What makes United States Cosmetics Market glow?
Product
Overview
Cosmetics
are the product or substances used to alter or enhance the appearance or fragrance
of the body. Many cosmetic products are designed for applying to the hair and face.
The cosmetic products are generally mixtures of chemical compounds as some
being synthetics and some being derived from natural sources (like coconut oil).
Most common cosmetic includes mascara, lipstick, eye shadow, foundation, rouge,
skin lotions, skin cleansers, shampoo, perfume, cologne and hairstyling products
(gel, hair spray, etc.). Cosmetics which are applied to the face to enhance its
appearance are called as make-up or makeup. Growing popularity of cosmetics in
the United States in contributing to the growth of United
States Cosmetic Market.
Key
factors driving the sales of cosmetics in United States
High
demand for anti-ageing products in the United States is expected to drive the cosmetics
demand considerably over the forecast period. The United States cosmetic market
has witnessed demand shift towards natural and organic cosmetics, which is
providing avenues for growth. Factors like rise in disposable income, increasing
consumer awareness are estimated to contribute significantly towards the industry
growth in the coming years. In the U.S., a growing population demanding luxury
personal care products is fueling the higher demand for cosmetics in the
country.
Figure 1: United States Per-Capita
Household Final Consumption Expenditure, 2012-2015 (USD)
Source: World Bank
Government
Regulations for United States Cosmetics Market
In
the U.S., the Food and Drug Administration (FDA), which regulates cosmetics, defines
cosmetics as "intended to be applied to the human body for cleansing,
beautifying, promoting attractiveness, or altering the appearance without
affecting the body's structure or functions". The FDA excludes soap from
this category and this definition includes any material which is intended for
use as a component of a cosmetic product. In 1938, the U.S. passed the Food,
Drug, and Cosmetic Act authorizing the Food and Drug Administration (FDA) to
oversee safety via legislation in the cosmetic industry and its aspects in the
United States. The FDA joined with 13 other federal agencies in forming the
Interagency Coordinating Committee on the Validation of Alternative Methods
(ICCVAM) in 1997, which is an attempt to ban animal testing and find other
methods to test cosmetic products.
Global
Cosmetics Market Overview
Improved
living standards along with rise in the consumer disposable income in
developing countries like India, China and Malaysia is expected to fuel the
Asia Pacific cosmetics market. North America is a matured market, which is
expected to witness significant growth over the foreseeable future. The growth in
the region is primarily attributed to introduction of innovative and advanced
products and high R&D developments. Estée Lauder, Coty, L'Oréal, Avon
Products, LVMH, Amway, P&G, Clarins Group, Lakme, Chanel, O Boticário,
Revlon, Kao, and Unilever are the major players of global cosmetics market. In
recent years, anti-ageing and organic products have emerged as the most popular
segment on account of consumer demand to improve their appearance, look
youthful and more usage of chemical free products.
Figure 2: United States Female Population
Share (As a %age of Total Population, 2012-2016 (%)
Source: World Bank
Increasing
Online Sales of Cosmetic Products
Now-a-days,
online sales channels exhibit the high growth opportunities in terms of sales due
to upsurge of several e-commerce websites. The digital revolution has played a
crucial role in driving the cosmetic demand worldwide as well as in United
States cosmetic market. Online marketing and sales channels are adopted by
several vendors by enabling them to reach mass markets and maintaining closer
relationship with the consumers. Social or digital media helps companies to reach
out to their customers, also generate awareness related to the products and
attract new potential customers, which further fuel the United States cosmetics
market over the forecast period.
Figure 3: Global Internet Penetration Rate, By Region, June 2016 (%)
Source: International Telecommunication Union
Source:
International Telecommunication Union
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Shifting Preferences Towards Organic Cosmetics
The
demand for organic cosmetics in the United States is anticipated to grow
further in the coming years on account of increasing awareness about skin
related diseases caused due to chemicals used in manufacturing standard
cosmetics. People who use conventional chemical cosmetics are prone to diseases
such as cancer and other chronic diseases and allergies, due to presence of
chemicals such as zinc oxide, BHA, barium sulphate, etc in the conventional
cosmetics and increasing awareness about the benefits of organic cosmetic is
pushing consumers to opt the organic cosmetics.
Table 1: United States Organic Cosmetics
Market Size, By Value, 2011-2021F (USD Billion)
Source: TechSci Research
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Table 2: United States Organic Farming
Statistics, 2015
Source: FIBL-IFOAM survey 2016
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