Cosmetic serum is a concentrated, water-based facial care liquid that provides nourishment and hydration to the skin. Cosmetic serums contain active ingredients like hyaluronic acid, vitamins, antioxidants, and peptides that helps in anti-aging, improving skin texture, reducing acne, hyperpigmentation and others. Rising awareness about personal care and growing cosmetic industry has increased the demand for cosmetic serum products. The global cosmetic serum market is estimated to be valued at US$ 5.43 billion in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Rising consumer spending on personal care products is estimated to offer significant growth opportunities to the cosmetic serum market players over the forecast period. Growing women workforce and changing fashion trends has increased the spending on skin and hair care cosmetic products including serums. According to WHO, women's labor force participation rate has increased from 50.1% in 1990 to 47.7% in 2019 globally, supporting the demand for anti-aging and other cosmetic products. Developing regions especially Asia Pacific and Middle East are witnessing considerable increase in per capita spending on personal care due to rising disposable income and shifting lifestyle preferences. Key players operating in the cosmetic serum market can capitalize on these regions by increasing product outreach and marketing activities. Specialized anti-aging products for age groups will also drive the serum sales in the coming years.
Porter's Analysis
Threat of new entrants: The high capital requirement and established brand loyalty acts as a barrier for new players. However, the growing demand provides opportunities.
Bargaining power of buyers: Buyers have high bargaining power due to availability of alternatives and easy availability of information online.
Bargaining power of suppliers: Major raw material suppliers like extract producers possess moderate bargaining power owing to the differentiated inputs.
Threat of new substitutes: Substitutes like moisturizers, facial oil provide low threat as serums are targeted for specific skincare concerns.
Competitive rivalry: Intense competition exists between global players to launch new products with innovative formulations and branding.
SWOT Analysis
Strength: Wide product portfolio and continuous innovation in formulations. Strong brand image and loyal customer base.
Weakness: Heavy reliance on few key brands. Threat from private label products.
Opportunity: Growing skin care awareness and disposable incomes in emerging markets. Demand for natural/organic products.
Threats: stringent regulations. Economic slowdowns impacting discretionary spending.
Key Takeaways
The global cosmetic serum market is expected to witness high growth led by the Asia Pacific region.
Regional analysis shows the Asia Pacific commanded the major market share owing to the rapidly growing middle-class population in China and India. North America and Europe hold significant shares as well.
Key players operating in the cosmetic serum market are L'Oréal S.A., Estée Lauder Companies Inc., Shiseido Company, Limited, Procter Gamble Co., Johnson Johnson Services, Inc., Beiersdorf AG, Unilever PLC, The Body Shop International Limited, Kao Corporation, Colgate-Palmolive Company, Amway Corporation, Avon Products, Inc., Mary Kay Inc., and Clarins Group, Coty Inc.. Players are focused on product innovation, celebrity endorsements, and expanding distribution networks globally especially in emerging markets.
