Circular Beauty Products Market

Circular Beauty Products Market Outlook (2022-2032)

The global circular beauty products market experienced year-on-year (YoY) growth of 5.2% to reach a market valuation of US$ 2.3 billion at the end of 2021. Worldwide sales of circular beauty products are predicted to increase at 5.8% CAGR and reach a market size of US$ 4.2 billion by the end of 2032.

Market valuation from sales of personal care products is expected to grow 1.7X to reach US$ 2.9 billion by 2032.

Report Attributes	Details
Circular Beauty Products Market size (2021A)	US$ 2.3 Billion
Estimated Market value (2022E)	US$ 2.4 Billion
Forecasted Market Value (2032F)	US$ 4.2 Billion
Global Market Growth Rate (2022-2032)	CAGR 5.8%
North America Market Share (2021)	~28.3%
North America Market Growth Rate (2022-2032)	5.5% CAGR
U.S. Market Growth Rate (2022-2032)	5.0% CAGR
Market Share of Top 5 Companies	~37.4%
Key Companies Profiled	Augustinus Bader BYBI Caudalie Chanel Circumference Inc. Earth Harbor Fruu Lush Mark & Spencers Monta Rabot 1745 Superzero The Body Shop Three Ships UpCircle Beautyz

The COVID-19 pandemic has taught the world to be cautious about consumption and the impact of day-to-day actions on the environment. The shortage of food across the world has been a topic of conversation for a long, but this situation has forced us to take it up on an urgent basis.

To deal with the global crisis, many beauty brands are acting like eco-warriors. They have looked into the issue and have come forward to adopt a circular economy to produce eco-friendly beauty products to deal with food waste.

Additionally, companies are following upcycle beauty trends and are willing to become sustainable beauty brands by providing high-performance ingredients such as upcycled skincare products, upcycled beauty products, and so on.

Circular beauty products can be manufactured using the wastes of olive oil, citrus extracts, coffee beans, cacao beans, and tea. In addition, this offers sustainable packaging and animal cruelty-free products.

Rapidly-changing fashion trends and government enforcements to produce zero waste beauty products in a few countries are anticipated to draw people’s attention to circular beauty products, resulting in increased demand for circular beauty products in the near future.

Consumption Analysis of Circular Beauty Products (2017-2021) Vs. Industry Forecast Outlook (2022-2032)

Latest market analysis by Fact.MR, a market research and competitive intelligence provider, suggests that the market value for circular beauty products expanded at a CAGR of 4.8% during the last four years.

During the last few years, many beauty companies have been scaling up their sustainable activities and initiatives and are shifting from linear to circular beauty products. The force of circularity in the beauty industry has become more robust than ever. However, it remains a challenge for the masses to make circular beauty a mainstream actuality.

Extraordinary lifestyle shifts during the COVID-19 pandemic added the fuel to the fire - surge in online shopping and high food delivery intensity - highlighting more concerns about food waste.

The global beauty and personal care products industry is seeing a huge shift from brick and mortar (offline) sales to online channels. With increasing Internet availability and smartphones, it has become easier for customers to view, review, and select products from the comfort of their homes.

Due of this, demand for circular beauty products, which find usage across diverse product segments, is poised to escalate at a CAGR of 5.8% through 2032.

Which Main Factors are Driving Demand for Circular Beauty Products?

“Growing Sustainability & Environment Concerns Aiding Circular Beauty Product Sales Growth”

Consumer concerns about the sustainability and environmental impact of beauty products are majorly driving the circular beauty market. Focus on reviving waste or expired food from malls, stores, and households that is destined to reach the trash can, still has a decent amount of protien and can utilised for the production of circular beauty products, in growing.

Driven by advancements in raw material ingredients, the circular beauty products market maintained steady growth in 2021. Innovations in sustainable beauty products, sustainable luxury beauty products, research & development, and the digital channels through which they are sold in the market are driving the sales of circular beauty products.

Beauty products sales grew in 2021 driven by experiential spending, and this demand is expected to remain steady and can further impact the beauty sector. On the other hand, looking into consumers’ reality of returning to the office resulted in travel increase and other lifestyle factors, allowing companies to identify new opportunities and growth potentials.

Additionally, rising demand for male grooming products is also playing a key role in the growth of the circular beauty products market.

Attributed to the aforementioned factors, especially escalating circular beauty product demand, the market is projected to reach US$ 4.2 billion by the end of 2032, creating an absolute dollar opportunity of US$ 1.8 billion.

Country-Wise Analysis

Why is France a Prominent Market for Circular Beauty Products?

The European market is anticipated to expand at a CAGR of 5.8% during the forecast period and reach US$ 1.4 billion, with the France circular beauty products market anticipated to progress at a CAGR of 5.1%, with its valuation increasing 1.6X by 2032.

Growth of the European is being led by increased health awareness, growing demand for sustainable products, and consumers’ inclination towards natural and organic beauty care products.

Environment-friendly cosmetic and pet care products are rewarded with the EU Ecolabel in a further boost to the success of the label since 1992. Companies should apply for the EU Ecolabel and profit from its established reputation. The EU Ecolabel assures reliable, certified green products and supports the transition to a clean and circular economy.

The French cosmetic industry largely dominates Europe owing to its high quality of products, consistent innovation, and cultural heritage. However, France’s position has been threatened by new consumer trends and the rise of new competitors.

How is the U.S. Circular Beauty Products Market Shaping Up?

The global circular beauty products market is expanding rapidly in developed regions such as North America, mainly on the back of the higher share of premium products in the region.

Aging population, rising prevalence of skin diseases, and growing consumer attention to health and personal grooming are a few factors driving market growth. Additionally, increasing personal care spending, especially in the U.S., is one of the prominent factors driving the demand growth of circular beauty products in the U.S.

The North American circular beauty product market holds 28.2% of the global market share and is expected to rise at a CAGR of 5.5%. In addition, the U.S. circular beauty products market is projected to reach US$ 1.1 billion by 2032.

Category-Wise Analysis

Why Should Market Players Focus on Personal Care Circular Beauty Products?

The personal care products segment is dominating the landscape with 69.9% market share and is expected to reach US$ 2.8 billion by 2032.

Anti-aging products such as anti wrinkle creams, hand care, foot care, body lotions, deodorants, face creams, massage products, serums, eye creams, and circular skincare products are in high demand and have increased in percent sales substantially in 2020 as compared to 2019. Furthermore, problems such as hard water conditions and pollution are bolstering the need for such products.

The personal care product segment is anticipated to register a CAGR of 5.4% during the forecast period due to the high demand rise for personal grooming products across the world.

Will Offline Sales of Circular Beauty Products Continue Driving Market Expansion?

For the top 10 manufacturers, more than 4/5 of the total sales of circular beauty products come from offline sales channels, with include hypermarkets/supermarkets, modern trade stores, brand stores, beauty salons, and brand stores.

In the competitive environment, buyers who prefer quality end up buying from websites and those who prefer the price advantage go to big-box stores. However, most tier 3 manufacturers are selling their products through online sales channels.

Growing independent, digitally-native beauty brands are focused on opening new physical retail stores to solve the modern beauty needs of customers and offer an optimum customer experience.

However, e-Commence penetration of circular beauty products has slightly increased in recent years, and the online sales channel market share is predicted to surge to 53.9% by the end of 2032. Online sales of circular beauty products are anticipated to increase at the highest CAGR of 8% to reach US$ 2.2 billion by 2032.

Competition Landscape

Augustinus Bader, BYBI, Caudalie, Chanel, Circumference Inc., Earth Harbor, Fruu, Mark & Spensors, Monta Monta, Rabot 1745, Superzero, The Body Shop, Three Ships are key manufacturers of circular beauty products.

• Aquafaba (chickpea salt water, usually discarded) has the same properties as egg white and can be used as a replacement for hair care products. Lush has launched a vegan protein shampoo made with Aquafaba, touting its protein and saponin properties to protect and strengthen fine hair.
• British brand UpCircleBeauty launched an oil, scrub, and soap bar based on used coffee waste and chai spice granules.
• Food supplier Daylesford Organic launched a bitter orange hand balm containing cold-pressed citrus aurantium from Seville orange peels.
• Fruu combines locally-produced series of small batches of processed fruit waste bi-product beauty, such as natural lip balm, to create biodegradable beauty products and sustainable formulations, which at the same time brings additional revenue for small fruit producers.

Fact.MR has provided detailed information about the overall strategies adopted by circular beauty product brands, along with a detailed overview and sales analysis of circular cosmetic products, top circular beauty product manufacturers, including SWOT analysis and sales generated from target circular beauty product manufacturers positioned across geographies.

Key Segments Covered in Circular Beauty Products Industry Research

• Circular Beauty Products Market by Product :

  • Personal Care
    • Body Care
    • Skincare
    • Haircare
  • Fragrances
  • Makeup
  • Others Products

• Circular Beauty Products Market by Consumer Orientation :

  • Male Circular Beauty Products
  • Female Circular Beauty Products

• Circular Beauty Products Market by Sales Channel :

  • Online Sales Channels
    • Company Websites
    • e-Commerce Platforms
  • Offline Sales Channels
    • Hypermarkets/Supermarkets
    • Modern Trade Stores
    • Brand Stores
    • Beauty Salons
    • Pharmacies

• Circular Beauty Products Market by Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa