunities for substantial growth. In the skincare category, products tailored for various skin types and stubble lengths are anticipated to gain traction. Although the number of product launches aimed at men remains lower than those for women, this disparity is expected to diminish over time.

Conversely, the COVID-19 pandemic and stringent regulatory requirements are hindering the overall growth of the cosmeceuticals market. The recent health crisis has compelled governments globally to implement strict measures to curb the virus's spread. With many individuals advised to remain indoors, businesses are adapting to remote operations. Despite a slowdown in manufacturing, demand for certain cosmeceuticals continues to rise. Marketing efforts through beauty endorsements, indoor promotions, and the influence of online personalities have unveiled significant growth potential. However, a notable challenge remains the supply-demand imbalance. As manufacturing restrictions are likely to ease, companies may seek to leverage this situation with the support of e-commerce platforms.

The lack of clear regulatory approvals and health claims is another barrier to the penetration of these products among health-conscious consumers. For example, in the U.S., the Federal Food, Drug, and Cosmetic Act (FD&C Act) does not officially recognize the term cosmeceutical, categorizing these products as cosmetics instead. The regulatory framework for cosmeceuticals is complex and less stringent than that for pharmaceuticals. Consequently, newly launched products often face uncertainty regarding regulatory reviews. This regulatory ambiguity can lead to the introduction of counterfeit products into the market, undermining the credibility of cosmeceuticals.

The cosmeceuticals market is categorized by application into segments such as skincare, hair care, oral care, and others. In 2021, the skincare segment dominated the market share and is projected to exhibit the highest CAGR from 2022 to 2028. Distribution channels for these products include supermarkets/hypermarkets, online retail, convenience stores, specialist stores, and other avenues. The supermarket/hypermarket segment held the largest market share in 2021, while the specialist stores segment is expected to show the highest growth rate during the forecast period. Age-wise segmentation includes pediatrics, teens, adults, and seniors, with the adult segment holding the largest market share in 2021, although the teen segment is anticipated to grow the fastest in the coming years.

Companies in the cosmeceuticals market are employing various organic and inorganic strategies to enhance their presence. Organic strategies primarily involve product launches and approvals, while inorganic growth strategies include acquisitions, collaborations, and partnerships. These strategies enable market players to broaden their operations and improve their geographical reach, thereby contributing to overall market growth. Additionally, acquisitions and partnerships help strengthen customer bases and expand product offerings. Notable developments by key players in the cosmeceuticals market include:

- In January 2020, Allergan plc introduced the SkinMedica Instant Bright Eye Cream, designed to hydrate, brighten, and visibly firm the delicate skin around the eyes. This product aims to enhance the appearance of the eyes immediately while also addressing signs of aging and fatigue over time, including dark circles, fine lines, and sagging eyelids.

- Key sources referenced in the preparation of this report include the American Academy of Dermatology (AAD), the National Institute of Dental and Craniofacial Research (NIDCR), the Food and Drug Administration (FDA), the International Diabetes Federation (IDF), and the International Association of Oral Medicine and Toxicology (IAOMT).