Skincare products are expected to lead the growth in the global online premium cosmetics market for the next five years.

According to the latest market research report by Technavio, the global market is expected to grow around 10 percent a year from 2017 to 2021 with skincare’s share expected to increase even faster.

Narendra Nandaigari, Technavio’s lead analyst of retail goods and services, said the skincare segment, which accounted for nearly 38 percent of sales in the premium cosmetics market last year, is “expected to witness significant growth because of the increasing consciousness and awareness of skin health among consumers”.

“Customers are increasingly opting for premium skin care products that contain high-quality ingredients and promise effective results,” she said.

“The increase in digitalisation and internet penetration has enabled the availability of various skin care products online, which has significantly influenced market growth.

“The target consumer group in this market comprises millennials, most of who are health- and style-conscious and are highly adept at using technology.

“This demographic is attracted by brands, such as Estée Lauder and L’Oreal, that have a wide social media presence.”

Indeed, the report found that social media and celebrity endorsement will be the major drivers behind the growth of the online premium cosmetics market as they become increasingly prominent in influencing the “purchase decisions of consumers”.

Nandaigari said celebrity endorsements was a particularly popular method of promoting premium cosmetic products as the “strategy influences consumers to purchase endorsed products instinctively”.