Beauty, health, personal, and household care is set to be one of the top online shopping categories in the United States in 2023, with total revenues expected to hit $95.7 billion. 

The multibillion-dollar sector makes launching a beauty brand extremely attractive, and knowing key industry statistics allows aspiring entrepreneurs to better gauge business opportunities. If you’re thinking about starting a cosmetics skin care brand, here’s a breakdown of the US cosmetics market size to help you understand the market. 

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US cosmetics market size in 2023

Recent data on the US cosmetics market size shows that the industry is forecast to generate $19 billion in revenues in 2023. This marks a 5.6% annual increase—the slowest growth rate in three years. 

Cosmetics also represent the third-largest segment of the entire US beauty industry in terms of revenues. It follows personal care and skin care, whose revenues are expected at $42 billion and $21 billion, respectively. 

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The growth rate of the US cosmetics market size in 2023 is a slowdown from last year’s. In 2022, the market grew by 20%. Not only was this nearly four times the expected growth rate of 2023, it’s also the largest annual growth industry analysts expect between 2018 and 2028. 

Apart from a 17.6% plunge in 2020, a result of the economic impact of the COVID-19 pandemic, the US cosmetics market size has generally been growing year after year since 2018. In 2018, revenues totaled $16 billion, before rising by 6.3% in 2019, to $17 billion.

This means that the US cosmetics market’s annual revenues have increased by $3 billion since 2018, which is an 18.8% overall rise and an average annual growth rate of 4.3%. 

US cosmetics market size: 2024–2028

Analysts expect annual revenues from the US cosmetics market to continue growing for a few more years.

In 2024, a growth rate of 5.3% is predicted, which will take total revenues to $20 billion. This is forecast to rise by another 5% and 4.8% in 2025 and 2026, respectively, to $21 billion and $22 billion. 

In 2027, the US cosmetics market size is predicted to be worth $23 billion, growing 4.5% from the previous year. This figure is set to hold steady in 2028.

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