The vegan cosmetics market has seen immense growth in recent years due to rising awareness about the harmful effects of animal testing and ingredients derived from animals. Vegan cosmetic products such as skin care, hair care, makeup etc. are free from any ingredients sourced from animals including lanolin, gelatin, carmine, and others and do not involve any animal testing during the product development process. The vegan attributes make them suitable for people with plant-based diets as well as ethical concerns.
The Global vegan cosmetics Market is estimated to be valued at US$ 19.19 Bn in 2024 and is expected to exhibit a CAGR of 34% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in The Vegan Cosmetics Market are Jon-Don LLC., LG Electronics., Appliance Laundry Systems LLC., Electrolux Group, ECOLAB, among others. The growing vegan population worldwide has increased the demand for sustainable and ethical personal care products. Major companies are focusing on offering vegan alternatives to capture this demand. Furthermore, rising awareness about the cruelty-free attributes of vegan products through social media marketing and influencers is driving the global expansion of the vegan cosmetics market.
Market key trends
One of the key trends driving the vegan cosmetics market is the surge in online retail of such products. Many brands are opting for e-commerce platforms to promote and sell vegan beauty products owing to growing digitization. Online retail provides enhanced visibility to vegan brands and convenient access to customers. It serves as an effective marketing medium to communicate brands’ ethical attributes to a wide consumer base across geographies. This improves accessibility and encourages the triy of vegan cosmetic options, thereby supporting the market growth.
Porter’s Analysis
Threat of new entrants: New brands and companies find it difficult to gain market share due to high initial investments and capital requirements. Established brands have strong brand loyalty and recognition.
Bargaining power of buyers: Buyers have high bargaining power as the market has many established brands to choose from. Buyers can easily switch to substitute products.
Bargaining power of suppliers: Suppliers of raw materials like plant-based oils and extracts have moderate power as there are several alternatives available. Suppliers may form long term contracts and partnerships to maintain stability in prices and supply.
Threat of new substitutes: Substitute products like nature-identical ingredients pose threat. Innovation is critical to address new trends and evolving customer needs effectively.
Competitive rivalry: Intense competition among major brands to expand market share through new product launches and marketing activities.
Geographical regions
North America accounts for the largest share of over 40% of the global vegan cosmetics market currently due to high awareness and adoption of vegan lifestyle. Europe is the second largest market driven by strict regulations against animal testing.
The Asia Pacific region is expected to be the fastest growing market during the forecast period due to rising disposable incomes, expanding middle class population and inclination towards natural & cruelty free products especially in India and China. Increasing influence of western beauty trends also supports market growth.