The global beauty market is set to expand, with each category projected to experience increased retail sales by 2028. Senior partner Kristi Weaver and coauthors report that fragrance is forecasted to lead this growth with a 7 percent compound annual growth rate, followed closely by makeup and skin care at 6 percent each. In 2023, price increases across tiers drove much of the growth in beauty.
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A pair of treemaps depict the forecasted growth of the beauty market, one for 2023 and one for 2028. Each diamond-shaped treemap is segmented to show the size of five beauty product categories: fragrance, makeup, hair care, skin care, and the total market. In 2023, the total market was $446 billion. Skin care represented the largest portion at $195 billion, followed by hair care at $91 billion, makeup at $84 billion, and fragrance at $76 billion. By 2028, the total market is projected to grow to $594 billion. Skin care is again projected to be the largest segment, at $259 billion. Hair care is projected to grow to $116 billion, makeup is forecast to be $113 billion, and fragrance is expected to reach $106 billion in 2028.
Source: Euromonitor; Generation Research; McKinsey analysis.
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To read the article, see “The beauty boom and beyond: Can the industry maintain its growth?,” September 11, 2024.