Premium cosmetics market to grow $51.75 billion by 2026
The premium cosmetics market value is set to grow by $51.75 billion, progressing at a compound annual growth rate of 6.6% from 2021 to 2026, according to Technavio.
One of the key segments driving growth in the premium cosmetics market is the increased demand for premium skincare products. Technavio said the market share growth in skincare will be "significant" during the forecast period.
The growth is expected to be driven by both young and old women seeking products to help them achieve better-looking skin. Growth will also be driven by men who are becoming increasingly conscious of their personal grooming and wellness.
In addition, Technavio emphasised that consumers are typically more aware of skincare concerns like ageing spots, acne and pigmentation and therefore, are ready to pay for premium skincare products.
Multichannel marketing is a premium cosmetics market trend that Technavio expects to have a positive impact in the coming years. The company said social media plays a vital role in increasing product awareness.
However, the lack of consumer reach and premium brand penetration in major parts of developing regions, such as MEA and APAC, could be a "major challenge" for the premium cosmetics market during the forecast period.