Beauty and Cosmetics Industry: Trends, and Statistics

Beauty and Cosmetics Industry: Trends, and Statistics

Want to understand the beauty and cosmetics industry in depth? 

We have found the top 30 trends and statistics that you need to know; all you have to do to get to them is keep scrolling.

Beauty and Cosmetics Industry Statistics

The global beauty market is currently valued at $528 billion. (Statista)

Our analysis: That is a huge number, and this shows that the beauty market is actually quite big. Needless to say, this also means that it is extremely competitive and requires a lot of effort from brands if they want to break into the market and establish themselves. Also, we should remember that the beauty market is extremely diverse with lots of categories and sub-categories, which means there are a lot of different elements that go into making the whole beauty and cosmetics industry. 

The market’s largest segment is the personal care segment with a market volume of $238.60bn in 2022. (Statista)

Our analysis: If you were unsure about which segment of the beauty industry could be right fit for you, consider the personal care segment. The stats for this year have come in, and apparently, the largest segment, at least in terms of market volume, is personal care. This means that as a business, you may find this particular category to be a good, lucrative business opportunity – as long as you are checking all the boxes of providing a stellar customer experience. 

Between 2022 and 2026, the beauty industry is projected to grow with a CAGR of 4.76%. (Attest)

Our analysis: So, the beauty industry is not going anywhere. That much we knew. But the fact that it is likely to develop at a pretty decent CAGR is even better! What this means for beauty brands is that the future seems bright. If you make the right decisions and work in the right direction, you may have a chance at being a part of the industry that is definitely going to be stable in the next few years.

beauty and cosmetics industry statistics annual growth rate

The per person revenue for the beauty industry in the US is $74.5 in 2022. (Attest)

Our analysis: The stats for this particular area are likely to vary from region to region, but this gives a pretty good idea of how profitable it can be to be part of the beauty industry. That figure is considerably high, and tells us that people are willing to spend a lot when it comes to beauty products. Therefore, it is a good market and if your products and services actually resonate with your customer’s preferences, you can make a lot of money!

The total revenue for skincare stands at $153.30 billion in 2022. (Attest)

Our analysis: Skincare is a category within the beauty world – and it is one of the most important ones, as you will figure out when you look at some of the other trends we have on this list. The total revenue for the skincare industry is also pretty high – so, if you want to tap into these figures, you can break into the skincare market and be a part of the beauty world that way. 

The skincare market is projected to grow with a CAGR of 5.19% between 2022 – 2026. (Attest)

Our analysis: Yes! The CAGR of the skincare market is higher than that of the entire beauty industry itself. That should be enough in terms of reflecting how much potential there is within the skincare segment of the beauty industry, and how that can be beneficial for a business that is looking to grow beyond boundaries and restrictions. If you are a business that focuses on numbers the most, then you must focus on these!

The United States dominates the skincare market, with a revenue of $20,010.00 million in 2022. (Attest)

Our analysis: Some of our most favourite skincare brands are based in the US, so this does make sense. However, remember that this doesn’t mean that only businesses that are based in the US can be an established business. There are skincare brands based all over the world. In fact, the diversity that is recently being shown in the formulation of products as well as things like their ads is what makes the skincare segment and the beauty industry as a whole so dynamic.

beauty and cosmetics statistics - united states market value

In the Beauty & Personal Care market, 25.4% of total revenue will be generated through online sales by 2022. (Statista)

Our analysis: As some of the other stats prove, eCommerce is a huge driver of sales in relation to the beauty industry. According to this stat, the personal care segment within the beauty industry can accredit 25.4% of its revenue to online sales. So, if you weren’t thinking about eCommerce in connection to your beauty products, maybe now is the time to do so.

The personal care segment will grow at the CAGR of 3.83% every year. (Attest)

Our analysis: So, there is growth in this segment as well! All you have to do is make sure that you are making the right kinds of effort, and you will hopefully be able to properly gauge the results and understand what exactly it is that needs to be done. So, if you are going to be a part of the personal care segment in the upcoming years, you can start working on the establishment of your business today, which will make it easier for you to stay at par with growing needs and requirements of success in the beauty sector.

65% consumers will buy a beauty product that is recommended by a beauty influencer. (Financial Express)

Our analysis: The beauty industry is one area where marketing really matters, especially the influencer marketing. Influencer marketing is when brands hire people with a large social media / social platform following to market their products. Because influencer marketing has a touch of authenticity to it, consumers really prefer it and so we are not surprised by this stat. As a beauty brand, the best decision you can make for your business, at least as far as marketing is concerned, is to get some beauty influencers on-board with your brand.

Within beauty consumers, those who are attracted towards quality (64%) products will shop from a site, whereas those who are attracted towards price (28%) will shop from big-box stores. (Insider Intelligence)

Our analysis: We find this stat to be particularly interesting. If you are a relatively small brand with only an online presence, and you feel like you can’t compete with big-box stores – you are wrong, at least according to this particular stat. From this beauty and cosmetics industry statistic, we can tell that as long as the quality of your products is on-point, you will actually be attracting more customers and have a considerable chance of succeeding as a brand and becoming a key player in this area of business. 

beauty and cosmetics industry statistics quality and price

The men’s personal care market is expected to exceed $297.9 billion in revenue in 2023. (Exploding Topics )

Our analysis: When we hear the words “beauty and cosmetics industry,” we might think of things that are stereo typically feminine or used by women. Lipsticks, powders, and nail paint. This particular stat challenges that reaction! Men’s personal care market makes up a huge part of the beauty industry, and the revenue for it is expected to be in the billions next year. This shows, again, that the beauty industry is extremely diverse and offers great range in terms of being wholly accommodating towards people of all types – regardless of their gender or any other factors of their identity. 

In 2022, beauty companies reportedly spent almost $7.7 billion on advertising in 2022. (Exploding Topics)

Our analysis: Again, this shows that marketing and advertising are very important within the beauty industry and that businesses that do want to succeed don’t hesitate from spending in these two areas. If there is one thing that you really need to be spending on, as a beauty brand, it is definitely advertising! You can cut back on things like inventory and fulfilment costs by using an inventory and order management system, so that you have enough to spend on your business and give it the push that it needs.

Cosmetic retailers generated $17.09 billion in online sales. (Exploding Topics)

Our analysis: Again, eCommerce sales when it comes to beauty products are something else! Many people prefer buying online, especially due to the list of options available. Online shopping and eCommerce in general grants so much convenience, and it seems like beauty industry consumers really prefer this convenience which is why year after year, they manage to generate considerable revenue from online sales. More importantly, this highlights the importance of having an eCommerce presence for you as a beauty brand. 

L’Oréal is the top player in the beauty industry and accounts for $35.64 billion in sales. (Exploding Topics)

Our analysis: L’Oréal is one of the biggest beauty brands, as we can judge from this stat alone. However, what is it that makes L’Oréal such a key player in this industry? In actuality, there are many factors behind the indubitable success of L’Oréal but the main one is that it is very diverse. It has made efforts to reach out to customers all over the world, and the fact that it is so successful tells us that this has worked well for it. The lesson for you is that the more diverse you are and the more your products resonate with people all over the world, the better chances you have of becoming successful in this particular industry.

beauty and cosmetics industry statistics - loreal are the top beauty sales player

North Asia represents 35% of the global beauty market. (L’Oréal Finance)

Our analysis: In 2021, North Asia represented 35% of the global market. This has now changed, and in order to find out, keep going through the stats. However, one thing that has remained the same is the fact that this region has the biggest market share in connection to the beauty industry, and hence, is the hotspot of beauty related business activities, which also makes it a good region to consider expanding into if you are looking to become an international player. 

Skincare is the dominant segment within the beauty industry and holds 42% of the market share. (Statista )

Our analysis: Skincare holds 42% of the beauty industry share! If you can’t tell, that is a pretty big chunk of it. This is interesting because when we think of it from a non-professional point of view, skincare has only become a huge deal in the past few years, so to think that it has superseded all other segments of the beauty industry is surprising. However, it also makes sense – the skincare industry is advanced, diverse, and provides people with personalised experiences that reach to them and cater to their personal preferences and needs, which is why it has managed to dominate the beauty industry.

38% of consumers in the US use cleansing products. (NPD)

Our analysis: Cleansers are important for any skincare routine. Even if a person has the most minimal skincare routine, a cleanser is more or less always a part of it, which makes it an important skincare product and also a lucrative business opportunity for beauty brands. So, in case you were not sure about which exact product can bring you to the heights of success, maybe start looking into cleansers and how your business can provide the best one for your customers. 

82% beauty shoppers use Instagram at least once a day. (Harvard Business School)

Our analysis: The internet, social media, and the beauty industry are inextricable for each other. In today’s time and age, they are all connected and success in one area can lead to success in others. Therefore, you really need to focus on these tenets as a business because this is the only way you can make sure that you are going in the right direction and checking all the boxes needed for success and establishment in this sector.

Health and beauty eCommerce sales are expected to grow 77%. (Ascent)

Our analysis: We’ve said it once and will say it again: start paying attention to eCommerce. In the coming years, the eCommerce sales of beauty products are going to only go up, which is why you need to gear up and become a part of the picture today. Put the effort into creating the perfect eCommerce front as well as seamless backstage logistics, and that way you can be ready when eCommerce sales for the beauty industry increase. 

beauty and cosmetics industry statistics - health and beauty sales growth

Consumers who get personalised recommendations are 75% more likely to make a beauty purchase. (CB Insights)

Our analysis: Personalisation plays an important part in not only the beauty industry, but virtually in every other industry as well. Consumers of the 21st century prefer brands that care about them, and personalised products are the best way to show that. In addition, as we can tell from the statistics, personalised recommendations are also important as they can attract the customer a lot more successfully. Here too, your eCommerce presence and how well you harness and leverage your data analytics matters a lot, so we would advise you to start focusing on that too. 

When it comes to beauty brands, consumers prefer those that feature user-generated content on their websites. (Nosto)

Our analysis: The beauty and cosmetics industry is kind of unique, because authenticity really matters in these areas. This isn’t to say that it doesn’t matter elsewhere, but in this particular market it is very important. And user-generated content provides that authenticity to consumers. Some examples of user-generated content are product reviews, unboxings, and mentions – all of which indicate to the potential buyer your products have been used by real people before, and hence implies that you are a trustworthy brand. 

Clean beauty products generate $400 million in annual sales. (NielsenIQ)

Our analysis: Clean beauty is not just a buzzword anymore. It refers to non-toxic beauty products, and is becoming the centre of beauty preferences. A lot of the sales within the beauty industry are accredited to clean beauty, and as people become more conscious of the products that they actually use on their faces and bodies, this segment of the industry will grow even further. 

Sales of paraben-free beauty products are growing 80% faster than the overall beauty industry. (NielsenIQ)

Our analysis: Again, consumers are becoming more conscious of the products they use on themselves and hence are increasingly making their way towards paraben-free beauty. The sales of these products is overtaking the sales of the entire beauty industry, and maybe one day all customers will only prefer to buy paraben-free beauty products. That is something you definitely need to keep in mind if you are entering the skincare market.

The organic skincare market in itself is expected to grow 8.72% per year through 2027. (Mordon Intelligence)

Our analysis: Organic skincare market is growing at a very fast rate for the same reasons as mentioned about. Sooner or later, it will become one of the most dominant segments of the market, and hence businesses should be prioritising organic formulations right about now!

beauty and cosmetics industry statistics - organic skincare growth

The global hair care market size has reached over $75 billion. (Fortune Business Insights)

Our analysis: Hair care is also a part of the beauty industry, and forms a considerable chunk – although has a lot less volume than skincare products. Again, the point is, the “beauty and cosmetics industry” means a lot of things for a lot of people which means there are quite a few things you can do as a beauty brand that is wanting to break into this market.

The Asia Pacific region has the biggest market share in the beauty industry; i.e. 46% whereas North America has the second largest, i.e. 24% (Common Thread)

Our analysis: Looking forward to going international but don’t know where? Asia Pacific and North America are two regions where the beauty industry is flourishing. Whether it is in terms of consumership or the formulation of products, these markets present many options for people to pick from and hence such successful parts of the beauty industry as a whole.

81% buyers report to have engaged in offline shopping – which means it still takes prevalence over online shopping. (Common Thread)

Our analysis: Was losing hope in the retail sector? Not so fast! It definitely takes the cake with a whopping 81% buyers having engaged in offline shopping of beauty products. However, one thing that must be kept in mind is that, despite being the dominant sector as of now, offline shopping is losing share steadily whereas online shopping is gaining it.

Gen Z and Millenials have become the biggest drivers of new business, as a result of entering the job market. (Common Thread)

Our analysis: Although Gen X and baby boomers too have some buying power, the main drivers of new business are Gen Z and millennials. So, for success, it is better to attraction people from this particular segment as opposed to any other segment. 

The most popular video categories of females on YouTube is beauty and style, with 62% viewers watching videos that come into this category. (Common Thread)

Our analysis: Who doesn’t love a little YouTube research? Many females watch YouTube videos to gain more knowledge on beauty and skincare products, as can be seen from this stat. Again, if you want to succeed as a business, you will need to invest in these new and improved forms of marketing as they can help you evolve as a beauty brand. 

beauty and cosmetics industry statistics - youtube viewer categories

Ending Note

The beauty industry provides a lucrative business environment, and if you play your cards right, you can easily make it big in this sector. 

We hope these statistics help you do just that! Good luck. 

And oh, on a side note, if you are a beauty brand looking to streamline its fulfilment process, you might want to check Canary7 out. We are a fulfilment software hailing right from your dreams, and can change the way you process your orders. 

Reach out to us today and kick start your journey towards success. 

Mishal Khan

Mishal Khan

Author

UPDATED ON: 22nd Dec 2022

Mishal is a dedicated copywriter and content writer with experience across various niches. Currently, Mishal is focused on writing guides and other compelling blogs on warehouse management, logistics and more, crafting engaging and informative content to help businesses understand and master their supply chain. Passionate about delivering quality content, Mishal aims to make complex topics accessible and enjoyable for all readers.

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