The report estimates the value of the market to be $57.2 billion in 2020. As with most industries that rely on physical products, supply-chain interruptions caused by the COVID-19 pandemic have had an impact on the body lotion business. Many companies in this market had to adapt to new and unforeseen obstacles in 2020 — and recovery from that damage is one of the factors in growth over the next few years.
The US, Canada, Japan, China, and Europe all make up significant portions of the body lotions market.
The body lotion market is mainly dominated by major companies. Some of the most prominent industry players highlighted by the report include US companies Avon, Cetaphil, Estée Lauder Companies, Johnson & Johnson; British-based company Unilever; Beiersdorf, a German multinational company; CavinKare, an Indian company; French luxury beauty companies Clarins and L’Oreal; and Shiseido Company, a Japanese multinational business.
The 2020 earnings of these companies show the hits many took due to COVID-19 — but also how, toward the end of the year, they were able to at least in part overcome difficulties. Johnson & Johnson, for example, reported operational growth of 7.1% in Q4 of 2020, ending the year with diluted earnings slightly above what analysts predicted and a marginal year-over-year increase in sales (up 0.6% to $82.06 billion).
Meanwhile, Estée Lauder is quickly recovering from a major drop in its value at the start of 2020. The company reported strong organic recovery toward the end of the year, with a 5% increase in net reported sales ($4.85 billion) in its Q4 ending in December of last year.
The recovery arcs of these companies nod toward how beauty industry businesses are projected to bounce back over the next few years. The body lotions market, specifically, is expected to expand by a compound annual growth rate (CAGR) of 10% between 2020 and 2027. China, the world’s second-largest economy, is alone projected to reach $24.1 billion by the end of the forecast period. Other noteworthy geographic markets highlighted by the report include Japan and Canada, which are each forecasted to grow between 6.8% and 8.7% through 2027.
In addition to industry recovery from the COVID-19 pandemic, growth in the market for body lotions will be driven by the record expansion of interest in products for treating dry skin. This segment will reach a record compound annual growth rate (CAGR) of 11.5% during the seven-year period. The “normal skin segment” will reach $16 billion in value “led by countries such as Australia, India, and South Korea.” Meanwhile, the Asia-Pacific region as a whole is projected to reach $16 billion in value by 2027.
Forecasted growth offers opportunities for both the major players already dominating the market and emerging entrepreneurs who want a slice of the widening pie.
About the Author
Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.