Canada Cosmetic Products Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Canadian Cosmetic Products Market is segmented by Product Type (Face Cosmetics, Eye Cosmetics, Lip Cosmetics, and Nail Cosmetics); by Category (Mass and Premium); and by Distribution Channel (Supermarkets/Hypermarkets, Specialist Retailers, Online Retail, and Other Distribution Channels).

Market Snapshot

Canada Cosmetic Products Market Summary
Study Period: 2016-2026
Base Year: 2020
CAGR: 6.45 %

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Market Overview

The Canada cosmetic product market is projected to register a CAGR of 6.45% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020 and is expected to decline by around 3-4%. Owing to the lockdown, which was in effect in the country by the end of the first quarter of 2020 opportunities to apply cosmetic products had declined with socializing restricted. Additionally, the closure of non-essential stores such as specialist retailers has led to diminishing demand for cosmetic products in the country.

Over the long term, owing to COVID-19 consumers have become more sensitive to health, thus the popularity of cosmetics made with natural ingredients is expected to accelerate. This coupled with the steady rise in the purchase of premium functional products in the country over the years is expected to aid the recovery of the market over the forecast period.

The country witnessed a significant increase in household expenditure, the inclination of people toward spending on appearance, and an increasing settlement of expat population in the country. For instance, according to StatCan, the average annual household expenditure on make-up, skin care, and manicure products in Canada amounted to CAD 264, in 2017.​

Moreover, the increasing demand for natural or organic, no animal tested, and cruelty free cosmetic products and innovative and eco-friendly packaging designs is expected to enhance the market further in the country. Organic cosmetic products in the country are increasingly positioned as high quality and premium products, and they draw a wide range of consumers in the country.

Scope of the report

Cosmetic products are beauty preparations intended to be applied on the surface of the human body primarily for the purpose of beautifying, promoting attractiveness, or altering the appearance. The Canadian cosmetic products market is segmented by product type, by cateogory, and distribution channel. By product type, the market is segmented into face cosmetics, eye cosmetics, lip cosmetics, and nail cosmetics. By category, the market is segmented into mass and premium. By distribution channel, the market is segmented into supermarkets/hypermarkets, specialist retailers, online retail, and other distribution channels.

By Product Type
Face Cosmetics
Eye Cosmetics
Lip Cosmetics
Nail Cosmetics
By Category
Mass
Premium
By Distribution Channel
Supermarkets/Hypermarkets
Specialist Retailers
Online Retail
Other Distribution Channels

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Key Market Trends

Innovations in Packing and Design have Contributed to the Growth of Cosmetic Products in Canada

Consumer demand for enhanced functionality and eco-friendliness in cosmetic design is resulting in exciting innovations in the packaging and design of cosmetics products. Manufacturers are offering a wide variety of innovative choices and creative technologies to serve the market. Various big companies are showing innovative changes in packaging and design. For instance, Procter & Gamble recently announced a major shift to the plant-derived packaging for some of its leading global cosmetic brands and is using sugarcane-derived plastic from Brazil’s Braskem. In addition, L’Oréal recently helped to reduce the environmental impact of its packaging by introducing two new assessment tools, namely, Sustainable Packaging Scorecard (SPS) and Packaging Impact Quick Evaluation Tool (PIQET), to its package design process.

canada-cosmetics-products-market-industry

Premium Cosmetics are Projected to Grow at a Significant Rate

According to Statistics Canada, an agency of the Government of Canada the per capita disposable income of Canadians has increased over the past five years, which has led to increased consumer spending. This has led to an increased demand for premium cosmetics from the rising consumer base. 

This trend can also be attributed to rising consumer concern over the health effects of the beauty routines they follow, which has thus led to increased interest in cosmetics with natural and non-invasive ingredients. 

L’Oréal Canada, with its successful premium brands Lancôme and IT Cosmetics, leads the premium cosmetics segment in the country. The company has invested in digital strategies to enhance its market share. For Instance, in 2018, it acquired Canadian beauty technology company ModiFace, a Canadian company that helps consumers to virtually test beauty products on themselves.

canada-cosmetics-products-market-industry

Competitive Landscape

The major emerging market players targeting leading brands are making strategic acquisitions of the market leaders in more mature and sophisticated markets. Acquiring these brands enables diversification and gives these players access to stable cash flows and further growth opportunities. The cosmetic products market witnesses high competition, with the dominance of major global players. Various players are entering the market, to tap the untapped potential of the cosmetic products market. Some of the major players in the Canada cosmetics products market are L'Oréal S.A., The Estée Lauder Companies, Coty Inc., Groupe Marcelle Inc., Revlon, Inc., Shiseido Co.,Ltd., Clarins Group, Mary Kay Inc., Avon Products, Inc., and Christian Dior SE.

Recent Developments

  • In 2021, The Estée Lauder Companies Inc. (ELC) had announced that it has entered into an agreement to increase its investment in Canadian-based Deciem Beauty Group Inc. from 29% to 76%. The transaction is expected to close in the quarter ending June 30, 2021. The company (ELC) has agreed to purchase the remaining interests after a three-year period.
  • In 2019, L’Oreal launched its digital virtual try-on beauty service for online consumers on Shoppers Drug Marts' e-commerce site. In 2020, it expanded the availability of its ModiFace virtual try-on technology on Amazon in the country.
  • In 2018, M∙A∙C Cosmetics announced a new partnership with SEPHORA Canada, owing to which M∙A∙C's vast assortment of product offerings will be now available at Sephora stores.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions & Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitutes

      5. 4.3.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product Type

      1. 5.1.1 Face Cosmetics

      2. 5.1.2 Eye Cosmetics

      3. 5.1.3 Lip Cosmetics

      4. 5.1.4 Nail Cosmetics

    2. 5.2 By Category

      1. 5.2.1 Mass

      2. 5.2.2 Premium

    3. 5.3 By Distribution Channel

      1. 5.3.1 Supermarkets/Hypermarkets

      2. 5.3.2 Specialist Retailers

      3. 5.3.3 Online Retail

      4. 5.3.4 Other Distribution Channels

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Positioning

    3. 6.3 Company Profiles

      1. 6.3.1 L'Oréal S.A

      2. 6.3.2 The Estée Lauder Companies

      3. 6.3.3 Coty Inc.

      4. 6.3.4 Groupe Marcelle Inc.

      5. 6.3.5 Revlon, Inc.

      6. 6.3.6 Shiseido Co.,Ltd.

      7. 6.3.7 Clarins Group

      8. 6.3.8 Mary Kay Inc.

      9. 6.3.9 Avon Products, Inc.

      10. 6.3.10 Christian Dior SE

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Canada Cosmetic Products Market market is studied from 2016 - 2026.

The Canada Cosmetic Products Market is growing at a CAGR of 6.45% over the next 5 years.

L'Oréal S.A., The Estée Lauder Companies, Coty Inc., Groupe Marcelle Inc., Revlon, Inc. are the major companies operating in Canada Cosmetic Products Market.

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