The global cosmetics market is expected to register a compound annual growth rate (CAGR) of 3.7 percent between 2015 and 2020 to reach a value of US$390.07 billion, according to a new report published by Allied Market Research.

The skin and sun care category is predicted to outperform the wider cosmetics market, registering a CAGR of 5.6 percent through 2020. Demand for natural ingredients is driving growth in the organic products segment too.

Almost four-fifths of all cosmetic products are purchased by women, however the male products sector is expected to gradually increase its market share over the forecast period.

Europe is the dominant force in the global market, generating the highest revenue and is expected to maintain its leadership in the next five years.

In terms of channels, traditional retail dominates on a global basis, however online sales are growing at a faster rate and are expected to register a CAGR of 5.3 percent globally up until 2020. In the US, e-commerce is already the preferred platform, accounting for 60 percent of the market. The online medium is gaining traction in developing countries China and India as well as more established markets such as Japan.