Black consumer spending in the US Beauty category (2024)

FAQs

Black consumer spending in the US Beauty category? ›

Black consumer spending in Beauty

A June 2022 study conducted by McKinsey & Company found that Black-owned or -founded brands only made up 2.5% percent of the revenue of the $60 billion beauty industry in the U.S.

In a survey of more than 1,000 Americans, it was revealed on average, adults spend $722 every year on their appearance. While the average person spends more than $700 on their appearance per year, the spending is higher among women. The average American woman shells out $877 annually, while men pay $592 on average.

The primary target demographic for the skincare industry is women aged 18 to 41. That's simply because this demographic of users buy the most – over 40% of skin care products.

In comparison, the top five aggregate expenditure share categories for high-income Black households were housing (34.2 percent), transportation (17.1 percent), personal insurance and pensions (15.0 percent), total food (12.7 percent), and healthcare (4.8 percent).

Black consumer spending in Beauty

In 2023, Black consumer spending on Beauty products amounted to $9.4 billion, with dollar, unit, and household growth outpacing growth for the US at large. This growing cohort currently accounts for an estimated 14.4% of the US population, which is a 32% increase since 2000.

Genre. Black Beauty is considered to be one of the first fictional animal autobiographies.

Women spend slightly more than men on beauty products and services. Women spend $3,756 a year compared to $2,928. This amounts to $225,360 and $175,000 over a lifetime!

Market size of beauty & personal care in 20 countries worldwide 2023. The United States is leading the ranking by revenue in the beauty & personal care market, recording 97.81 billion U.S. dollars.

That figure varies by age group, though. Millennials (ages 27 to 42) are the most likely to shell out for beauty, spending an average of $2,670 a year on beauty products. That's followed by: Gen Zers (ages 18 to 26) ($2,048)

Who dominates the beauty industry? ›

The Leading Players

L'Oréal isn't alone in this beauty parade. Other prominent cosmetics companies that have shaped the industry since the early 20th century include the likes of Unilever, Procter & Gamble Co., The Estée Lauder Companies, and Shiseido Company.

The millennial impact

Millennials report the highest amount of online beauty spending, with nearly a quarter (24.4%) of the generation spending $1,000 or more in the last year, per our The US Beauty Consumer report.

Quality and Value: Black consumers place a high emphasis on the quality of products and services, particularly preferring clean and/or healthy products that are priced well for good value.

Black consumers account for a disproportionate amount of product sales in a number of fast-moving consumer goods categories. Again, with $1.2 trillion in spending power, African-American consumers are an important population for smart brands that want to grow market share and brand preference.

Black haircare is an estimated $2.51-billion-dollar industry. Black women spend 9 times more on ethnic hair products than non-Black consumers.

Since Sephora's official announcement in 2020, it's taken steps to increase its initial seven-brand portfolio of Black-owned businesses to 24. Though that number isn't 15 percent of the overall 314 brands Sephora offers, it's certainly a significant increase.

This might be a bit shocking, but there are actually 7 main manufacturing companies that control most of the big beauty brands that exist today. You've probably heard of most of them: L'oreal, Estee Lauder, Procter and Gamble, Shiseido, Coty, Johnson and Johnson, and Unilever.

World Wide Technology is the largest Black-owned business with $17 billion in annual revenue. Black or African American women own an estimated 58,974 businesses with at least one employee, employing 481,930 employees.