Vegan Cosmetic Market set to grow by CAGR of 6.5%, says report

January 14th, 2023

“Vegans can never achieve anythi---”
If you have been at the receiving end of this statement, share this news with them. The global vegan cosmetics market is expected to register a CAGR (Compound Annual Growth Rate) of 6.5% over the next five years. Vegan cosmetics are ones that only contain components from plants and do not involve animal testing at any stage of production. This means that neither vegan products' ingredients nor the production process will ever include using animals.

Image Source: ELF Beauty

Rise in Vegan Cosmetics and Personal Care

The demand for personal care products is increasing, and this trend is especially true among Gen Z. Vegan personal care is gaining considerable popularity among consumers because of its natural origin, enhanced safety, ethically sourced ingredients, and smaller carbon footprint. Earlier, vegan products were perceived negatively, as they were considered to have synthetic ingredients and lower performance compared to conventional cosmetics.

Now that the love for vegan food is catching up, vegan products can help build loyalty among certain customers based on sustainability and ethics. While many companies have introduced animal-free compounds and vegan-label ingredients, many others have excluded animal testing in line with cruelty-free certification.

Significant innovations and studies of the impact of animal agriculture in the personal care industry will drive the market's development. Hairstyling and hair cosmetics are devouring the worldwide personal care market, with preferences for both natural and organic ingredients, such as cocoa seed butter, caffeine, aloe vera, and essential oils. The "big natural" phenomenon is currently taking place, ensuring product openness and transparency, which can now be found in cruelty-free and vegan skincare products.

Additionally, customers are now more interested in learning about the science and components behind cosmetics.

Image Source: Ethical Pixie.com

EU supports the move towards cruelty-free skincare

According to the study, the highest growth numbers in vegan personal care were recorded in the United Kingdom and the United States. Vegan personal care products come under the United Kingdom's animal welfare and environment considerations. Increasingly stringent requirements have created a market for cruelty-free and vegan beauty products. Furthermore, the EU Cosmetics Regulation has banned animal testing on any cosmetic products or individual ingredients.

Big Brands are joining the V-wagon too!

Many consumers are changing their shopping habits, with several companies and manufacturers recalling their conventional compositions because of the use of animal-derived products. Brands like The Body Shop are rapidly transitioning towards a 100% vegan beauty and skincare line.

In January 2022, Colorbar created a "Vegan Nail Lacquer" range with 128 hues as part of its expanded focus on vegan and natural beauty. Their marketing campaign even claimed that the Vegan Nail Lacquer promises a distinctly clean and green makeup experience owing to its non-toxic Patented 20 free formula and double-patented design, which it claims is loaded with biotin and calcium.

In November 2022, NYX Professional Makeup launched a vegan makeup collection inspired by 20th-Century Studios' Avatar: The Way of Water. In addition to providing a vegan and animal-free product line, the firm announced that the group wants to lessen its adverse effects on the environment. Recyclable materials were used to make palettes, lipsticks, face spray, and paint to reduce waste.

Image Source: Unsplash

Are Vegan Cosmetics better?

Consumers are expected to prefer vegan products over non-vegan cosmetics due to the medical benefits of vegan cosmetics on the skin. Moreover, vegan cosmetics can help to reduce the damage to the skin that is created due to several environmental changes and increasing pollution around the globe. For example, the antioxidants present in vegan cosmetics are naturally processed from plants and can help to reduce the dryness of the skin. Thus, due to the benefits consumers can gather using these products, the demand for plant-based ingredients is growing, also elevating the growth of the vegan cosmetics market.

Are there any challenges to vegan cosmetics?

The high circulation of knockoff/counterfeit products within all the cosmetic product categories is expected to hamper the growth of genuine vegan cosmetic brands. There is always the risk of humane-washing when it comes to brands who do not share the same cruelty-free vision of our planet.