With revenues from the global skin care market expected at $155.7 billion in 2023, starting a skin care brand can seem like an extremely lucrative entrepreneurial venture. 

As an aspiring entrepreneur based in the United States, having a clearer picture of the local market can help you better determine business opportunities. All this starts with knowing how much the US skin care market is worth. 

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US skin care market in 2023

According to a recent analysis, the US skin care market is set to generate $21.1 billion in revenues in 2023—a 5.87% increase from the previous year. Skin care products will also be the second-largest revenue-generating products of the entire US beauty industry, after personal care, which has revenues forecasted at $42.2 billion.

Despite the expected annual increase, the US skin care market’s growth rate this year marks a slowdown from the previous year. In 2022, it grew by 10.24%. 

From 2015 to 2023, the only year the US skin care market shrank was 2020, when revenues fell by 5.03%. With the exception of this, the sector has been expanding every year, growing its annual revenues from $16.2 billion in 2015. This marks a rise of $4.9 billion—a 30.25% overall increase and an average annual growth rate of 3.46%. 

Understanding how consumers are purchasing skin care products can also help with business planning. Despite ecommerce’s share of retail sales growing year after year, as many as 63.4% of the US skin care market’s revenues in 2023 are still expected to come from offline sales. However, the preference to purchase skin care products in-store appears to be wavering, with revenues from online sales increasing every year. By 2025, total offline skin care purchases are set to represent just 54.8% of overall sales—a stark decline from 83.5% in 2017. 

US skin care market: 2024–2027 revenue forecast

Looking ahead, analysts expect the US skin care market to continue growing, albeit at a slower pace. Growth rates of 3.56% and 3.34% are expected in 2024 and 2025, respectively, to bring overall revenues to $21.8 billion and $22.6 billion.

In 2026, the market is set to expand by 3.28%, to $23.3 billion. By 2027, it’s forecast to hit $24.1 billion, after growing 3.52% year on year.

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