CURRENT TRENDS IN THE DEVELOPMENT OF THE COSMETIC MARKET

Abstract

Cosmetics are an important consumer product, whose popularity is confirmed by the huge volume of sales in the global market. On the world market, perfumery and cosmetic products are produced by over 500 enterprises and firms, but about half of all production is concentrated in the hands of only seven largest companies. This article presents key economic indicators related to concentration and dominance in the cosmetics market, as well as major changes in the industry and individual companies. The importance of this problem lies in the fact that in light of growing consumer demand for new products, the development of brands in the cosmetics industry is becoming more intense. In such conditions, strong competition forces manufacturers to continuously introduce new products to the market to expand their range and increase sales volumes. Purpose. The purpose of this article is to study the market of cosmetic products to determine the trend in the development of the cosmetics market. Methods and materials. The article presents the result of a review of the global cosmetics market. To collect information, the method of desk research is used, that is, the processing of information that has been presented on official websites. The result is based on the systematic collection, structuring and analysis of qualitative and quantitative data during the review of the cosmetics market. The Herfindahl-Hirschman index is used to calculate the degree of monopolism in this market. Results. The analysis showed that today there are seven large corporations operating on the world market, owning a total of 182 companies producing a wide variety of goods. One of the leading companies is the French company L’Oreal, whose profit in 2022 amounted to $ 40.3 billion. The general state of the market is growing at different rates every year. For example, in 2019, the state of the market was estimated at $ 450 billion, but in 2020, due to covid-19, these figures decreased to $ 341 billion. But despite this, the cosmetics market will be able to recover, and by 2022 the cosmetics market was estimated at $ 518 billion. Analysis of the German research company GFK cosmetics market revealed several trends in consumer behavior, such as rationality, anti-aging cosmetics, etc.. Conclusion. In recent years, the consumption of perfumes and cosmetics worldwide has grown significantly. A large number of new products with new consumer properties have appeared on the world market, which have oversaturated the market. For several years, there has been a tendency to decrease the market concentration and market influence of individual companies, increasing competition. Advertising plays an important role in the cosmetics market, so most of the investment is invested in advertising products.