Estimated to be worth $16.6 billion in 2021, the vegan cosmetics market is predicted to reach $28.5 billion by 2031.
This is according to a new report by ResearchAndMarkets.com, which defines this market as cosmetics that are composed of chemical compounds produced from natural or synthetic sources that do not contain any animal-derived ingredients. It cites animal-derived substances as including honey, beeswax, lanolin, collagen, albumen, carmine, cholesterol and gelatin, among many others. Vegan cosmetics are also devoid of animal testing and cruelty.
States the report: “In recent years, the cruelty-free (no animal testing), vegetarian (no by-products of animal slaughter), and vegan (no animal components at all) cosmetics markets have expanded. Vegan cosmetics are chosen by customers because they are ethical in nature since vegan cosmetics are produced without the use of any animal components. Considering the medical benefits of vegan cosmetics on the skin, consumers gradually choose vegan cosmetics over non-vegan cosmetics.
“Furthermore, vegan cosmetics are believed to assist in decreasing skin damage caused by many environmental changes and growing pollution globally. For example, the anti-oxidants included in vegan cosmetics are naturally processed from plants and can aid to alleviate skin dryness. As a result of the benefits that consumers obtain from using these products, the demand for plant-based components increases, which also fuels the expansion of this market.”
The report further notes that the cosmetics sector is fragmented because it is very competitive and saturated. Trade restrictions, strong competition and an increase in demand for low-cost products are stifling the expansion of the vegan cosmetics market and leading the market's product quality to deteriorate. Small-scale business owners join the market, and because of the significant fluctuation in raw material costs, they employ low-quality raw materials to earn a good profit margin for themselves.
“On the other hand,” continues the report, “items from well-known brands may be exorbitantly priced, with buyers eager to find low-cost alternatives. The market is flooded with counterfeit items available at low prices. In recent years, counterfeit items have thoroughly permeated the market, harming the profitability of well-known businesses. The decline in product quality and the widespread availability of counterfeit items impede the growth of the global vegan cosmetics market.
“The usage of emulsifiers also plays a major role in the manufacturing of cosmetics. Hence, vegan cosmetic manufacturers are aware of using vegan-based emulsifiers in their vegan cosmetics products. Vegan emulsifiers are costly as it takes more time to extract them from the vegan sources and these emulsifiers take a longer period for emulsion. The slow emulsion speed and high price force vegan cosmetics manufacturers to increase the initial price of the cosmetics. On the other hand, clear labeling of vegan products provides a clear message to the consumers about the usage of ingredients which encourages them to go for vegan cosmetic products.”
For more information go to ResearchAndMarkets.com.