D. Petruzzi
Research expert covering Cosmetics, Personal Care, Health & Hygiene industries.
Cosmetics industry - statistics & facts
The cosmetics industry shows no signs of stopping: as self-care and wellness become more important to consumers worldwide, this market keeps on thriving. Despite a small setback in 2020 due to the Covid-19 pandemic, the global cosmetics market has experienced an almost incessant growth since 2004 and was forecast to generate revenues amounting to nearly 129 billion U.S. dollars by the year 2028.
An increased use of try-on apps and personalization software as well as improved skincare formulas and products can be seen in the future, helping further strengthen the golden status of the cosmetics industry in the retail market.
Skincare dominates the beauty market
The beauty industry is characterized by a wide range of trends. Every day new products and formulations or new companies pop up, and some are here to stay. In recent years, skincare has become the main interest of beauty aficionados, and the “skinification” trend is proof of that. This consists of combining skincare with other treatments or personal care products, such as hair care or make-up items. It comes as no surprise that skincare was the most popular beauty product category in 2023, holding a market share of 40 percent. Skincare is predicted to stay number one, bringing in roughly 211 billion U.S. dollars in revenues by 2028. It is thus easy to imagine that, in the near future, skin benefits will be imperative for almost every cosmetic product in the market.Industry leaders
The production of cosmetics and beauty products is controlled by several multi-national corporations – L'Oréal, Unilever, Procter & Gamble Co., The Estee Lauder Companies, Shiseido Company, and Beiersdorf to name a few. As of 2023, the French cosmetics company L'Oréal was the leading beauty manufacturer in the world, generating revenues of over 44 billion U.S. dollars that year. The company owns the leading personal care brand worldwide, L'Oréal Paris, valued at nearly 48 billion U.S. dollars in 2023.The influence of social media
The cosmetics industry has benefited from the increasing popularity of social media channels such as Instagram and YouTube. These platforms are not only highly influential amongst certain demographic groups but also create a demand for beauty products and help fill the gap between cosmetics brands and consumers. In March 2024, Sandra Cires Art was the most subscribed beauty content creator on the video platform YouTube with about 16.5 million subscribers to her channel. However, social media are now more than influencers talking to their audience while trying on or promoting cosmetics: with social commerce, it is now possible to purchase beauty items directly on social media apps like TikTok, mostly through live sales.Outlook: what is in store for the cosmetics industry?
The cosmetics industry is not only heavily influenced or supported by social media and e-commerce, but it can now rely on new technological products, forming part of the beauty tech market, developed to improve the consumer’s journey and experience.An increased use of try-on apps and personalization software as well as improved skincare formulas and products can be seen in the future, helping further strengthen the golden status of the cosmetics industry in the retail market.
