Cosmetic Serum Market: Growing Demand for Skin Care Products Drives Market Growth

Purvaja Jadhao

posted on 11 months ago — updated on 1 second ago

56
views

The global cosmetic serum market is estimated to be valued at US$3.86 billion in 2021 and is projected to reach US$ Mn by 2023, exhibiting a CAGR of 5% over the forecast period 2023-2030, as stated in a report by Coherent Market Insights.

Cosmetic Serum Market: Growing Demand for Skin Care Products Drives Market Growth

Market Overview:
Cosmetic serums are highly concentrated products formulated with active ingredients that penetrate deep into the skin, providing targeted treatment for various skin concerns. These serums offer numerous advantages such as hydrating and nourishing the skin, reducing wrinkles and fine lines, improving skin elasticity, and brightening the complexion. The increasing awareness regarding skincare and the growing desire to maintain youthful and healthy-looking skin are driving the demand for cosmetic serums.

Market Key Trends:
The key trend observed in the cosmetic serum market is the rising demand for natural and organic products. Consumers are becoming more conscious about the ingredients used in skincare products and are opting for products made from plant-based extracts and organic materials. This trend is driven by the growing preference for clean beauty products and the desire to avoid harmful chemicals commonly found in conventional skincare products. Manufacturers are responding to this demand by introducing natural and organic cosmetic serums that provide effective results while also being safe and environmentally friendly.
Porter's Analysis:

The cosmetic serum market is expected to face a moderate level of threat from new entrants. While there may be a lower barrier to entry in terms of manufacturing and distribution capabilities, established brands and their strong marketing and brand loyalty can act as a deterrent to new players entering the market.

The bargaining power of buyers in the Cosmetic Serum Market Demand is relatively high. Consumers have a wide range of options to choose from and are often price-sensitive. Additionally, with the rise of e-commerce platforms, buyers have access to more product information and can easily compare prices and make informed purchasing decisions.

Suppliers in the cosmetic serum market hold a moderate level of bargaining power. While there may be multiple suppliers available for raw materials, certain key ingredients used in cosmetic serums may be controlled by a limited number of suppliers. This can potentially give the suppliers some leverage in terms of pricing and availability.

The threat of new substitutes in the cosmetic serum market is relatively low. Cosmetic serums offer unique benefits and formulations that cannot be easily replicated by other products. While there may be other skincare products available in the market, they often have different compositions and target different skincare concerns.

In terms of competitive rivalry, the cosmetic serum market is highly competitive. There are numerous global and local players operating in the market, offering a wide range of products. Innovation, product differentiation, and effective marketing strategies are crucial for companies to stay ahead in this competitive landscape.

Key Takeaways:

The global cosmetic serum market is expected to witness high growth, exhibiting a CAGR of 5% over the forecast period from 2023 to 2030. This growth can be attributed to increasing consumer awareness regarding skincare, rising disposable incomes, and the desire for effective anti-aging solutions. The market is anticipated to reach a value of US$ 3.86 billion by 2021.

In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the cosmetic serum market. This can be attributed to the presence of well-established beauty and skincare brands, high consumer disposable incomes, and a strong inclination towards skincare and anti-aging products.

Key players operating in the cosmetic serum market include L'Oréal S.A., Estée Lauder Companies Inc., Shiseido Company Limited, Procter & Gamble Co., Johnson & Johnson Services, Inc., and others. These players have a strong market presence and invest heavily in product innovation, marketing, and distribution to maintain their competitive edge in the industry.

In conclusion, the cosmetic serum market is poised for significant growth in the coming years. The market is highly competitive, with key players investing in research and development, product innovation, and marketing strategies to gain a larger market share. The North American region is expected to lead the market due to consumer preferences and high disposable incomes.