The concept of beauty is very old because the first thing we notice about the next person is how they look. It’s natural that the beauty industry has existed and evolved for centuries, capture the hearts of millions of people. Since the early XX century, the production of cosmetics has been controlled by a few multinational corporations. Modern diverse and innovative companies in the beauty industry generate billions of dollars every year and the demand for beauty products is constantly growing.
Competition drives progress, and beauty brands, trying to create better products make the whole beauty industry grow. It’s hard to find a more diverse and inclusive sector than beauty. The increasing popularity of social media channels like Instagram and YouTube also creates a demand for beauty products and helps establish better relationships between cosmetics brands and consumers, nurturing consumer loyalty. Millions of people keep an eye out for beauty updates day-to-day. 70% of Instagram users have made beauty or fashion-related purchases right after spotting products on Instagram (Source).
The global beauty industry is worth over $500 billion, and it’s estimated to hit $700 billion by the 2025 year. The leading beauty manufacturer worldwide is L’Oreal. It’s followed by Gilette, Nivea, Estée Lauder, and Clinique, which make up the top five. They are followed by Guerlain, Shiseido, Pantene, Dove, and Garnier – rounding out the top ten.
The Beauty industry covers a wide variety of personal products (skincare; makeup cosmetics; hair care; fragrances), beauty appliances (hairdryers; brushes; combs), services (salons; day spas), and related functions (packaging; supply chain). The most profitable branch in the global cosmetic industry is skincare.
Women in the US spend up to $4000 on beauty products annually. The trend for organic products is at its peak, and more than half of American women prefer organic and natural beauty products.
Younger consumers are savvier than ever, and they’re spending less on the category. They’re still buying, but they realize there’s far less quality differentiation among products, which is good news for mass retailers. While a loose definition would be products that are mindfully created and produced without any proven or suspected toxic ingredients, anyone can define it however they like. As a result, retailers and brands are really controlling this area.