Why Is North America Largest Dermacosmetics Market?
The rising purchasing power of people, increasing spending on appearance, surging incidence of dermatological issues, escalating number of conferences and seminars, and early onset of hormonal changes in teens are the key drivers for the dermacosmetics market growth. Thus, the sale of such products fetched $57.0 billion in 2020, and this number will see a 7.3% CAGR between 2020 and 2030 (forecast period), to reach $115.2 billion by 2030. Apart from improving the appearance, such products are specifically used as a treatment for a variety of skin issues.
Access Detailed Report Dermacosmetics Market Competitive Analysis
The distribution channel segment of the dermacosmetics market is bifurcated into online channels and pharmacies & retail stores. Of these, the pharmacies & retail stores bifurcated dominated the market during the historical period (2015–2020) due to the long-standing presence of these settings as the preferred shopping places. At such places, people can talk to the pharmacist (chemist) to know about specific usage directions and dosage. However, with the increasing internet penetration, the online category will witness the higher CAGR during the forecast period.
The market is being primarily driven by the increasing prevalence of dermatological diseases, such as acne, hyperpigmentation, atopic dermatitis, dyspigmentation, freckles, deep wrinkles, psoriasis, and melasma, due to the rising exposure to UV radiation and air pollution and surging alcohol and tobacco consumption. Around 125 million people had psoriasis in 2020, as per the World Psoriasis Day consortium. Similarly, almost 85% of the people in the U.S. have acne, says the American Academy of Dermatology (AAD), which is propelling the demand for cosmetic products.
Moreover, the shifting inclination toward personalized products is a key opportunity area for dermacosmetics market players. Water quality, climate, and pollution are the key factors that decide the type of products that will suit a particular person, apart from the skin and hair type. As a result, Estee Lauder Companies Inc., Phyto Botanical Power, L’Oreal S.A., and many other established cosmetics companies are now offering products that are suited for individual types of skin and hair. Hence, countries that have high air pollution levels could be a good opportunity area for these firms.
Europe generated the highest revenue for the dermacosmetics market during the historical period because of the rising incidence of skin diseases here. Additionally, the region is home to numerous well-known market players, which leads to high product sales. The scenario is made better by the rising disposable income of Europeans and technological advancements in such products. For almost the same reasons, the fastest industry growth during the forecast period will be witnessed in Asia-Pacific (APAC), which, additionally, has the largest potential customer base in the world.
Hence, the market will continue to advance with the booming prevalence of dermatological issues and increasing consciousness of people regarding their appearance.