The COVID-19 pandemic has dampened several industries worldwide, causing a drastic decline in sales. While recent beauty industry statistics show that the industry also experienced a decreasing sales trend at the onset of the pandemic, it’s proving to be a resilient market.
Brands are open to innovation and constantly come up with different strategies to keep consumers interested and boost revenue. For instance, several companies have various online platforms like virtual try-on and augmented reality tools to improve customer experience.
These improved platforms translate to customer retention and more profit. This article features some of the latest statistics to see how much the market fares against the current crisis.
Intriguing Cosmetic Industry Stats
- On average, consumers use five products in their daily skincare routine.
- Approximately 90% of cosmetic purchases still occur in brick-and-mortar stores.
- 74% of cosmetic consumers say that customer reviews encourage them to buy an item.
- Skincare products account for 42% of the world’s cosmetic market.
- Over 80% of beauty shoppers are likely to purchase from brands with personalized skincare options.
- 65% of cosmetic shoppers prefer cruelty-free brands.
Beauty Care Industry Statistics in the United States
1. The US organic cosmetic industry is expected to reach $1.65 billion in revenue by 2025.
Organic beauty products have been gaining popularity throughout the years. Based on green beauty industry statistics, the US organic cosmetic industry is set to rack up $1.65 billion in revenue by 2025.
This more than doubles the industry’s revenue in 2016. This revenue growth is mostly going to come from organic face creams.
2. In the US, a 4.8% cosmetic industry growth rate is expected from 2020 to 2030.
According to researchers, the US cosmetic industry will continue to experience compounding growth for the rest of the decade. A considerable portion of the beauty industry growth is attributed to the rise of ecommerce.
Additionally, ecommerce accounts for 16% of all retail sales in the US. From $81.1 billion in 2019, the beauty and skincare market in the US is expected to reach $128.7 billion by 2030.
3. Cosmetic industry sales in the US are predicted to have a CAGR of 3–4% well into 2022.
Beauty industry trends for 2022 show a positive growth that started in the middle of 2021. Research shows a 3–4% compound annual growth rate (CAGR) for the US cosmetic industry. Some even predict that this growth rate will surpass pre-pandemic growth levels in 2021 and 2022.
Researchers believe this growth is a result of pent-up demand for color cosmetics. In other countries, the cosmetic industry is not expected to recover as fast as it will in the US.
Online Beauty Industry Trends
4. Approximately 90% of cosmetic purchases still occur in brick-and-mortar stores.
Despite the pervasiveness of ecommerce platforms like Amazon, 90% of purchases still happen in physical stores. Apparently, consumers value the human touch and the ability to test products before buying.
Health and beauty industry statistics show that the inability to try on and choose from numerous variations of shades, textures, and fragrances is the biggest roadblock to the ecommerce beauty industry.
Some consumers research the products online, but they still make the final purchase in physical stores.
5. 66% of beauty shoppers will purchase items from a website that recommends products relevant to what they’re searching for.
Plenty of studies look into emerging beauty industry trends for 2021, most of which focus on ecommerce and consumer behavior.
One study identified that consumers appreciate websites that provide product recommendations. According to the survey, 66% of consumers will buy products from websites that recommend relevant products.
6. According to cosmetics statistics, 52% of online cosmetic shoppers find the live salesperson chat option to be the most appealing tool.
Beauty and cosmetic brands try to solve the “try-on gap” issue in online shopping through several approaches, including virtual try-on, video tutorials, and regimen guides.
While beauty industry trends in 2020 show that this method is effective for some shoppers, it isn’t enough to convince some consumers to purchase products.
Most shoppers are still looking for personalized human touch, which is why it’s unsurprising that 52% of online cosmetic shoppers value live salesperson chat tools.
7. Beauty industry facts show that only 20% of cosmetic shoppers trust sponsored beauty content.
The birth of beauty influencers revolutionized the cosmetic industry by normalizing beauty expertise. Unsurprisingly, 62% of women now follow beauty influencers on different social media channels like YouTube and TikTok.
This is probably why beauty industry stats show that cosmetic brands sponsor 67% of digital beauty content creators.
However, brands need to note that 86% of the top 200 most viewed videos on YouTube have no sponsors. Apparently, only 20% of cosmetic shoppers trust videos and content that have brand sponsorship.
8. The latest cosmetic industry stats show that 62% of women stick to brands they already know when making online purchases.
The pandemic has opened a window of opportunity for ecommerce beauty brands across the US and around the world. In fact, beauty industry statistics show that 44% of cosmetic shoppers admit that they purchased more beauty and skincare items through online platforms during the COVID-19 pandemic.
However, in-depth research on customers’ buying patterns shows that 56% of shoppers (62% among women) limit their purchases to brands they’ve tried before.
9. 74% of consumers say that customer reviews encourage them to buy skincare and beauty products online.
A study on consumer buying patterns shows exciting trends in the beauty industry. Apparently, ecommerce stores are employing several tactics to increase sales.
Interestingly, these strategies are proving to be effective. For instance, 74% of shoppers say that customer reviews positively affect their decision to purchase a product.
10. 46% of consumers want to see beauty products in person before making a purchase.
(Digital Commerce 360)
The shift from brick-and-mortar stores to online shops pushed brands to develop innovative ways to recreate the in-store experience. Particularly, brands had to adopt new technology in the beauty industry in 2020 due to closed physical stores.
Though artificial intelligence is already used in other sectors, its adoption in the cosmetic industry is relatively recent.
Brands have introduced several web features to mimic the in-store experience, such as color-match, virtual try-on, and augmented reality tools.
Developing these tools can be pricey, but companies understand their necessity to boost sales, especially since 46% of consumers say that seeing a product in person is crucial to their buying decision.
At the very least, brands who want to dominate the digital cosmetic industry need to come up with means to recreate this experience. And artificial intelligence just might be the answer.
New Trends in the Beauty Industry
11. Personalized skincare is likely to win over 80% of beauty customers.
A new trend that’s hitting waves is hyper-personalized skincare. A recent survey shows that 80% of consumers claim they are more likely to purchase brands that offer personalized experiences. Additionally, 90% of surveyed consumers say that personalization piqued their interest.
Beyond these cosmetics and makeup statistics, companies are beginning to understand that hyper-personalization is an excellent way to stand out from the competition.
For example, one brand introduced a 3D-printed face mask tailored to the consumer’s needs based on information collected from a selfie.
12. Paraben-free cosmetics grew by 2.3% in sales in 2020.
Although beauty industry statistics in 2020 show that the industry as a whole suffered from declining sales due to the COVID-19 pandemic, it’s interesting to know that paraben-free beauty product sales have grown by 2.3%.
Furthermore, researchers have found that beauty products that are both natural and paraben-free grew by 12% in sales. Clearly, the customer consumption trend is leaning more towards natural, clean, and safe beauty products.
13. 65% of online cosmetic shoppers prefer cruelty-free brands.
Research shows a growing interest in ethical, clean, and sustainable brands among consumers. As beauty industry statistics published in 2021 show us, the cosmetic industry is not an exception.
Apparently, 71% of female cosmetic consumers prefer cruelty-free products and brands. In ecommerce, brands that describe their products as clean and cruelty-free will likely drive sales up by 68% and 65%, respectively.
The Impact of COVID-19 on Beauty Industry Trends
14. Consumers use an average of five products daily in their skincare routine.
Although a decline in sales was noted in skincare products in the past year, researchers agree it was minimal compared to other industries. As more people stay at home, they have more time for self-care, which manifests in an improved skincare routine.
Skincare statistics in 2020 show that during the pandemic, women used five skincare products every day on average. These products are often a combination of basic skincare and targeted treatment products.
15. 22% of American women have changed their skincare routine during the COVID-19 pandemic.
Researchers acknowledge that the pandemic has revealed interesting facts about the beauty industry and changed its landscape. In fact, data suggests that 22% of women in the US changed their skincare routine entirely because of it.
Survey shows that women have become more diligent in their skincare routine now, specifically cleansing and moisturizing, than before the pandemic started.
Furthermore, about one-third of women have added more products into their routine. Finally, most surveyed women state that they intend to stick to their new routine even after the pandemic ends.
16. Beauty industry statistics recorded an increase in the search for eye makeup looks.
Government policies mandated individuals to wear masks in public to counter the spread of the virus that causes COVID-19. As a result, makeup wearers became more focused on what the mask cannot hide—the eyes.
Because of this, some websites saw an increase in the online search for eye makeup looks. In fact, one popular makeup subreddit reported a 36% hike in searches for eye makeup looks at the beginning of the pandemic.
17. Beauty industry sales declined drastically by 30% during the first half of 2020.
COVID-19 has dampened the sales and revenue of most industries worldwide, and the cosmetic industry is no different. The cosmetic industry statistics in 2020 show a 30% decline in beauty sales during the first half of 2020 because of the pandemic.
Even top brands took a hit, with their share prices dropping over 50%. However, most researchers believe that sales and stock prices will bounce back to pre-pandemic levels once the market recovers.
18. The sales figure for facial devices grew by 9% in 2020.
The latest beauty trends of 2020 aren’t all about declining sales or revenue. For instance, facial devices actually grew by 9% in sales in 2020.
Apparently, consumers started turning their homes into spas and mimicking facial treatments done by skincare professionals because spas were inaccessible during the pandemic.
Cosmetic Industry Statistics Worldwide
19. The global cosmetic market size is estimated to be valued at $463.5 billion by 2027.
(Allied Market Research)
Researchers valued the cosmetic industry at $380.2 billion in 2019. They expect the figure to rise to $463.5 billion in 2027.
However, because of changes caused by the COVID-19 pandemic, the global cosmetic market might see some setbacks.
As people’s lifestyles changed, so did the market. As a result, some cosmetic manufacturers extended their production to include hand sanitizers, cleaning agents, and personal care products.
20. The global market size of cosmetic preservatives is estimated to have a CAGR of 7.85% from 2021 to 2027.
Beauty trends in 2021 and beyond indicate that as consumers become more conscious about the cosmetics they use, they opt for products with safer preservatives.
Data suggests that the global cosmetic preservatives market is expected to have a compound annual growth rate (CAGR) of 7.85% from 2021 to 2027.
In 2020 alone, total sales reached $933 million, while plant and herbal extract preservatives specifically reached $80 million.
21. By 2024, the global CBD skin care products market would be worth $959 million.
Beauty product industry statistics indicate that CBD proliferated not only in the medical sector but also the beauty industry.
Given the numerous health benefits of medical marijuana, it’s not surprising if many skincare product manufacturers would consider CBD as a safe ingredient for their products.
22. Skincare products accounted for 42% of the world’s cosmetic market in 2020.
Skincare takes the most significant chunk out of all the cosmetics categories worldwide. According to skincare statistics, in 2020, skincare made up 42% of the cosmetic market.
Furthermore, data shows that North America and Asia-Pacific are two of the biggest consumers of skincare products. Together, these two regions account for approximately 60% of the global cosmetic market.
23. In 2019, the world’s leading beauty manufacturer generated $33.4 billion in revenue.
According to beauty industry statistics released in 2020 about top cosmetic companies, L’Oreal, the global cosmetic industry leader, generated $33.4 billion in revenue in 2019. Unilever comes second with total revenue of $22.5 billion.
The majority of these top companies offer the five business segments in cosmetics—skincare, haircare, makeup, toiletries, and fragrances—so they can fulfill every customer’s needs and expectations.
24. North America accounts for 24% of the global cosmetic market, according to beauty industry market statistics.
Cosmetics have played numerous purposes throughout different cultures and societies. Some use it for religious rituals, while others use it for class distinction.
In the present day, societies worldwide use cosmetics to improve personal appearance and health, and North America is among the top consumers worldwide that seek to improve physical appearance.
That said, the region accounts for 24% of the world’s cosmetic market.
25. The global male grooming industry is expected to reach $81.2 billion in revenue by 2024.
There has been a massive shift in how men groom and pamper themselves in the past decade. Based on men’s beauty industry statistics, researchers expect the global revenue for the male grooming market to reach $81.2 billion in 2024.
This figure is much more plausible as brands put up more items for men to consume. Previously, brands limit men’s grooming items to shampoo, deodorant, and shaving cream.
Today, shelves for men’s skincare consist of facial cleansers, moisturizers, eye creams, and mud masks.
26. The US consumes more beauty products than any other country in the world.
The most recent list of cosmetic consumption by country ranks the US as the top consumer of beauty products worldwide.
According to this list, the US consumed $89.71 billion worth of beauty products, almost $30 billion more than the second-biggest consumer on the list—China.
History and statistics suggest that the cosmetic industry is fast-evolving and resilient. Companies are quick to identify evolving consumer spending patterns through facts and figures.
Additionally, brands quickly adapt and develop different strategies to entice consumers to keep purchasing their products.
The beauty industry’s dynamic nature is why it’s relatively easier for it to recover from setbacks in the market compared to other industries.
The latest trends in the beauty sector involve ecommerce and artificial intelligence. Brands and companies race to develop clever ways to improve customer experience and boost revenue.
For example, one company developed a platform that enables consumers to test makeup and hair color products online.
Platforms like these proved helpful during the COVID-19 pandemic when most brick-and-mortar stores were mandated to close down.
Like most industries, the beauty industry saw a decline in total revenue due to the COVID-19 pandemic. However, researchers are optimistic that by 2022, the industry will bounce back and recover.
Researchers attribute much of this recovery to the rise of ecommerce and artificial intelligence. As physical stores closed down, consumers turned to online stores for their purchases, increasing the company’s sales and revenue.
Despite the COVID-19 virus plaguing the world, the global cosmetic industry still earned a considerable amount in 2020. The global cosmetic industry reached $145.3 billion in total sales that year.
A huge portion of this revenue is from ecommerce sales. A further breakdown of the statistics shows that most customers now spend more on skincare products than makeup.
According to most recent records, the cosmetic brand Morphe is the fastest-growing beauty brand today. Its traffic growth reached an astounding 424.9% year over year.
Researchers attribute this immense growth to the brand’s partnership with several influencers like James Charles and Jeffree Star. The company’s website has an average of 3.1 million visitors per month.
The cosmetic industry’s total sales and revenue fluctuate every year. Despite the recent recession and the setbacks caused by the pandemic, the cosmetic market is proving to be resilient.
According to the latest beauty industry statistics, the US cosmetic industry reached $81.1 billion in revenue in 2019. By 2030, it is expected to reach $128.7 billion in value.