by The global Vegan Cosmetics Market is estimated to be valued at US$14.85 billion in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights
Market Overview:
Vegan cosmetics are products that are free from any animal-derived ingredients and are not tested on animals. The market for vegan cosmetics is witnessing significant growth due to increasing consumer awareness about the harmful effects of animal testing and the rising demand for ethical and sustainable beauty products. Vegan cosmetics offer several advantages, including reduced risk of allergic reactions, better skin compatibility, and environmental sustainability. The need for vegan cosmetics is driven by the growing preference for cruelty-free and natural beauty products.
Market Key Trends:
One key trend in the vegan cosmetics market is the rising popularity of multi-purpose products. Consumers are seeking convenience and efficiency in their beauty routines, and multi-purpose products that offer multiple benefits are gaining traction. This trend is driven by the busy lifestyle of consumers and the desire for minimalistic and sustainable beauty routines. Multi-purpose vegan cosmetics, such as tinted moisturizers with SPF, lip and cheek stains, and multi-use balms, provide a one-stop solution for various beauty needs. This trend is expected to continue driving the growth of the vegan cosmetics market in the forecast period.
Porter’s Analysis
Threat of New Entrants: The vegan cosmetics market offers lucrative opportunities for new entrants due to the increasing consumer demand for sustainable and cruelty-free beauty products. However, the high capital requirements for research and development, manufacturing processes, and brand establishment act as barriers, limiting the threat of new entrants.
Bargaining Power of Buyers: With the rising popularity of vegan cosmetics, consumers gain more bargaining power as they have a wide range of options to choose from. This puts pressure on companies to maintain competitive pricing, product quality, and effective marketing strategies to retain their customer base.
Bargaining Power of Suppliers: Suppliers hold significant power in the vegan cosmetics market, as they provide essential raw materials such as plant-derived ingredients, essential oils, and packaging materials. Companies need to establish long-term relationships with suppliers and develop sustainable sourcing strategies to secure the necessary supplies at competitive prices.
Threat of New Substitutes: The availability of alternative products in the market, such as traditional cosmetics and natural beauty brands, poses a moderate threat to the vegan cosmetics market. However, the increasing consumer awareness regarding the harmful effects of conventional cosmetics and the growing trend of veganism are driving the demand for vegan cosmetics.
Competitive Rivalry: The vegan cosmetics market is highly competitive, with both established and emerging players vying for market share. Key players in the market, including Amway Corporation, Estee Lauder Companies Inc., and L’oreal S.A., focus on product innovation, strategic partnerships, and marketing campaigns to maintain their competitive edge.
Key Takeaways
The Global Vegan Cosmetics Market Demand is poised for significant growth, with a projected CAGR Of 5.9% during the period 2023-2030. This growth can be attributed to the increasing consumer awareness regarding the harmful effects of conventional cosmetics on the environment and animal welfare. As consumers become more conscious of their choices, the demand for sustainable, cruelty-free, and vegan beauty products is expected to rise.
In terms of regional analysis, Europe is the fastest-growing and dominating region in the vegan cosmetics market. The region’s strict regulations on animal testing, increasing vegan population, and growing preference for organic and natural products contribute to its market dominance. The Asia Pacific region also presents immense potential, driven by factors such as changing consumer preferences, rising disposable incomes, and a growing trend of conscious consumerism.
Key players operating in the vegan cosmetics market include Amway Corporation, Estee Lauder Companies Inc., Groupe Rocher, L’Occitane Group, L’Oreal S.A., LVMH Group, and MuLondon, Pacifica Beauty, Unilever plc, Weleda, Coty Inc., Beauty with Cruelty, Elf Cosmetic Company, Urban Decay, and Nature’s Gate. These players focus on expanding their product portfolios, investing in research and development, and implementing sustainable and ethical practices to cater to the increasing demand for vegan cosmetics worldwide.
In conclusion, the vegan cosmetics market represents a promising growth opportunity driven by changing consumer preferences and a shift towards ethical, sustainable beauty products. With the increasing demand and competition, companies need to align their strategies with market trends and consumer preferences to establish a strong foothold in this market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
