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 $113.4 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 $19.4 billion in revenues in 2023. This marks a 7.88% 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 $42.2 billion and $21.1 billion, respectively. 

The growth rate of the US cosmetics market size in 2023 is a slowdown from last year’s. In 2022, the market grew by 21.94%. Not only was this nearly three times the expected growth rate of 2023, it’s also the largest annual growth industry analysts expect between 2015 and 2027. 

Apart from a 19.91% 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 2015.

In 2015, revenues totaled $14.9 billion. This means that the US cosmetics market’s annual revenues have increased by $4.5 billion since then, which is a 30.2% overall rise and an average annual growth rate of 3.85%. 

From 2015 to 2023, the fastest annual growth came in 2022.

US cosmetics market size: 2024–2027

Analysts expect revenues from the US cosmetics market to continue growing until at least 2027.

In 2024, an annual growth rate of 3.6% is predicted, which will take total revenues to $20.1 billion. This is forecast to rise by another 3.58% and 3.55% in 2025 and 2026, respectively, to $20.9 billion and $21.6 billion. 

By 2027, the US cosmetics market size is predicted to be worth $22.5 billion, growing 4.21% from the previous year.

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