The vegan cosmetics market is anticipated to register a CAGR of 6.5% during the forecasted period (2021-2026), with estimates currently pointing to $21.4 Billion by 2027.
Skincare, one of the segments analyzed in a report by StrategyR, is projected to record a 5.6% CAGR and reach US$7.8 Billion by the end of the analysis period.
Within the vegan cosmetics sector, vegan skincare experiences a higher growth rate than vegan makeup. Skincare is set to grow 5.6% CAGR while makeup is only growing at 4.6%. Haircare comes in between at 5.1%. Skincare represents 36% of the cosmetics market while makeup is 14% of the total.
Driving Factors Towards Growth
In recent years, the vegan industry has seen a surge across all verticals. And with the pandemic, consumer preference has seen a shift towards healthier alternatives increasingly driving the vegan skincare market forward.
The market owes its growth to consumer awareness around the use of animal ingredients and a growing appetite for cruelty-free products, where millennials make up the majority of the buying population.
Consumers now don’t just stop at the packaging or product claims but dive deeper into the ingredients list and how the product was made.
Celebrities Influencing Vegan Markets
Over the last decade, a growing number of A-list celebrities are advocating for a vegan lifestyle and cosmetics. Some of them include Miley Cyrus, Kate and Rooney Mara (who also launched the vegan clothing line, Hiraeth), Jared Leto, Jennifer Lopez, Anne Hathaway, Brad Pitt, and Natalie Portman.
Major Players In The Market
As of 2021, the European region holds major shares in the market as consumers are aware of the harmful effects of paraben and aluminum compounds present in skincare.
More Europeans are now choosing vegan beauty products based on natural, organic, and ethical formulations with long-lasting results. The demand has pushed companies like the Avon United Kingdom to launch their line of vegan skincare and makeup.
As the standard of living increases in the Asia-Pacific, their market share is expected to grow in this sector supported by countries like India, China, and Japan.
Overall, the market is highly competitive with some of the key players being Loreal SA, Coty Inc., Elf Cosmetics, Beauty Without Cruelty.
Advanced Cruelty-free Testing
The growing demand has also led to the birth of innovative companies such as EpiSkin and EpiDerm that produce lab-grown human skin for the purpose of testing. Beyond making products cruelty-free, the human samples provide more accurate results.
IoT In Skincare
In addition to application products, the market is also welcoming AI in the sector of skincare with brands like Shiseido producing skincare devices such as ‘Optune’ – a personalized skincare system that offers 80,000 skincare patterns matched with individual user’s daily skin conditions and day-to-day changing living environments.