Vegan Beauty Products Market Report

The skincare sector garnered a significant part of the global market in 2022 and is predicted to maintain its market dominance during the forecast period. According to PRB, the United States, Japan, Italy, Portugal, and Germany will have the most ageing populations during the next five years The Department of Economic and Social Affairs stated in their World Population Ageing Report of 2019 that the share of population aged 65 or above has increased from 6% to 9% in 2019 and it projected that it will rise further to 16% by 2050. These estimates indicate the expanding importance of the elderly population and demonstrate how this market potential is yet to be tapped. Growing old is a privilege, but many men and women are concerned about the indications of ageing. Promises like prevention or protection are less likely to appeal to seniors, whereas bolder claims like reversing the signs of ageing or healing deep wrinkles are more likely to appeal to this demographic. Garnier and L'Oreal, for example, have developed products for this group.

According to Organization for Economic Co-operation and Development, product packaging accounts for around 40% of worldwide plastic use, out of which only 9% of it is recycled. Cosmetics and skincare are no exception and currently it accounts for a sizable amount of our trash. Plastic pollution on the earth is primarily caused by single-use plastics. According to Plastic Pollution Coalition, 99% of plastic is derived from fossil fuels. The consequences for climate and environmental justice are considerable and growing. In fact, the plastics industry's contribution to climate change is significant. However, there are ways in which we can enjoy the cosmetics and personal care products while lowering our plastic footprint. Many start-ups are taking the initiative to produce environment-friendly products. For example, Mono Skincare, a zero-waste beauty business, has launched what it claims is the world's first skincare pastille, ushering in a new "just-add-water beauty" sector.  Yet it is the aspect of sustainability that truly distinguishes Mono Skincare. Every product, from cleansers to toners to night serum, is sold without packaging. Instead, they are crushed into tablets that may be dissolved and applied. Other such environment-friendly techniques include waterless cosmetics, fermented beauty products. These techniques are being used by start-ups such as Lifelong, Green+Bare, Circulove, and Symbiome to produce vegan products.

Counterfeit goods continue to prove to be a significant barrier in the vegan cosmetics sector. The high manufacturing costs of vegan items, as well as a lack of awareness about the benefits of vegan cosmetics in developing nations such as China, Indonesia, and Bangladesh, may restrict the market's growth rate. Another barrier to the extensive usage of vegan beauty products is their shorter shelf life when compared to conventional counterparts. Preservatives such as parabens and phthalates make conventional cosmetic products viable for up to two years, but natural products made without parabens may last only three or four months. At that point, the active chemicals begin to lose their potential, and in some treatments, bacteria may begin to form, resulting in rashes, breakouts, or infections when these products are applied to the skin.

The European region has witnessed an increasing demand for natural and organic products due to the rise in consumer awareness about the harmful effects of certain compounds, such as paraben and aluminium compounds that can be found in skincare, hair care, and deodorants. The most important markets for cruelty-free products are Germany, France, the United Kingdom, Italy, and Spain. The European market is distinguished by the presence of various publicly-owned research and development centres like The Body Shop, Sanoflore, SkinEthics that are acquired by L’Oreal Group, and are focused on production of cosmetics and personal care products. The growing popularity of natural components in cosmetics is driving the North American vegan cosmetics market, which is led by the United States. According to American Action Forum, women roughly 47 percent of overall employment in both the EU and the US. At a macro level, the growing number of working women in North America and Europe, combined with the flourishing growth of beauty clinics, stimulates cosmetic brands to achieve regional expansion.

Over the forecast period, Asia Pacific is expected to experience the comparatively lucrative growth. Developing Asian markets like China, India, Indonesia, Thailand are anticipated to attract new entrants in the near future. Furthermore, current industry changes point to significant business potential in Asian countries for both prospective and established businesses. The markets of South America, the Middle East, and Africa account for a minor portion of global market share. Yet, given increased consumer knowledge about synthetic elements in cosmetics, these regional markets are expected to grow significantly when it comes to vegan beauty products. Increased disposable income, expanding female labour-force involvement, increasing social media popularity and influence, and changing lifestyle choices, are projected to contribute to increased premium product penetration in coming years. For example, FSN E-Commerce Ventures Ltd (Nykaa), operating in India, has raised more than US$ 94 million. The beauty market in India is expected to grow owing to an increase in disposable income and increased exposure to makeup in general.