Beauty Oils Market

Beauty Oils Market Outlook

Gglobal demand for beauty oils market enjoyed growth of around 6% CAGR from 2016 to 2020. Orange oils are likely to account for 3 out of 10 sales over the coming ten years. Germany is likely to generate significant opportunities for market players, with the beauty industry reaching US$ 15 Bn.

Sales Analysis of Beauty Oils from 2016 to 2020 Vs Market Outlook for 2021 to 2031

Over the past half-decade, the beauty oils business has expanded at a CAGR of around 6%, attributed to rise in demand from countries such as China, India, and Malaysia, along with growing trend of essential oil products in regions such as Europe and North America.

Spending on beauty products have increased by multi fold leading to expansion of beauty oils sales at the same time. Natural and organic beauty products market has expanded significantly owing to new market entrants coupled with product innovation. For instance, 23% y-o-y growth of certified natural and organic beauty product was recorded in 2019, with beauty oils seeing 9th year of consecutive growth.

Moreover, rise in consumer spending coupled with change in consumer preference towards more natural and organic products will boost the demand and sales of beauty oils eventually growing at a CAGR over 8% over the forecast period.

What are the Key Opportunities for Beauty Oil Manufacturers?

Various surveys have talked about the effect that beauty products such as beauty oils have on consumers. For instance, according to a survey, ~83% people felt that it’s better for a beauty product to be organic for the wellbeing of their health.

The emphasis nowadays people giving on ingredients, has paved the way for innovation to cope up with changing consumer needs. For instance, a recent survey revealed that around 53% of the FMCG consumers prefer the absence of undesirable ingredients than the inclusion of beneficial ones.

Additionally, most of beauty oils are organically derived from the extracts of plants which are free from synthetic fillers and toxins with additional health benefits. Moreover, consumers are preferring products that not only satisfies their external beauty but also provide a sense of mindfulness and peace.

Which Region Offers the Largest Opportunity for Sales of Beauty Oils?

Asia Pacific region is projected to play a vital role in the growth of demand for beauty oils. This is mainly attributed to the growing consciousness towards one’s own appearance coupled with increasing disposable income in the region.

Growing at a higher single-digit CAGR, Asia Pacific has emerged as a promising destination for the sales of beauty oils. Rise in young population joining the workforce in countries such as China, India, and Malaysia has bolstered demand for beauty products.

For instance, total participation of Malaysian women in the workforce in around 46%, thus driving sales of beauty oils in the country.

Why is Europe a Prominent Market for Beauty Oil Products?

Europe is the leading producer of beauty products and is home to 100+ cosmetic manufacturing companies. Additionally, companies in Europe spend relatively high on R&D, i.e. around 7% of their annual turnover, which has gained the confidence of customers.

Moreover, European consumers spend around 1.5X more on beauty products than the average consumers in Asia Pacific, resulting in higher among all other regions.

Country-wise Analysis

What Makes Germany a Hub for Beauty Oil Demand?

Germany is a leading market for beauty and cosmetics products in Europe, with the cosmetic industry valued at US$ 15 Bn. Additionally, rise in number of people opting for organic and natural beauty products has been a major factor behind the growth of beauty oils in the country.

For instance, around 15% of the total beauty products sold in Germany consists of natural or organic ingredients.

Moreover, with German consumers spending 2X more than the average European consumers on beauty oils, the country offers great potential for product growth.

What Prospects Does India Have for Manufacturers of Beauty Oils?

Rising young population along with increasing female participation in the work force has been bolstering the demand and sales of beauty oils in the country. Additionally, rise in awareness regarding various ill effects of synthetic products has changed the consumer preference with demand for more natural products on rise.

Consumers in India are willing to spend around 1.5X than their Asia counterparts on organic beauty products which has benefited the beauty oils industry in a big way.

Moreover, with local manufacturers offering diversified product line up, the growth of beauty oils is evident in the country.

Category-wise Insights

Which Beauty Oil is projected to Remain High in Demand?

The orange oil segment is expected to expand at a steady CAGR of around 5.5%, with major application in skin and hair oil products.

Orange oil is projected to remain high in demand for its use in various beauty products. Properties such as toxin-free and natural with no side-effects make it suitable for its use in the beauty industry.

Moreover, orange oil comes in different variants which makes it possible for its use in different segments therapeutics, aromatherapy and making lotions for various skin conditions. These applications has made orange oils holding a prominent share in the beauty oil segment, i.e. 30% over the next ten years.

Which Sales Channel is Driving Demand for Beauty Oils?

With online shopping growing in trend online sales channel will the most sought out option for purchasing. With the top 20 manufactures still opting for conventional sales channel such as supermarkets and retail stores, change is evident as millennial nowadays want everything at their fingertips.

For instance, around ~US$ 14 Bn were spent by consumers in US through online sales. Growth of online sales can be attributed to the varied product line up it offers and over a range of brand to choose from.

It is noteworthy that the top 20 brands capture 90% of total sales through traditional retail channels, and those same companies have just 14% of share online.

How Has COVID-19 Impacted Sales of Beauty Oils?

Short term impact: Prolonged lockdowns compelled retail stores to shut down in different regions of the world hence impacting sales of cosmetic and beauty products which fell down substantially in prominent markets like China, India and Europe.

For instance, industry sales in February were down by 80% along with y-o-y decrease of 20%, which led to a negative impact on the growth of beauty oils sales. This can be attributed to the decrease in purchasing power of consumers along with change in preference towards healthcare product.

However, online sales of cosmetic products saw an increase of 20% in sales revenue during the pandemic in China, while Sephora’s online sales in the U.S. were up by 30%.

Competitive Landscape

Key market players are mainly relying on mix of organic and inorganic growth strategies such as product launches, acquisitions and collaboration. Some of the key developments are:-

• In May 2021, Estée Lauder announced completion of its first phase of ownership increment in the DECIEM Beauty Group Inc which is a Canadian based multi brand company. The company now own about 76% of DECIEM Group. Through this Estee tends to expand its market share taking help from the verticals under DECIEM.

Similarly, recent developments related to companies manufacturing beauty oils have been tracked by the team at Fact.MR, which are available in the full report.

Report Scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value
Key Regions Covered	North America Latin America Europe Japan APEJ MEA
Key Countries Covered	United States Canada Brazil Mexico Germany U.K. France Spain Italy BENELUX South Africa GCC Countries China Japan South Korea India Indonesia Malaysia Singapore Australia New Zealand
Key Segments Covered	Product Industrial Use Sales Channel Region
Key Companies Profiled	L'Oréal S.A Beiersdorf Aktiengesellschaft The Estée Lauder Companies Inc Shiseido Company, Limited Burberry Group plc Symrise AG Givaudan SA Grupo Clarín S.A
Pricing	Available upon Request

Key Market Segments Covered

• By Product

  • Lemon Beauty Oils
  • Lime Beauty Oils
  • Orange Beauty Oils
  • Mint Beauty Oils
  • Peppermint Beauty Oils
  • Bergamot Beauty Oils
  • Jasmine Beauty Oils
  • Geranium Lavender Beauty Oils
  • Lavandin Beauty Oils
  • Vetiver Beauty Oils

• By Industrial Use

  • Beauty Oils for Haircare
  • Beauty Oils for Skincare
  • Beauty Oils for Makeup
  • Beauty Oils for Perfumes

• By Sales Channel

  • Beauty Oils for Sold through Modern Trade
  • Beauty Oils for Sold at Franchise Outlets
  • Beauty Oils for Sold at Specialty Stores
  • Beauty Oils for Sold through Online Stores