Waterless Cosmetics Market Size, Share And Trends Analysis Report By Product (Skincare, Haircare, Makeup), By Distribution Channel (Offline, Online), By Region, and Segment Forecasts, 2022 - 2028

Report Overview

The global waterless cosmetics market size was valued at USD 8.5 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 10.6% from 2022 to 2028. The growing cosmetics and personal care industry globally is projected to drive market growth during the forecast years. Moreover, technological advancement and development in the manufacturing of waterless products are major market drivers. The rising inclination of consumers towards environment-friendly and sustainable beauty products, coupled with growing awareness about the benefits of waterless products, are driving the industry demand.

The COVID-19 pandemic-induced lockdowns had disturbed transportation and suspended the supply of raw materials for a particular time period, which affected the manufacturing units. The prolonged curfews and lockdown across the globe have hugely impacted the lifestyle and health & well-being of the consumers.

Beyond that, the outbreak also encouraged consumers to adapt to a Do-it-Yourself (DIY) or self-care routine. This change in consumer attitude has further impacted the sales of beauty products, including water-free cosmetics. In addition to this, the pandemic has further encouraged ethical buying, where consumer attention has largely shifted to local and regional brands.

Water is widely used as a filler in cosmetics to ensure the longevity of products, as it prevents contamination and is more economical. Regardless of its beneficial properties, mixed water presents a number of problems. Extensive use of water can be a breeding ground for micro-organisms. Therefore, numerous preservatives are added to water-rich products to extend their shelf life and limit the growth of micro-organisms. Comparing the challenges posed by moisture-rich products to the beneficial properties of water-free cosmetic products, the market is expected to exhibit positive growth in the coming years.

The growing demand for new beauty trends and innovative products, increasing use of natural ingredients, and attractive packaging can be viewed as an opportunity by the waterless cosmetics manufacturers to drive their growth. In addition to this, the rising awareness about waterless beauty products and increasing demand for premium cosmetics products due to the rising disposable income are driving the global market.

The manufacturers are offering a wide range of cosmetic products such as cleansers, moisturizers, sheet masks, sticks, powder, makeup, shampoo, and other waterless products. However, government guidelines in countries such as the U.S., Germany, the U.K., China, and India are expected to maintain the quality of waterless cosmetics products and raise awareness regarding water conservation.

In 2019, Kao, a South Korean cosmetic company, teamed with China’s Ministry of Environmental Protection and Center for Environmental Education and Communications (CEEC) for raising sustainable initiatives for water-saving and cleanliness.

Manufacturers in the waterless cosmetics market are utilizing satisfying claims and references to draw consumers' attention to their products. Players use non-toxic, organic, cruelty-free, and eco-friendly connotations to demonstrate water-free cosmetic products. Participants generally agree that loyal or potential consumers prioritize these values in their own way. Therefore, as the clean beauty trend becomes more important, the demand for waterless cosmetics products will increase, thereby driving industry sales.

Distribution Channel Insights

The offline channel contributed a share of more than 82% in the global market in 2021. Consumers are preferring the offline channel for purchasing consumer goods and beauty products, where they can physically verify product quality. In addition to this, easy access and searching for diverse products through stores is likely to enhance the segment growth during the forecast timeframe. Offline channels are expected to remain dominant due to improved distribution channel networks across the globe.

The online segment of the market is expected to register the fastest growth during the forecast years, with a CAGR of 11.2% from 2022 to 2028. The rising adoption of e-commerce platforms for the shopping of consumer goods and beauty products by consumers due to the burgeoning internet penetration rate has led to lucrative segment growth.

Several manufacturers are offering cosmetics products on their websites as well as on e-commerce platforms, thereby supporting market growth during the forecast period. The use of online shopping portals such as Amazon, Flipkart, Myntra, and other mobile apps is getting popular among the youth. Various offers, deals, and huge discounts on cosmetic products, along with the rising number of online distributors in the cosmetic industry, are fueling the growth of this segment.

Product Insights

The skincare segment contributed to the largest revenue share of around 50% in the global market in 2021 and is expected to progress with a CAGR of 10.5% from 2022 to 2028. The increasing awareness about maintaining youthful skin and good appearance is anticipated to drive the demand for anti-aging products. Waterless beauty products are used for different purposes such as soothing, tightening, brightening, and moisturizing the skin, and also help sustain skin beauty and health.

The haircare segment is expected to advance at the fastest growth rate of 11.2% from 2022 to 2028. The increasing popularity of waterless formulas due to the more concentrated and higher efficacy of hair care products has led to the upsurge of this segment. The harmful effect of artificial ingredients used in manufacturing cosmetic products, and the rising health concerns among consumers, have projected the growth of this segment during the forecast period.

Regional Insights

Asia Pacific made the largest contribution in the global market of over 39% in 2021. Increasing demand for waterless beauty products from developing economies like China, India, and South Korea has driven the market growth over the last few years. Moreover, the region is expected to dominate in the coming years, due to the increasing disposable income of the people and rising population.

North America is the fastest-growing waterless cosmetics market and is expected to witness a CAGR of 11% from 2022 to 2028. In this region, beauty experts, bloggers, and influencers play a major role in shaping the cosmetic industry. Additionally, consumers are demanding natural beauty products and organic ingredients-based products, which in turn are propelling the market growth.

Key Companies & Market Share Insights

The market is driven by the presence of a large number of well-established players such as L’Oréal, Procter & Gamble, Unilever, and Kao Corporation, coupled with numerous domestic players and an existing strong distribution channel. Recently, Procter & Gamble launched its new retail hair care brand worldwide. Such innovations and developments are expected to boost the adoption rate of the product among consumers.

With the rapid development of waterless beauty products, the target market is estimated to witness new market entrants and product innovations. In 2020, there was the launch of Green + Bare, a new Australian brand dedicated to offering a range of water-free beauty products. In January 2021, Everist Inc. launched its high-performance beauty product in the hair care category. Some of the key players operating in the global waterless cosmetics market include:

• L’Oréal

• Procter & Gamble

• Unilever

• Kao Corporation

• Pinch of Colour

• Taiki USA

• Loli

• Clensta

• Ruby’s Organics

• Ktein

• Carter + Jane

• VAPOUR BEAUTY

• Allies Group Pte. Ltd.

 Waterless Cosmetics Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global waterless cosmetics market report based on product, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2028)

  • Skincare

  • Haircare

  • Makeup

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2028)

  • Offline

  • Online

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • South Korea

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa