US Cosmetics Market Size (2018–2028)
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.
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.