The face of beauty from a year or two years ago may not be exactly what it is now; that’s how fast it changes. It’s such a dynamic industry that trends come and go in a snap. Products pop out of nowhere — each one promising to be better for you and offering more than the ones already in the market.
With the ever-evolving nature of the industry, the statistics, in effect, show significant game-changers, too. Here are all the latest beauty information that you need to know:
Top Beauty Industry Statistics
1. The worth of the global beauty industry is currently at $532 billion.
(Forbes)
Its compound-annual-growth-rate (CAGR) ranges between 5% and 7%. With how fast and high it’s going, it will be close to doubling its current figure in a few years.
2. In 2019, the annual growth of the global beauty industry dipped to 5.25% from 5.5% in 2018.
(Statista)
This decline can be attributed to the global financial crisis, which paved the way for more affordable and do-it-yourself products in an effort to drive revenues.
3. Generation Y contributes a lot to the growth of the global beauty industry.
(Statista)
These are the people from the working sector and, therefore, have more spending power.
4. In 2019, the Asia-Pacific region made up 41% of the global cosmetic market, followed by the United States at 24%.
(Statista)
Nowadays, the market is shifting and certain beauty cultures that are different from the Western market are gaining influence. Diversity now plays a big role in the industry.
5. In 2019, 14% of the total revenue in the beauty industry was made from online channels.
(Statista)
This number is expected to rise in the coming years (predicted at 19% by 2023), due to a bigger presence of eCommerce channels and online-only brands.
6. Women have been contributing more to the revenue of the global beauty industry.
While this statistic is expected to be the same through the years, there’s a growing potential among the male market.
7. Globally, L’Oreal generated the most revenue in the global beauty industry in 2019, amounting to $33.4 billion.
(Statista)
The company sells products under the hair color, skincare, sun protection, make-up, perfumes, and hair care categories. Its market share in Western Europe was estimated at 20% in 2019.
8. The global skincare market is expected to reach at least $145.2 billion by the end of 2020.
(Statista)
Sales under this category are expected to increase with the interest in natural and clean beauty.
9. When it comes to online shopping, makeup and cosmetics are the top-selling segment.
Among beauty buyers worldwide, 25% bought makeup, 19% bought shampoo, and 13% bought skincare products.
10. In the US and UK, about 46% of beauty buyers discover brands and products the most through recommendations from family and friends.
This is followed by product samples (36%), ads seen on television (34%), and ads seen on social media (25%).
11. Around 54% of the Generation Z who are beauty buyers discover a product or brand the most from family or peer recommendations.
Other sources are ads seen on social media (39%), posts or reviews from expert bloggers and vloggers (32%), and ads seen on websites (28%).
The Beauty Industry and COVID-19
12. Globally, revenue of the beauty industry can dip by 20% to 30% by the end of 2020.
If COVID-19 resurges in the US before the year ends, the decline may be as high as 35%.
13. There’s an expected decline of 55% in global purchase of prestige brands in cosmetics and 75% in prestige brands of fragrances.
This estimate is compared to 2019 and affected by the mandatory wearing of masks and work-from-home arrangement, making these segments less useful.
14. Global consumers are shifting their shopping priorities and spending less on beauty products.
Groceries are the top priority now, followed by personal care products and then skincare products and makeup.
15. Some brands and retailers that sell beauty products are reporting revenues from online channels that are twice their sales before the outbreak.
In the US, Sephora reported that their sales are by 30% from 2019, as well as Amazon’s beauty section.
16. Since the COVID-19 outbreak, people in the US and UK are making their skincare routine simpler and easier.
Around 58% women wear less makeup now, while 43% have simplified their daily skincare and beauty routines.
17. Men in the US and UK are shopping more frequently and consciously, since the outbreak.
Men are shopping online now more than ever (45%) and investing in products that are sustainable and natural (24%), as well as healthy for their skin (24%).
18. Since the first quarter of 2020, online sales of hair color products and nail polish in the US have been rising.
(Nielsen)
This data supports the insights that online channels are slowly generating more sales for hair color and nail polish products than brick-and-mortar stores do and that consumers are shifting to do-it-yourself, at-home beauty.
Cosmetic Industry Statistics
19. The worth of the global beauty industry is expected to exceed $800 billion by 2025.
(Forbes)
The industry is expected to grow at least 5% every year.
20. In 2019, the revenue of the cosmetic industry in the United States was estimated to be around S49.2 billion.
(Statista)
Throughout the years, more and more people are spending disposable income on cosmetics; this observation is expected to grow further over time.
21. In a 2019 survey conducted among North Americans, 55% said that they are more loyal to brands that they know.
(Ipsos)
This explains the reason why more well-known brands in the market, like L’Oreal and Estée Lauder, remain as the top companies with the biggest revenues.
22. Drugstores and pharmacies are the top shopping destinations of cosmetics in the US.
(Statista)
These channels are followed by mass merchandisers, online channels, and department stores.
23. Ulta and Sephora are the leading beauty retailers, based on sales.
(Forbes)
This statistic excludes multi-brand stores, like Walmart and Target.
24. Online sales in the US beauty industry during the first quarter of 2020 were up by 24%.
There was a recorded increase in online sales of all categories, especially since the physical stores were still closed during this time.
25. A survey conducted in 2018 revealed that more women are likely to buy directly from the beauty brand’s site than from multi-brand stores.
These are women who value quality and perks over price.
26. At least 40% of people who shop makeup online are more likely to purchase from brands like MAC and Estée Lauder.
Makeup is the top product that online shoppers purchase every month.
27. According to 45% of beauty buyers in the US and UK, they would be more interested in a brand that offers at-home trials before purchasing.
Other factors of purchase intention include cleaner products (42%), eco-friendly products (32%), and education about the ingredients used and their benefits (28%).
Skincare Industry Statistics
28. The global skincare market is estimated to be worth at least $189.3 billion by 2025.
(Statista)
Anti-aging products contribute to this rising number and increasing interest in these products comes from the younger market who want to fight signs of aging as early as possible.
29. In 2019, the global market size of skincare products was worth $134 billion.
This is driven by the growing need for personal grooming, even among the male market.
30. The global compound-annual-growth-rate (CAGR) of skincare alone is estimated at 4.4%.
The growing need for body lotions, sunscreens, and face creams all over the world contributes to this upward trend.
31. Among all categories, skincare products made up 40% of the global beauty market in 2019.
(Statista)
This is followed by other categories, such as make-up, hair care, perfumes, toiletries and deodorants, and oral cosmetics.
32. Face creams are expected to be the biggest revenue-drivers through 2025.
Face creams include sun protection cream, skin brightening cream, and anti-aging cream, which are all gaining popularity now as the market notices the benefits they can do to skin.
33. In terms of distribution channels, multi-outlets have generated $4.1 billion, as of February 2020.
(Statista)
Multi-outlets offer convenience and affordability through a wide product selection from both established and private-label brands at an affordable price.
34. Geographically, Asia-Pacific holds the biggest revenue share in the skincare industry.
This is followed by Europe, North America, Middle East, and Africa. The growing popularity of K-beauty contributes to this finding.
35. In 2020, the skincare industry in the US has generated $18 million, so far.
(Statista)
This is equivalent to an expected dip to -2.02%. However, by 2021, it’s expected to grow at least 6.71%.
36. In 2019, facial cleansers generated the most revenue in the US skincare industry.
(Statista)
Multi-outlets sold about 316 million units, amounting to about $1.57 billion. When it comes to cleansers, quality and affordability are the biggest factors in purchase intention; top-of-mind brands include Cetaphil and other private labels.
37. The global market value of natural and organic skincare products is expected to grow to about $7.2 billion by 2024.
(Statista)
This supports the observation that more and more consumers are looking for safe, sustainable, and ethically-made skincare products.
Hair care Industry Statistics
38. The market of the hair care industry is forecast to be worth $116.33 billion by 2024.
It’s expected to grow between 3.35% and 4% in the coming years. The biggest market-drivers are rising hair problems, increasing disposable income, and growing demand for naturally-derived products.
39. Asia-Pacific remains as the largest market in the hair care industry.
Meanwhile, Latin America is the fastest growing market.
40. The global market value of organic hair care is forecast to reach $6.7 billion by 2023.
(Statista)
In 2016, it was around $3.2 billion worldwide. This supports the observation that more consumers are actively looking for healthier hair care products.
41. Supermarkets and hypermarkets are the top distributors and revenue-drivers.
Because they offer a wide selection of hair care products, consumers are able to thoroughly check the product (ingredients, expiry date, etc). However, online channels are expected to grow as well because of the convenience they offer.
42. In the US, the revenue of the hair care market is at least $15 billion.
(Statista)
In 2019 alone, it amounted to approximately $12,861.86 million. Shampoo contributes the biggest revenue. Approximately 528 million units were sold in 2019, amounting to about $2.45 billion.
43. Women in the US and UK use hair care products more than other types of beauty products.
This is followed by skincare products, personal grooming products, makeup, and fragrances. Before COVID-19, women use these products for at least two weeks more than men do.
Fragrance Industry Statistics
44. The global fragrance market size is expected to be worth $56.98 billion by 2026.
Its current compound-annual-growth-rate (CAGR) is estimated at 4.8%. The increasing demand for personal grooming contributes to this growth.
45. In 2020, the global market for fragrances is currently estimated at $43.6 billion.
This figure has taken into consideration the COVID-19 crisis.
46. The Women’s Fragrances and Perfumes segment is currently estimated to have a 3.3% CAGR.
By 2027, it’s expected to reach at least $33.4 billion.
47. The Men’s Fragrances and Perfumes segment is expected to have at least 3.4% CAGR by 2027.
By 2027, growth in this segment is readjusted.
48. The Unisex Fragrances and Perfumes segment is estimated to record at least 3% CAGR by 2027.
The biggest contributors to the growth are the US, Canada, Japan, China, and Europe.
49. Approximately 75% millennial women are more likely to purchase natural products.
Within this statistic, 45% of them prefer natural-based and healthy perfumes, supporting the observation that consumers are becoming more conscious shoppers.
50. The US fragrance market is estimated at $11.8 billion in 2020.
In 2019, 138.7 million Americans bought fragrances in 2019. Within this fraction, 1.98 million people spent at least $500 on fragrances.
Conclusion
In the coming years, the multi-faceted beauty industry is expected to grow even more. However, innovation among brands is important and plays a big role in the industry. The entry of new consumers (Generation Z), the shifting consumer mindset, and the availability of more convenient shopping channels all affect the outcome of the market and its growth.
In spite of these changing and uncertain times, one thing is still for sure: The beauty industry is here to stay.
