by Cosmetic serums are concentrated formulas used to deliver active ingredients to the skin and are considered an important part of the skin care routine. These serums are applied after cleansing and toning and before moisturizers. They contain hydrating and repairing ingredients like hyaluronic acid, retinol, vitamin C and peptides that help improve skin texture, tone, reduce signs of aging and acne. The growing skin care industry has evolved consumer preferences towards targeted, multi-functional skin care products driving the demand for cosmetic serums globally.
The global cosmetic serum market is estimated to be valued at US$5.43 Bn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
The key drivers propelling the growth of the cosmetic serum market include the growing skin care industry as well as rising demand for targeted products that provide multi-functional benefits. As highlighted in the market heading, the expanding skin care industry has led to evolved consumer preferences towards high performance skin care products. Cosmetic serums are considered highly effective in improving various skin conditions and addressing specific concerns like aging, pigmentation and acne. This has driven their demand manifold. Furthermore, the key ingredient driving the cosmetic serum market is hyaluronic acid known for its hydrating properties. This assists in reducing signs of aging like fine lines and wrinkles along with boosting skin elasticity and collagen production. Rising environmental pollution levels along with sedentary lifestyle are contributing to various skin conditions among younger population as well, thereby expected to augment the demand for anti-aging cosmetic serums.
Segment Analysis
The cosmetic serum market is dominanted by the skin care segment with a share of over 55%. This is because serums are increasingly being used by consumers as an essential part of their daily skincare routine to address specific skin concerns such as wrinkles, fine lines, uneven skin texture, dark spots, and more. Changing lifestyle patterns have led to increased pollution exposure and stress levels which have majorly contributed to various skin issues among consumers globally. This rising prevalence of skin problems is driving the demand for targeted serums.
PEST Analysis
- Political: The regulations on the manufacture and marketing of cosmetic products are becoming more stringent worldwide. For example, regulations in the EU have banned the use of certain ingredients in cosmetics. This is impacting innovations.
- Economic: With rising income levels and increasing consumer spending on personal care products, the demand for premium beauty products like serums is growing. However, economic slowdowns can negatively impact the discretionary spending on such items.
- Social: Changing social media trends are influencing purchase decisions. People extensively research product reviews and recommendations online before purchasing cosmetic items. This new online research behavior is encouraging new product innovations.
- Technological: Advanced formulations leveraging ingredients like hyaluronic acid, retinol, peptides, vitamins, and antioxidants are gaining popularity. Technologies facilitating small batch manufacturing and customization as per consumer needs also present new opportunities.
Key Takeaways
The global cosmetic serum market is expected to witness high growth. The global cosmetic serum market is estimated to be valued at US$ 5.43 Bn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030.
Regional analysis comprises: North America dominates the market currently due to heavy consumption of premium beauty products for skin rejuvenation. The Asia Pacific region is expected to be the fastest growing market in the coming years led by strong growth in countries like China, India and South Korea where rising incomes are contributing to increased spending on personal care items.
Key players operating in the cosmetic serum market are L’Oréal S.A., Estée Lauder Companies Inc., Shiseido Company, Limited, Procter & Gamble Co., Johnson & Johnson Services, Inc., Beiersdorf AG, Unilever PLC, The Body Shop International Limited, Kao Corporation, Colgate-Palmolive Company, Amway Corporation, Avon Products, Inc., Mary Kay Inc., Clarins Group, Coty Inc. Research and development of vegan, cruelty-free, toxin-free formulations with natural components is among the focus areas of key players to cater to evolving consumer preferences.
