Global make-up market worth £33.6 billion in 2015
The value of the global make-up market increased at a CAGR (compound annual growth rate) of 4.4% from 2011 to reach $43.6 billion (£33.6 billion) in 2015, says research company Market Line.
The MakeUp Global Industry Guide 2016 placed French beauty giant L’oréal – which manufactures several luxury professional brands such as Skinceuticals and Essie, as well as popular mass market options – at the top of the chain, closely followed by Estée Lauder, which owns Mac Cosmetics among other popular brands.
The US market was found to be the strongest in the world with 27% of market revenue. Nicholas Wyatt, analyst for Market Line, said: “L'oréal boasts a portfolio of well-known global make-up brands and each one allows the company to target different consumer types... With consumers in traditional markets becoming increasingly price-conscious, the pricing of L'oréal's mass-market brands means it can continue to thrive despite the threat of private labels.”
The report also showed that volume sales increased at a CAGR of 3.3% between 2011 and 2015, to reach a total of 5,248.6 million units in 2015. Market Line said European cosmetic markets are likely to experience increased rivalry during the coming years. This is mainly due mainly to price competition among the major market players particularly following the Eurozone crisis, growing maturity of products and consolidation of own-label brands by big supermarkets; which are quickly expanding their operations in zones like Eastern Europe.