We noted last summer that the beauty business had made up all the sales losses it suffered during the pandemic. Since then, new numbers have been released that show the actual stunning size of the comeback.
According to Oberlo, the market size of the global beauty market will reach $571.1 billion this year, an 8% year-over-year increase, the fastest annual growth rate in at least 13 years. Since 2015, the beauty industry market size has grown by more than $113.1 billion. And that momentum is expected to continue, with projected revenues hitting $590.9 billion in 2024, $611.2 billion in 2025, and $663 billion by 2027.
Which products will lead the global market?
- Personal care products—in 2024, sales are expected to hit $253.3 billion, around 44.4% of the total market
- Skincare—is forecasted to reach $155.7 billion, or 27.3% of the industry’s total
- Cosmetics—the global market size is expected to be $103.8 billion
- Fragrances—will reach $58.27 billion in sales
According to Global Cosmetic Industry, American consumers are seeking more innovative product types than what they’re already using, rather than truly disruptive product types, including:
- Facial skin care: Products promoting younger-looking skin/anti-aging, exfoliators, masks, moisturizers, retinol and retinol alternatives, and serums were the ones consumers asked for most often. The emphasis for younger consumers is on preventing skin aging and anti-aging/maintaining skin for older consumers.
- Hair care: Anti-frizz products, curl products, new at-home color products, hair growth products, hair masks, oils, conditioners (leave-in and traditional), and scalp treatments were most in demand.
- Makeup: Eye makeup products were cited most often, specifically eye shadows with innovative new palette colors, products that promote thicker/longer/fuller lashes, brow products (specifically stickers), contour products, and skin-friendly foundation formulas were high on the most-wanted list.