According to a new Global Vegan Cosmetics Market Report, the vegan cosmetics market was valued at $16.6 billion in 2021, and is estimated to reach $28.5 billion by 2031, growing at a CAGR (compound annual growth rate) of 5.9% from 2022 to 2031.
As noted by the report, vegan cosmetics are composed of chemical compounds produced from natural or synthetic sources that do not contain any animal-derived ingredients. Animal-derived substances include, “honey, beeswax, lanolin, collagen, albumen, carmine, cholesterol, gelatin, and many others. Vegan cosmetics are also devoid of animal testing and cruelty.”
Vegan cosmetics are used to cleanse or protect the body or hair and are meant for personal care, skincare, face care, and hair care. Vegan cosmetics “are used to improve or modify one’s appearance (makeup) by hiding imperfections, accentuating natural features (such as brows and eyelashes), adding radiance to a person’s face, or completely redefining the look.”
“In recent years, the cruelty-free (no animal testing), vegetarian (no byproducts of animal slaughter), and vegan (no animal components at all) cosmetics markets have expanded”, states the report. “Vegan cosmetics are chosen by customers because they are ethical in nature since vegan cosmetics are produced without the use of any animal components. Considering the medical benefits of vegan cosmetics on the skin, consumers gradually choose vegan cosmetics over non-vegan cosmetics.”
Furthermore, “vegan cosmetics are believed to assist in decreasing skin damage caused by many environmental changes and growing pollution globally. For example, the anti-oxidants included in vegan cosmetics are naturally processed from plants and can aid to alleviate skin dryness.”
As a result of the benefits that consumers obtain from using these products, “the demand for plant-based components increases, which also fuels the expansion of the vegan cosmetics market.”
The report continues:
The cosmetics sector is fragmented because it is very competitive and saturated. Trade restrictions, strong competition, and an increase in demand for low-cost products are stifling the expansion of the vegan cosmetics market and leading the market’s product quality to deteriorate. Small-scale business owners join the market, and because of the significant fluctuation in raw material costs, they employ low-quality raw materials to earn a good profit margin for themselves.
On the other hand, items of a well-known brand are exorbitantly priced, and buyers are eager to find low-cost alternatives. The market is flooded with counterfeit items available at low prices as a result of the high demand for products from well-known brands. In recent years, counterfeit items have thoroughly permeated the market, harming the profitability of well-known businesses. The decline in product quality and the widespread availability of counterfeit items impede the growth of the global vegan cosmetics market.
The usage of emulsifiers also plays a major role in the manufacturing of cosmetics. Hence, vegan cosmetic manufacturers are aware of using vegan-based emulsifiers in their vegan cosmetics products. Vegan emulsifiers are costly as it takes more time to get extracted from the vegan sources and vegan emulsifiers take a longer period for emulsion which slows down the production process. The slow emulsion speed and high price force the vegan cosmetics manufacturers to increase the initial price of the cosmetics. On the other hand, clear labeling of vegan products provides a clear message to the consumers about the usage of ingredients which encourages them to go for vegan cosmetic products.
The players operating in the global vegan cosmetics market have adopted various developmental strategies to expand their vegan cosmetics market share, increase profitability, and remain competitive in the market. The key players profiled in this report include Amway Corporation, Estee Lauder Companies Inc., Groupe Rocher, L’Occitane Group, L’Oreal S.A., LVMH Group, MuLondon, Pacifica Beauty, Unilever, and Weleda.
