Market Trends of Online Cosmetics Industry
This section covers the major market trends shaping the Online Cosmetics Market according to our research experts:
Growing Inclination Towards Natural/Organic Products
- Although synthetic cosmetics products have a prominent share in the market, in recent years, consumers are shifting towards plant-based, cruelty-free, and natural cosmetics products due to increased health awareness. Growing concerns regarding the side effects of chemicals in conventional cosmetic products, which lead to ailments such as skin irritation, allergies, and dullness, have fueled the demand for natural and organic cosmetic products.
- Prolonged use of synthetic cosmetics may cause various health issues, such as irritation, hormonal imbalance, and toxicity. However, cosmetic products made of organic ingredients, such as plant extracts and natural oils, do not harm the skin. Natural cosmetic products that are free from chemicals and transparent about the sourcing of the ingredients have been preferred by consumers, which is likely to drive the demand for natural cosmetic products.
- To capitalize on this growing interest, the manufacturers in the market have been revamping and expanding their product offerings by introducing a wide range of organic skincare products containing plant-based, clean-label ingredients, with claims such as organic, vegan, natural, chemical-free, and cruelty-free, among others.
- For instance, in April 2022, Shiseido revealed a new beauty brand Ulé, which sources pesticide-free botanicals from local vertical farms. The Shiseido-incubated French startup works with Tower Farm to procure exotic ingredients grown near Paris. Instead of shipping dried plant substances purchased in bulk, Ulé sources fresh botanicals from a vertical farm near Paris, where they are 'hand-harvested at their optimal potency.
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Asia-Pacific is the Fastest Growing Market
- Asia-Pacific region is experiencing significant demand for online cosmetics products due to the increased number of smartphone users accompanied by strong penetration of internet services. Emerging economies such as China and India exhibit the highest number of online shoppers, owing to the ongoing developments in the e-commerce ecosystem of respective countries.
- For instance, according to recent research by the International Trade Administration (ITA) and the US Department of Commerce (USDoC), live streaming has significantly increased in popularity. It now accounts for around 10% of all Chinese cosmetic e-commerce as of 2021. Additionally, the improved standard of living owing to urbanization, and the increasing number of working women, push the demand for online cosmetic products.
- The middle-class population will likely purchase beauty products as they evolve rapidly based on the significant changes in their preferences. Thus, the rising middle-class population in the region is responsible for the burgeoning demand for online cosmetic products.
- Beauty products made from cruelty-free and vegan ingredients have recorded a high adoption rate in recent years and are becoming increasingly popular in Asian countries. Furthermore, several online players specialize in organic cosmetics, allowing a more comprehensive selection of both private label and international brands with one click from the comfort of the consumer's home.
- For instance, some of India's well-accepted online cosmetics players include Vanity Wagon, The Glocal Store, Just Herbs, Nykaa, and healthandglow.com, among others.
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