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Lipstick Market Overview
The lipstick market is valued at $9.2 billion in 2018, is expected to grow at a CAGR of 6.6% during the forecast period 2019-2024. The major factors contributing in the growth of the market include, rising demand for lipsticks from working women, and inclination toward e-commerce beauty websites.
Based on color, the lipstick market is segmented into red, pink, nude, maroon, black, orange, green, silver, grey, black, violet, yellow, white, blue, purple, multicolor, and gold. Of these, color red category is estimated to hold highest revenue share in 2018. However, the color nude is projected to register the fastest CAGR, in the market, during the forecast period.
In terms of applicator, the lipstick market is classified into lipstick cream, lipstick palette, lipstick pencil, lipstick tube/stick, and liquid lipstick. Of these, the market for lipstick tube/stick category is estimated to hold the largest revenue share in 2018, and would continue to positively during the forecast period as well, followed by lipstick cream, lipstick palette, and others.
On the basis of age, the lipstick market is categorized into under 20, 20-30, 31-50, and over 50. Of these, under the age 20-30 is estimated to hold highest revenue share in 2018, and would continue to post growth in the forecast period as well. Based on distribution channel, the lipstick market is segmented into cosmetic store, supermarkets/hypermarkets, convenience stores, department stores, online, parlors, and grocery shops. Of these, departmental stores category is estimated to hold largest revenue share in 2018.
Lipstick Market Dynamics
The use of lip powder, especially in matte lipsticks is the latest trend followed in the lipstick market. It is gaining huge momentum among women population, owing to matte finish and smooth & creamy texture. It contains hydrating ingredients including vitamin E, glycerin, and coconut oil, which keeps the lips pigmented. It gives a natural look to the lips as it needs to be dabbed with the fingertip, leaving a nice color stain on the lips.
Inclination toward e-commerce beauty websites is one the major factors driving the lipstick market, globally. E-commerce platforms have transformed the beauty industry in the past few years. It is majorly due to increasing internet penetration worldwide. Globally, the internet usage rate in 2017 stood at 48%, with more than 3.47 billion internet users, out of which female users accounted for 45% share.
Apart from this, the lipstick market is registering major demand for lipstick products from working women population. The maximum share of lipstick was constituted by the age group between 20-40, among women. It is due to change in their lifestyle and rising appearance consciousness. A lipstick is considered as a need among working women which gives them confidence to their personality.
Inclination toward social media marketing is one of the major opportunities being exhibited in the lipstick market. Social media marketing is becoming increasingly popular in the promotion of beauty products, which includes lipstick, eyeliner, kajal, blush and other cosmetic products. It allows to personally interact with existing and potential customers, build brand awareness, directly target customers with marketing campaigns, and measure the conversion rate from social media users to lead generation. Furthermore, as of June, 2018, active social media users stood at 3.2 billion.
Additionally, the lipstick market is recording growing preference toward the use of customized lipsticks is witnessing high demand in the market. It includes an innovative personalized lipstick applicator, supported with 3D printing technology. A digital image of the lips that would be obtained using hand held 3D scanner, and then it can be transferred to 3D computer graphics software. The three elements required for lipstick applicator are lipstick mould, cap, and base. Fusion Deposition Modelling (FDM), a 3D printing technique, is utilized for producing the personalized lipstick applicator.
Lipstick Market Competitive Landscape
In the recent past, players in the lipstick market have particularly focused on partnership and facility expansion to expand their customer base and increase their growth opportunities. For instance, in January 2019, Avon Products Inc. announced the partnership with Rappi Inc., an on-demand service delivery provider and launched the availability of over 100 products to its customer in Sao Paulo, in Brazil and Bogota and Medellin, in Columbia.
Some of the key players in the lipstick market include L’Oréal SA, Shiseido Company Limited, Revlon Inc., Avon Products Inc., Oriflame Holding AG, Coty Inc. Amorepacific Corporation, The Estée Lauder Companies Inc., Christian Dior SE, and Inglot Sp. Z. O. O.