The beauty industry is booming with the increase in e-commerce sales, generating over $100 billion in revenue through online and offline sales worldwide.
According to the latest forecast, the industry is projected to reach a market value of $128.89 billion by 2028.
This post includes the latest figures about the beauty industry and its sectors. You will also come across consumer expenditure in the industry and more.
Key Beauty Industry Statistics for 2024
- The cosmetic industry is predicted to generate $108.41 billion in 2024.
- Americans spent an average of $211.82 per consumer on beauty products in 2022
- L’Oréal was the leading beauty products company in 2022, with over $40 billion in global sales
- Skincare alone accounts for 42% of the global beauty market.
- 58% of shoppers spend between $1 to $100 per month on skincare and makeup.
- 37% of shoppers find out about new cosmetic brands through social media ads.
- Online sales of beauty products in the U.S. are forecasted to reach $45 billion by 2027.
- 75% of the shoppers are ready to pay more for beauty products in exchange for a personalized shopping experience.
- 50% of the consumers shop for beauty products from brands with diversity and inclusivity.
Beauty Industry Market Size
According to Forbes, the beauty business will continue to grow at a compound annual growth rate of 5% to 7% to reach or exceed $800 billion by 2025.
Here are some detailed insights on the Beauty Industry market.
How Much Is The Beauty Industry Worth?
The beauty industry is estimated to be worth $599.33 billion in 2024.
The industry was valued at $528.6 billion worldwide in 2022 and is projected to reach $688.89 billion by 2028. An 8% Y-o-Y increase is recorded to be the highest beauty industry growth rate.
Asia Pacific and North America account for 70% of the beauty industry market size.
Source: HelpLama.
How Much Is The Makeup Industry Worth?
The cosmetic industry is predicted to generate $108.41 billion in 2024, while in 2023, the industry generated a revenue of $103.82 billion.
The revenue generated by the cosmetic market segment of the beauty & personal care market is forced to increase by $25.1 billion between 2023 and 2028. This will be a 24.18% increase in the revenue.
The following table displays the revenue generated by the cosmetics market over the years.
| Year | Revenue Generated By The Cosmetics Market |
|---|---|
| 2028* | 128.89 billion |
| 2027* | 125.41 billion |
| 2026* | 118.55 billion |
| 2025* | 113.21 billion |
| 2024* | 108.41 billion |
| 2023 | 103.82 billion |
| 2022 | 93.05 billion |
| 2021 | 80.74 billion |
| 2020 | 72.37 billion |
| 2019 | 89.88 billion |
Source: Statista.
L’oréal Was The Leading Beauty Products Company In 2022 With Over $40 Billion In Global Sales
The company states that it witnessed an 18.5% increase in sales in 2022. Further, their e-commerce reached nearly $12 billion.
Unilever ranks in second position with $27.6 billion in beauty sales. Its Beauty & Wellbeing sales accounted for 20% of the group turnover.
Besides, Unilever’s Personal Care division represented 23% of group turnover, resulting in a 7.9% increase in sales.
The following table displays the revenue generated by top beauty brands in 2022.
| Year | Revenue generated |
|---|---|
| L’Oreal | $40.84 billion |
| Unilever | $27.6 billion |
| Estee Lauder Companies | $15.9 billion |
| Procter & Gamble Co | $15 billion |
| LVMH Moet Hennessy Louis Vuitton | $8.5 billion |
| Shiseido | $8.1 billion |
| Beiersdorf | $7.8 billion |
| Bath & Body Works | $7.6 billion |
| Johnson & Johnson | $7.3 billion |
| Natura & Co. | $7.1 billion |
Source: Beauty packaging.
The Hair Care Market Worldwide Is Anticipated To Generate A Revenue Of $93.74 Billion In 2024
The market is forecasted to witness a CAGR of 2.80% between the forecasted period of 2024 and 2028.
Among all the countries worldwide, the US leads the hair care market and is predicted to generate $13.6 billion in 2024.
Source: Statista.
Skincare Alone Accounts For 42% Of The Global Market
The beauty market includes skincare, fragrance, makeup, and haircare.
However, almost half of the market share of the beauty industry is owned by the skincare segment alone. It is one of the most profitable product categories and is projected to generate around $177 billion in revenue by 2025.
Source: AOV UP.
Beauty Industry Revenue
The revenue of the beauty industry has steadily grown over the years and was estimated to have reached $528.59 billion in 2022 and $579.20 billion in 2023.
Here are further details about it.
Global Beauty Industry Revenue Is Expected To Surpass $716 Billion By 2025
The beauty industry generated a revenue of $ 579.20 billion in 2023 and is projected to generate $716 billion in revenue by 2025.
The industry witnessed a fall of 8% in 2020. However, in the next year, it saw a growth of 4.96%.
The following table displays the revenue generated by the beauty industry over the past years.
| Year | Revenue Generated By The Beauty Industry |
|---|---|
| 2023 | 579.20 billion |
| 2022 | 528.59 billion |
| 2021 | 503.62 billion |
| 2020 | 471.91 billion |
| 2019 | 507.96 billion |
| 2018 | 500.76 billion |
| 2017 | 484.43 billion |
| 2016 | 462.25 billion |
| 2015 | 458.06 billion |
| 2014 | 492.59 billion |
How Much Do Consumers Spend On The Beauty Industry?
The average expenditure of the consumers varies according to their needs, country, and financial condition. However, the average expenditure of Americans on beauty products increased from $199.17 per consumer in 2020 to $211.82 per consumer in 2022.
Americans Spent An Average Of $211.82 Per Consumer On Beauty Products In 2022
This was the highest expenditure recorded over the past years. It is approximately $30 higher per consumer than in 2021.
The following table displays the annual expenditure per consumer on the beauty industry in the United States.
| Year | Annual Expenditure Per American Consumer |
|---|---|
| 2022 | 211.82 |
| 2021 | 182.29 |
| 2020 | 199.17 |
| 2019 | 197.01 |
| 2018 | 189.88 |
| 2017 | 183.09 |
| 2016 | 170.3 |
| 2015 | 164.33 |
| 2014 | 168.82 |
| 2013 | 145.91 |
Source: Statista.
American Women Spend An Average Of $3,756 Per Year On Beauty Products And Services
The top three spending categories for women are makeup, skincare, and haircuts, totaling $85 per month.
Men spend nearly the same as women for their appearance. They spend an average of $2,928 annually on beauty products and services.
Source: Groupon
Consumers Are More Likely To Shop In Person For Beauty Products
Even though consumers today prefer to shop online, 52% prefer to purchase beauty products offline. That’s because many beauty products involve testing samples to check if they are compatible with consumers’ skin or hair.
21% of the consumers said they primarily shop online, while 27% said they prefer to shop online and offline.
Source: Lending tree.
Millennials Spend An Average Of $2,670 A Year On Beauty Products
That’s the highest average for all the age groups. Millennials are followed by GenZs, who spend an average of $2,048 per year on beauty products.
The millennials with children between the ages of 0 to 18 spend the most on personal products compared to millennials with no children or children above 18.
Here are further details about the average expenditure of different generations on beauty products:
- Gen Z (ages 18 to 26): $2,048
- Millennials (ages 27 to 42): $2,670
- Gen X(ages 43 to 58): $1,517
- Baby boomers (ages 59 to 77): $494
Source: Lending Tree.
Skincare Industry Statistics
The skincare industry holds almost half of the beauty market industry. Let’s uncover the latest figures about the skincare market in this section.
The Global Skincare Market Is Estimated To Generate A Revenue Of $161.3 Billion In 2024
The market was valued at $155.67 in 2023 and is projected to reach $186.16 billion in 2028. That is an increase of over $30.5 billion or 19.58% in the market between 2023 and 2028.
The following table displays the revenue generated by the skincare market over the years.
| Year | Revenue Generated By The Skincare Industry |
|---|---|
| 2028* | 186.16 billion |
| 2027* | 181.53 billion |
| 2026* | 173.55 billion |
| 2025* | 166.94 billion |
| 2024* | 161.30 billion |
| 2023 | 155.67 billion |
| 2022 | 143.52 billion |
| 2021 | 136.38 billion |
Source: Statista.
The Skincare Market In The United States Is Anticipated To Reach $21.83 Billion In 2024
In the United States, the skincare market had a revenue of $21.08 billion and an average revenue per capita of $62 in 2023.
Further, the market is forecasted to grow by 17.65 % or by 3.7 billion between 2023 and 2028, reaching $24.81 billion.
The following table displays further details about the revenue generated by the skincare market in the United States.
| Year | Revenue Generated By The Skincare Industry In US |
|---|---|
| 2028* | 24.81 billion |
| 2027* | 24.13 billion |
| 2026* | 23.30 billion |
| 2025* | 22.56 billion |
| 2024* | 21.83 billion |
| 2023 | 21.08 billion |
| 2022 | 19.91 billion |
| 2021 | 18.07 billion |
Source: Statista.
American Beauty Industry Statistics
The American beauty industry is one of the biggest industries worldwide, with its sales reaching $50 billion annually.
Let’s take a look at Americans’ expenditures in the beauty market.
Approximately $49.2 Billion Is Generated Annually By Cosmetics Sales In The United States
Nearly one-fourth of the world’s cosmetics are bought by Americans. They generate nearly $50 billion in sales in the cosmetics industry.
Source: Illumination Consulting.
58% Of Shoppers Spend Between $1 To $100 Per Month On Skincare And Makeup
Only 4% of American shoppers spend more than $500 monthly on beauty products.
Here are further details about the average monthly spending of Americans on beauty products.
| Average Monthly Spend On Beauty Products | Percentage of Americans |
|---|---|
| $0 | 5% |
| $1-50 | 31% |
| $51-100 | 27% |
| $101-200 | 20% |
| $201-500 | 13% |
| $500+ | 4% |
Source: Statista.
Beauty Industry Advertising Statistics
Advertising in the beauty industry has revolutionized, and businesses today prefer to advertise on social media platforms over TV advertisements. This section highlights the advertising expenditure as well as the mediums used to advertise by the beauty companies.
In 2022, Beauty Companies Spent About $7.7 Billion On Advertising
This was a 2.6% increase from 2021.
Digital advertising makes up 34.1% of the total ad spend in the beauty industry. Comparatively, businesses spend 53.1% on advertising as a whole.
The majority of beauty companies’ ad spending went to TV, with advertising spending reaching $1.8 billion. Besides, advertisers spent $1.2 billion on digital advertising—this 92% increase from 2021 displays the shift of businesses towards digital advertising.
Print advertising, on the other hand, fell by 24% in 2022.
Source: Media Radar.
80% Of People Use Instagram To Decide Whether To Buy A Product Or Service
63% of the consumers reported that they have more trust in brands with Instagram accounts.
96% of beauty brands already have an Instagram profile, as most consumers and brands believe Instagram is a preferred social media platform for beauty brands. It acts as a miniature website providing consumers with brand messages through visual cues and tone of voice.
Sources: LionSpiritMedia, TalkWalker, Criteo.
37% Of Shoppers Find Out About New Cosmetic Brands Through Social Media Ads
Around 33% of consumers find out about the products through recommendations and comments made on social media platforms.
66% of customers discover brands on social media through celebrity endorsements and bloggers. Further, 8 in 10 consumers said that they purchased products after coming across them on social media.
Hence, beauty brands consider social media as one of the ideal places to advertise.
Source: PR Newswire, Zippia.
Beauty Industry E-commerce Statistics
Since the pandemic, the beauty industry has witnessed a rise in online purchases. This has led to an increase in e-commerce in the market. Additionally, discounts and deals have played a major role in increasing online sales.
Online Sales Of Beauty Products In The U.S. Are Anticipated To Reach $45 Billion By 2027
According to the McKinsey report, digital sales in the country have gained a share of over 40% of the market. By 2027, digital sales, including live streaming and social commerce, will make up 60% of the beauty sales by 2027.
The report also adds that e-commerce beauty sales worldwide are expected to account for 26% of the worldwide beauty market.
Source: McKinsey, Business of fashion.
The Online Cosmetic Market Is Predicted To Reach $22.46 Billion By 2029
The Online Cosmetics Market size is estimated at $14.96 billion in 2024 and is expected to reach $22.46 billion by 2029, growing at a CAGR of 8.47% during the forecast period of 2024 to 2029.
Some of the major reasons that drive the growth of the online beauty market are Social media networks, strong internet penetration, rising consumer awareness, etc.
Source: Mordor Intelligence.
Beauty Industry Trends
This section highlights the latest trends observed in the beauty industry worldwide.
75% Of The Shoppers Are Ready To Pay More For Beauty And Skincare Products If They Get A Personalized Shopping Experience
In fact, 7 in 10 GenZ shoppers would pay at least 10% more on beauty products for a personalized experience in their shopping journey.
Personalization plays a major role in reshaping how consumers develop, market, and embrace beauty products. This trend is driven by various factors and innovative technologies increasingly catering to individuals’ unique needs and preferences.
Source: PR News:
The Online Sales Of Beauty Products Has Increased By 400% Between 2015 and 2022
A number of factors, like the expansion of online giants like Amazon and Tmall and increased usage of digital and mobile payments, have contributed to the rise.
E-commerce is predicted to be the fastest-growing channel in the beauty industry, growing at 12% annually until 2027.
Source: McKinsey.
Asia And North America Are Forecasted To Remain The Two Biggest Beauty Markets
Beauty market in the Asia Pacific is projected to grow at 7% year over year between 2022 and 2027.
Meanwhile, the North American markets are anticipated to grow at 6% Y-o-Y between 2022 and 2027.
However, individual brands will face difficulty growing in both markets.
Source: McKinsey
50% Of The Consumers Shop From Brands With Diversity And Inclusivity
Further, 86% of beauty product users said they want to see realistic skin colors and signs of aging in their beauty advertisements.
Brands like Fenty Beauty have significantly impacted the makeup industry with its wide range of inclusivity and diverse foundation. Meanwhile, brands like Mielle Organics gained popularity for their effective hair care options for textured hair.
Source: Cosmetics Design.
Latest trends like social commerce, increased usage of mobile commerce, etc, have led to a 4 times increase in the ecommerce of beauty products. Further, after observing the latest trends in the industry, it is evident that this growth will remain steady even in the upcoming years.
Additionally, it will be interesting to witness how the adoption of AI and virtual reality in the industry affects online sales.
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