Private Label Cosmetics Market By Product Type (Skincare Products, Haircare Products, Makeup such as Lipsticks, Foundations, Eye Shadows, Fragrances, Personal Care Products); By End-User (Women, Men, Unisex); By Distribution Channel (Online Retail, Offline Retail including Pharmacies, Supermarkets, Specialty Stores); By Price Range (Mass Market, Premium); By Geography (Segment revenue estimation, Forecast, 2024–2032).

The private label cosmetics market was USD 12.8 billion in 2023 and is expected to reach USD 23.7 billion from 2024 to 2030, with a CAGR of 9.1%. The market is spurred by the rising consumer preference for cheaper cosmetics other than branded products, increased attention to personalization, and product innovation.

 

Private-label cosmetics are made by one firm and branded by another firm. These products enable retail companies and business people to sell various cosmetic products without having facilities for their production. Private-label cosmetics refer to beauty products that include skincare, makeup, hair care, and personal care, targeting price-sensitive customers and firms that want to offer their clients quality items at affordable rates.

 

Market Drivers

Cost Efficiency and High-Profit Margins for Retailers: Cosmetics that are privately labeled create opportunities for the retailers to increase total profit margins since there are no intermediary costs incurred in the branding process. This cost-effectiveness is appealing to small enterprises as well as large purchasing organizations. Example: In 2023, one European chain of drugstores stated that it sells private label cosmetics for 35% of total cosmetics sales, and their margins are higher than those of national brands.

 

Rising Demand for Customization and Niche Products: The increased focus on personalization has led to the development of cosmetics for particular targeted segments, skin types, and needs. Example: An American venture established private-label skincare that focused on sensitive skin clients and got a 20% market share in the niche in 2023.

 

Increase in online sales and DTC operations: e-commerce platforms allow small brands to penetrate the cosmetic market by using private label products without physical stores. Online business sales of private label cosmetics increased to 45% by 2023 due to changes in consumers’ preferences brought by convenience and wider market access.

 

Shift Toward Clean and Natural Beauty Products: Consumers today are looking for natural and organic cosmetics, and this need is filling the market with Private label products. Example: In 2023, a Canadian retailer introduced its house brand of organic cosmetics and saw a 25 percent improvement in sales within the first year.

 

Market Opportunities

Growth in Emerging Markets: Increased disposable income and urbanization in Asia-Pacific and Latin American countries will be the key factors for the growth of private label cosmetics. For example, in 2023, private label cosmetics sales increased by 40% in India due to the rising popularity of modesty products among Millennials.

 

Collaborations with Influencers and Beauty Experts: Blogging and collaborating with influencers help increase awareness of private label cosmetics and gain trust among customers. Example: A U.S. brand partnered with a beauty influencer in 2022, and as an outcome, the sales of its private label lipstick on its e-commerce store increased by 50%.

 

Sustainability and Eco-Friendly Packaging: Using sustainable packaging can positively impact the overall brand image and appeal to consumers who are conscious about their environmental impact. Example: A French brand of personal care products switched to biodegradable packaging for a skincare line of private label products in 2023, which was much appreciated and caused a 20% sales increase.

 

Market Restraints

Perceived Quality Gap Between Private Labels and Branded Products: Private label cosmetics are known to be lower quality than well-established brands, thus influencing the acceptance rate.

 

Regulatory Challenges and Compliance Costs: High regulations and varying standards impacting cosmetic facial products in regional markets challenge growth.

 

Intense Competition and Saturation: The standardization of food commodities escalated the private label food products, hence higher competition, making it difficult for newcomers to stand out.

 

Market Segmentation

By Product Type:

• Skincare Products

• Haircare Products

• Makeup (Lipsticks, Foundations, Eye Shadows)

• Fragrances

• Personal Care Products

 

By End-User:

• Women

• Men

• Unisex

 

By Distribution Channel:

• Online Retail

• Offline Retail (Pharmacies, Supermarkets, Specialty Stores)

 

By Price Range:

• Mass Market

• Premium

 

By Region:

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East & Africa

 

Segment Analysis of the Private Label Cosmetics Market

By Product Type:

Leading Segment: Skincare Products

Skincare products lead the private-label cosmetics market, representing a significant portion of the overall market share. This includes products such as moisturizers, cleansers, sunscreens, and anti-aging creams. The growing demand for personalized & organic skincare solutions is a key factor contributing to this dominance. Private-label skincare brands are using more clean and eco-friendly ingredients to meet the growing consumer demand for sustainable and health-conscious products. The global trend toward skincare routines & the booming interest in self-care continue to drive the growth of this segment.

Fastest-Growing Segment: Makeup (Lipsticks, Foundations, Eye Shadows)

Makeup is the fastest-growing segment in the private-label cosmetics market, with a surge in demand for affordable, high-quality makeup products. Consumers are increasingly turning to private-label makeup brands for trendy, high-performance options at competitive prices. Products like lipsticks, foundations & eye shadows are seeing increased adoption, especially among millennials and Gen Z consumers, who prioritize inclusivity and product performance. The rise of social media influencers & beauty vloggers also plays a crucial role in promoting private-label makeup brands to a broader audience.

 

By End-User:

Leading Segment: Women

Women are the largest end-user demographic in the private-label cosmetics market. As the primary consumers of skincare, makeup & fragrance products, women’s demand for private-label cosmetics continues to grow. Brands are focusing more on meeting women's specific needs with products like skincare for different skin types & makeup for various skin tones. As more women emphasize beauty & personal care, and with the rise of affordable private-label options, this market segment is becoming increasingly dominant.

Fastest-Growing Segment: Men

The fastest-growing segment in the private-label cosmetics market is men’s grooming products. As societal attitudes toward men’s personal care and grooming evolve, there is a growing demand for private-label skincare, haircare, and fragrance products designed specifically for men. The male grooming trend, especially in skincare like moisturizers & beard care, is boosting the market for private-label cosmetics. More men are looking for high-quality but affordable alternatives to big-name brands, which is causing this segment to grow quickly.

 

By Distribution Channel:

Leading Segment: Offline Retail (Pharmacies, Supermarkets, Specialty Stores)

Offline retail remains the leading distribution channel for private-label cosmetics, with pharmacies, supermarkets, and specialty stores being the primary points of sale. Consumers often prefer to see and test cosmetics in-store before purchasing, especially for products like makeup and fragrances. Supermarkets & pharmacies provide easy access to many private-label cosmetic products, making this distribution channel very popular. Also, shopping in person enhances customer engagement and helps brands build trust through direct interaction.

Fastest-Growing Segment: Online Retail

Online retail is the fastest-growing distribution channel for private-label cosmetics. The convenience of shopping from home, along with the ability to access a wide variety of products, is driving the expansion of e-commerce in the cosmetics sector. The COVID-19 pandemic accelerated this trend, with consumers increasingly opting to buy beauty products online. Platforms like Amazon, brand-specific e-commerce websites & third-party beauty marketplaces are becoming key players in the private-label cosmetics space. The ease of delivery, online reviews & social media promotions contribute to the growth of this segment.

 

By Price Range:

Leading Segment: Mass Market

Mass-market private-label cosmetics dominate the market, offering affordable options for everyday consumers. These products are widely available in retail outlets such as pharmacies, supermarkets & online stores. The mass-market segment’s appeal lies in its ability to provide high-quality cosmetics at competitive prices, making it accessible to a larger consumer base. Products like skincare basics (cleansers, moisturizers) and everyday makeup (foundations, mascaras) are some of the most popular items in this segment.

Fastest-Growing Segment: Premium

The premium segment of private label cosmetics is the fastest-growing, driven by the increasing demand for high-end, luxury beauty products at more accessible prices. Consumers are becoming more willing to invest in premium skincare and makeup that promises better performance and premium ingredients without the high price tag of luxury brands. Private-label premium brands are capitalizing on this trend by offering high-quality, dermatologist-tested products in sleek, attractive packaging. This growth is particularly strong in markets like North America & Europe, where consumers are seeking more affordable alternatives to high-end branded cosmetics.

 

By Region:

Leading Region: North America

North America is the leading region for private-label cosmetics, driven by the high demand for beauty products across all categories, including skincare, makeup & fragrances. The U.S. market, in particular, is a key contributor to this dominance, with a large consumer base increasingly seeking affordable yet high-quality private-label cosmetics. The rise of e-commerce, combined with the strong retail presence of private-label products in supermarkets, pharmacies & specialty stores, positions North America as the leading region. North American consumers' growing preference for clean & organic beauty products supports the market's expansion.

Fastest-Growing Region: Asia-Pacific

Asia-Pacific is the fastest-growing region for private-label cosmetics, with countries like China, India & South Korea witnessing rapid growth in demand. The expanding middle class, growing disposable incomes, and increasing consumer interest in beauty and grooming drive this surge. Consumers in the region are becoming more conscious of skincare and makeup products, leading to a rise in demand for both mass-market and premium private-label cosmetics. The growing popularity of online shopping platforms in Asia, along with an increasing number of regional beauty brands entering the market, is contributing to this rapid growth. The region’s strong manufacturing capabilities also make it a key player in the production of private-label cosmetics for global markets.

 

Key Players

• Sephora (LVMH)

• Target Corporation (Up & Up)

• Kroger Co.

• Ulta Beauty

• Amazon (Amazon Basics)

• Aldi Stores

• Boots UK Limited

• Marks & Spencer

• DM-Drogerie Markt

• Costco Wholesale Corporation

 

Private Label Cosmetics Market Report Coverage

Report Attribute	Details
Forecast Period	2023 – 2030
Market Size Value in 2023	USD 12.8 billion
Revenue Forecast in 2030	USD 23.7 billion
Overall Growth Rate	CAGR of 9.1%
Base Year for Estimation	2022
Historical Data	2017 – 2021
Unit	USD Billion, CAGR (2023 - 2030)
Segmentation	By Product Type, By End-User, By Distribution Channel, By Price Range, By Region
By Product Type	Skincare Products, Haircare Products, Makeup (Lipsticks, Foundations, Eye Shadows), Fragrances, Personal Care Products
By End-User	Women, Men, Unisex
By Distribution Channel	Online Retail, Offline Retail (Pharmacies, Supermarkets, Specialty Stores)
By Price Range	Mass Market, Premium
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	US, Canada, Germany, UK, France, China, Japan, India, etc.
Key Market Drivers	Cost efficiency and high-profit margins for retailers, rising demand for customization and niche products, increase in online sales and DTC operations, and shift toward clean and natural beauty products.
Major Players	Cosmax, Intercos, Seppic, Silgan Containers, H.B. Fuller, AptarGroup, Silgan Holdings, Berry Plastics Group.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

 

Future Outlook

The problem-solution fit in the private label cosmetics market is expected to expand rapidly since more customers look for better quality, affordable, personalized products. The Asia-Pacific region and Latin America will be the primary drivers for growth, with increased disposable income levels, urbanization of the population within those regions, and private label brand awareness.

 

It is believed that manufacturers and retailers that invest in clean beauty, sustainability, and technology will have competitive advantages. It is predicted that by the year 2030, private label cosmetics will dominate the global beauty market as consumers are taken to the doorstep to get the best package and ready to pay fairly for the best quality.