Dermacosmetics Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Dermacosmetics Market Size

Dermacosmetics Market Trends & Growth Drivers

Acquisitions Among Industry Players Are a Key Trend

• Collaborations and acquisitions among players in the dermacosmetics industry are playing a substantial role in increasing accessibility to advanced products.
• For instance, the Pierre Fabre Group acquired MÊME brand. MÊME is a brand that provides products for skin, nail, and scalp care range.
• Similarly, Puig acquired a majority of shares in Loto del Sur and will continue to enhance its overseas footprint.

Growing Purchasing Power of Consumers Is a Key Driver

• The rise in disposable income of the population across the globe has led to an increase in the spending power of people and also contributed to the greater adoption of dermacosmetics products.
• Dermacosmetics have proven to be effective in the treatment of acne, signs of aging, and dull skin.
• Consumers are focusing on improving their appearance, which helps them boost their confidence.
• For this, they are now preferring to invest in a comprehensive skin and haircare regimen that reduces the signs of aging, with skin brightening and acne reduction.
• Moreover, consumers are more aware of the available products and their benefits. They do not shy away from investing in luxury brands, such as M.A.C. Cosmetics and Clinique by Estee Lauder Companies Inc. and Kiehl’s and Clarisonic by L’Oreal S.A., for better skin health.

The availability of counterfeit products is hampering the market

• With the increase in online sales, counterfeiting of skin care products is on the rise. Due to no-returns and no-exchange policies on skincare products, often, consumers are sold fake products, using fraudulent and cheap ingredients.
• This means that consumers may not always be getting genuine products even from reputable online websites. Side effects are often reported due to low-quality ingredients being used in such fake products.
• This, in turn, damages the reputation of the brand/company whose products are being counterfeited.
• For instance, there are a number of counterfeit products available for high-end brands such as L’Oreal S.A., Estée Lauder Companies Inc., and The Pierre Fabre Group, at cheap prices.

Dermacosmetics Market Analysis

Product Insights

• Skincare is a larger category, with an estimated market share of 65% in 2024, and it is also the faster-growing category. It is expected to maintain this trend throughout the forecast period.
• This is primarily attributed to the availability of a range of skincare products for various applications, such as aging, spot removal, skin whitening, and acne treatment.

Further, products involved in the report include:

• Skincare (Larger and Faster-Growing Category)
• Haircare

Treatment Insights

• Skin treatment is the largest category, with an estimated market share of 60% in 2024 and it is also expected to witness a higher CAGR in the coming years. One of the main drivers fuelling the market expansion in this category is the ability of dermacosmetic products to treat various skin issues in a targeted manner.
• A broad range of products are available for the treatment of skin applications like acne treatment, spot removal, and skin whitening.
• The development of current formulations, including well-known chemicals like retinoid, hyaluronic acid, and niacinamide, is fuelling the need for skin treatment products, which, in turn, drives the market growth.

This segment has two categories:

• Skin (Larger and Faster-Growing Category)
• Hair

Distribution Channel Insights

• The pharmacies & retail stores category dominates the market in 2024. This is due to the presence of pharmacies & retail stores in every city. Most retail stores are located near hospitals, which significantly contributes to the growth of the market in this category.
• The online channel category is projected to grow at a higher CAGR of 7.8% from 2024 to 2030 in the market. This can be primarily attributed to the increasing preference of consumers to buy cosmetics and beauty products through this medium, mainly due to the heavy discounts and offers provided on these channels.

Further, two distribution channels have been found:

• Pharmacies & Retail Stores (Larger Category)
• Online Channels (Faster-Growing Category)

End User Insights

• The clinics, medical spas, & salons are the largest end users, with an estimated market share of around 50% in 2024. This category is also expected to witness the fastest growth in the coming years.
• This is due to the widespread use of dermacosmetic products in clinics, medical spas, and salons around the world, and the provision of a wide range of scalp and skin treatments.
• In addition, the rising need for various treatments, such as anti-aging, skin whitening, hair-regrowth, and dark spot removal, as well as the high necessity for targeting and identifying specific concerns are other factors contributing to the growth in demand for these products in these facilities.
• Furthermore, increased demand for different clinical treatments, including chemical peeling, laser epilation method, platelet-rich plasma technique, dermatherapy, and hair mesotherapy, is likely to fuel the market expansion in this category.
• Because of the growing popularity of online appointment booking and the need for skin and hair care treatments, medical spas and salons utilize innovative technology to provide consumers with convenient access.

Further, end users included in this report include:

• Clinics, Medical Spas, & Salons (Largest and Fastest-Growing Category)
• At-Home
• Hospitals

Europe Is the Largest Regional Market

• Europe is the largest regional market, with an estimated revenue share of 35% in 2024. This is due to the rise in the prevalence of skin illnesses and increased access to a diverse variety of skincare products and treatments, as well as the growing presence of big corporations focused on producing new creative solutions to fulfill the demands of customers.
• Furthermore, the surging demand for beauty devices as a result of increased awareness and social media impact is fuelling regional market growth.
• Some of the major players operating in the European dermacosmetics market are Allergan plc, L’Oreal S.A., Unilever plc, Beiersdorf AG, and The Pierre Fabre Group.
• Whereas, APAC is expected to be the fastest-growing market, advancing at a CAGR of 8.0%, during 2024–2030. This can be ascribed to the surge in awareness of cosmetic surgeries among consumers, especially the young generation, in countries such as Japan, China, and South Korea, with supportive technologies for online consultation.
• Cosmetic surgeries increase the demand for aftercare products including sprays, healing balms, and repairing facial masks, among others, for faster healing and improvement of appearance.
• Moreover, due to the increase in personal spending, people of APAC are witnessing a change in lifestyle. They are now more aware of the various skin and hair care cosmetic products, as they are more inclined toward maintaining better skin and hair health.
• Moreover, countries such as South Korea, China, and Japan have a strong presence of market players. There are a number of Korean brands, such as Missha, SkinFood (SOKO GLAM, INC.), and ETUDE HOUSE INC., which manufacture and distribute dermacosmetic creams for anti-aging and skin rejuvenation in the region.

These regions and countries were analyzed for this report:

• North America
  • U.S. (Largest and Fastest-Growing Country Market)
  • Canada
• Europe (Largest Regional Market)
  • Germany
  • U.K.
  • France (Largest and Fastest-Growing Country Market)
  • Italy
  • Spain
  • Rest of Europe
• APAC (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E (Fastest-Growing Country Market)
  • Rest of MEA

Dermacosmetics Market Share

The global dermacosmetics market is fragmented in nature with the presence of several local players all around the globe. The key players in this market include The Procter & Gamble Company, Nu Skin Enterprises Inc., Unilever PLC, Pierre Fabre S.A., Galderma SA, Shiseido Company Limited, Allergan plc, The Estée Lauder Companies Inc., and Johnson & Johnson. These players are actively focused on product launches and geographical expansion to gain a competitive edge.

Dermacosmetics Market News

• In July 2023, an investment of CAD 80 million was made by a group of French and Canadian companies, including SUEZ, Groupe Rémabec, and Airex Energy, to set up North America’s largest biochar production facility.
• In December 2023, Shiseido Company acquired Dr. Dennis Gross Skincare LLC.
• In March 2023, Olay, a brand of The Procter & Gamble Company, introduced a body wash range with new technology for visibly glowing skin.