Waterless Cosmetics Market By Product Type (Skincare, Hair Care, Cosmetics), Sales Channel (Wholesalers/Distributors, Hypermarkets/Supermarkets, Convenience Stores, Specialty Stores) & Region - Forecast 2021 - 2031

About the Report

Beauty conscious consumers today are increasingly looking for sustainable and healthier alternatives when it comes to beauty products. The waterless beauty trend originated in the east which is now slowly gaining traction in the west and developed countries. The waterless beauty trend is backed by the concept of rapidly increasing the potency of skincare and cosmetics products. This is one of the key factors why the availability of waterless cosmetics is gradually picking up. Spurred by this, the waterless cosmetics market will register impressive growth during the forecast period.

In its latest version of the study, ESOMAR-certified market research and consulting firm Future Market Insights (FMI) offers insights about key factors driving demand for Waterless Cosmetics. The report tracks the global demand for waterless cosmetics in 20+ high-growth markets, along with analysing the impact COVID-19 has had on global sales.

How Does the Future Outlook Match Up with Historic Waterless Cosmetics Sales?

With the waterless beauty trend is gaining traction, the sales of waterless cosmetics have ballooned. Indie brands have played a significant role in promoting the concept of waterless beauty products. Positive response from beauty conscious consumers further compelled luxury and mass market brands to expand their business horizons in waterless beauty.

Besides this, waterless cosmetics also fulfil the requirement for sustainability. Manufacturing these cosmetics reduces wastage of water, which is one of the key factors enabling growth in the market. According to Future Market Insights (FMI), waterless cosmetics sales are set to grow at a 13.3% CAGR between 2021 and 2031.

Rising Demand for Chemical-free Cosmetics will Drive Sales in Waterless Cosmetics Market

Water is extensively used a filler in cosmetics to ensure product longevity as it prevents contamination and also is inexpensive. Irrespective of its beneficial properties, mixing water comes with an equitable share of problems. Extensive use of water can act as a breeding ground for microorganisms. The more water the more is the penetration of bacteria. Thus, extensive range of preservatives are added to water rich products to enhance their shelf life and restrict the growth of microbial. Considering the challenges posed by water rich products on one hand and the beneficial properties of waterless cosmetics on the other side, the waterless cosmetics market is expected to reflect a positive growth trend during the forecast period.

Will Waterless Cosmetics Appeal to Consumers Looking for Sustainability?

Waterless cosmetics are increasingly being promoted as eco-friendly offerings. Every beauty product and cosmetic has ecological footprint. Thus, it has become essential for beauty players to consider the impact of beauty products on ecology. Besides the growing concern of plastic waste in the industry, heavy usage of water is another concern that remains unnoticed. In light of soaring ecological concerns, waterless cosmetics are increasingly being promoted as eco-friendly and sustainable alternatives. Many beauty brands have pledged to reduce the consumption of water. This will act as a chief growth driver.

How are Manufacturers Using Desirable Claims and Connotations to Attract Consumers?

The manufacturers operating in the waterless beauty industry are using desirable claims and connotations to gain consumer attention towards their products. The players are using connotation such as non-toxic, organic, cruelty-free, eco-friendly to reflect that their waterless beauty offerings align with numerous values. The players extensively believe that a loyal consumer or a prospective consumer prioritizes such values in their own way. Thus, as the clean beauty trend is gaining prominent significance

How is Influx of New Entrants Affecting Waterless Cosmetics Sales?

As the waterless beauty trend is rapidly gaining traction, the market is expected to experience the emergence of new entrants. For instance Green + Bare is a newly launched Australian brand, engaged in offering a range of waterless beauty products.

Besides new entrants, the established brands operating currently are considering waterless beauty a potential beauty category. This has encouraged the beauty players to foray into waterless cosmetics market. Influx of new entrants will therefore bode well for the overall market.

Will the Shift From Conventional to Natural/Organic Cosmetics Enable Growth?

Using natural and organic ingredients have become a global trend in many product categories. This trend will continue to prevail in the beauty industry as well. Consumers today prefer having gentle and safer components in their beauty products. This is because they have become more conscious regarding beauty components and the impact of synthetic on skin health.

Thus, there has been a shift from conventional to organic products. Millennial and the Gen Z today expect more than just skin care products with traditional functions and benefits. In light of the growing natural and organic trend, waterless beauty brands are extensively promoting their products that incorporate botanicals, nourishing oils, fruit waters, and other ingredients derived from natural sources.

What is the Outlook for Waterless Cosmetics with Beauty Turning Personal?

The new beauty shopper are today increasingly focused on narrower beauty. Segments within the beauty sector are becoming increasingly niche. For instance, shoppers that shop organic skincare are likely to be younger and ethnically diverse. Thus, the players in the market need to understand consumer needs and possess skills to engage them personally. These factors are likely to help brands gain a competitive edge over other players in the market.

How has Epidemic Outbreak Impacted the Market?

The impact of economic shock on beauty brands has been far greater than other recessions. Store based retailing is one of the prominent sales channel in the beauty industry, thus store closures across different regions has greatly impacted the sales growth of beauty products products including waterless cosmetics.

Besides this, the pandemic outbreak encouraged the consumers to Do-it-yourself or self-care. This change in consumer attitude has further impacted sales of beauty products including waterless cosmetics. Apart from this, the pandemic outbreak has further encouraged the consumers to resort to ethical buying wherein the consumer attention has shifted largely to local and regional brands.

Is High Pricing a Key Challenge Hindering Growth?

Waterless cosmetics are more expensive as compared to traditional cosmetics and skincare products. As waterless products are highly concentrated their prices are comparatively high. Besides this, waterless cosmetics include ethically sourced ingredients that are priced higher further raising the prices of waterless products. Thus, high pricing is further expected to hinder the adoption of waterless cosmetics during the period of forecast.

Country-wise Insights

Beauty bloggers & Influencers Playing a Key Role in Scaling up Sales in the U.S.

The U.S. has emerged as a key market for waterless cosmetics, accounting for nearly 80% sales in North America. Beauty bloggers, experts, and influencers play a key role in shaping consumers beauty regimen and product preferences. Beauty influencers and bloggers have gained popularity with rising social media penetration and also their ability to connect with their followers.

These influencers and beauty bloggers are actively engaged in writing publications and blogs that guide individuals regarding the trends in the beauty industry. On realising that self-made social media influencers and celebrities are important for brand storytelling many regional and local players offering waterless cosmetics in the United States are collaborating with such influencers and bloggers to spread brand awareness.

Waterless Cosmetics Formulas Gaining Popularity in the U.K.

Consistent growth at 4.6% CAGR is likely in the U.K. market. The rising demand for organic and chemical-free skin care and cosmetics will aid the overall expansion in the country. Waterless formulas are not only sustainable but they are also considered as ideal products. Waterless cosmetics come without any harmful preservatives. Less use of preservatives means less skin irritation. This is one of the major factor behind growing preferences for waterless cosmetics in UK, as these formulas prevent occurrence of rashes, redness, itchiness, etc.

How are Millennials Impacting the Market in India?

India accounts for nearly One-fourth of waterless cosmetics sold in South Asia. Millennial consumers have grown up with technology thus making them more informed as compared to older people. Also millennial consumers in India have better access to information via internet. Popular beauty trends in the West are sweeping India’s beauty industry, creating opportunities for sales of waterless cosmetics.

Younger beauty enthusiasts are increasingly looking forward to sustainable beauty solutions, which is why they value more those brands that are transparent in communicating their offerings and also undertake efforts to reduce their environmental footprints. Besides this, the millennial generation do not hesitate in spending more on safe and reliable beauty products.

South Korea Waterless Beauty Industry Expanding at a Fast Pace

The trend of waterless beauty is quite prominent in South Korea as compared to other countries. The waterless beauty trend in South Korea is not driven by sustainability but the fact to develop skin care products that incorporate more potential skincare benefits. The sales of waterless beauty products are expected to reflect appositive trend scale as the preferences for pure and non-diluted formulas among the beauty enthusiasts is more.

How is the Market Likely to Unfold in Brazil?

Brazil will emerge as an exceptionally lucrative market, exhibiting a CAGR of 13.5% between 2021 and 2031. Like other countries, the adoption of waterless beauty products synonymously called as anhydrous beauty products are projected to reflect a sales growth in the coming years. Factors like increasing consciousness and spending on beauty products, growing significance of natural and organic beauty products, increasing digital penetration and other promotional efforts undertaken by regional and local players likely to stimulate sales in Brazil.

Category-Wise Insights

Skincare to Remain Top-selling Category

In terms of revenue share by product type, skincare holds a notable share of 52.9% in the market.  Within the skin care category, players have a wider offerings of waterless products which include creams, lotions, serums, cleansers, and others.

Besides this, the frequency of use of skin care products is also comparatively more than that of cosmetics and hair care. Which is another reason that has led the skincare category to hold a notable value share in the market. However, in the coming years, the category is expected to register a significant growth rate of 11.4% during the forecast period.

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Demand Among Women to Rise at Accelerated Pace

As per the analysis, in terms of consumer orientation, women are expected to hold a notable share of 38.4% during the forecast period. Women are more beauty conscious than men. Females value beauty products more than men. Apart from this their purchase frequency, and spending on beauty products is also comparatively more. All of these factors has led the women category to hold a notable share in the waterless cosmetics market. However, the category is further expected to reflect prominent CAGR during the period of forecast.

In-store Sales Remain Key Source of Revenue Generation

As per the analysis in terms of sales channel, in-store sales still hold a notable share. In such scenarios hypermarkets/supermarkets, specialty stores, convenience stores, departmental stores continue to hold a prominent share. However, online sales are likely to register high CAGR during the forecast period. On the other sides, in terms of price range, Economy and mid-range holds a notable share, whereas premium category is likely to register a significant CAGR.

Competitive Landscape

The players in the market are currently focusing on enhancing their portfolios to include a wider range of anhydrous beauty products or cosmetics. The manufacturers and brands across different regions are currently stressing more on promotional activities. They are actively collaborating with beauty bloggers and influencers to promote brand awareness. Besides this, the players are also focusing on enhancing their digital penetration to facilitate a wider market reach. Through online penetration many regional and local players have also forayed into direct-to-consumer sales channel. Companies operating in the market also are focusing on product launches.

For instance, the VAPOUR BEAUTY reformulated their entire product line by offering new brand Pinch of Colour which was launched with entirely waterless formulas.

Some of the leading companies operating in the market are:

• Unilever Plc
• The Waterless Beauty Company
• L’Oreal SA
• Kao Corporation
• The Procter & Gamble Company
• Loli
• Clensta
• Ruby’s Organics
• Carter + Jane
• Taiki USA
• Ktein
• Niconi
• True Botanicals
• Allies Group Pte. Ltd.
• Lavedo Cosmetics
• No Cosmetics
• May Coop
• Azafran Innovacion

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of the Report

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Waterless Cosmetics Market by Category

Product Type

• Skincare
• Hair Care
• Cosmetics
• Others

Sales Channel

• Wholesalers/Distributors
• Hypermarkets/Supermarkets
• Convenience Stores
• Specialty Stores
• Departmental Stores
• Online Retail
• Other Retail Formats

Price Range

• Economy (Below US$30)
• Mid-Range (US$30 to US$60)
• Premium (Above US$60)

Region

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Middle East and Africa (MEA)
• Oceania