The beauty industry plays an essential role in both women and men. That’s right; even men have become more interested in grooming themselves, which led to a growing number of men’s cosmetic lines. Because of demands like this, new beauty trends are made every day. Besides, the beauty industry has seen even more significant growth.
If you want to stay informed and up to date with all the stats, facts, and trends surrounding this $532 billion industry, keep reading.
Top 10 Beauty Industry Statistics and Facts at a Glance
- The global beauty industry is growing faster at $532 billion and counting.
- The global K-Beauty market will be worth $21.8 billion by 2026.
- L’Oréal is the leading cosmetic company in the world.
- Sephora is the world’s leading beauty specialist retailer.
- Beauty industry statistics report that 70% of men add sunscreen or sun protection in their skincare routine.
- Throughout her lifetime, the average woman spends more than $225,000 on beauty products.
- Technology is giving the $532 billion industry a makeover.
- The anti-aging segment will record a 3.8% CAGR from 2020 to 2027.
- CBD cosmetics is one of the emerging beauty industry trends.
- Accepting real beauty in all its many sizes, colors, and shapes is another beauty industry trend.
Beauty Industry Statistics
The global beauty industry is growing faster at $532 billion and counting.
The beauty industry is becoming increasingly dominated by beauty vloggers who are changing the way brands attract consumers. Similarly, social platforms such as Pinterest’s shoppable Pins and Instagram Shopping are changing the way consumers shop and discover new beauty products. In 2019, the beauty global cosmetics total value was estimated to be around $532 billion. Analysts believe that recent beauty trends like sustainability in beauty and transparency in pricing and distribution will advance the $532 billion beauty industry and make it bigger than ever.
Source: Business Insider
Asia and Oceania are the top beauty product spenders.
Making up 39% of the market, Asia and Oceania are the biggest consumers of beauty products. By spending so much on their vanity, these countries can be said to take beauty the most seriously in the whole world. Based on the 2020 cosmetic industry statistics, North America came second with a 25% share, while Europe took third place with a 24% share of the global beauty market.
Source: World Atlas
It is estimated that by 2025, India’s cosmetic market will exceed $20 billion.
India might be the next big global beauty market, and there are several reasons why. First, the country’s improved economy in recent years has enhanced spending power and disposable income. This is reflected in India’s beauty industry as more and more women are spending money on makeup. What’s more, India’s internet penetration allowed Indian beauty influencers to rise, contributing to the different brand discovery and makeup sales.
According to projections, South Africa’s beauty and personal care market will reach $6.16 billion by 2024.
The African beauty industry is dynamic and growing faster than ever, thanks to the country’s growing population, rising middle class, and structured distribution channels. In 2018, the South African beauty and personal care market’s sales value reached $3.5 billion, and this is expected to increase by $2.66 within the next 6 years.
By 2026, the global K-Beauty market will reach a whopping $21.8 billion.
Essentially a name to classify the Korean influence in our skincare regimen, the epic K-Beauty is expected to continue dominating the beauty industry. The predicted value of the global K-beauty market will be worth $21.8 billion in 2026. Accounting for almost a quarter of the total K-Beauty market in 2018, sheet masks will keep the top position; however, it is cleansers that are expected to see the highest CAGR (11.8%) from 2019 to 2026.
Source: Fashion Network
L’Oréal is the number 1 cosmetic company in the world.
L’Oréal is the leading cosmetic company globally, followed by Unilever, Estée Lauder, Proctor and Gamble, Coty, and Shiseido. The French company, which earned over $21.8 billion in annual beauty product sales, is far ahead of its cosmetic company competitors. It remains the world’s leading company by revenue because L’Oréal owns 36 strong brands in its portfolio that generate over 50 million euros every year. Some of its top acquisitions are Maybelline New York, Redken, CeraVe, and NYX Professional Makeup. It has also acquired luxury brands such as Giorgio Armani Beauty, Modiface, and La Roche-Posay.
Sephora is the world’s leading beauty specialist retailer.
Sephora is now the top beauty specialist retailer in the world, and it’s all due to how they let customers experience a more accessible yet low pressured shopping experience. In an environment where many retailers are struggling, Sephora remains on the top spot. Its total revenue is $3 billion, and it opened 100 new stores in 2018.
From $34.5 billion in 2018, the global natural cosmetics market is projected to increase by $20 billion, anticipating global revenue to reach $54.5 billion by 2027.
These projections illustrate how today’s consumers value green beauty. Currently, they demand natural, organic in the name of health. While it’s easy to find ‘natural’ and ‘organic’ on every cosmetic label these days, the lack of specific regulation on natural cosmetics means some labels may not always reflect the product’s ingredients. On that note, consumers should always research about the product they’re eyeing to be safe from fraudulent claims.
More than half of the U.S. consumers aged 18 to 29 would instead use natural, organic cosmetics.
On the hunt for a healthy glow, consumers are extra careful about what they’re putting on their body and faces. In the United States, approximately 70% of consumers prefer natural, organic skin care products over chemical or synthetic based ones.
Online cosmetics sales have shown a 30.5% growth in 2019.
From 7.5% in 2018, online cosmetics sales grew by 30.5% in 2019. This means that shoppers are embracing the online store experience. However, some of them are more reluctant to purchase cosmetics online. 46% want to try out beauty products in person, while 18% want to buy products with an in-store expert’s assistance.
Source: Digital Commerce 360
Women spend a monthly average of $313 a month on their physical appearance while men spend $244.
Women like to splurge on beauty products whenever they get the chance. Estimates show that they spend an average of $313 a month, or $3,756 a year. Hence, throughout their entire lifetime (ages 18-78), women spend more than $225,000 on beauty. Men’s expenditure on physical appearance, on the other hand, is $244 s a month, or $2,928 a year. That’s $175,680 of a lifetime investment.
From 145.3 billion dollars in 2020, the skincare’s global market value will reach 185.5 billion dollars by 2027.
The coronavirus has made women ditch their makeup routines and hide their bare faces under masks. While makeup is of minimal use during the pandemic, skincare products prove otherwise. Given the realities of wearing masks and getting exposed to blue light, women need to step up their skincare routines, thereby increasing 2020 skincare sales. By 2027, the global skincare market will be worth 185.5 billion dollars.
If coronavirus lingers over the next few years, the makeup industry revenue will go down.
Because of the mandatory wearing of masks, it has become much less necessary to wear makeup. Even after returning to work, people continued wearing masks, further slowing the makeup industry’s recovery. The above-the-mask treatments, however, is an exception. In China, this sector saw a 150% monthly increase during the week of February 18, 2020.
Source: McKinsey & Company
Skincare and haircare sales are going up even in the middle of a pandemic.
While makeup sales are decreasing, skincare and haircare sales are increasing. The sales for nail-care products have increased by 218%, hair coloring by 172%, and bath-and-body products by 65%. One noteworthy reason why sales are going up even during the pandemic is the rise of do-it-yourself or DIY beauty care trends.
Source: McKinsey & Company
The North American flavor and fragrance market in 2019 hit $4.5 billion in 2019.
This value is projected to land at $5.9 billion by 2025, which is not surprising since Americans don’t shy away from buying up colognes, perfumes, and fragrances. More than 90% of American women wear perfumes, and 41% use them on a regular basis.
The global hair market value reached $85.5 billion in 2017 and is expected to increase to $102 billion by 2024.
Even when the U.S. doesn’t have the largest market for hair care in the world, it is the most profitable, generating about $15 billion in 2017. These stats come as no surprise given the growing number of haircare product users in the U.S. Surveys reveal that more than 50% of Americans use hair care products, while 50% of men and 34% of women wash their hair regularly.
The anti-aging segment is projected to record a 3.8% CAGR from 2020 to 2027.
The segment is not limited to anti-aging creams, but it also covers eye care, serums, hair products, or anything that moisturizes the skin and slows down the aging process. What drives this segment’s growth is the variety of products and the growing number of the world’s aging population.
Kylie Cosmetics holds the record for the most followed beauty brand on Instagram.
As of 2020, the beauty brand has 24.2 million followers on Instagram. This is not since the brand’s owner, Kylie Jenner, is one of the most popular social media influencers. The second most followed beauty brand is MAC Cosmetics with 23.66 million followers.
Beauty Industry Trends
Technology is giving the $532 billion industry a makeover.
The beauty industry has seen even greater growth, thanks to the advent of technology. More and more brands are undergoing a digital transformation, including the incorporation of 3D scanning devices.
Consumers seek more awareness regarding the manufacturing processes and ingredients of cosmetic products.
As consumers demand greater transparency concerning the manufacturing process and ingredients used in beauty products, it should come as no surprise that labels with detailed raw material and batch processing information will be among the new trends among leading cosmetic brands.
Source: SWK Technologies
Accepting real beauty in all its many sizes, colors, and shapes is one of the emerging beauty industry trends to rise in 2019.
Aside from investing in age and ethnicity-appropriate products, consumers want to see the beauty in all its many sizes, colors, and shapes. More than half of consumers prefer to see images which are not photo-shopped.
CBD cosmetics is another emerging beauty industry trend.
As CBD proved to meet the demands for natural skincare and beauty products, consumers have been stocking their shelves with quality CBD creams and lotions. Women over 40 and female Millenials are joining the cannabidiol craze.
Four in five consumers rely on social media for purchasing advice.
Some consumers are ahead of others for finding out new brands and beauty products because of social media. They are more likely to be making purchases after seeing consumer reviews and recommendations online.
Anti-pollution skincare is the new beauty trend.
Beauty brands are becoming more aware that pollution is the second biggest danger to the skin next to sun exposure. To keep the skin safe from heavily polluted environments, anti-pollution skincare has become a must. In 2019, Liberty London saw a 57% sales increase in pollution-battling products.
Source: Harper’s Bazaar
Beauty industry statistics report that 70% of men use sun protection products.
As it turns out, it’s not only women who are afraid of going out without using sunscreen but men as well. These figures portray the reality that men’s personal care products have evolved from traditional grooming products.
In India, it’s not unusual for the expiry date to not be included in the packaging.
Expiry dates aren’t necessarily indicated on products in smaller quantities such as mascaras, eyeliners, lipsticks, eyeshadows, etc. In this case, it helps keep in mind the typical shelf life of any makeup.
Source: The Health Site
During medieval times, women often removed their eyebrows and eyelashes.
Nowadays, thick eyebrows and long, dark eyelashes are indeed a beauty obsession. This is quite the opposite of the look women are going for in the middle ages. They consider the forehead the most beautiful and erotic feature, so they emphasize it by removing the eyebrows and eyelashes altogether.
Source: Marie Claire
In the 18th Century, tanning was a severe beauty faux pas.
While people at present purposely lie around trying to get tanned, tanning was heavily frowned upon during the ‘Golden Age of Spain’. The flawless, porcelain complexion was the ideal skincare trend at the time.
A Japanese woman’s beauty was judged by her hair length during the Heian Period.
It’s a shame that women with shorter hair during that time were considered not beautiful enough. Today, the stereotype of a prim and proper lady with long, flowy hair is getting outdated as more and more women love pixie cuts.
During World War II, lipstick was considered a valuable item.
When you think of war, it’s not often that an image of makeup pops up. But, lipstick was actually valued during the Second World War. This is especially true for female nurses in the armed forces. Lipstick was a reminder that they were ladies first and military second. What’s more, it was also viewed to offer a calming effect on male soldiers.
These statistics clearly show that the beauty industry is a booming and thriving business. As established, consumers seek natural and more wholesome skincare, and the beauty industry is adapting to that at an incredibly fast pace. With all the other burgeoning beauty trends, the booming beauty industry clearly shows no sign of slowing down.
Frequently Asked Questions
Who spends the most on cosmetics?
It is millennial women who buy the most makeup. In fact, reports reveal that they are more likely to purchase 10 or more types of products a year than other age groups.
How much is the value of the U.S. beauty industry?
In 2019, the beauty industry was worth $49.2 billion in the United States. The beauty industry is made up of six segments, and skincare is the largest. Moreover, mascara and foundation sales generated the highest revenue.
Is the cosmetics industry still profitable amidst economic recessions?
Despite the global pandemic, the cosmetics market seems to be thriving still. More and more brands are adapting to the changing trends and needs. For instance, the beauty industry is capitalizing on soaps, hand sanitizers, and disinfectants.
Is the beauty industry growing?
The beauty industry is growing and will continue to do so even after being hit by the pandemic. Following the increased implementation of digital tools, the chances of the beauty industry bouncing back are definitely high.