Luxury Bath and Body Products Market

Luxury Bath and Body Products Market Outlook (2022-2032)

The global luxury bath and body products market revenue was valued at US$ 14 Bn in 2021, and is expected to grow at a CAGR of 7.5% from 2022-2032. The market is estimated to reach US$ 32 Bn by the end of 2032.

Report Attributes	Details
Estimated value of the Luxury Bath And Body Products Market in 2021	US$ 14 Bn
Projected value of the Luxury Bath And Body Products Market in 2022	US$ 15.05 Bn
Projected value of the Luxury Bath And Body Products Market in 2032	US$ 32 Bn
CAGR during the forecast period, 2022-2032	7.5%
Market share of APAC during the forecast period	8.8%
Market share North America expected during 2022	25.5%
Key Companies Profiled	Bamford The Estee Lauder Companies Inc. This Works Products Limited Augustinus Bader Diptyque Aromatherapy Associates Tata Harper Omorovicza Chanel Limited Chantecaille (UK) Ltd.

The luxury bath and body products market is expected to reach a global market size of US$ 15.05 Bn by the end of 2022. This market is expected to be driven by the increased use of self-care products and the demand for luxury products such as lotions, shower gels, and body washes. Millennials and young adults are projected to be attracted to the growing number of new products released in the premium category of lotions and creams.

Demand Analysis of Luxury Bath and Body Products, 2015-2021 vs. Market Outlook 2022-2032

The global market for luxury bath and body products expanded at a compound annual growth rate of 3.8% between 2015 and 2021 according to market research and competitive intelligence provider Fact.MR. North-America was the dominant regional market during this time and held a significant share of global demand.

Since most brick-and-mortar stores were closed for many weeks due to the COVID-19 pandemic, the market is likely to slow down in the near term. In countries such as India, where herbal and Ayurvedic products are already popular, DIY procedures and home remedies consisting of all-natural household ingredients gained popularity due to the lack of access to the right products. At the same time, the pandemic has also helped the various brands to establish themselves well on various digital platforms and gain a good brand name, as reported by The MBS Group, UK.

The largest market share is expected to be held by North America. The changing buying habits of consumers will drive the growth of the bath and shower products market in this region. However, the increasing awareness toward the use of chemicals in bath and shower gels, such as sodium lauryl sulfate, dioxane, and parabens (that are considered harmful to the skin), will limit the growth of this market. According to Fact.MR, the market is forecast to surge 2.1x across the 2022-2032 forecast period.

What drives the Luxury Bath and Body Products Market?

New Product Launches to Attract New Customers

A growing number of companies are offering a wide range of products in different markets due to the growing emphasis on luxury and essential body and bath products. The products offered are of various kinds like vegan, organic, cruelty-free, paraben free, sulfates free and herbal.

As an example, Amorepacific Group expanded its offering of premium body care brand Sulwhasoo exclusively through Nykaa in July 2020. Furthermore, such product offerings encourage consumers to buy luxury skincare products, which has been driving the market during the forecast period.

The various products made from natural ingredients are gaining more popularity since the last few years as they are non-toxic and safe. There has been a rising customer awareness related to the effects of chemicals (synthetic) on health. According to the Soil Association Certification report, the U.K organic personal care market witnessed a growth rate of 9.5% in 2019.

Presence of Skincare Influencers to Spur Adoption of Luxury Bath & Body Products

It is expected that the women segment will remain the leading segment over the forecast period. After skincare influencers promoted the brand's efficacy on TikTok, CeraVe's revenue soared in December 2020, with products selling out on shelves across the country and the brand's media value rising by 126% year over year. Approximately 61% of women admit they follow beauty and skincare influencers for reviews and the launch of new products.

For makeup and skincare advice, YouTube has taken over Instagram as the most popular site. YouTube had 44.9 billion beauty videos as of 2019 and 900 million people watched beauty videos every month. The truth is, only 3% of beauty-related video content on YouTube is brand-led and controlled. The vast majority is user-generated content (UGC) created by beauty vloggers and skincare influencers.

Country-wise-Analysis

How will the growth emerge in the North American region during the forecast period?

Rising skin health awareness will drive this growth

In 2022, North America is expected to hold a revenue share of 25.5%. Luxury skincare manufacturers such as Tata Harper and Onsen Secret are developing sustainable body lotions and butters made of organic ingredients to address consumer preferences.

Over the forecast period, the rising awareness of health and hygiene among consumers and the growing popularity of sustainable products are likely to drive demand in North America.

What will be the market outlook in the APAC region?

Aromatherapy benefits and desire to be healthy will account for steady growth

The fastest CAGR is expected to be registered by Asia Pacific at 8.8% from 2022 to 2032. Luxury bath and personal care products are becoming increasingly popular because of their spa-style and aromatherapy benefits.

The market is also driven by consumers' desire to maintain a healthy lifestyle, prevent diseases, and improve their physical and mental well-being.

Why is there a growing demand in Europe?

Increased demand for luxury products is driving growth in this market

Europe is expected to grow significantly between 2022 and 2032. Demand for Luxury bath and body products made from natural and organic ingredients are becoming popular among consumers. A CAGR of 8.5% is predicted for the European market in forthcoming years.

Natural and high-quality ingredients were among the products considered by 24% of consumers in France in January 2022, according to a survey by Nature. As a result, bath and body products are expected to gain in popularity in the coming years.

Category-wise Insights

What can be expected from the body lotions and cream segment during the forecast period?

The body lotions and cream segment is expected to acquire over 35% revenue

Over 35.5% of the revenue is expected to be generated by the body lotions and creams segment in 2022 and is expected to remain dominant over the forecast period.

A growing number of millennials and Gen Z are willing to pay premium prices for body lotions and creams that contain complexion-improving niacinamide, which benefits the skin, provides 24-hour nourishment and hydration, contains essential vitamins such as A, C, and E, and restores firmness and smoothness. Likewise, these factors will likely drive the demand for luxury body creams and lotions.

Why is the Body Oil Segment gaining Preference?

Wellness centers and spas will drive this market

It is expected that the body oil segment will grow at the second-fastest rate of 8.5% between 2022 and 2032. Aromatherapy is becoming increasingly popular as a treatment for symptoms such as pain, anxiety, and insomnia.

Due to the growing popularity of aromatherapy, the demand for luxury bath oils has surged in recent years. Spas and wellness centers have proliferated across the globe, which has contributed to this trend.

What is the outlook of the Offline Segment?

Increased demand for luxury bath products will drive the growth

Revenue from offline distribution will account for more than 70.5% of all revenue in 2022. As consumers take more care of themselves, they are becoming more interested in luxury bath products, which has led major offline retailers, including prominent supermarket chains like Walmart and Costco Wholesale Corporation that stock and sell a range of luxury products to witness a surge in sales driving the offline segment.

What can be expected from the online segment during the forecast period?

Online shopping trend will accelerate the market growth

From 2022 to 2032, the online distribution channel is projected to register the highest CAGR of 10%. Due to the growing popularity of online shopping, online distribution channels are expected to gain traction over the next few years.

Due to the rising visibility of a number of premium brands online, globally, consumers are increasingly shopping online. These brands include The Estée Lauder Companies Inc., Diptyque, Chanel Limited, and Murad Skincare.

Competitive Landscape

Several large established brands and some new luxury skincare companies dominate the market. Major manufacturers hold significant market shares in major parts of Europe and North America.

• A luxury beauty brand, Omorovicza, added another product to its line of scalp care serums in March 2020. In addition to absorbing excess oil from the roots, the Scalp Reviver is said to remove product buildup, stimulate hair growth, and shield the scalp from urban stress.
• A new body cream launched by cult skin-care brand Augustinus Bader in July 2019. The company's "trigger factor" technology is designed to help guide nutrients into the skin's stem cells to stimulate renewal, and this product is meant to provide the body with the benefits. It also has Brazilian Candeia Oil as an ingredient to help the skin barrier.
• Dr. Jart+, a global skincare company with a strong presence in South Korea, was acquired by Estée Lauder Companies Inc. in December 2019. The acquisition was intended to help Estée Lauder expand its beauty care business in South Korea.

Key Segments Covered in the Luxury Bath and Body Products Industry Survey

• By Product

  • Body Washes
  • Body Lotions & Creams
  • Body Oils
  • Other Body Products

• By Distribution Channel

  • Online 
  • Offline

• By Regions

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle Eats & Africa