The lip care market is expected to total $720 million by the end of 2020, according to Technavio, rising at a CAGR of more than 4% over the predicted period.
While consumers in this category tend to be loyal to familiar brands, there is rising demand for innovation with new pigments, oils and formats.
Organic lip care product demand is also on the rise, driven in part by skepticism over synthetic ingredients, according to the analysis. The report explains, "In 2015, close to 42% of the women aged 18 years and above stated that they preferred buying natural beauty products over synthetic beauty products."
As a result lip care product manufacturers are incorporating natural materials such as beeswax, cocoa butter, jojoba oil, shea butter and aloe vera extracts.
Growth in the category is also coming from new online shopping sites offering premium brands, as well as overall rising disposable income.
Leading vendors in the market are Avon, Beiersdorf, L'Oréal, Revlon and Unilever.