US Beauty & Personal Care Product Market Outlook to 2028

Driven by growing research & innovation towards personalised beauty & personal care solutions

Region:North America

Author(s):Sanjna Verma

Product Code:KROD194

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Published on

August 2023

Total pages

85

About the Report

About the Report

Market Overview:

United States is the biggest market for cosmetics, fragrances & personal care products across the world. A crucial factor which plays a role in the industry’s growth is the economic condition of its customers. United States has seen an increase in the average annual income in the past 3 years. Additionally, between February 2020 & September 2022, average income of the lowest earning American has increased by over 50 per cent. Their wealth has superseded the 50 per cent of population, barring the top 1 per cent of population. In this scenario of increasing income, people inevitably seek innovative products which caters to their beauty & skincare needs.

US Beauty & Personal Care Product Market Revenue

Demographics of the country plays an equally important role when it comes to considering which beauty & skincare products are their users willing to purchase. Factors like age, gender, ethnicity & income levels influence the customer’s preference. For instance, an older population may demand anti-aging products & a younger population may be looking at having various kinds of beauty products. Another crucial factor is the origin of various ecommerce websites have broadened the reach of different products, which benefit the consumer as they get a whole range of products to choose from.

US Beauty & Personal Care Industry is a highly competitive market, which contains many leading global players like L’Oréal, Estee & Lauder, Unilever, Johnson & Johnson, along with many domestic players within the country. All the fore-mentioned brands seek to offer different kinds of products including skincare, haircare, cosmetics, fragrances, oral care etc.

US Beauty & Personal Care Product Market Ecosystem

US Beauty & Personal Care Products Market Analysis 

  • The US market was continuing to record a positive growth amongst most of its categories till 2022, with on-going post COVID-19 recovery supporting growth in beauty & personal care. Premium dermo cosmetics were in strong demand across a range of products with 30 percent of US consumers identifying premium with efficacy benefits.
  • Premium products are particularly strong in a number of key categories in the US beauty & personal care, including fragrances, colour cosmetics & skin care. Apart from post-pandemic recovery signs, this is supported by various other factors including a focus on self-care, ingredients & efficacy of the products.
  • The US market continues to show a higher degree of fragmentation. Even in a scenario like this, L’Oréal continues to be a leading player & also recorded strong performances across a number of categories, helping it gain further share in the overall beauty & personal care market in 2022. One area where L'Oréal had an edge was dermatological skin care.
  • While ecommerce accounts for more than quarter of beauty & personal care retail value sales in the US, in-store remains an important component of a successful omnichannel strategy to reach consumers wherever they are.


Key Trends by Market Segment:

By Product Type: On the basis of type of products, the Beauty & Personal Care Market is segmented. Former contains products like facial cleansers, moisturizers, perfumes etc. While the personal care range includes soaps, bodywashes, toothbrushes etc. Both play a crucial role in driving the cosmeceutical market in the United States.

The personal care segment is the dominant segment in 2022, due to the rising income of the population & increasing importance of having the perfect appearance.

US Beauty & Personal Care Product Market By Product Type

By Distribution Channels: On the basis of various distribution channels, the US beauty & Personal Care market is segmented into the following: Convenience Stores, Supermarkets/Hypermarkets & Online retail stores. Clearly, the online retail market has been the dominant market in US in 2022. This is due to easy internet access & a wide variety pf products available on these websites to choose from, at the comfort of their homes.

Market Segmentation By Distribution Channels

By Geography: The United States market can be divided into North, South, East, West & Central regions. Where Northern & Central parts, which includes New York, Pennsylvania, Michigan etc. are known for innovative products in the beauty market, the South, East & West regions provide customized, organic products. The West region, particularly California is known for its advanced product range, diverse customer base & the massive celebrity & influencer culture in the region, makes it a dominant market for beauty & skincare.

US Beauty & Personal Care Product Market Segmentation by Region

Competitive Landscape:

Currently, there are about 170,000 companies in the United States which are catering to the beauty, cosmetics & skincare products in the country, a figure which has increased 4% since 2022. The beauty & personal care market in the United States is a highly competitive one where several large & small companies are competing for consumer attention & market share. Large multinational companies like L’Oreal, Procter & Gamble (P&G), Johnson & Johnson have a dominant presence in the market. These conglomerates own & operate a large variety of beauty & personal care brands across various categories. Apart from the multinational players, there are indie companies who have been gaining traction as they target the smaller consumer segment through their innovative products. Private labels like Sephora, Ulta Beauty provide an affordable alternative to well-known brands attracting price-conscious consumers.

Ecosystem of Top Players in US Beauty & Personal Care Product Market

Recent Developments:

  • US Biotech company Debut has raised USD 34 million in Series B funding raised by BOLD, L’Oreal’s corporate venture capital fund. This builds on existing joint development programmes that leverages the start-up’s extensive IP portfolio from which more than 7,000 ingredients can be created in order to bring more high-value, sustainable ingredients to value faster.
  • Clinical skincare brand Matter of Fact, is all set to launch with new packaging & three new products. The company is all set to reshape their brand & have planned to launch their products on Sephora.com on August 8 & in stores on August 25. Matter of Fact’s products are known for their straightforward formulations, combined with a rigorous approach to testing.
  • Local players like Ulta Beauty are gaining immense popularity in the United States. The annual sales of the company in 2022 exceeded $10 billion & the profit was recorded at over $1 billion, which is the highest figure for the company, so far. They also expanded their loyalty programme membership to over 40 million members.


Future Outlook:

US Beauty & Personal Care Products Market is expected to show increasing and is expected to grow at a CAGR of 5.2% from 2022 to 2028 due to the rising incomes of the US population & higher investment in technology to offer personalized beauty & personal care solutions.

  • There has been a rising trend towards vegan cosmetics. These are items for beautifying & maintaining a personal appearance. These cosmetics don’t contain animal substances like beeswax, collagen etc. & are likely to attract more customers in the upcoming years, looking for sustainable products.  
  • The digital landscape will continue to play a role in the beauty industry. E-commerce, online beauty tutorials, augmented reality & virtual try-on experiences will become more prevalent, shaping how consumers discover & purchase beauty products.
  • The beauty & personal care industry is expected to embrace inclusivity & diversity, catering to a wide range of skin tones, hair types & beauty needs. Brands that promote diversity & adopt a more inclusive approach are likely to resonate better with consumers.
  • Consumers are likely to seek products that not only enhance their appearance but also promote overall well-being. Beauty products with additional benefits like supplements for skin health may gain popularity.

Scope Of The Report

Scope of the Report

US Beauty & Personal Care Market Segmentation

Product Type

Personal Care Products

Cosmetics/Makeup Products

Distribution Channel

Convenience Stores

Specialty stores

Online retail stores

Supermarkets/Hypermarkets

Pharmacies

By Geography

North

South

East

West

Central

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Products

Products

Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report:

  • Industry professionals & executives
  • Investors & financial analysts
  • Brands & product manufacturers
  • Retailers & Distributors
  • Marketing & Advertising Professionals
  • Government & Regulatory bodies
  • Consultants & Business Advisors
  • Entrepreneurs & Start-ups


Time Period Captured in the Report:

  • Historical Period: 2017-2021
  • Base Year: 2022
  • Forecast Period: 2022-2028


Companies

Major Players Mentioned in the Report:

  • L’Oreal
  • Estee Lauder
  • Colgate-Palmolive
  • Procter & Gamble (P&G)
  • Unilever
  • Ulta Beauty
  • Sephora
  • Johnson & Johnson

Table of Contents

Table of Contents

1. Executive Summary

2. US Beauty & Personal Care Market Overview

2.1 Taxonomy of the US Beauty & Personal Care Market

2.2 Industry Value Chain

2.3 Ecosystem

2.4 Government Regulations/Initiatives for the US Beauty & Personal Care Market

2.5 Growth Drivers of the US Beauty & Personal Care Market

2.6 Issues and Challenges of the US Beauty & Personal Care Market

2.7 Impact of COVID-19 on the Market

2.8 SWOT Analysis

3. US Beauty & Personal Care Market Size, 2017 – 2022

4. US Beauty & Personal Care Market Segmentation

4.1  By Product Type, 2017 - 2022

4.2 By Distribution Channel 2017 - 2022

4.3 By Regional Split (North/East/West/South/Central), 2017 - 2022

5. Competitive Landscape

5.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

5.2 Strategies Adopted by Leading Players

5.3 Company Profiles

5.3.1 L’Oreal

5.3.2 Estee Lauder

5.3.3 Unilever

5.3.4 Procter & Gamble (P&G)

5.3.5 Sephora

5.3.6 Colgate-Palmolive

5.3.7 Johnson & Johnson

6. US Beauty & Personal Care Future Market Size, 2022 – 2028

7. US Beauty & Personal Care Future Market Segmentation

7.1 By Product Type, 2022 – 2028

7.2 By Distribution Channel, 2022 - 2028

7.3 By Geography (North/East/West/South/Central), 2022 - 2028

8. Analyst Recommendations

9. Research Methodology

10. Disclaimer

11. Contact Us

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Research Methodology

Research Methodology

Step 1: Identifying Key Variables:

Ecosystem creation for all the major entities and referring to multiple secondary and proprietary databases to perform desk research around market to collate industry level information.

Step 2: Market Building:

Collating statistics on beauty & personal care over the years, penetration of marketplaces and service providers ratio to compute revenue generated for logistics services.We will also review service quality statistics to understand revenue generated which can ensure accuracy behind the data points shared.

Step 3: Validating and Finalizing:

Building market hypothesis and conducting CATIs with industry exerts belonging to different companies to validate statistics and seek operational and financial information from company representatives.

Step 4: Research output:

Our team has approached multiple beauty & personal care services providing channels and understanded nature of product segments and sales, consumer preference and other parameters, which supported us validate statistics derived through bottom to top approach from beauty & personal care providers.

Research Methodology for US Beauty & Personal Care Product Industry