Report Overview

Israel Cosmetic Products Market - Industry Trends & Forecast Report, 2029

Israel cosmetic products market size was estimated at USD 4.26 million in 2022. During the forecast period between 2023 and 2029, the size of Israel cosmetic products market is projected to grow at a CAGR of 5.76% reaching a value of USD 5.96 million by 2029. Major growth drivers for the Israel cosmetic products market include an increasing consumer awareness about personal grooming, beauty trends, and a desire for self-care. The market size is influenced by both domestic demand and exports. The market features a mix of local Israeli cosmetic brands and international brands. Israel's cosmetic products industry exhibits a thriving and diversified landscape. Encompassing skincare, haircare, makeup, fragrances, and personal care items, the sector experiences consistent growth due to rising consumer consciousness about grooming, beauty trends, and self-care. It is a blend of local and international brands like L'Oréal, Estée Lauder, Ahava, and Sabon. Notably, a surge in demand for natural and organic cosmetic products mirrors global trends, aligning with Israel's reputation for innovative practices. Pioneering research and technology integration, particularly in skincare, underscore the country's advanced approach. Ethical considerations and adherence to religious norms further guide product development. Amidst these dynamics, the market embraces retail diversity through department stores, online platforms, and pharmacies, while sustainability and ethical values also shape consumer preferences.

Israel Cosmetic Products Market – Overview

Israel cosmetic products market refers to the sector within Israel's economy that encompasses the production, distribution, and consumption of various beauty and personal care products. This market includes a wide range of items such as skincare products, haircare products, makeup, fragrances, and other personal care items designed to enhance aesthetics and promote self-care. It is characterized by the presence of both domestic and international brands catering to consumer preferences and trends. The market is influenced by factors like changing beauty standards, technological advancements, consumer preferences for natural and organic products, ethical considerations, and regulatory requirements. Various retail channels, including physical stores and online platforms, contribute to the distribution of these cosmetic products to consumers across Israel.

Israel Cosmetic Products Market

Growth Drivers

Evolving Consumer Preferences and Government Initiatives in Israel's Cruelty-Free and Vegan Cosmetic Market

The markets for cruelty-free, vegetarian, and vegan beauty products have gained substantial traction globally, a trend that is also prominent in Israel. With a focus on ethical and animal-free alternatives, Israeli consumers are becoming increasingly conscientious about the products they use. The surge in demand for these products has led to innovations like lab-grown human skin samples for cosmetic testing, enhancing accuracy and ethical considerations. However, this innovation has also contributed to a rise in the cost of natural and vegan cosmetics. Israel's growing employment rate, particularly among millennials, coupled with technological advancements, has spurred the demand for cruelty-free cosmetics. Government initiatives to simplify cosmetic import regulations are further propelling the growth of this market.

Restraints

Market Concentration

The growth of the Israel Cosmetic Products Market is hampered by market concentration. This concentration refers to a scenario where a few dominant players control a significant portion of the market, limiting competition and potentially hindering innovation. Such a concentrated market structure can lead to reduced consumer choice, less incentive for companies to invest in research and development, and limited diversity in product offerings. As a result, new entrants and smaller businesses may find it challenging to compete against established giants.

Impact of COVID-19 on Israel Cosmetic Products Market

COVID-19 pandemic adversely affected the Israel cosmetic products market. Lockdowns, reduced consumer spending, and safety concerns disrupted sales. Beauty products, often considered discretionary, faced decreased demand during the pandemic. Store closures hampered retail sales, leading to a surge in online shopping. Brands adapted to the changes by emphasizing virtual engagement through online tutorials and virtual try-ons. Additionally, the preference for skincare over makeup emerged as consumers focused on self-care. Despite challenges, Israel's recovery began as restrictions eased, e-commerce grew, and the industry adjusted to evolving consumer preferences and behaviors.

Israel Cosmetic Products Market

Segmental Coverage

Israel Cosmetic Products Market – By Product Type

By product type, the Israel cosmetic products market is bifurcated into Color Cosmetics and Hair Styling & Coloring Products segments. The color cosmetics segment held a higher market share by product type due to its widespread appeal and versatile usage. Facial, eye, lip, and nail makeup products cater to diverse consumer preferences, offering a range of styles and aesthetics. These products provide a creative outlet for self-expression and enhance individual features, aligning with modern beauty trends. The growing influence of social media and beauty influencers has further propelled the demand for color cosmetics, as consumers seek to replicate trendy looks. Notably, frequent product launches, innovation in formulas, and a variety of shades contribute to the enduring popularity of the color cosmetics segment among consumers in Israel. Also, color cosmetics include facial make-up products, eye make-up products, and lip and nail make-up products.

Israel Cosmetic Products Market – By Distribution Channel

Based on distribution channel, the Israel cosmetic products market is divided into Hypermarkets/supermarkets, Specialty Stores, Pharmacy & Drug Stores, and Online Retail Stores segments. The hypermarkets/supermarkets segment holds the highest share in the Israel cosmetic products market by distribution channel due to robust consumer demand, leading supermarkets are diversifying their cosmetic product offerings. This expansion caters to various customer preferences, prompting older generations to explore safely formulated cosmetic products enhanced with innovative technology and packaging. The rising trend of bulk purchasing is attributed to increased income and busy lifestyles, making supermarkets a hub for transactional strategies that encourage impulse buying. However, the dominant market presence of Shufersal has historically prolonged the purchasing process. To address this, major chains like 7-Eleven and Carrefour have entered the market, exemplified by Carrefour's franchise agreement with Electra Consumer Products and Yenot Bitan in July 2022. This influx of reputable supermarkets is poised to enhance the local shopping experience, amplify customer purchasing power, and stimulate market growth through enticing offers and emerging cosmetic brands.

Competitive Landscape

Major players operating in the Israel cosmetic products market include Revlon, FARAN Cosmetics, Olea Essence, L'Oréal S.A., Estee Lauder Companies Inc., Ahava, Desert Essence, Naomi Halperin, and Sabai Naturals. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Development

• In May 2023 - IMCD Israel acquired the import and distribution business of Tagra Biotechnologies Ltd, a leading distributor of cosmetic raw materials. The move strengthens IMCD's position in the beauty and personal care industry. Tagra's ISO certifications, along with a skilled team and application laboratory, enhance IMCD's capabilities. Irene Cantos, IMCD Beauty & Personal Care Business Group Director, welcomed the addition, while Tagra's CEO, Ron Folman, expressed excitement about the collaboration's potential for growth and improved service. This acquisition builds on IMCD's Beauty & Personal Care business expansion, which began with the Zifroni acquisition in 2020.

• In May 2022 - L'Oréal Paris, a global cosmetics enterprise, launched an innovative cosmetic tool in Israel, exemplifying its commitment to digital advancement. This tool enables consumers to virtually "assess" their hair color at their convenience through the Virtual Try On (VTO) feature, accessible on the L'Oréal website. The company reported that 70% of website visitors have actively utilized this digital tool since its launch, underscoring its popularity and integration into the consumer experience.

Scope of the Report

By Product Type

• Color Cosmetics

• Hair Styling and Coloring Products

By Distribution Channel

• Hypermarkets/supermarkets

• Specialty Stores

• Pharmacy and Drug Stores

• Online Retail Stores

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3.  Israel Cosmetic Products Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. High Disposable Income
         2. Growing Fashion Trends
      2. Restraints
         1. Market Concentration
      3. Opportunities
         1. Inclination Toward Vegan and Cruelty-free Cosmetics
         2. Increasing Awareness of Natural Ingredients
      4. Challenges
         1. Competitive Landscape
         2. Impact of COVID-19 and Geopolitical Events
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4.  Israel Cosmetic Products Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share and Forecast
      1. By Product Type
         1. Color Cosmetics
            1. Facial Make-Up Products
            2. Eye Make-Up Products
            3. Lip and Nail Make-up Products
         2. Hair Styling and Coloring Products
      2. By Distribution Channel
         1. Hypermarkets/supermarkets
         2. Specialty Stores
         3. Pharmacy and Drug Stores
         4. Online Retail Stores
         5. Others
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Israel Cosmetic Products Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Israel Cosmetic Products Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Revlon
   2. FARAN Cosmetics
   3. Olea Essence
   4. L'Oréal S.A.
   5. Estee Lauder Companies Inc.
   6. Ahava
   7. Desert Essence
   8. Naomi Halperin
   9. Sabai Naturals
   10. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1.    Qualitative Research
      1.  Primary & Secondary Research
   2.    Quantitative Research
   3.    Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.    Breakdown of Primary Research Respondents, By Region
   5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Israel Cosmetic Products Segmentation

Figure 2       Israel Cosmetic Products Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       Israel Cosmetic Products Market Size, By Value (USD Million), 2019–2029

Figure 5       Israel Cosmetic Products Market Share, By Product Type, By Value, 2019–2029

Figure 6       Israel Cosmetic Products Market Share, By Distribution Channel, By Value, 2019–2029

List of Tables

Table 1        Israel Cosmetic Products Market Size, By Value (USD Million), 2019–2029

Table 2        Israel Cosmetic Products Market Share, By Product Type, By Value, 2019–2029

Table 3        Israel Cosmetic Products Market Share, By Distribution Channel, By Value, 2019–2029

Table 4        Revlon Company Overview

Table 5        Revlon Financial Overview

Table 6        FARAN Cosmetics Company Overview

Table 7        FARAN Cosmetics Financial Overview

Table 8        Olea Essence Company Overview

Table 9        Olea Essence Financial Overview

Table 10      L'Oréal S.A. Company Overview

Table 11      L'Oréal S.A. Financial Overview

Table 12      Estee Lauder Companies Inc. Company Overview

Table 13      Estee Lauder Companies Inc. Financial Overview

Table 14      Ahava Company Overview

Table 15      Ahava Financial Overview

Table 16      Desert Essence Company Overview

Table 17      Desert Essence Financial Overview

Table 18      Naomi Halperin Company Overview

Table 19      Naomi Halperin Financial Overview

Table 20      Sabai Naturals Company Overview

Table 21      Sabai Naturals Financial Overview