Vegan Cosmetics Market Insights: Market Dynamics and Competitive Landscape 2022

Vegan Cosmetics Market Growth Trends

According to a recent report published by Grand View Research, Inc., the global vegan cosmetics market is projected to attain a valuation of USD 26.16 billion by the year 2030, expanding at a compound annual growth rate (CAGR) of 6.3% between 2022 and 2030. The market's expansion is being largely driven by a rising global consciousness surrounding ethical consumerism, particularly the avoidance of animal cruelty in product development. Increasing consumer awareness about the ethical and environmental implications of traditional cosmetic manufacturing processes has significantly bolstered the demand for natural and organic vegan cosmetic products.

Furthermore, the widespread adoption of veganism, which has seen a notable surge in popularity especially following the COVID-19 pandemic, has positively influenced consumer buying behavior. This shift in lifestyle choices has substantially fueled the demand for vegan alternatives across various product categories, including cosmetics, thereby contributing to the robust growth trajectory of the vegan cosmetics industry.

Vegan cosmetics today are available in a broad spectrum of product types and formulations to cater to the diverse preferences and needs of vegan consumers. There is a noticeable uptick in the demand for cosmetics formulated with plant-based ingredients, largely due to their perceived and scientifically supported benefits for skin health. These products often exclude harsh chemicals, making them appealing to consumers seeking gentle and skin-friendly alternatives. This demand is further propelling the market growth, as more consumers prioritize wellness and transparency in ingredient sourcing.

In terms of product segmentation, the vegan skincare category emerged as the dominant segment, contributing the largest share to global revenue in 2021. The increasing inclination of consumers toward maintaining healthy and nourished skin, addressing skin concerns such as acne, aging, dryness, and other conditions, has significantly driven the uptake of vegan skincare products. This growing interest, coupled with the broader trend toward veganism, has played a key role in boosting the overall value sales in the global vegan cosmetics market.

Additionally, the e-commerce distribution channel is anticipated to record the fastest growth rate during the forecast period from 2022 to 2030. The rising popularity of online retail platforms for cosmetic purchases is being fueled by the convenience and added benefits they offer, such as home delivery, discounted pricing, diverse payment methods, and access to an extensive range of products. These factors are encouraging more consumers to purchase vegan cosmetics through digital channels, thereby accelerating the segment’s expansion.

Vegan Cosmetics Market Report Highlights

The vegan hair care segment is projected to exhibit the highest growth rate during the forecast timeframe, with an estimated CAGR of 6.8% from 2022 to 2030. This growth is attributed to the increasing consumer demand for hair care products that are both effective and ethically produced. Younger consumers, in particular, are showing heightened interest in enhancing their physical appearance through cruelty-free means, reinforcing the segment's upward trend.
The e-commerce sector is expected to emerge as the fastest-growing distribution channel, registering a remarkable CAGR of 8.8% during the same period. The easy availability of a vast array of vegan cosmetic products from numerous brands, coupled with features such as free shipping, seasonal promotional offers, and user-friendly shopping experiences on platforms like Amazon, Blanka, and Boohoo, are among the key factors stimulating this rapid growth.
Europe held the largest share of the global market revenue in 2021, accounting for 9%. Within the region, countries such as the United Kingdom and Germany have demonstrated a strong and growing preference for vegan lifestyles. This regional trend towards ethical consumption and sustainability is significantly contributing to the expansion of the vegan cosmetics market across the European continent.

Vegan Cosmetics Market Segmentation

Grand View Research has segmented the global vegan cosmetics market based on product, distribution channel, and region:

Vegan Cosmetics Market Product Outlook (Revenue, USD Million, 2017 - 2030)