Global Clean Beauty Market (by Product Type, Distribution Channel, & Region): Insights and Forecast with Potential Impact of COVID-19 (2023-2028)
- Published: 11th Nov 2023
- Pages: 147
- Format : Pdf
Market Insight:
The term "clean beauty" refers to a product that is non-toxic, free of harmful ingredients, and contains all of the ingredients listed on the label. Clean beauty does not shy away from synthetic (or lab-created) ingredients, as long as they are safe.
Consumers are paying close attention to product ingredients, which is driving a surge in demand for clean beauty products. Consumers have spent more time focusing on skincare rather than makeup in recent years, which has increased consumer awareness of product ingredients. The higher the growth, the higher the clean spectrum. Furthermore, younger consumers are slightly more likely to buy only clean products. The global clean beauty market value is expected to reach US$8.10 billion in 2023, growing at a CAGR of 12.13% over the projected period.
Segment Covered:
- By Product Type: In terms of product type, the report offers insights of the global clean beauty market into five segments: Skin Care, Hair Care, Cosmetics, Fragrances, and Others. Skincare segment occupied the largest share of the market, whereas cosmetics is expected to be the fastest-growing segment in the forthcoming years. The skin care market's growth is supported by the growing knowledge of the harmful effects of chemicals and synthetic products. Furthermore, the growing e-commerce sector is expected to enhance market growth even more.
The growth in clean cosmetics products accrued to rising disposable income and an increasing population. Moreover, rising financial independence among women and beauty consciousness among men are other significant factors contributing to product demand. Furthermore, the influence of clean cosmetics products with the help of social media is anticipated to further fuel the product demand during forecasted years.
- By Distribution Channel: On the basis of distribution channel, the report provides the segmentation of the global clean beauty market as follows: Speciality Stores, Hypermarkets & Supermarkets, Online, and Others. Specialty stores held the highest share of the market, whereas online is expected to be the fastest-growing segment in the forecasted period. Moreover, specialty retail stores such as Sephora and Ulta are becoming more popular with consumers of luxury beauty and cosmetics products. Also, specialty stores are popular as they let the consumer shop the way they want to shop, across brands. People's shopping power has been significantly affected by the internet distribution channel, which provides benefits such as doorstep delivery, simple payment options, substantial savings, and the availability of a wide range of products on a single platform. This may generate tremendous opportunities to fuel the global clean beauty market during the projection period.
Geographic Coverage:
According to this report, the global clean beauty market can be divided into four regions: Asia Pacific, Europe, North America, and Rest of the World. The countries covered in North America region are the US, Mexico, and Canada, while Europe includes Germany, France, UK, Spain, Italy, and Rest of Europe. Moreover, China, India, Japan, South Korea, and Rest of the Asia Pacific are included in the Asia Pacific region.
Asia Pacific held the maximum share of the clean beauty market. It is also expected to be the fastest-growing region in the forthcoming years. Given the increase in conscious consumers, brands are now being held accountable for their claims while also making an effort to cater to the shifting demand for clean beauty products. And this trend gives the power back to the consumers along with the brand to build a more sustainable environment. The concept of clean beauty is picking up in India. The demand for products that suit Indian skin types and hair, a need that largely remained unfulfilled by international brands, is increasing and providing the opportunity for local companies.
As sustainability continues to take center stage with beauty brands, trends like refill and reuse and dissolvable or zero waste beauty are gaining traction in Europe. Moreover, owing to its large consumer population, Europe’s clean beauty market is expected to continue to grow in the future.
Top Impacting Factors:
Growth Drivers
- Surging Gen Z and Millennial Population
- Increasing Social Media Influence and Digital Ad Spending
- Increasing Consumer Awareness towards Natural Products
- Growing E-commerce
Challenges
- Absence of a Regulatory Body or Industry-wide Standards
- Threat From Counterfeit Beauty Products
Trends
- Growing Integration of AR, VR, and AI in Beauty Industry
- Product Personalization
- Rising Demand for Eco-Friendly Products
- Search Engine Marketing
Driver: Increasing Consumer Awareness towards Natural Products
Consumers are paying close attention to the ingredients in products, which is driving strong demand for clean beauty products. Over the past couple of years, consumers have spent more time focusing on skincare versus makeup which has driven increased awareness of ingredients in products. Moreover, consumers gravitate towards brands that can provide products that are better for the environment along with brands that make sustainability-related efforts a part of their brand ethos. Thus, owing to rising consumer awareness and an increase in preference for clean beauty products have driven the market growth.
- Challenge: Absence of a Regulatory Body or Industry-wide Standards
The absence of a regulatory body or industry-wide standards means that the clean beauty landscape has been overrun with contradictory claims and ambiguity, all of which harm rather than help the movement. Indeed, the very definition of clean beauty is still being hotly contested by different brands across the spectrum. To some brands, it means using zero synthetic ingredients and to others, it is a mindful creation that is natural and clean. For instance, Sephora and Ulta Beauty have both created their own in-house certifications to define which products it deems as clean based on a list of no-go ingredients, which slightly differ from one another. This, companies that are entering the clean beauty market can, and are, using the term clean to mean a variety of things. This lack of uniformity is undermining consumer confidence in what products truly are safer. Thus, in the absence of a regulatory body or industry-wide standards, clean beauty has unwittingly become the victim of ambiguity and greenwashing. For clean beauty to go mainstream, consumers need to feel confident in their purchase decisions, which could be achieved through an industry-wide definition of terms.
- Trend: Growing Integration of AR, VR, and AI in Beauty Industry
Augmented Reality (AR) is the modification of a real-life environment through digital features such as visual, audio, or other sensory elements. Artificial Intelligence (AI) enhances this technology by offering a more in-depth and complex manipulation of an environment in this virtual space. This technology is proving both popular and successful in the beauty industry because it can offer shoppers a personalized experience, which aims to make shopping much more targeted and easier for consumers. Whether it’s through a skincare diagnostic selfie experience or a shade-matching try-on, AI and AR provide a wide range of solutions to fit in with the needs of a beauty brand and its customers.
The COVID-19 Analysis:
The COVID-19 pandemic has led to negative growth rates in the initial period, as there was a supply chain disruption that affected the production of clean beauty products. In the later period, people became more aware of clean beauty. When the people’s routines were put on hold, consumers started evaluating their lifestyle choices. The typical consumer began reading the fine print of the products they use, only to realize the damage such products have been causing. Thus, owing to the increased level of awareness among consumers, the clean beauty market faced positive growth in the year 2021. In the post-COVID era, the e-commerce of clean beauty products is expected to increase significantly.
Analysis of Key Players:
The global clean beauty market is fragmented. The key players in the global clean beauty market are:
- e.l.f. Beauty, Inc.
- The Honest Company, Inc.
- Estée Lauder Companies Inc.
- Natura & Co (Avon Products, Inc.)
- LVMH (Sephora)
- Orveon (BareMinerals)
- Beautycounter
- Credo Beauty
- Ilia Beauty
- NakedPoppy
- Ere Perez
- RMS Beauty
Some of the strategies among key players in the market are mergers, acquisitions, and collaborations. For instance, in 2022, The Estée Lauder Companies Inc. announced that the company had signed an agreement to acquire the TOM FORD brand. On the other hand, in 2022, Keys Soulcare, an e.l.f. Beauty’s brand announced that the company had introduced key Soulcare’s First Daily Moisturizer with SPF30 to Protect Your Light. Moreover, according to the Environmental Working Group (EWG) ranking, ELF is one of the best among the top-five mass beauty brands. ELF has the lowest percentage of products in the high-hazard area. Whereas, according to Green, Clean, Responsible (GCR) beauty rankings, ELF uses 100% clean ingredients, and works on meeting Clean 2.0 standards. On the other hand, more than half of the product category in other companies like Maybelline and Cover Girl uses clean ingredients.
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