Vegan Cosmetics Market Size, Share & Industry Analysis, By Type (Skin Care, Hair Care, Makeup, and Others), Distribution Channel (E-commerce, Hypermarkets/ Supermarkets, Departmental Stores, Specialty Stores, and Others), and Regional Forecast, 2024-2032

The global vegan cosmetics market was valued at USD 18.03 billion in 2023. The market is projected to be worth USD 19.21 billion in 2024 and reach USD 32.56 billion by 2032, exhibiting a CAGR of 6.82% during the forecast period. Europe dominated the vegan cosmetics market with a market share of 34.% in 2023.

The concept of veganism is rapidly becoming mainstream within the cosmetics sector due to an expanding group of consumers emphasizing sustainability. As a result, vegan cosmetics brands worldwide are encouraged to develop cruelty-free products. Furthermore, innovation in production is likely in the coming years, as cosmetic manufacturers are focusing on improving their sustainability practices, from raw material procurement to product distribution, thereby fueling the market growth.

The COVID-19 outbreak caused unprecedented supply chain disruptions in the market. The imposition of social distancing mandates and the introduction of trade restrictions meant that most vegan beauty products were categorized as non-essential. In this regard, the COVID-19 pandemic created a significant shift from both consumer and product distribution perspectives. In the cosmetics sector, the pandemic contributed significantly to digital acceleration, most notably throughout 2020, with numerous online retailers demonstrating adaptability to rapidly changing situations.

Vegan Cosmetics Market Trends

Launch of Vegan Cosmetic Product Lines by Celebrities to Augment Market Progress

Amid intense rivalry among market competitors, recent years have witnessed numerous celebrities from around the world entering the cruelty-free beauty space, thereby positively influencing global vegan cosmetics market trends. For instance, in November 2021, Harry Styles, a U.K.-based actor, songwriter, and singer, unveiled ‘Pleasing’, his new and first vegan beauty brand, which includes a complete line of vegan skincare products and nail polishes. In another instance, in September 2022, Stella McCartney, a U.K.-based fashion designer, launched a vegan skincare line, including a cleanser, daily-use serum, and moisturizing cream. The brand was launched in collaboration with LVMH (Louis Vuitton). The increasing number of celebrity product launches also highlights the rising consumer interest in novel and innovative products.

Vegan Cosmetics Market Growth Factors

Rising Popularity of Plant-based Products in Line with Emerging Veganism to Favor Market Expansion

Given the rising global concerns regarding the production and sales of cosmetics containing synthetic ingredients, consumers are increasingly embracing their plant-based substitutes. This, in turn, is favoring the expansion of the market. At a macro level, the emerging raw material sourcing destinations worldwide that supply vegan ingredients will significantly contribute to the product demand, as consumers are seeking innovative cosmetic products with considerable health benefits. In this respect, the manufacturers are likely to source ingredients from South Korea (such as yuzu citrus fruit), Australia (such as the kakadu plum), and Indonesia & Malaysia (including rambutan) in the future. Furthermore, an evolving vegan lifestyle across many countries will boost the demand for these cosmetics.

Industry players typically market their products by highlighting their efforts in achieving authentic and internationally approved vegan standard certifications. According to the Vegan Society, a U.K.-based world’s oldest registered charity issuing vegan certifications, approximately 2,500 companies have registered over 65,000 products globally, of which 30,000 products fall under the cosmetics & toiletries category. Registering with such globally reputed vegan organizations helps manufacturers increase their brand reputation.

Implementation of Bans on Animal-tested Cosmetics to Trigger Consumer Preference for Vegan Products

Animal testing is becoming a major consumer concern across the world, most notably in North American and European countries. While animal-tested cosmetics are banned in Europe, an increasing number of states across the U.S. have been considering placing a ban on importing and distributing such cosmetics over the years. Illinois, Nevada, and California were among the U.S. states that implemented a ban on importing or selling animal-tested cosmetics in 2020.

Various animal rights groups, including the Humane Society and Cruelty-Free International, are striving to get more U.S. states to implement such bans. From a vegan cosmetics manufacturing standpoint, a ban on animal testing will positively affect the demand for cruelty-free products throughout the forecast period. Recent years have witnessed more countries passing a law banning animal-tested cosmetics. For instance, in December 2023, Canada placed an official ban on animal-tested cosmetics and trade under the Budget Implementation Act. The ban also applies to misleading or false labeling of animal-tested products. This ban ended a ten-year campaign on the ban of cosmetics, animal testing, and trade countrywide.

RESTRAINING FACTORS

High Circulation of Counterfeit Products to Hamper Market Growth

Despite the rising popularity of vegan cosmetics across the globe, the growing availability of counterfeit products will impede the global market's growth. Furthermore, the high circulation of such products within the cosmetics industry makes it even more challenging for genuine vegan cosmetic brands to compete in domestic and international markets. In recent years, the UAE government has taken rigorous measures against counterfeit products to increase trade with American exporters of premium brands. According to a report by the International Trade Administration, the Dubai Customs Authority seized several dollars' worth of fake cosmetics and personal care products during 2020-22.

Vegan Cosmetics Market Segmentation Analysis

By Type Analysis

Vegan Skin Care Segment Dominates Due to Emerging Trends of Gifting Affordable Vegan Cosmetics

On the basis of type, the market is classified into skin care, hair care, makeup, and others.

The skincare segment held a dominant share of the market in 2023. Various studies suggest that vegan skincare products are popular across international markets. For instance, according to a survey conducted by Digital Crew Pty. Ltd., an Australian online marketing service provider, and Monash University, a Melbourne-based public research university, Australian Creams, a Sydney-based organic and cruelty-free cosmetics brand, outranked nine Chinese cosmetic brands to top the list as the most trusted Australian brand in China in 2018. The emerging trend of gifting affordable cosmetics to friends and family by Chinese students, tourists, and residents in Australia will likely introduce domestic brands to Asian countries over the forecast timeframe.

The makeup segment will witness the most significant growth in the forthcoming years. Vegan makeup products also include a variety of color cosmetics available in gel, powder, and cream forms. Brands such as Zao Organic Makeup, Clove + Hallow, Prime Beauty Cosmetics, River Organics, Habit Cosmetics, and MOB BEAUTY market their products as 100% vegan.

By Distribution Channel Analysis

Hypermarkets/Supermarkets Segment Leads Through Surging Product Sales Owing to Easy Product Availability

Based on distribution channel, the market is segmented into e-commerce, hypermarkets/supermarkets, departmental stores, and specialty stores.

Hypermarkets/supermarkets remain a major distribution channel for vegan cosmetics worldwide, given the easy availability of products at discounted prices. Despite significant disruptions in the offline distribution space caused by the COVID-19 pandemic, recent developments and product distribution trends suggest that offline distribution will regain prominence post the COVID-19 pandemic. For instance, in March 2023, Plum, an Indian vegan beauty brand, opened its first store in New Delhi, India. The brand has exclusive outlets nationwide, including in Mumbai, Bengaluru, Lucknow, Kolkata, and Chandigarh, and plans to expand to more cities in India in the future.

Amazon is the world's most prominent online distributor of vegan cosmetics. Prospective brands will likely introduce their products across domestic and regional markets through internationally reputed e-commerce distribution platforms. They are also trying to establish their presence in the offline product distribution space, such as supermarkets/hypermarkets, departmental stores, and other physical retail establishments. The COVID-19 outbreak triggered the expansion of the e-commerce sector across all cosmetics categories, a trend likely to sustain throughout the forecast timeframe. For instance, in May 2022, Lotte Duty-Free, a South Korean duty-free airport retail operator, launched a range of these type of cosmetics online after the pandemic. The company introduced brands through the online store, including Grown Alchemist and Hunter Lab.

REGIONAL INSIGHTS

Regarding geography, the market is categorized into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Europe emerged as the most prominent regional market in 2023. The market size in Europe is estimated to be valued at USD 8.83 billion by 2030. Europe's major national markets for cruelty-free cosmetics are Germany, France, the U.K., Italy, and Spain. The European market is characterized by numerous research and development centers focusing on developing cosmetics and personal care products. According to Cosmetics Europe, a European trade association dedicated to the cosmetics and personal care industry, there were approximately 77 scientific innovation centers in Europe in 2018 dedicated to cosmetics and personal care.

North America is expected to witness considerable growth in the future. Led by the U.S., the North American market is driven by the rising popularity of natural ingredients in cosmetics. At a macro level, the increasing population of working women and the mushrooming growth of beauty clinics across North American countries will encourage cosmetic brands to achieve regional expansion. The U.S. houses many domestic brands, including Ama Sea Beauty, Clarisma, and Elevate CBD Cosmetics.

Asia Pacific is expected to witness the most significant growth over the forecast period. Emerging Asian markets will likely encourage new players' entry in the foreseeable future. Furthermore, recent industry developments are offering lucrative business opportunities for prospective and well-established brands in Asian countries. For instance, since October 21, 2019, Taiwan has banned animal testing of cosmetics. This new legislation also saw the country join the rapidly increasing global momentum against cruelty in cosmetics manufacturing. From a cosmetics manufacturing standpoint, bans on animal testing for cosmetics may translate into a significant demand for certified vegan products.

Although the South America and Middle East & Africa markets currently make up only a small portion of global sales turnover, they are poised for substantial expansion in the future due to increasing consumer awareness of synthetic ingredients in cosmetics. While targeting African markets is hindered by widespread poverty, the presence of a substantial disposable income in Middle Eastern countries is expected to drive the adoption of premium and luxury cosmetic products in the years to come.

List of Key Companies in Vegan Cosmetics Market

Key Industry Participants to Focus on Product Innovations and Mergers & Acquisitions to Stay Competitive

The global market is intensely competitive, with regional and international brands striving for product differentiation. The popularization of e-commerce marketing is causing a decline in the overall market share of international brands every year. This factor allows prospective and small vegan cosmetic brands to achieve a more significant vegan cosmetics market share, thereby intensifying competitive rivalry.

Prospective cosmetic brands will focus on obtaining the People for the Ethical Treatment of Animals (PETA) certification to build a more significant brand reputation and enable global expansion. PETA certification can serve as a tool for brands to educate consumers and shoppers that their cosmetic products are not tested on animals at any stage of manufacturing. Cover FX, Arbonne, Pacifica Beauty, and Beauty Without Cruelty are major brands that promote their products as PETA-certified.

LIST OF KEY COMPANIES PROFILED:

• GABRIEL COSMETICS (U.S.)


• PHB Ethical Beauty Ltd. (U.K.)


• Natur'Alley Ltd. (U.K.)


• GoNature Sp. z o.o. (Poland)


• Seraphine Botanicals (U.S)


• Nutriglow Cosmetics (India)


• Plum (India)


• Disguise Cosmetics (India)


• COTY INC. (U.S.)


• G&M Cosmetics (Australia)

KEY INDUSTRY DEVELOPMENTS:

• October 2023: Organic Harvest, an Indian vegan cosmetic brand, penetrated the color cosmetics sector by launching its new 100% vegan makeup collection featuring six product lines.


• March 2023: Fruit Works, an England-based company, introduced a new line of bath, body, and skin care vegan products, including face masks, body scrubs, glow mist, and body soufflé. The products are made from 100% natural fruit complex derived from sugarcane, lemon, and orange. The company launched ten products across its hair, body, and skincare segments.


• Feb 2023: Kinder Beauty, a U.S.-based makeup brand, launched vegan facial serums with science-backed formulations that include Vitamin C, Bakuchiol, and Hyaluronic Acid. The products are available on the company’s website.


• August 2022: OrgaGlo, an India-based company, launched vegan skin and hair care products in India that are available on the brand’s website and Flipkart. The company launched products under the categories of baby, hair, face care, and skin care.


• Sept 2022: Raw Beauty Wellness, a U.S.-based brand, launched a new line of vegan skincare and haircare products. The vegan products include eye serum, antioxidant serum, exfoliating serum, leave-in serum, prebiotic gel deodorant, and lip oil.


• June 2022: Plum, an Indian cosmetic & skincare brand, appointed South Indian actress Rashmika Mandana as their brand ambassador. This collaboration was aimed at solidifying the brand’s position among India’s Gen Z and millennial users, and opening new sales channels.

REPORT COVERAGE

The research report provides qualitative and quantitative insights into the market. It also offers a detailed market size and growth rate analysis for all possible segments. The report presents the following key insights: an overview of related markets, competitive landscape, recent industry developments, such as mergers & acquisitions, SWOT analysis, regulatory scenario in critical countries, and key industry trends.

Report Scope & Segmentation