The growth of the beauty industry withstanding this Pandemic has been quite a surprise for commerce. With the constantly evolving society and the emergence of new trends, the beauty industry always remains on the cusp of change. Although change is constant, the beauty industry is consistently dynamic and developing.
Being a non-essential industry has of course taken a toll on beauty and cosmetics. Nevertheless, the statistics remain and the numbers drawn from the beauty industry will show how profitable and enduring the market really is. Here are 5 essential beauty industry statistics:
1. The beauty industry is estimated to be worth $532 billion.
With expectations of it going as high as $800 billion by the year 2023, the beauty industry remains to be one of the fast-growing industries today. From the US market alone, the worth of the beauty industry during the previous year was $94 billion. Just goes to show that people are still very much concerned when it comes to beauty, cosmetics, and wellness. A few more tidbits related to this statistic;
- In the US, women spend over $3,000 on beauty items and cosmetics annually.
- Men on the other hand spend around the same average inclusive of health products.
- $38.8 billion of this number came from sales from the global perfume market.
- Over a million are employed under the service sector of the beauty industry. This includes hairdressers, cosmetologists, massage therapists, etc.
- The service sector is highly reliant on product sales to amass revenue.
- The market for hair care products is estimated to be valued at $87.73 billion.
- In the millennial market, 18% purchase shampoo or hair care products with Cannabis ingredients.
2. The skincare market was worth over $130 billion in the year 2018, globally.
With more people conscious about wellness and grooming, even men, the skincare market has seen increasing worldwide revenue. The overall profit of skincare products accounts for almost 60% of beauty industry sales.
- Among all skincare products, facial cleansers are the highest in generating sales.
- The sale of skincare products has increased by 5$ during the first quarter of 2019.
- In the Korean cosmetics market alone, facial skin masks take up half of the market share. Many multi-brand platforms offer a wide range of K-beauty products. Check one out here.
- L’oréal is currently the number one beauty company with over $27 billion in annual sales. Under this flagship are the brands Garnier, Lancôme, Kérastase, Maybelline, and more.
3. A shift towards natural and organic products has also shown significant numbers in the last few years.
Also seen to be a significant market trend, natural and organic beauty products have been in steady demand. This segment of the market is known to show a growth of over 5%. With over 20% of US consumers buying organic and toxin-free products, this growth will surely increase.
- Organic skincare products account for a large amount of revenue share.
- The shift towards natural products has also triggered the influx of CBD based ingredients in skincare and cosmetic products.
- Cannabis is a major player in the industry. Anti-aging products with Cannabis ingredients have shown significant results after 40-days usage. CBD oil is known to treat acne due to its anti-inflammatory agents.
- 92% of cosmetics consumers claim to provide support for brands and products that are environmentally aware and conscious.
- More consumers demand transparency when it comes to the ingredients used in beauty products.
4. Over 80% of women believe that social media platforms have a great influence over beauty standards.
Trends are built on discovery and influence. In this day and age of digital commerce and social media, it’s no surprise that beauty industry sales greatly rely on the various platforms online.
- Over 50% of the beauty industry market demands authenticity. This number includes consumers who support real beauty and diversity and demand that advertising on magazines, posters, or billboards do not show digitally-enhanced images.
- In the year 2018, MAC Cosmetics had the most Instagram and Twitter followers reaching over 1.49 million on Twitter and 22.6 million on Instagram.
- Coming in a close second on Instagram was Kylie Cosmetics with 21.8 million followers. This is also owing to the fact that its proprietor Kylie Jenner, is known to be one of the most followed influencers on IG.
- 90% of beauty industry consumers rely on authenticity when selecting brands and products.
- Over 70% of Instagram users have made cosmetics and beauty purchases after seeing something on the platform.
- 95% of all beauty brands globally have social media accounts.
5. E-commerce plays a major role in the growth of the beauty industry.
- 62% of teenagers go online to look up certain brands and products before purchasing it.
- Due to digital technology, the brand Ulta is now surpassing Sephora in sales. 60% of their sales in 2018 were from their mobile app.
- Augmented Reality is expected to grow through the years. The ad spend on AR for 2017 was $166 million. It is projected to peak at $2.5 billion by the year 2022.
Based on these statistics, it’s safe to say that the beauty industry will not be slowing down in the next few years. With the help of social media and emerging beauty trends, it will remain sustainable and a great contributor to the economy. What beauty statistic would you like to add to the list?