US Beauty & Personal Care market is set to grow in double digit CAGR in the next 5 years, reaching upto a market size of $113 Bn by 2028
Increasing population & focus on grooming & self-care demands innovative products & services which provide an attractive physical appearance & personality. Additionally, the major players in the market are utilizing social media & influencer marketing to the fullest, makes it the most sought-after industry in the United States.
Story Outline
- The United States is experiencing a rapid transition with increasing income & decreasing wealth inequality, empowering consumers to afford innovative beauty products.
- Beauty giants like Loreal are investing significantly in research & development to create cutting-edge products, enhancing consumer experience & benefits.
- Beauty & personal care industry is booming through ecommerce platforms, with web sales generating billions in revenue. Social media & influencer marketing playing a crucial role in advertising expenditures. Additionally, emerging segments like men’s grooming products are contributing to industry’s expansion & growth.
- According to Ken Research, the revenue generated in the US beauty & personal care is $92 billion in 2023, with the largest segment being the personal care market, because of increasing incomes & awareness in people about their personal appearance.
1. Rapid transitions to reduced inequalities Increases Premium Purchases
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United States has been undergoing a rapid transition with increasing income & decreasing wealth inequality. In 2021, the average income of Americans was at $70,784 per year, which decreased a little as it came under $61,900 per year in 2022.
It has reached to $74,738 in 2023. Between February 2020 & September 2022, average income for the lowest earning 50 per cent of Americans had increased more than 50%, faster than every population group, except the top 1 per cent of the population.
In a population where everyone’s income is increasing steadily, everyone gets the power to buy premium products & innovative products which were offered in the market.
2. Beauty Giants like Loreal Boost R&D Investments in the US for Cutting-Edge Products
L’Oreal Research & Development Centers in United States, 2022
In 2022, Loreal, one of the leading players in the beauty market across the world, invested around 1 billion euros towards research & development as they earned about 38.26 billion euros globally that year.
Additionally, they have also invested towards $140 million towards developing a research & development centre in Newark area in the United States. Loreal & other companies like Estee Lauder invest money into different countries so that they can create new & improved products to offer enhanced benefits & excellent consumer experience for their users.
According to Ken Research, the US beauty & personal care market size reached $92 billion in 2023, with the largest segment being the personal care market, majorly because of increasing incomes & awareness in people about their personal appearance.
3. Digital Beauty Boom as E-commerce Drives $54 billion sales in the US
In United States, the websites which are known for selling beauty & personal care products include Sephora, Glossier, Ulta, Purplle etc. to name a few. Having these many e-commerce websites helps the consumer browse through various shopping websites & order items at the comfort of their homes.
In 2021, personal care sales in the retail market generated nearly $54 billion in ecommerce revenue & accounted for over 11 percent of total retail ecommerce sales that year. Given the widespread digital connectivity & internet penetration, web sales are becoming a reliable source of revenue for beauty & personal care industry.
4. Social Media & Influencers Reign: Beauty Industry’s $373 Million Ad Spend in 2023
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Beauty industry is one of the leading avenues which is heavily exploring marketing through social media & influencer marketing. 42 per cent of people between the age of 18-24 years are inspired by social media when it comes to make up.
In January, 2023 beauty advertisers in the United States invested about $373 millions to promote their products. Ad expenditures in the cosmetics & personal care industry had crossed four billion dollars in 2021.
5. Emerging Segments like Men’s Grooming Spark Boom in US Beauty & Personal Care
There are numerous segments which are emerging in the beauty & personal care in the United States. One of them includes men’s grooming. In 2022, the male grooming market in the country had reached to $16 Bn in 2022 & the demand for male grooming products is likely to accelerate with top marketing players holding prominent shares.
Several influential male celebrities, athletes, and social media personalities have also impacted the men's grooming products and routines like Chris Pratt, NBA superstar LeBron James, musician Pharrell Williams, and entrepreneur and social media influencer Jeffree Star. Their public endorsements and discussions about grooming have significantly contributed to the growing popularity of men's grooming in the U.S.
Conclusion
Reduced income inequalities have led to empowered consumers to invest in premium & innovative products, bolstered by e-commerce platforms. Social media & influencer marketing have become powerful tools of promotion, driving substantial advertising expenditures. Emerging segments like men’s grooming & organic products are contributing to industry’s expansion. With increased awareness & consumer demand, future looks promising for the US market.
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