Impact Of Covid-19 On Cosmetics & Personal Care Products Market

Today the global cosmetics and personal care industry is valued at USD 532 Billion. The US stands first with 20% Market share followed by China (13%) and Japan (8%).The global is segmented as skincare, haircare, fragrance, bath & shower and others. Skincare segment accounted for market share of 32.6% in 2018 and forecasts to grow as customers are preferring beauty skin products to enhance their looks which will propel the demand for the global cosmetics & personal care market. Skin lightening products are among the most consumable products mostly in Asia-Pacific and Middle east population because of the rising obsession towards fair complexion. Consumer’s time crunching and hectic lifestyle leads to the use of multipurpose products as they provide several benefits like anti-aging, cleansing , moisturizing , antioxidant and UV-Protection. With this ongoing trend , the consumption of these products has increased rapidly.Key Players of Cosmetics market are The Estee Lauder Companies Inc., Revlon Inc., The Procter & Gamble Company , L’Oreal SA ,Unilever etc.

 Intended Audience –

1. Cosmetics and personal care products manufacturers
2. Traders and distributors of cosmetics & personal care ingredients chemicals
3. Research and Development (R&D) Institutes
4. Potential investors
5. Raw material suppliers
6. Nationalized Laboratories

Fig 2 – Market Segmentation

 

Cosmetics market is segmented as  :

Category

• Haircare Products
• Skin and Sun care products
• Makeup and colour cosmetics
• Fragrances
• Others

By distributrion Channel

• Supermarkets
• Drug Stores
• Brand outlets
• General Departmental Stores
• Online sales

By Gender                       

• Men
• Women

By Geography

• North America
• Europe
• Asia-Pacific
• Rest of the world (LAMEA)

 

Fig-3 : Top Winning strategies in world cosmetics market

 

Effect of Covid-19

The ongoing Covid-19 scenario has impacted the global economy in several ways .Most notably , it has affected the consumer’s spending habits and purchase decisions. However Beauty products are considered as safe and comforting and is believe to be show a sharp rise in demand in the aftermath of Covid-19. Some analysts also believe that colour cosmetics may dip but hygiene and skin care products’ sales will rise. The closure of non-essential business has created a disruption in the beauty industry and the consumers are now looking for online beauty treatments.. As we can easily guess situation is not good at this moment. Although many companies are facing challenges , the cosmetics industry is in worst situation as it is difficult to find markets where goods can be exported.  In addition to exports, other complex factors such as social distancing and the postponements are making it even worse. Effect of Covid-19 on cosmetics and personal care industry can be observed globally in all regions including North America , Asia, Europe and Rest of the world. Due to this most of the companies also had to cut down its workforce or had to send their employees for work from home. E-Commerce Companies in India like Amazon , Walmart owned Flipkart has halted its supply of non-essential products including cosmetics which is affecting the cosmetic industry in the worst ways.

Fig 4 – Positive and Negative effects of Covid-19 on Cosmetics and Personal Care Industry.

 

Changing Lifestyles

Covid-19 is impacting the consumer behaviour with regards to purchase to purchasing cosmetic & toiletries. It is obvious that market conditions will continue to deteriorate for the time being. Since 2019 ,there was a aggressive competition among domestic companies and overseas players  and this year Covid-19 makes this situation even worse. If the situation improves by the end of summer , the market might enter a recovery phase by 4^th quarter. The brands are witnessing an increase of protective personal care products and consumers are willing to accept brands that depict evidence of safety , both from the health and environmental perspective. Preventative categories such as hand sanitizers, soap ,wet wipes etc. are gaining huge demand due to WHO guidelines. Product manufacturers have opportunity to create products which will fulfill several consumer needs like antibacterial moisturizer, sprays etc.