The global cosmetics market is expected to exceed US$390 billion by 2020, according to a study. The expected rise is mainly attributed to the increasing demand for beauty products, especially cosmetics, in the Asia Pacific region. The increasing disposable income in the region and the rise in living standards are the main reasons for the growth of the cosmetics industry in the region.
The study also reveled that a quicker market growth for the beauty products is anticipated from chemical-free and organic beauty products.
North America is already a major market for the cosmetics and will likely continue to grow based on the findings. The findings highlight the demand for anti-ageing products which is expected to fuel the increasing demand all over the world continuously for the next several years. This means that the beauty industry, and the cosmetics manufacturers in particular, have focus more on organic and chemical-free products while also creating a separate line for anti-aging products.
On the flip side are the scarcity of supply of raw materials and the price-sensitive nature of the beauty industry that will supposedly pose a challenge in future. However, South Asian countries including India, Malaysia and China are likely to be the game changers in the industry more than before.
While shampoos and other hair care products are expected to gain momentum slowly, skin care products segment will be the fastest-growing.