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Researched by Industrial Info Resources (Sugar Land, Texas)--The market for cosmetics and personal care has grown significantly in the past couple of years. Rising personal incomes, strong growth in men's personal care products as well as an increased focus on wellness and sensible cosmetics have been driving this demand. An expanding middle class, especially in emerging economies, also has played a role, with an increasing focus on premium and value-added products.
The beauty sector, encompassing skincare, fragrances, cosmetics and haircare, recorded revenue of about US$430 billion in 2022, according to a report released earlier this year by McKinsey & Company. Projections indicate that the beauty industry is poised to expand significantly, with an anticipated value of roughly US$580 billion by 2027, with a compound annual growth rate (CAGR) estimated to be about 6%. Concerning the global market for perfumes, growth from US$48.05 billion in 2023 to US$69.25 billion by 2030 is projected at a rate of 5.36% through the forecast period, according to Fortune Business Insights.
After the COVID-19 outbreak, social media has made a significant impact on consumers with influencer marketing, consumer inspiration, diverse beauty standards and ground-level testifiers driving demand. E-commerce platforms especially have made the most of this growing demand, with their share of the beauty sales market expanding to 20% in 2022. Aggregators like Sephora, L'Oreal, Purplle, Oriflame, Avon, Nordstrom and others have mushroomed, further bridging the gap between products and customers.
Industrial Info is tracking 522 active capital-spending projects, worth US$7.05 billion, geared at installing and/or expanding facilities that focus on producing units of cosmetics, perfumes and toiletries. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pharmaceutical & Biotech Project Database can click here for a list of detailed project reports.
About 40% of the total spending is located in Asia, worth US$2.82 billion across 199 projects. By country, with a pipeline of US$1.45 billion worth of investments, China is leading the way with 25 projects. The U.S. and Brazil are the runners-up, with investments of about US$949 million and US$881 million, respectively. Some of the other countries with potential investments are Germany, Mexico, France, Italy, India, Japan, Thailand, South Korea, Vietnam, Singapore, Australia and Turkey.
The top three biggest spenders in the market are Unilever plc (NYSE:UL) (London, England), Hypera Pharma SA (São Paulo, Brazil) and Procter & Gamble Company (NYSE:PG) (Cincinnati, Ohio), with a cumulative spending of US$1.16 billion.
Unilever is working on projects in Mexico, India and Indonesia, with a total investment value of US$430.97 million. In Himachal Pradesh, India, it is expanding a 206,724-square-foot plant, to increase the production of personal care soaps. In Indonesia, it is upgrading a 100,750-square-foot facility to improve and maintain production capacities of contract manufacturing organization (CMO) skincare, haircare emulsions, gels and powders. In Mexico, the company is developing a beauty and personal care products plant in Salinas Victoria, Nuevo Leon. Also, it is planning a line addition and warehouse expansion of a cosmetic creams and shampoos plant in Mexico, Distrito Federal. Subscribers can click here for a list of related projects and click here for the plant profiles.
About 57% of the projects are in the planning phase, 20% are in the engineering phase and 23% are under construction. A majority of the projects are expected to become operational between 2023 and 2027.
Going forward, demand from traditional segments is expected to remain strong, with incremental demand to be driven by the fast growing "sensible cosmetics" sector, including cruelty-free, vegan and organic products.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
The beauty sector, encompassing skincare, fragrances, cosmetics and haircare, recorded revenue of about US$430 billion in 2022, according to a report released earlier this year by McKinsey & Company. Projections indicate that the beauty industry is poised to expand significantly, with an anticipated value of roughly US$580 billion by 2027, with a compound annual growth rate (CAGR) estimated to be about 6%. Concerning the global market for perfumes, growth from US$48.05 billion in 2023 to US$69.25 billion by 2030 is projected at a rate of 5.36% through the forecast period, according to Fortune Business Insights.
After the COVID-19 outbreak, social media has made a significant impact on consumers with influencer marketing, consumer inspiration, diverse beauty standards and ground-level testifiers driving demand. E-commerce platforms especially have made the most of this growing demand, with their share of the beauty sales market expanding to 20% in 2022. Aggregators like Sephora, L'Oreal, Purplle, Oriflame, Avon, Nordstrom and others have mushroomed, further bridging the gap between products and customers.
Industrial Info is tracking 522 active capital-spending projects, worth US$7.05 billion, geared at installing and/or expanding facilities that focus on producing units of cosmetics, perfumes and toiletries. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pharmaceutical & Biotech Project Database can click here for a list of detailed project reports.
About 40% of the total spending is located in Asia, worth US$2.82 billion across 199 projects. By country, with a pipeline of US$1.45 billion worth of investments, China is leading the way with 25 projects. The U.S. and Brazil are the runners-up, with investments of about US$949 million and US$881 million, respectively. Some of the other countries with potential investments are Germany, Mexico, France, Italy, India, Japan, Thailand, South Korea, Vietnam, Singapore, Australia and Turkey.
The top three biggest spenders in the market are Unilever plc (NYSE:UL) (London, England), Hypera Pharma SA (São Paulo, Brazil) and Procter & Gamble Company (NYSE:PG) (Cincinnati, Ohio), with a cumulative spending of US$1.16 billion.
Unilever is working on projects in Mexico, India and Indonesia, with a total investment value of US$430.97 million. In Himachal Pradesh, India, it is expanding a 206,724-square-foot plant, to increase the production of personal care soaps. In Indonesia, it is upgrading a 100,750-square-foot facility to improve and maintain production capacities of contract manufacturing organization (CMO) skincare, haircare emulsions, gels and powders. In Mexico, the company is developing a beauty and personal care products plant in Salinas Victoria, Nuevo Leon. Also, it is planning a line addition and warehouse expansion of a cosmetic creams and shampoos plant in Mexico, Distrito Federal. Subscribers can click here for a list of related projects and click here for the plant profiles.
About 57% of the projects are in the planning phase, 20% are in the engineering phase and 23% are under construction. A majority of the projects are expected to become operational between 2023 and 2027.
Going forward, demand from traditional segments is expected to remain strong, with incremental demand to be driven by the fast growing "sensible cosmetics" sector, including cruelty-free, vegan and organic products.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
