According to the report, the European premium beauty market is expected to grow at a CAGR of 3.75% from 2023 to 2029, reaching $25.35 billion by 2029.
A surge in demand from younger generations and digital transformation and e-commerce growth has fueled this growth.
The trend toward sustainability in the Europe premium cosmetics market is accelerating as consumers become more eco-conscious and demand greater transparency from brands.
Millennials dominate the market with the largest share, gravitating toward premium beauty brands that emphasize clean ingredients, sustainable sourcing, eco-friendly packaging, and cruelty-free or vegan formulations.
Shifting preferences have led consumers to reject single-use plastics and demand more recyclable, reusable, or biodegradable packaging. Brands are responding by adopting innovative materials such as glass, aluminum, paper, bioplastics, and refillable packaging systems.
Premium beauty brands also emphasize ethical and sustainable sourcing of raw materials, ensuring their formulations are free from harmful chemicals like parabens, sulfates, and synthetic fragrances.
Germany dominates and holds the largest European premium beauty market share.
The premium beauty market in Germany is a significant and growing sector, driven by several factors, such as rising consumer interest in self-care, the demand for high-quality and innovative products, sustainability, and evolving beauty standards.
Digital transformation is playing a significant role in the premium beauty market in Germany. E-commerce has seen rapid growth, especially post-pandemic, with many consumers now purchasing their beauty products online.
This shift is particularly important for premium brands that want to reach tech-savvy, younger consumers who are comfortable researching and buying luxury beauty products through digital platforms.
Consumers in Europe are also turning to digital channels for their beauty product purchases. The convenience, variety, and personalization offered by e-commerce platforms appeal to modern customers who seek premium beauty products.
Digital transformation allows premium beauty brands to offer highly personalized shopping experiences through data-driven insights.
With AI integrations, machine learning, and big data analytics, brands can recommend tailored products to individual consumers based on their past behavior, skin type, and preferences.
Read the full report here.
Read Next
New Report Highlights Trends in the Perfume & Fragrance Market
Traackr’s Top U.S. Beauty Creators and Influencers in 2024
U.S. Hair Care Market Expected to Grow From 2024-2029
