The global cosmetics market is expected to reach a value of US$390.07bn by 2020, registering a compound annual growth rate of 3.7 percent, according to a new report.

US market research firm Allied Market Research estimates in its latest report that growth in the market will be driven by increasing awareness of personal appearance among individuals coupled with rising disposable incomes.

The skin & sun care category is estimated to grow at the fastest CAGR of 5.6 percent during the forecast period. Currently the category accounts for nearly 60 percent of the global cosmetics market and generates the largest share of global market revenue.

The report found that although in-store retail sales generate the largest share of the overall global market, online sales are expected to gain traction, growing at a CAGR of 5.3 percent.

Online sales currently dominates the US cosmetics market yet the trend is expected to increase in developing countries such as Japan, India and China.

The report identified that nearly 80 percent of consumers dominating the global cosmetics market are women, yet this figure is predicted to decline by 2020 as a rising number of men invest in products such as moisturizing lotions, skin whitening creams, facial wipes, deodorants and sunscreen lotions.