Online Cosmetics Market Poised to Hit $20.4 Billion by 2029 with Accelerating Growth Trends

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Online Cosmetics Market Size Growth Forecast: What to Expect by 2025?
The virtual cosmetics industry has seen significant expansion in recent years. Its size is predicted to rise from $13.36 billion in 2024 to $14.52 billion in 2025, reflecting a compound annual growth rate (CAGR) of 8.7%. The historic growth is believed to have been driven by factors like a surge in smartphone usage, an increase in home delivery options, the growing trend of beauty treatments at home, greater consciousness about the ingredients and advantages of products, as well as a proliferating number of online beauty guidance videos.

How Will the Online Cosmetics Market Size Evolve and Grow by 2029?
There is an anticipation for robust expansion in the online cosmetics market size in the forthcoming years. This market is projected to escalate to $20.4 billion by 2029, with a compound annual growth rate (CAGR) of 8.9%. Factors propelling growth during the prediction period comprise of a rise in consumer inclination towards online shopping, burgeoning demand for customised beauty products, growing acceptability of e-commerce platforms, increment in digital marketing investment by beauty brands, and an upsurge in internet usage. Noteworthy trends for the forecast period involve advancements in technology, the introduction of virtual try-on technology, the use of AI and machine learning, the increase in anti-aging products, and the surge in digital payments.

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What Drivers Are Propelling the Growth of Online Cosmetics Market Forward?
The growth of the online cosmetics market is anticipated to be driven by the increasing prevalence of internet usage. Internet penetration corresponds to the rate of availability of internet services within a specific region, generally defined as a percentage. Factors contributing to internet penetration include broader broadband and mobile networks, government strategies, service and device affordability, technological progress, collaborations between the private and public sectors, digital education initiatives, pertinent content and services, and overall economic growth. The cosmetics industry has been transformed by the heightened use of the internet, making it more convenient, informative, and readily available to global consumers. For example, according to data from the International Telecommunication Union, a specialized agency based in Switzerland, the number of internet users rose from 5.1 billion in 2022 to 5.4 billion in 2023. Consequently, the surge in internet penetration is stimulating the expansion of the online cosmetics market.

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What Are the Key Trends Driving Online Cosmetics Market Growth?
Leading firms in the online cosmetics market are beginning to cater to changing customer needs and demographics by creating novel products such as cosmetics tailored for Gen Z men. These grooming and beauty products are created for males born between 1997 and 2012, to address the self-expression, grooming, and skincare requirements they have. As an example, Kao Corporation, a Japanese enterprise specializing in chemical and cosmetics, introduced UNLICS in December 2022. This brand, aimed at Gen Z men who seek a level of beauty that surpasses mere grooming, has also launched an online retail site. The establishment of the UNLICS online retail site not only heightens accessibility but also encourages direct consumer interaction, encouraging customers to confidently and purposefully explore and reinvent their care routines. In a bid to bolster young males in their self-expression journey, the brand promotes inclusivity and genuineness, through its array of adaptive products designed for various skin types and requirements.

What Are the Key Segments in the Online Cosmetics Market?
The online cosmeticsmarket covered in this report is segmented -

1) By Type: Skin Care, Fragrance, Makeup, Hair Care, Sun Care, Bath And Shower
2) By Category: Mass, Premium
3) By Distribution Channel: Company Website, Retail Website
4) By Application: Men, Women

Subsegments:
1) By Skin Care: Facial Care (Cleansers, Moisturizers, Serums, Toners, Exfoliators, Face Masks), Body Care (Lotions, Body Wash, Scrubs, Body Butter), Anti-Aging (Anti-wrinkle, Firming Creams, Serums), Sun Protection (Sunscreens, After-Sun Care)
2) By Fragrance: Perfumes, Colognes, Eau de Parfum, Eau de Toilette, Body Sprays
3) By Makeup: Face Makeup (Foundations, Powders, Blush, Highlighters, Concealers), Eye Makeup (Mascara, Eyeliner, Eyeshadow, Eyebrow Products), Lip Makeup (Lipsticks, Lip Gloss, Lip Liners, Lip Balms), Makeup Tools (Brushes, Sponges, Applicators)
4) By Hair Care: Shampoos, Conditioners, Hair Oils And Serums, Hair Color, Hair Styling Products (Hair Gels, Mousses, Hairsprays), Hair Treatments (Hair Masks, Leave-In Conditioners)
5) By Sun Care: Sunscreens (Lotions, Sprays, Stick Form), After-Sun Care (Aloe Vera, Cooling Gels), Tanning Products (Self-Tanners, Tanning Oils)
6) By Bath And Shower: Shower Gels And Body Washes, Bath Bombs And Salts, Soaps, Shower Oils, Scrubs And Exfoliants

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Who Are the Key Players Shaping the Online Cosmetics Market's Competitive Landscape?
Major companies operating in the online cosmetics market are LVMH Moët Hennessy Louis Vuitton SE, Johnson & Johnson, Parfums Christian Dior, L'Oréal S.A., Chanel S.A., Hermès International S.A., Kao Corporation, Shiseido Company Limited, Avon Products Inc., Clinique Laboratories LLC, Amorepacific Corporation, Clarins Group, Kosé Corporation, MAC Cosmetics, L'Occitane Groupe S.A., Elizabeth Arden Inc., Fenty Beauty by Rihanna, e.l.f. Cosmetics, Anastasia Beverly Hills LLC, Kiehl's LLC, Charlotte Tilbury Beauty Ltd., Bobbi Brown Professional Cosmetics Inc., NARS Cosmetics, SK-II, Kylie Cosmetics LLC

What Geographic Markets Are Powering Growth in the Online Cosmetics Market?
North America was the largest region in the online cosmetics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the online cosmetics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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