Skincare Oil Market Size

Skincare Oil Market size was valued at USD 5 billion in 2023 and is anticipated to register a CAGR of over 5.1% between 2024 and 2032. Skincare oils that offer multiple benefits, such as moisturizing, anti-aging, and antioxidant properties, are gaining popularity.

Consumers are drawn to products that simplify their skincare routines while providing comprehensive benefits. Consumers are increasingly seeking skincare products formulated with natural & organic ingredients including oils such as argan oil, jojoba oil, and rosehip oil. This trend is driven by growing awareness of the potential harmful effects of synthetic chemicals in skincare products and a desire for safer, more sustainable alternatives. Emerging markets, particularly in Asia Pacific and Latin America, are witnessing a surge in demand for skincare products including oils. This growth is fueled by rising disposable incomes, urbanization, and increasing awareness of skincare routines & products.

Additionally, brands are continuously innovating to differentiate their products in the competitive skincare oil market. This includes the development of unique formulations, incorporation of exotic or lesser-known oils, and use of advanced extraction techniques to preserve the efficacy of active ingredients. Skincare oils are becoming more accessible through various distribution channels including specialty beauty stores, online retailers, department stores, and direct-to-consumer models. This enables brands to reach a wider audience and cater to diverse consumer preferences.

Skincare oils, especially those derived from premium or rare ingredients, can be expensive. This price sensitivity may limit the adoption of skincare oils, particularly among budget-conscious consumers. Certain skincare oils, such as those derived from nuts or seeds, may trigger allergic reactions or skin sensitivities in some individuals. This can restrict the target market for skincare oils and necessitate stringent labeling & allergen awareness.

Compliance with regulatory standards and requirements, particularly product safety, labeling & claims, can be demanding for skincare oil manufacturers. Ensuring adherence to regulations also adds to the complexity and cost of bringing products to market. Additionally, some consumers may perceive skincare oils as too greasy or oily for their skin type, leading to reluctance in using them. This perception can be a barrier, especially among individuals with oily or acne-prone skin.

Skincare Oil Market Trends

With the rise of veganism and increasing concern for animal welfare, there is a growing demand for skincare oils derived from plant sources rather than animal-derived ingredients such as lanolin or emu oil. Consumers are increasingly mindful of the environmental impact of their skincare choices. Brands are responding by adopting sustainable sourcing practices for ingredients, reducing packaging waste and using recyclable or biodegradable materials for packaging. Consumers have also been increasingly seeking skincare products formulated with natural and organic ingredients. This trend has led to a surge in demand for skincare oils derived from plant sources such as argan oil, jojoba oil, rosehip oil, and coconut oil.

Additionally, the men's skincare market including skincare oils is also expanding as men become more conscious of grooming and self-care. Brands are introducing products specifically tailored to the needs and preferences of male consumers including packaging and formulations. Consumers are increasingly seeking personalized skincare solutions tailored to their specific skin concerns and preferences.

Some brands offer customization options where consumers can choose the ingredients and formulations that best suit their needs. Social media platforms, such as Instagram & YouTube, play a significant role in shaping consumer preferences and driving trends in the skincare industry. Moreover, influencers & beauty bloggers often promote skincare oils, showcasing their benefits and sharing personal experiences, thereby influencing purchasing decisions.

Skincare Oil Market Analysis

Learn more about the key segments shaping this market

Download Free Sample

Based on product type, the market can be divided into coconut, almond, olive, lemon, lavender, tea tree, argan, and others. The coconut segment dominated the global market, accounting for USD 1 billion in 2023. Coconut oil is rich in fatty acids, particularly lauric acid, which helps to hydrate and moisturize the skin. It forms a protective barrier on the skin's surface, preventing moisture loss. Coconut oil contains antioxidants such as vitamin E, which protect the skin from free radical damage caused by environmental factors such as UV radiation and pollution.

Additionally, many consumers are increasingly seeking natural and organic skincare products. Coconut oil fits into this trend as a plant-based, renewable resource. Despite being an oil, coconut oil is relatively lightweight and non-comedogenic, meaning it is unlikely to clog pores and cause acne breakouts for most people.

Learn more about the key segments shaping this market

Download Free Sample

Based on function, the skincare oil market is categorized into anti-aging, moisturizing/nourishing, acne/marks treatment, and others. In 2023, the moisturizing/nourishing segment accounted for a market share around 37%. Facial oils are rich in emollients and lipids that help to lock in moisture, making them particularly beneficial for individuals with dry or dehydrated skin. They provide an extra layer of hydration, leaving the skin feeling soft and supple.

Facial oils are rich in emollients and lipids that deeply penetrate the skin, providing intense hydration. They replenish the skin's natural lipid barrier, preventing moisture loss and maintaining hydration levels that are expected to propel segment growth. Additionally, many facial oils are formulated with vitamins, antioxidants, and essential fatty acids that nourish the skin. These nutrients can improve skin texture, tone, and overall health, providing a radiant & youthful complexion.

Based on price range, the skincare oil market is divided into economy, mid-range, and premium. In 2023, the mid-range segment led the market with a share around 46%. Mid-range prices make skincare oils more accessible to a broad range of consumers. Mid-range prices offer a balance between affordability and perceived value.

Additionally, consumers often equate price with quality. Skincare oils priced in the mid-range category may be perceived as offering better quality and efficacy compared to low-priced options, without being as expensive as luxury brands. This perceived value can attract consumers looking for effective skincare solutions, thus enabling cost-savings. By offering a mid-range price advantage, a brand can potentially capture a larger market share.

Looking for region specific data?

Download Free Sample

Asia Pacific dominated the global skincare oil market, generating USD 1.8 billion in 2023. With the rising middle class in countries such as China, India, and Southeast Asia, there is an increased purchasing power for skincare products in the region. This region will command a significant share of the global market, propelled by rapid urbanization and economic growth. Many Asian cultures place a high emphasis on skincare and beauty, further driving demand for skincare products. Asian countries are often at the forefront of skincare innovation with new products and trends emerging frequently. The rise in disposable income further contributes to this regional trend, propelling the Asia Pacific market expansion.

Skincare Oil Market Share

In 2023, dominant market players including Shiseido, Procter & Gamble Co., Burberry Group PIc., Unilever, and L'Oréal collectively held a substantial 20% - 25% market share. The market is highly fragmented with industry leaders actively engaged in strategic initiatives such as mergers & acquisitions, facility expansion, and partnerships to broaden their product portfolios, reach a wider customer base, and strengthen their market presence. These companies continuously invest in research & development to improve their skincare products and incorporate new technologies, allowing them to stay ahead of the competition.

Skincare Oil Market Companies

Major players operating in the skincare oil industry include:

• Shiseido
• Procter & Gamble Co.
• Burberry Group PIc.
• Unilever
• L'Oreal
• Beiersdorf AG
• Avon Products, Inc.
• Estee Lauder Companies
• Amway
• Chanel S.A.
• Johnson & Johnson
• Chatters Canada
• Kao Corporation
• Henkel
• Edgewell Personal Care
• Markwins Beauty Products
• Mary Kay
• The Body Shop
  

Skincare Oil Industry News

• In January 2023, OLEHENRIKSEN introduced a Hydra barrier Hydrating Face Oil, containing Scandinavian berry oils and peptides for softer, bouncy skin.
  
• In January 2021, Renee Cosmetics expanded the scope of its product line by introducing luxury face oils into the skincare market. The company introduced a glazed-glow oil for pre-makeup and a texture-fix oil for post-makeup.
  

The skincare oil market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) and volume (Million Units) from 2018 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Product Type

• Coconut
• Almond
• Olive
• Lemon
• Lavender
• Tea Tree
• Argan
• Others (mint, peppermint, shea butter, orange, rosehip)

Market, By Function

• Anti-aging
• Moisturizing/Nourishing
• Acne/Marks Treatment
• Others (cleansing, pre-shave)

Market, By Price Range

• Economy
• Mid-range
• Premium

Market, By End User

• Women
• Men
• Unisex

Market, By Distribution Channel

• Online
• Offline

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Rest of North America
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Malaysia
  • Indonesia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA