TAGS: Sustainability / Natural Cosmetics Skin Care Hair Care Decorative Cosmetic
According to Grand View Research, the global cosmetic oil market size is to be valued at USD 72.28 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 5.2% during the forecast period.
Factors Driving the Market
Cosmetic oils include carrier oils like almond, coconut, and essential oils. Various properties, such as
antimicrobial,
moisturizing, and
anti-inflammatory, of these oils are projected to fuel their demand over the anticipated years, thereby driving the market growth. Moreover, the high demand for organic and natural beauty products is expected to boost the demand further.
Cosmetic oils are used in hair and skin care products in the form of hair, facial oils, and elixir oils and as the
major ingredient in lipsticks, lip balms, moisturizers, and serums. Increasing demand for hair products containing beauty oils, such as argon oil, which
help cure problems like dandruff, dry scalp, etc. will drive the market further.
Increasing demand for natural ingredients is boosting product demand. The aesthetic benefits offered by such oils are also driving their demand in the beauty segment. Recently Bio-oils has emerged as a substitute for chemical-based face creams due to their ability to reduce hyper-pigmentation, scars, stretch marks, and dry skin.
With rising consumer expectations about the ingredients used in cosmetics, strong growth in the markets for natural and organic cosmetics can be seen over the next few years. Companies, such as Innisfree, Farsali, Khadi, and Biotique, are taking initiatives to thrive in the market by introducing a variety of essential oils and cold-pressed facial and hair oils.
In addition, rising skin problems due to pollution, hormonal imbalances, genetic disorders, etc., are also expected to drive the demand further. Increasing demand from the facial oil industry is also expected to people the market growth over the years to come.
Market Trends
The market is driven by the rising demand for hair products composed of natural oils like argan and coconut oil due to their benefits in the treatment of dandruff, receding hairlines, dry scalp, and other issues. The increased demand for natural ingredients products is also driving the market.
Cosmetic oils are known to treat hyperpigmentation, stretch- marks, and scars. Bio-oils have become popular as a potential substitute for additives in face cream. Many industry players such as Biotique, Forest essentials, and L'Oréal have already entered the industry with their range of natural or organic products.
In addition, in recent years, the trend of organic and certified natural products has grown in the cosmetics industry, it represents an opportunity for companies involved in the industry. The cosmetics oil market is set to gain massive traction as cosmetic products made from various vegetable oils are becoming more innovative.
Product Insights
The coconut oil product segment is expected to witness favorable growth over the forecast period on account of high demand from the APAC region, especially India. These oils have vast application scope within the cosmetic industry resulting in an inflated demand from countries, such as South Korea, India, and Japan. Various well-established and emerging brands have started using coconut oil due to its natural properties.
For instance, Farsali manufactures facial oils, which is a trending product among makeup artists across the globe. Olive oil is anticipated to be the second-fastest-growing product segment at a CAGR of 5.5% over the forecast period. This growth can be attributed to high demand due to the unique anti-inflammatory properties of this product.
L’Oreal introduced a hair spa range with olive oil as its main ingredient along with 6 oil nourish oil-in-cream. Essential oils, such as orange, lemon, and peppermint, are extracted in essence form and are used to prepare cosmetics and personal care oils by various companies.
Orange oil segment is a popular product under essential oils, apart from lemon oil, which is used in various vitamin C-based face serums. Other oils include avocado, Moroccan, and argan oil. Avocado oil has vitamins B and E and is a rich source of anti-oxidants thus making it a crucial ingredient in hair serums for preventing hair loss and in face masks for restoring skin balance.
Regional Insights
The rising number of companies like Patanjali and Farsali and evolving cosmetics technology are expected to drive the global market over the forecast period. Leading U.S.-based cosmetic manufacturers, such as L’Oreal, Coty, and Avon, have started producing elixir oils in the personal care segment, which will also contribute to the market development. In terms of value, Asia Pacific is anticipated to witness the highest CAGR of 5.8% from 2019 to 2025.
Moreover, new product launches like Indulekha hair oil utilize the essence of the Bringhraj plant due to its properties to reduce hair fall and regenerate hair growth, which is anticipated to promote the growth of the regional market. South Korea’s cosmetic market is one of the significant sectors driving the APAC region and is the largest importer of the same. UAE is one of the emerging countries in the market. The country’s cosmetic market accounts for the major share of the total share in the Middle East. Companies like Huda Beauty and Farsali have entered the regional market promoting product usage.
The global market is moderately fragmented with companies like L’Oreal, Unilever, Coty, Shiseido, and Innisfree. Cleansing facial oils are gaining popularity and are in demand due to their formulation and cleansing properties. Recently, Estee Lauder launched a variety of facial serums containing natural oils as the main ingredient for an all-purpose skincare regime.
Developments
L’Oreal announced its third-employee stock ownership, which will be implemented in 63 countries, giving all of its employees the to become more involved in the growth of the company. LVMH, Natura & Co., Henkel, L'Oreal, and Unilever have collaborated to establish a method for assessing and ranking the environmental effects of the cosmetics industry.
Symrise Cosmetic Ingredients introduced a 'Beauty Activations' brand accelerator project to work with cosmetics companies in North America. Brands will receive access to in-depth marketing analytics, specialized formulas, and an award-winning ingredient range owing to the collaboration with Symrise via the Beauty Activations platform.
Source: Grand View Research
