The human need to look and feel their best has always provided a lucrative branch for business, and not even the global financial crisis managed to significantly reduce the growth and expansion of cosmetics as the famous lipstick effect took over. When in crisis, put on the red lipstick and keep moving, it’s been said.
Beauty industry statistics show that the new generations are taking more interest and assuming an active role in the beauty industry with the rise of influencer marketing over the last decade. With it, new segments are opening in this 530 billion industry, and we are taking a closer look at the statistics, facts, and trends surrounding it.
Top 5 Cosmetic Industry Stats and Facts in 2020
- The global cosmetic industry is currently worth over 530 billion dollars.
- 67% of all consumers use makeup products.
- Online sales recorded a 23.6% growth and their number sits at over $5 billion.
- An average American consumer spends $190 a year on basic cosmetics.
- 57% of women in the United States prefer all-natural skincare.
Overview of the General Cosmetic Industry Statistics
1. The total worth of the cosmetic industry is estimated to be around $532 billion.
Product categories of the beauty market by share are skincare, haircare, perfumes, make-up, deodorants, toiletries, and oral cosmetics. The leader, the industry’s most profitable branch, taking up to 39% of the market, is skincare.
Statistics for the hair and beauty industry record the haircare market share of 21% in 2018, with the makeup industry close behind at 19%.
2. Compared to the cosmetic industry statistics for 2017, in 2018, the global cosmetics market size increased by 5.5%.
(Allied Market Research, Market Watch)
The size of the global cosmetics market in the future is somewhat a theme for speculation as numbers seem to fluctuate with different beauty industry analysis. The global cosmetics market will go up to $429.8 billion by 2022, with a CAGR of 4.3% by some accounts; while the cosmetic industry reports and statistics say a compound annual growth rate of up to 7.14% is to be expected from 2018 to 2023.
3. Reports on the growth of the beauty industry show that by 2025 the combined global beauty and personal care market is forecasted to grow to up to 716.3 billion U.S. dollars.
(Statista, Grand View Research)
The largest regional cosmetic market in the world by health and beauty industry statistics, the U.S., was valued at 89.7 billion U.S. dollars in 2018. The cosmetic industry revenue in 2016 in the United States was 62.46 billion.
4. The mass-market segment accounts for 72% of the total cosmetic market.
Statistics worldwide show that usually, the industry follows the traditional divide to premium and general, mass market, within the ratio of 1:3, with the premium segment taking up just under 30% of the cosmetic industry market share, while mass-market holds 72%.
5. Cosmetics industry analysis shows that year 2018 saw the highest expenditure in this decade.
An average of $190 per consumer was spent annually in the United States on personal hygiene and cosmetics, including perfume.
Hairdressing industry statistics show haircare and skincare products have traditionally the highest market share, with the hair industry being dominant in 2018.
During that year the American consumers spent around $73.4 on hair care products. Revenue from color cosmetics alone was increased by 3.6 percent outrunning that of skincare and perfumes.
6. The beauty industry growth rate is especially visible in the online sector.
(Allied Market Research, Toptal, Statista)
Cosmetic industry growth is especially visible in the online segment with online sales for beauty companies growing faster than the rest of online commerce. Cosmetic industry stats show that this category recorded growth of 23.6% in 2017 and reached over $5 billion online sales.
Beauty industry growth in online sales was a success, with its growth rate of 15.6% in 2017.
Makeup and Skincare Cosmetics Industry Statistics
7. The total number of all consumers using makeup in 2018 is 67%.
This segment of the market expects continual growth as the number of customers only increases over time. Steady growth is expected to continue in this category as the makeup industry statistics show the number of total consumers using makeup products rose to 67% in 2018. Makeup statistics note that 41% of consumers, age 30 to 59 in the U.S., report wearing makeup on a daily basis, while 25% use makeup products several times a week.
8. Makeup industry stats show that the makeup industry revenue peaked at $8.1 billion in 2018.
During the same year, the makeup industry worth increased by 1% growth from 2017.
Cosmetics industry revenues for skincare products are steadily rising across the board, and the 2018 cosmetics industry reports show a revenue of 17,872.95 million U.S. dollars for the skincare category.
9. The skincare segment experienced a rise and was at 36.4% of the global market in 2016.
Skincare industry statistics mark a shift from older consumers to younger, as the consumer base rapidly expands with the new generations entering the workforce and becoming financially stable. The use of skincare is no longer reserved for the anti-aging segment and even that is moving down the consumer age scale as more young people start delaying signs of aging significantly earlier than the previous generations did.
10. 57% of women in America say it is important for them to use natural products, and the natural products segment records faster growth in the last 5 years.
Another shift in perspective points out to the increase of interest for organic and natural products in consumers. Cosmetics industry statistics reveal that manufacturers concentrate on organic and innovative products that will offer environmentally friendly skincare and toiletries. Locally made products or products made from locally grown ingredients, show the best sales results as it is no longer about the effect on the skin, but rather about the full well-being experience that the modern consumer asks for.
11. Social media marketing is rapidly replacing conventional marketing in the makeup industry.
Along with the increase in numbers, the new consumer demographic brings along change as the brands are navigating towards means of advertising and presentation that will appeal to them. Vlogging and influencer marketing have forever changed the way skincare products and makeup are offered and consumed.
Moving Forward - Beauty Industry Statistics and Trends
12. The modern consumer wants a clean conscience too.
(Grand View Research, Business Insider)
As consumer awareness and attention changes over time, new cosmetics industry trends emerge both in production and advertising.
Informed and connected, today’s market seeks products that are less harmful, more natural, organic, overall environmentally conscious, and safe.
There is a demand for products without phthalates, parabens and aluminum salts and the fluctuations in the supply of adequate raw materials are a constant challenge for the industry.
13. Cosmetic industry trends wake up to include a rising demographic of underserved audiences.
Over $1.3 trillion is reported to be spent on makeup by people of color.
70% of consumers older than 40 report lack of products for perimenopausal and menopausal women. Children’s cosmetics saw nearly 9% growth during the last year and the segment is growing. New demographic market segments that are witnessing expansion are products for people of color, men, children, and older generations, respectively, as those segments have seen significant underrepresentation of users over the years.
14. Beauty industry trends follow the tech-savvy customer’s attention.
The introduction of beauty apps and devices are a brand new opportunity for the beauty industry market size to jump up significantly, with brands moving forward from simple beauty and makeup apps to a whole new range of beauty systems. Beauty industry market statistics show leading corporations are building connected personalized beauty systems that use modern tech to track anything from sun damage to skin hydration levels.
How Much Is the Beauty Industry Worth?
The beauty industry worth is $532 billion in 2020, and it is on a rapid trajectory upward as the consumers rise in numbers with the constant influx of younger generations. New consumers are entering the market driven by the latest trends at an ever younger age each year and the underrepresented categories are being included and closing the gap as well.
Is the Beauty Industry Growing?
Some of the beauty industry analyses indicate that the global beauty and personal care market is expected to grow to $716.3 billion by the year 2025.
In recent years the beauty industry saw a growth of 5.5% from 2017, and future growth is speculated to be anywhere from 4.3% CAGR to 7.14% in the years 2020 to 2023.
How Many People Are in the Beauty Industry?
In the United States, the beauty services sector employs over 67,000 people.
Worldwide, just the service segment of the beauty industry employs over 1 million workers.
L’Oreal alone employed 83,000 people up until 2015, worldwide.
How Big Is the Beauty Industry?
Beauty industry statistics show the cosmetics industry was worth $93.5 billion in the US market in 2019. This is an increase of $74.7 billion from the year before.
The global beauty industry is a very condensed one, with the 7 major conglomerates holding under them the majority of big-name brands. By size and market share, these are Estée Lauder Companies, L’Oréal, Unilever, Procter&Gamble, Shiseido, Johnson&Johnson, and Coty, respectively, owning just under 200 major cosmetics brands between them. Combined these companies employ over a million workers worldwide, with 1 million people working in the service section alone.
How Much Is the Cosmetic Industry Worth?
The recorded beauty industry revenue in the cosmetics segment in 2019, in the United States, was 49.2 billion U.S. dollars in 2019 and it was worth $93.5 billion.
The market is expected to grow annually by 3.5% to 7% CAGR in the years from 2020 to 2025.
Worldwide, the highest revenue is recorded in the United States with $49 billion.
Looking at the total population figures, revenues of an average of $53.23 per person are expected in 2020 in the United States.
The Beauty Industry Expands and Discovers New Territories
Influencer marketing on social media platforms changed not only advertising but also the way people engage with brands and their products. Traditional advertising is being left behind by the beauty industry following trends and directions in which the customer attention shifts.
The modern consumer is eco-conscious and wants inclusive products. Drawn to the new technologies, they are open to exploring the use of apps and beauty systems in their daily cosmetic routines.
Beauty industry statistics reveal that the consumers’ values are changing, needs are expanding, and expectations are rising within all customer demographics. The manufacturers, conglomerates and small scale alike, are upgrading and reinventing ways to answer the demands.