US Personal Care Industry (2015–2027)
In 2022, health and personal care and beauty ranked among the top ecommerce categories in the United States, with sales exceeding $100 billion. By experts’ estimations, sales in this category will continue to grow every year until at least 2026.
This makes starting an online business in this sector extremely attractive. But given the immensity of the beauty industry, you may want to consider starting small and focusing on a specific niche, such as personal care.
Here’s a breakdown of the US personal care industry and its revenue performance over the years.
US personal care industry: 2015–2022
According to the latest data, the US personal care industry has generally been increasing over the past few years. In fact, the only year the sector’s total revenue declined was 2020, which analysts attributed to the COVID-19 pandemic.
In 2015, revenue from the US personal care industry registered at $36.5 billion. The following two years saw annual increases of 1.78% each, to $37.2 billion in 2016 and $37.8 billion in 2017.
This growth rate kept relatively steady in 2018 and 2019, rising by 1.8% and 1.79%, to $38.5 billion and $39.2 billion, respectively.
In 2020, US personal care industry revenues fell by 0.51%, to $39 billion. It is the only annual decline expected in the forecast period of 2015 to 2027. Revenue performance recovered immediately, rising by 1.69% to $39.7 billion in 2021. In 2022, revenues from the US personal care industry rose by 2.95%—the fastest growth rate in at least eight years—to hit $40.8 billion.
US personal care industry: 2023–2027
The annual growth rate of the US personal care industry in 2023 is set to outpace that of 2022. Experts expect the sector to increase its revenues by 3.31%, to $42.2 billion. It is predicted to be the biggest annual increase between 2015 and 2027.
With this, the personal care sector is forecast to be the largest segment of the overarching US beauty industry. Its expected revenues are much higher than those of other subcategories, such as skin care ($21.1 billion), cosmetics ($19.4 billion), and fragrances ($8.7 billion).
Analysts predict that the US personal care industry will continue to grow. Here are its expected annual growth rates and revenues:
- 2024: $43 billion (1.85%)
- 2025: $43.7 billion (1.82%)
- 2026: $44.5 billion (1.78%)
- 2027: $45.4 billion (1.91%)