Global Cosmetics Market Size (2018–2028)
With makeup and cosmetics ranking among the top beauty products consumers buy, it’s certainly one niche to consider if you’re thinking about starting an ecommerce business.
But before jumping into it, it would help to know a few facts about the global cosmetics industry. That begins with answering the question: How much is the cosmetics industry worth?
Global cosmetics industry worth
According to the latest statistics, total revenues from the global cosmetics market are set to hit $104 billion in 2023. This represents a whopping 11.8% year-over-year increase, which is the second-largest annual growth expected in at least 11 years.
Despite the surge, analysts expect cosmetic products to remain the third-biggest revenue-generating products in the global beauty market. Their overall contributions are set to make up 18% of the beauty industry’s total revenues in 2023, behind personal care and skin care products, which hold 43.7% and 26.9% of the market share, respectively.
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From 2018 to 2028, the global cosmetics market is mostly set to follow a growth trend. With the exception of 2020, it’s forecast to increase its revenues year after year. In 2020, the industry shrunk by 20% from $90 billion the year before, to $72 billion as a result of the COVID-19 pandemic. Not only was this the only and biggest year-on-year decrease, it is also the lowest revenue expected in the period from 2018 to 2028.
The cosmetics sector rebounded immediately in the following years, rising by 12.5% and 14.8% to $81 billion and $93 billion in revenues in 2021 and 2022, respectively.
Global cosmetics market: forecast
Analysts predict the cosmetics market will continue to register positive growth rates in the years to come, albeit at a slower pace. For instance, in 2024 and 2025, it’s expected to increase its total revenues by around 4% annually, to $108 billion and $113 billion, respectively.
Growth is forecast to accelerate in the following two years, to 5.3% and 5% in 2026 and 2027, respectively, as revenues total $119 billion and $125 billion. By 2028, the global cosmetics market is expected to hit $129 billion, making up 18.7% of the global beauty industry’s revenues.
From 2018 to 2028, the global cosmetics market’s annual revenues are predicted to increase by $41 billion, or 46.6%, with an average annual growth rate of around 4.3%.