Waterless Cosmetics Market Growth & Trends
The global waterless cosmetics market size is expected to reach USD 17.2 billion by 2028, registering a CAGR of 10.6% during the forecast period, according to a new report by Grand View Research, Inc. The rising inclination of consumers toward environment-friendly and sustainable beauty products, coupled with the growing global awareness about the benefits of waterless products, has projected lucrative market growth in the forecast period. Moreover, the increasing demand for high-priced premium cosmetics products due to the rising disposable income is driving the global market.
An increase in awareness regarding clean beauty has led to the need for healthier and more sustainable alternatives in the cosmetics industry, which in turn increases the demand for waterless cosmetics products. Rising interest to maintain a youthful appearance and improve the lifestyle are some major factors driving the market for waterless cosmetics. Furthermore, technological advancements and increasing modernization of production techniques, and rising demand from emerging economies, will further create new opportunities for the water-free cosmetics market during the projection period.
However, the high cost of products in the market and the huge amount required for research and development activities are the major factors hindering the market growth. Before the COVID-19 pandemic, there was a modest increase in global demand for water-free cosmetics. After the epidemic, major global markets faced a double shock. As brick-and-mortar retail is the primary distribution channel for the beauty industry, store closures across regions had a significant impact on the growth of the beauty products space, including water-free cosmetics.
The lockdown situation observed during the COVID-19 pandemic showed a negative impact on the waterless cosmetics industry, due to the suspended or delayed supply of raw material used for preparing beauty care products. Demand for eco-friendly cosmetics has increased after the pandemic, with stay-at-home orders and safer-at-home advice being issued across the globe.
The haircare segment is expected to register the highest CAGR of 11.2% from 2022 to 2028. The increasing popularity of the waterless formula due to more concentration and higher efficacy of hair care products has led to the upsurge of this segment. Moreover, technological advancements and developments in the manufacturing of waterless products are the major driving factors for the market.
The online segment is expected to advance at a substantial CAGR of 11.2% in the global market. The growth of the online distribution channel is attributed to the availability of the online platform via shopping portals and mobile apps. It is also observed that companies, distributors, and retailers are adopting online platforms to sell waterless cosmetics. As a result of this, the online segment is gaining traction compared to offline.
Asia Pacific dominated the market with a revenue share of more than 39% in 2021. In this region, factors such as the steadily increasing disposal income, coupled with the increasing demand for beauty products from developing economies like China, India, and South Korea are driving the industry advancement in the last few years.
With the growing presence of social media and beauty influencers, the demand for water-free cosmetics has surged due to their skincare benefits. In addition, sustainability concerns along with increasing demand for water-free skin care products have increased the production of water-free cosmetics. To address the industry’s growing concerns about plastic waste and water waste, beauty bloggers or influencers are continuously promoting waterless beauty products.
Furthermore, the growing demand for cruelty-free, non-toxic, and eco-friendly products presents lucrative growth opportunities for market players. In addition, companies are looking to maintain their brand image and gain customer loyalty by offering innovative products as per customer specifications and analyzing consumer behavior patterns.
Beauty & personal care industry giants, as well as emerging brands, have begun adopting water-free beauty products with a focus on sustainability. L’Oréal has committed to reducing its water use (per finished unit) by 60%, and by 2030, Unilever has set a goal of halving the environmental impact of the production and use of its products, including its water usage. Some of the world’s completely water-free makeup brands such as Lush, Ethique, and Pinch of Colour have championed the concept of waterless products.
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Waterless Cosmetics Market Report
Waterless Cosmetics Market Report Highlights
- Asia Pacific registered the largest market share of more than 39% in the 2021 market, owing to the increasing disposable income and rising population in the region
- The haircare segment is expected to foresee the fastest expansion, with a CAGR of 11.2% from 2022 to 2028. due to rising awareness about waterless beauty products
- The offline distribution channel segment held the largest market share in 2021, and contributed more than 82% of the total revenue, due to consumers preferring the offline channel for purchasing consumer goods and beauty products
- North America is the fastest-growing market for waterless cosmetics and is expected to witness a CAGR of 11% from 2022 to 2028, owing to consumers demanding natural beauty products and eco-friendly beauty products from manufacturers in the region
