Luxury Skincare: The beauty industry’s bright spot

Amid global economic uncertainty, luxury skincare items remain hot sellers among consumers worldwide. The luxury skincare industry is thriving and poised to reach an estimated value of US$34.12 billion by 2028. These high-end skincare products are sought after by individuals looking to indulge their emotional, sensory, and fantasy desires.

What sets luxury skincare apart from mass brands is their of effectiveness. While they come at a higher price point, these brands leverage cutting-edge science and rigorous clinic testing, which mass-market brands often cannot afford. The use of premium ingredients like squalene and rice protein, sourced from exclusive laboratories, is perceived to yield results.

The skincare industry is now outpacing the makeup industry in growth, experiencing a 13% rise compared to a mere 1% increase in makeup sales. This trend can be attributed to a growing interest in natural and organic products, amplified by vibrant social media communities. Affluent consumers, driven by revenge spending after the global Covid-19 pandemic, have contributed to sales rebounding to pre-pandemic levels. Influential celebrities serve as trendsetters and influencers, lending social proof and credibility to these luxury brands.

However, the industry also faces a multitude of challenges. Luxury skincare brands must contend with charges of elitism, price-elastic demand, more educated and cost-conscious consumers, and of riding on their laurels of “brand” rather than offering any true differentiation from cheaper, competing brands

Will the bubble burst for luxury skincare brands?

For media enquiries, please contact:
Marie Teo
Manager, Group Marketing Communications
Spire Research and Consulting
Phone: (65) 6838 5355