Market Trend of Cosmetics

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Cosmetics can be described as products that enhance the attractiveness of the skin, intensifying, cleaning, and amplifying the appearance of the skin. As claimed, Egyptians are attributed with using cosmetics even in 4000 BC, and subsequent cosmetics were developed by Greeks, Chinese, Romans, Americans, and Japanese. Furthermore, by the twenty-first century, cosmetics are used significantly, and innovative cosmetic formulations are established through the advancement of technology and the incorporation of the latest innovations. In comparison, Asian cosmetics are among the best performing and are in high demand, which has been documented by the increase in the Asia-Pacific market value to more than US $70 billion. In addition, according to data from Malaysia External Trade Development Corporation (MATRADE), Malaysia’s cosmetics market in 2019 was worth $5 billion. The country’s export of Halal cosmetics products saw a 68% increase from 2012 to 2017, from $433 million to $725 million.

Numerous cosmetics now claim to protect against pollution and environmental harm. Is this conceivable? Yes, but some explanation is necessary. Air pollution is made up of small, highly reactive nanoparticles that are generated during combustion. Combustion happens when fuel is burned in a vehicle engine, coal is burned in power plants, waste is burned in an incinerator, or trees are burned in a forest fire. When these nanoparticles come into contact with the skin, they create reactive oxygen species, which cause skin damage by perforating elastin fibres and dermal collagen. The reactive oxygen species will not develop if the nanoparticles are not permitted to come into contact with the skin, and no harm will result. Most moisturizers and foundations will apply a thin coating of an oily occlusive material to the skin’s surface, usually using dimethicone, mineral oil, and shea butter. This thin layer from the cosmetic applied will hinder nanoparticles from air pollution from entering and having contact with the skin, hence preventing skin injury. As a result, it is possible to protect one’s skin against environmental harm with the proper cosmetic application.

Since the twenty-first century, a number of multinational corporations have dominated the cosmetics industry. There are six major categories in the global cosmetic industry, i.e., fragrances, hair care, makeup, oral care, skincare, and toiletries. Skincare products accounted for 41% of the global market in 2021 and were the largest product class. In 2020, negative annual growth was noticed, probably due to the spread of the COVID-19 pandemic; however, the industries recovered in 2021, as the rate grew by 8%. According to Allied Market Research, the 2027 global cosmetic market size is estimated to achieve USD 463.5 billion, growing at a CAGR of 5.3%. As natural cosmetics are considered unique products, influencing the purchasing behaviour of consumers, their global market value is increasing and is expected to reach USD 54.5 billion by 2027.

In Malaysia, over 60,000 forms of cosmetics are available in the local market. Malaysian cosmetics companies appear to be using a competitive strategy to purchase costly products in instalments and encourage a high discount for branded cosmetics. Consequently, the marketing of branded products is growing in order to obtain the maximum degree of visibility for such products. In addition, an extraordinary discount is provided on premium cosmetics, which corresponds to sustaining the demand for cosmetics among consumers, as well as other cosmetic brands. Malaysian customers are currently influenced by offers of market promotion, and they are looking for cosmetics whenever a discount is available, particularly for premium products. Admittedly, Malaysian customers tend to purchase beauty products from top brands that are specifically promoted to enhance their youthful appearance. An enormous amount of brand cosmetics is highly competitive with new brands, as well as other brands available in beauty shops, promotional stores, and pharmacies. The most efficient ways to improve the purchasing rate of cosmetic products among consumers are advertisements in the media, newspapers, and magazines.