Almost every quarterly financial report from the world’s leading beauty players sounds a note of caution about future prospects, even when the results exceed market expectations.

Market volatility and inflation fears are the main reasons behind the guarded comments. But the future is looking very bright, reports Research Dive.

According to the international research firm, the global cosmetics and personal care market is expected to reach US$457.8 ($707.4) billion by 2027 – a CAGR of 5.1 per cent.

As usual, women represent the lion’s share of sales in the beauty and personal care category, and are on track to surpass US$233.4 billion in sales over the next five years.

Skincare and suncare products are expected to be the bullet performers, reaching revenues of US$164.2 billion during the forecast period. One of the main drivers will be the increasing adoption of skincare routines in developing countries. The rising use of dermocosmetic skincare to relieve common skin issues and increased use of suncare to mitigate sun damage in developed markets will also be a potent growth force.

Grocery channels such as hypermarkets and supermarkets are expected to enjoy strong growth over the next five years, says Research Dive. With revenues expected to top US$171.4 billion by 2027, the leading drivers of growth will be anchored by the convenience of a large selection of products in one place, discounts and offers and the more widespread use of samples and testers.

The Asia/Pacific region, including Australia, will experience continued growth to reach revenues of US$181.3 billion over the next five years, adds Research Dive. In addition to skincare and makeup, leading sectors of growth will be sunscreens, hair gel, wipes and hair styling products.

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