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Global Augmented & Virtual Reality in Cosmetic & Beauty Market Size, Trends & Analysis - Forecasts to 2027 By Application (Virtual Try-On, Virtual Mirror, Virtual Store, AI Skin & Hair Diagnosis, 3D Product Display, Others), By Technology (Augmented Reality, Virtual Reality), By Region (North America, Asia Pacific, CSA, Europe, and the Middle East and Africa), Company Market Share Analysis, and Competitor Analysis
The Global Augmented & Virtual Reality in Cosmetic & Beauty Market is projected to grow at a CAGR value of 25.5% from 2022 to 2027.
The rising standard of living of urban population, the favorable impacts of cosmetics and personal care products on self-esteem and social connection, and the progressive consumer trend towards super-premium beauty brands are all expected to drive market growth throughout the forecast period. As per Statista's Consumer Market Outlook, the worldwide beauty and personal care market's revenue growth will accelerate in the coming years, with an annual growth rate of 4.3% by 2026.
The potential of this augmented & virtual reality technology to regulate or modify virtual contents such as perception of vividness, reality, and aesthetics, as well as increasing demand for beauty-tech among millennial female consumers, are driving market expansion. Furthermore, the introduction of such innovations is allowing consumers of different levels of individualistic or fashion ingenuity to gain varying perspectives of their purchasing behavior as well as providing customers with a much more vibrant and specialized online shopping environment.
The increasing shift towards digitalization, which incorporates elements such as virtual try-on capabilities, has been a key differentiator for beauty retail, as it substitutes in-store testers that have become outdated as a result of Covid, resulting in growth. Since the coronavirus epidemic, consumer engagement with Ulta Beauty's GlamLab virtual try-on tool has surged fivefold, with more than 19 million shade try-on. Ulta Beauty also released Skin Analysis, which analyses skin and provides insights and buying guides using AR/VR technology.
Due to the pandemic, the rise of e-commerce and the burgeoning trend of shopping online is also gathering market growth. As per a ResearchGate study, in 2020, more than 80% of consumers worldwide purchased online, with South America and Asia leading the way with nearly 90% each and the online store that was used most frequently by shoppers worldwide was Amazon.com. However, security and privacy concerns, operational cost, and technological and skills deficiencies are some of the factors limiting market expansion.
Furthermore, the potential of such technology to educate clients from their homes, much like retailers do in stores, to aid them to feel comfortable with making internet shopping was a big growth factor. Additionally, with the development of AR/VR technology, users may now digitally experiment with hair colors, artificial eyelashes, and different shades of lip colors, and eye colors, all of which promote growth.
The disruption of supply chains, particularly for cosmetics, was a major challenge for businesses during the COVID-19 scenario when countries blocked their frontiers or raised trade restrictions. Sales through online retail channels, on the other hand, were a key contributor to market penetration. The global penetration rate of digital buyers is 47.3% as of 2018. According to a survey of 3,700 customers in nine developing and industrialized economies, the COVID-19 epidemic has permanently altered online shopping habits.
Based on the application, the augmented & virtual reality in the cosmetic & beauty market is segmented into virtual try-on, virtual mirror, virtual store, ai skin & hair diagnosis, 3D product display, and others. The virtual try-on segment is expected to hold the largest piece of the market during the forecast period. This technology allows consumers to evaluate and see for themselves before making a purchase, giving them a more complete picture of the products and options that are available.
Based on the technology, the market is segmented into augmented reality and virtual reality. The augmented reality segment held the lion’s share of the market. Personal information such as skin type, purchasing habits, and previous purchases can be collected with AR beauty technology. It also tracks customer interaction parameters including time and rate of engagement, number of tests, and photos were taken. L'Oréal, a French cosmetics firm, has been a pioneer in adopting augmented reality technology into its marketing and internet strategy.
As per the geographical analysis, the augmented & virtual reality in the cosmetic & beauty market can be classified into North America (the United States, Canada, and Mexico), Asia Pacific (India, China, Japan, Malaysia, Singapore, and the Rest of Asia Pacific), Europe (Germany, United Kingdom, Italy, France, Spain, Netherlands, and Rest of Europe), Middle East & Africa (Saudi Arabia, United Arab Emirates, and Rest of the Middle East & Africa) and Central & South America (Brazil, Argentina, and Rest of Central and South America).
North America (the United States, Canada, and Mexico), will have a dominant share in augmented & virtual reality in the cosmetic & beauty market from 2022 to 2027. The expansion is favoured by rising consumer purchasing power, the large consumption of digital media, and the greater spending power of consumers has resulted in the dominance of this region. Furthermore, the existence of well-established application developers and the rapid expansion of digitization in this region are driving growth.
Moreover, the Asia-Pacific region is expected to be the fastest-growing segment in the augmented & virtual reality cosmetic & beauty market during the forecast period. Increased disposable incomes and the proliferation of online purchasing marketplace by millennials are two major factors fueling the expansion. High consumer awareness of cosmetics items such as face makeup, hairdressing, and colouring products, as well as developing infrastructural facilities and a rise in internet users, are likely to drive regional market growth.
ModiFace (Loreal), Skinjay, Tarte Cosmetics, Aveda, Allure, Marianna Naturals, Decorte, Sephora, Estee Lauder, Lizzie Para (BLP) Beauty, among others are the key players in the augmented & virtual reality in cosmetic & beauty market.
Please note: This is not an exhaustive list of companies profiled in the report.
Chapter 1 Methodology
1.1 Market Scope & Definitions
1.2 Estimates & Forecast Calculation
1.3 Historical Data Overview and Validation
1.4 Data Sources
1.4.1 Secondary
1.4.2 Primary
Chapter 2 Report Outlook
2.1 Augmented & Virtual Reality in Cosmetic & Beauty Industry Overview, 2022-2027
2.1.1 Industry Overview
2.1.2 Technology Overview
2.1.3 Application Overview
2.1.4 Regional Overview
Chapter 3 Augmented & Virtual Reality in Cosmetic & Beauty Market Trends
3.1 Market Segmentation
3.2 Industry Background, 2022-2027
3.3 Market Key Trends
3.3.1 Positive Trends
3.3.1.1 Increasing demand for beauty-tech among millennial female consumers
3.3.2 Industry Challenges
3.3.2.1 Security and privacy concerns, and high operational cost
3.4 Prospective Growth Scenario
3.4.1 Type Growth Scenario
3.4.2 Application Growth Scenario
3.5 COVID-19 Influence over Industry Growth
3.6 Porter’s Analysis
3.7 PESTEL Analysis
3.8 Value Chain & Supply Chain Analysis
3.9 Regulatory Framework
3.9.1 North America
3.9.2 Europe
3.9.3 APAC
3.9.4 LATAM
3.9.5 MEA
3.10 End-User Overview
3.11 Market Share Analysis, 2021
3.11.1 Company Positioning Overview, 2021
Chapter 4 Augmented & Virtual Reality in Cosmetic & Beauty Market, By Technology
4.1 Technology Outlook
4.2 Augmented Reality
4.2.1 Market Size, By Region, 2022-2027 (USD Billion)
4.3 Virtual Reality
4.3.1 Market Size, By Region, 2022-2027 (USD Billion)
Chapter 5 Augmented & Virtual Reality in Cosmetic & Beauty Market, By Application
5.1 Application Outlook
5.2 Virtual Try-On
5.2.1 Market Size, By Region, 2022-2027 (USD Billion)
5.3 Virtual Mirror
5.3.1 Market Size, By Region, 2022-2027 (USD Billion)
5.4 Virtual Store
5.4.1 Market Size, By Region, 2022-2027 (USD Billion)
5.5 AI Skin & Hair Diagnosis
5.5.1 Market Size, By Region, 2022-2027 (USD Billion)
5.6 3D Product Display
5.6.1 Market Size, By Region, 2022-2027 (USD Billion)
5.7 Others
5.7.1 Market Size, By Region, 2022-2027 (USD Billion)
Chapter 6 Augmented & Virtual Reality in Cosmetic & Beauty Market, By Region
6.1 Regional outlook
6.2 North America
6.2.1 Market Size, By Country 2022-2027 (USD Billion)
6.2.2 Market Size, By Technology, 2022-2027 (USD Billion)
6.2.3 Market Size, By Product Type, 2022-2027 (USD Billion)
6.2.4 U.S.
6.2.4.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.2.4.2 Market Size, By Product Type, 2022-2027 (USD Billion)
6.2.5 Canada
6.2.5.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.2.5.2 Market Size, By Product Type, 2022-2027 (USD Billion)
6.3 Europe
6.3.1 Market Size, By Country 2022-2027 (USD Billion)
6.3.2 Market Size, By Technology, 2022-2027 (USD Billion)
6.3.3 Market Size, By Product Type, 2022-2027 (USD Billion)
6.3.4 Germany
6.3.4.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.3.4.2 Market Size, By Product Type, 2022-2027 (USD Billion)
6.3.5 UK
6.3.5.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.3.5.2 Market Size, By Product Type, 2022-2027 (USD Billion)
6.3.6 France
6.3.6.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.3.6.2 Market Size, By Product Type, 2022-2027 (USD Billion)
6.3.7 Italy
6.3.7.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.3.7.2 Market Size, By Product Type, 2022-2027 (USD Billion)
6.3.8 Spain
6.3.8.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.3.8.2 Market Size, By Product Type, 2022-2027 (USD Billion)
6.3.9 Russia
6.3.9.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.3.9.2 Market Size, By Product Type, 2022-2027 (USD Billion)
6.4 Asia Pacific
6.4.1 Market Size, By Country 2022-2027 (USD Billion)
6.4.2 Market Size, By Technology, 2022-2027 (USD Billion)
6.4.3 Market Size, By Product Type, 2022-2027 (USD Billion)
6.4.4 China
6.4.4.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.4.4.2 Market Size, By Product Type, 2022-2027 (USD Billion)
6.4.5 India
6.4.5.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.4.5.2 Market Size, By Product Type, 2022-2027 (USD Billion)
6.4.6 Japan
6.4.6.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.4.6.2 Market Size, By Product Type, 2022-2027 (USD Billion)
6.4.7 Australia
6.4.7.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.4.7.2 Market size, By Product Type, 2022-2027 (USD Billion)
6.4.8 South Korea
6.4.8.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.4.8.2 Market Size, By Product Type, 2022-2027 (USD Billion)
6.5 Latin America
6.5.1 Market Size, By Country 2022-2027 (USD Billion)
6.5.2 Market Size, By Technology, 2022-2027 (USD Billion)
6.5.3 Market Size, By Product Type, 2022-2027 (USD Billion)
6.5.4 Brazil
6.5.4.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.5.4.2 Market Size, By Product Type, 2022-2027 (USD Billion)
6.5.5 Mexico
6.5.5.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.5.5.2 Market Size, By Product Type, 2022-2027 (USD Billion)
6.5.6 Argentina
6.5.6.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.5.6.2 Market Size, By Product Type, 2022-2027 (USD Billion)
6.6 MEA
6.6.1 Market Size, By Country 2022-2027 (USD Billion)
6.6.2 Market Size, By Technology, 2022-2027 (USD Billion)
6.6.3 Market Size, By Product Type, 2022-2027 (USD Billion)
6.6.4 Saudi Arabia
6.6.4.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.6.4.2 Market Size, By Product Type, 2022-2027 (USD Billion)
6.6.5 UAE
6.6.5.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.6.5.2 Market Size, By Product Type, 2022-2027 (USD Billion)
6.6.6 South Africa
6.6.6.1 Market Size, By Technology, 2022-2027 (USD Billion)
6.6.6.2 Market Size, By Product Type, 2022-2027 (USD Billion)
Chapter 7 Company Landscape
7.1 Competitive Analysis, 2022
7.2 ModiFace (Loreal)
7.2.1 Company Overview
7.2.2 Financial Analysis
7.2.3 Strategic Positioning
7.2.4 Info Graphic Analysis
7.3 Skinjay
7.3.1 Company Overview
7.3.2 Financial Analysis
7.3.3 Strategic Positioning
7.3.4 Info Graphic Analysis
7.4 Tarte Cosmetics
7.4.1 Company Overview
7.4.2 Financial Analysis
7.4.3 Strategic Positioning
7.4.4 Info Graphic Analysis
7.5 Aveda
7.5.1 Company Overview
7.5.2 Financial Analysis
7.5.3 Strategic Positioning
7.5.4 Info Graphic Analysis
7.6 Allure
7.6.1 Company Overview
7.6.2 Financial Analysis
7.6.3 Strategic Positioning
7.6.4 Info Graphic Analysis
7.7 Marianna Naturals
7.7.1 Company Overview
7.7.2 Financial Analysis
7.7.3 Strategic Positioning
7.7.4 Info Graphic Analysis
7.8 Decorte
7.8.1 Company Overview
7.8.2 Financial Analysis
7.8.3 Strategic Positioning
7.8.4 Info Graphic Analysis
7.9 Sephora
7.9.1 Company Overview
7.9.2 Financial Analysis
7.9.3 Strategic Positioning
7.9.4 Info Graphic Analysis
7.10 Estee Lauder
7.10.1 Company Overview
7.10.2 Financial Analysis
7.10.3 Strategic Positioning
7.10.4 Info Graphic Analysis
7.11 Lizzie Para (BLP) Beauty
7.11.1 Company Overview
7.11.2 Financial Analysis
7.11.3 Strategic Positioning
7.11.4 Info Graphic Analysis
7.12 Other Companies
7.12.1 Company Overview
7.12.2 Financial Analysis
7.12.3 Strategic Positioning
7.12.4 Info Graphic Analysis
The Global Augmented & Virtual Reality in Cosmetic & Beauty Market has been studied from the year 2019 till 2027. However, the CAGR provided in the report is from the year 2022 to 2027. The research methodology involved three stages: Desk research, Primary research, and Analysis & Output from the entire research process.
The desk research involved a robust background study which meant referring to paid and unpaid databases to understand the market dynamics; mapping contracts from press releases; identifying the key players in the market, studying their product portfolio, competition level, annual reports/SEC filings & investor presentations; and learning the demand and supply-side analysis for the Augmented & Virtual Reality in Cosmetic & Beauty Market.
The primary research activity included telephonic conversations with more than 50 tier 1 industry consultants, distributors, and end-use product manufacturers.
Finally, based on the above thorough research process, an in-depth analysis was carried out considering the following aspects: market attractiveness, current & future market trends, market share analysis, SWOT analysis of the company and customer analytics.
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