25 Powerful Cosmetics Industry Statistics [2023]: What’s Trending In The Beauty Business? - Zippia (2024)

Cosmetics industry research summary. The cosmetics industry is one of the most valuable markets globally, and the United States is largely to thank for that. With more and more people across the nation buying personal care and beauty products, the cosmetics industry is growing fast. After extensive research, our data analysis team found:

• Approximately $49.2 billion is generated by cosmetics sales in the United States each year.

• On average, Americans spend between $244 and $313 on cosmetics every month.

• The global cosmetics industry is valued at $571.10 billion.

• The cosmetics industry is growing at a rate of 3.8% each year.

• Personal care products make up 44.4%, with a market volume of $253.3 billion of the cosmetics industry, representing the largest segment of the market.

• The beauty and cosmetics market fell by 8% as a result of COVID-19 in 2020.

For further analysis, we broke down the data in the following ways:
Consumers | Segments | Trends and Projections

Cosmetics industry general statistics

The cosmetics industry has come a long way since powdered and pigmented eyeliners of ancient Egypt. Today, the industry is a global powerhouse that serves almost every country in the world. To learn more interesting facts about the cosmetics industry, here are some insights our research uncovered:

1. The American cosmetics and beauty market is valued at $91.4 billion.

   The beauty and personal care market in the United States is worth approximately $91.4 billion. As such, the United States accounts for 22% of the value of the global cosmetics industry.

2. Around 61% of all beauty buyers followed cosmetics brands or visited a brand on social media in June 2019, making social media engagement key for cosmetics brands.

   Social media is one of the leading ways customers discover cosmetics brands, allowing brands to establish trust with their customers and market their products appropriately.

   It’s estimated that 37% of shoppers typically find out about new cosmetics brands or products through social media ads. About 33% find out via recommendations and comments made on social media platforms.

   In addition, 66% of customers discover brands on social media thanks to updates on the brand’s social media pages, posts from expert bloggers, and celebrity endorsem*nts.

3. In the United States, L’Oréal is the most valuable cosmetics company.

   As of 2022, L’Oréal generated an impressive $40.3 billion in annual revenue. In addition, the multinational cosmetics company held 20% of the cosmetics industry share in Western Europe.

   Other leading cosmetics companies — which have controlled the market, along with L’Oréal, since the early twentieth century — include Unilever, Procter Gamble Co., The Estee Lauder Companies, and Shiseido Company.

Cosmetics brands by revenue (2022)

Brand	Revenue (2022)
L’Oreal	$40.3B
Unilever	$24.1B
Estée Lauder	$17.7B
P&G	$14.4B
Shiseido	$8.3B
Bath & Body	$7.9B
Johnson & Johnson’s	$7.7B
LVMH	$7.5B
Natura & Co	$7.1B
Beiersdorf	$7.0B

4. In terms of social media user engagement, Huda Beauty and Kylie Cosmetics are the biggest cosmetics companies in the United States.

   According to a 2019 survey, Huda Beauty has the highest social media user engagement volume with 246.37 million actions, while Kylie Cosmetics trailed closely behind with 215.24 million actions.

5. In the United States, facial and eye cosmetics represent the most profitable sections of the cosmetics and beauty industry.

   In 2020, roughly $1.96 billion was generated from sales of eye cosmetics, and about $1.9 billion was generated from sales of facial cosmetics. Mascara was the most profitable product in the eye cosmetics segment, followed by eyeliners, eye shadows, and eyebrow makeup.

   Meanwhile, Neutrogena makeup remover was the most profitable product in the facial cosmetics segment.

   In addition, hair care products represented 24% of the beauty industry, and sales of lip cosmetics products generated about 647.31 million.

6. Although e-commerce sales continue to grow, many shoppers buy cosmetics and beauty products at retail stores.

   When it comes to cosmetics sales, Ulta Beauty is the leading health and beauty retailer in the United States. In 2019, the chain beauty store generated approximately $7.4 billion in retail sales.

   Sephora, another popular beauty retail chain, was slightly behind Ulta, generating about $5.9 billion in retail sales that year.

Cosmetics industry consumer statistics

The cosmetics industry is driven by its consumers. These consumers dictate which products are made, and which ones become popular. Here are some statistics that show consumer patterns:

1. Nearly one-fourth of the world’s cosmetics are bought by Americans.

   North America accounts for 24% of the global cosmetics market. Current numbers place the Asia Pacific as the largest consumer of cosmetics as a region.

Cosmetic industry revenue by country

Country	Beauty Products Spending (2018)
United States	$89.7B
China	$58.3B
Japan	$36.9B
Brazil	$34.7B
Germany	$19.1B
United Kingdom	$17.2B
India	$15B
France	$14.7B
South Korea	$12.8B
Russia	$11.4B

2. The men’s global personal care and beauty industry is expected to be valued at $166 billion by 2022.

   Although women may lead the cosmetics industry, men are buying cosmetics more than ever before, and nearly 40% of adults are interested in gender-neutral beauty and cosmetics products. In just the last year, men’s skincare products jumped in sales by 7%.

3. Women spend, on average, $69 more than men each month on cosmetics.

   According to a study commissioned by Groupon, American women spend, on average, $313 a month on cosmetics, or $3,756 a year. Meanwhile, American men spend, on average, $244 a month on cosmetics, or $2,928 a year — 22% less than women.

4. African American shoppers represent 86% of the ethnic beauty market.

   According to Essence, African Americans spend $1.2 trillion on beauty and cosmetics products each year, and this year, that number is expected to increase to $1.5 trillion.

   In 2017, Black shoppers captured 86% of the ethnic beauty market, generating $54 million in sales of the total $63 million. That same year, Black customers also spent $127 million on grooming products and $465 million on skincare products.

5. 27% of young women never leave the house without makeup on.

   According to a survey conducted by the Renfrew Center Foundation, a nonprofit organization, young girls wear makeup earlier than ever before. According to the survey results, 58%, or about three in five, of surveyed young girls aged 8 to 18 wear makeup.

   In addition, of the girls who admitted to wearing makeup, 65% started using it between the ages of 8 and 13, and 50% of them started using it between the ages of 11 and 13.

Cosmetics industry segment statistics

The cosmetics industry is comprised of many different segments. From makeup to skincare, here are the facts about the most popular cosmetics industry segments:

1. Approximately 42% of the global cosmetic market is made up of skincare.

   The sale of various skincare products represents just under half of the global cosmetics market. Just behind skincare, hair care products represent roughly 24% of the global market.

2. Nearly 20% of the global cosmetic market is made up of makeup.

   According to Statista, makeup products represent 18.2% of the total global cosmetics market value.

3. The global makeup market alone is estimated to be worth approximately $85 billion.

   Currently, makeup sales generate about $77.8 billion of the total $380.2 billion global cosmetics market. Makeup sales are expected to only increase as a growing number of people incorporate the use of lipsticks, concealers, foundations, bronzers, mascaras, and eyeliners into their everyday routines.

4. Skincare and hair care products represent almost 60% of the global cosmetics market combined.

   According to Statista, globally, skincare and hair care are leading the way in the cosmetics industry. In 2015, skincare product sales in the U.S. alone generated about $16 billion. Meanwhile, in 2020, facial cosmetic sales generated $1.9 billion.

5. The global anti-aging cosmetics market value sits at $38.62 billion.

   Anti-aging products, especially those with anti-oxidizing elements like Vitamin C and E, are expected to grow in value by a CAGR of 5.8% in the coming years. By 2026, the global anti-aging cosmetics industry is estimated to reach $60.26 billion.

Cosmetics industry trends and projections

The cosmetics industry has grown more popular over time, with makeup and skincare used in more creative ways than ever before. To see where the cosmetics industry might be headed in the future, we’ve gathered some interesting trends and projections:

1. The global cosmetics industry is expected to reach a value of $463.5 billion by 2027.

   Over the next six years, the global cosmetics industry is expected to grow by $83.3 billion. As of 2019, the industry was valued at $380.2 billion, and current growth projections show that number will reach approximately $463.5 billion by 2027.

2. From 2021 to 2027, the global cosmetics industry has a CAGR of 5.3%.

   According to recent growth models and predictions, the global cosmetics industry will expand at a compound annual growth rate, or CAGR, of 5.3% between now and 2027.

   This growth rate is largely tied to changing lifestyles, the increased use of cosmetics products in modern lifestyles, and the rise of men using cosmetics and beauty products in their daily routines.

3. CBD-infused cosmetics are expected to grow by $2.22 billion through 2024.

   According to PR Newswire, the CBD market is estimated to grow at a compound annual growth rate of 25% between now and 2024. Moreover, North America is slated to contribute to approximately 43% of the projected growth.

4. Influencers control 60%+ of the YouTube beauty content.

   While brands have tried their best to control their own narrative in the past, it’s becoming clear that influencers are the way of the future. Consumers feel much more comfortable watching a “real person” using a product and giving honest feedback in real time, rather than have a company tout the product’s features.

Cosmetics industry FAQ

1. How is the cosmetics industry segmented?

   The cosmetics industry is segmented into seven main categories. These include skincare products, hair care products, makeup, perfumes, toiletries, deodorants, and oral care products. Skincare products remain the most profitable segment of the market, followed closely by hair care products.

2. What is the cosmetics industry worth in 2023?

   The cosmetics is worth approximately $571.10 billion. North America accounts for approximately 16% of the global cosmetics market, with the cosmetics industry in the United States currently valued at roughly $91 billion.

3. Is the cosmetics industry growing?

   Yes, the cosmetics industry is growing. Current projections place the cosmetics industry at a 5.3% compound annual growth rate. At this pace, the market will be worth roughly $463.5 billion by 2027.

4. What is the largest cosmetics company in the world?

   The largest cosmetics company in the world is L’Oreal. The French company registered an annual revenue of $40.3 billion in 2022. While Johnson & Johnson, Proctor Gamble, and Unilever are all bigger companies (by revenue), their cosmetics divisions fall short of L’Oreal.

5. Which country spends the most on cosmetics?

   The United States spends the most on cosmetics. In 2018, US consumers spent a total of $89.71 billion on cosmetics. The next highest country, China, only spent $58.26 billion — with about 4 times as many consumers.

6. Is the cosmetics industry saturated?

   Yes, most industry experts agree that the cosmetics industry is oversaturated. Even without being an expert, anyone who’s shopped for skincare products recently knows the insane number of options available at the store.

   As such, it’s incredibly difficult for a new brand or product to gain traction without being a part of one of the major cosmetics companies in the world.

Conclusion

Around the world and across the nation, the beauty and cosmetics industry continues to be profitable. Currently, the global cosmetics industry is valued at $571.10 billion, with the United States generating at least $49.2 billion in cosmetic product sales every year.

Today, more and more women and men are purchasing skincare products, hair care products, make-up, perfumes, toiletries, deodorants, and oral care products. As such, the industry has no sign of slowing down.

In fact, it’s growing at a rate of approximately 5.3% every year. With the average American spending between $244 and $313 on cosmetics every month, the future of the cosmetics industry looks bright.

References

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2. Allied Market Research. “Cosmetics Market By Category, Gender And Distribution Channel: Global Opportunity Analysis And Industry Forecast, 2021-2027.” Accessed on June 23, 2023.

3. New York Post. “Vanity Costs American Women Nearly A Quarter Of A Million Dollars.” Accessed on June 23, 2023.

4. Statista. “Cosmetics Consumer Behavior In The U.S. — Statistics Facts.” Accessed on June 23, 2023.

5. We Are Social. “How Social Media Is Reshaping The Beauty Industry.” Accessed on June 23, 2023.

6. Statista. “Cosmetic Sales In The United States In 2020, By Segment.” Accessed on June 23, 2023.

7. Statista. “Global Makeup Market Size 2012-2025.” Accessed on June 23, 2023.

8. CNBC. “Men Are A MultiBillion Dollar Growth Opportunity For The Beauty Industry.” Accessed on June 23, 2023.

9. Fortune Business Insights. “Anti-Aging Cosmetics Market Size, Share Industry Analysis, By Product Type, Product Form, End-User, Distribution Channel, And Regional Forecast, 2019-2026.” Accessed on June 23, 2023.

10. PR Newswire. “From Barbies To Blush — New Survey Reveals Young Girls Are Wearing Makeup Earlier Than Ever To Hide Their Insecurities.” Accessed on June 23, 2023.

11. Essence. “Feature: The Industry That Black Women Built.” Accessed on June 23, 2023.

12. PR Newswire. “Global CBD Infused Cosmetics Market: $2.22 Billion Growth Expected During 2020-2024.” Accessed on June 23, 2023.

13. Statista. Distribution of beauty content views on YouTube as of August 2018. Accessed on December 20, 2021.

14. Statista. Consumption value of beauty products worldwide in 2018, by leading country. Accessed on December 20, 2021.

15. Beautypackaging.com “Top Global Beauty Companies 2022 Report.” Accessed on March 2, 2023.

16. Statista. Beauty & Personal Care – Worldwide. Accessed on March 2, 2023.