Tag Archives: Market

The haircare products market is expected to grow at a CAGR of over 8.1% from 2024 to 2030. Haircare products are used to solve various hair problems like frizzy hair, split ends, hair fall, dandruff, and dry or itchy scalp. The availability of a wide range of haircare products, such as shampoo, conditioner, hair gel, hair wax, hair serum, hair oil, and hair colorants, in different formats and for various customer requirements will drive segment growth over the forecast period.

The sales of beauty and personal care products through e-commerce channel is projected to grow at a CAGR of 10.3% from 2024 to 2030. Rising internet penetration and target marketing by companies to reach a wider audience has fueled segment growth. 

Top Beauty Industry Statistics

Overall, the future looks bright for the beauty industry. Here are a few eye-opening statistics to get you started:

• The beauty industry generates over $100 billion in revenue worldwide.
• The men’s personal care market is projected to hit $276.9 billion by 2030.
• Skincare is projected to generate up to $177 billion by 2025.
• Beauty companies spent an estimated $7.7 billion on advertising in 2022.
• Cosmetic retailers report $17.09 billion in online sales.

in 2023, Black consumer spending on Beauty products amounted to $9.4 billion, with dollar, unit, and household growth outpacing growth for the US at large. This growing cohort currently accounts for an estimated 14.4% of the US population, which is a 32% increase since 2000.

Just under half of Black Americans are under 30, and with a median age of 32, this segment of the population is younger than the average population.

Beauty is an important category for Black shoppers with Fragrance and Hand Body Lotion standing out as key categories. Black consumers account for 15.9% of the Fragrance households, but 22.4% of Fragrance dollars. Similarly, Black consumers account for 14.8% of Hand & Body Lotion households, but 16.6% of Hand & Body Lotion dollar sales.

Black consumer spending and dollar growth for Beauty categories is significantly outpacing that of total US for Cosmetics & Nail, Facial Skin Care, and Hair Care.

When looking at retail dynamics, online retail is an important channel for Black consumers of Beauty products. Their spending in the online channel outpaces that of in-store, $370 per year compared to $313 per year.

Over half of category dollars are spent online for Facial Skin Care and Fragrance. Online dollar sales growth is outpacing in-store dollar sales growth for Hair Care, Fragrance, Facial Skin Care, and Hand & Body Lotion.

https://nielseniq.com/global/en/insights/analysis/2024/black-consumer-spending-in-the-us-beauty-category/

Black people’s experience within the beauty industry is markedly more frustrating than that of non-Black people and filled with multiple friction points:

• Black brands make up only 2.5 percent of revenue in the beauty industry. Yet Black consumers are responsible for 11.1 percent of total beauty spending.
• Black consumers are three times more likely to be dissatisfied than non-Black consumers with their options for hair care, skin care, and makeup.
• Black consumers show an affinity and preference for Black beauty brands and are 2.2 times as likely to conclude that products from those brands will work for them. However, only 4 to 7 percent of beauty brands carried by specialty beauty stores, drugstores, grocery stores, and department stores are Black brands.
• From entry-level to the C-suite and from retailers to beauty houses, only 4 to 5 percent of all employees in the US beauty industry are Black.
• Black brands in the beauty industry raise a median of $13 million in venture capital, substantially less than the $20 million that non-Black brands raise. Yet today, the median revenue of those Black brands is 89 times higher than what non-Black beauty brands return over the same period.
• Addressing racial inequity in the beauty industry is a $2.6 billion opportunity. Better serving Black consumers and supporting Black beauty brands could lead to greater equity across the entire beauty industry—for shoppers, entrepreneurs, large beauty houses, retailers, and investors.