U.S. Color Cosmetics Market Size, Share & COVID-19 Impact Analysis, By Target Market (Prestige Products and Mass Products), By Distribution (Offline and Online) By Application (Nail Product, Hair Product, Lip Product, Face Product, and Others), 2023-2030

The U.S. color cosmetics market size was worth USD 15.53 billion in 2022 and is projected to grow at a CAGR of 5.3% during the forecast period.

Growing demand for face products, lip products, and hair products in the U.S. is the primary factor driving the market growth. With the rise in disposable income, consumers are increasingly spending on cosmetics products in the country. Celebrity and social-media influencer culture has positively impacted the growth of the beauty & make-up industry in the country, thus fueling the U.S. color cosmetics market growth. An increase in demand for convenience make-up products, owing to busy work schedules will further increase the demand for color cosmetics.

The U.S. cosmetics industry was impacted severely by COVID-19, owing to restricted supply of raw materials and limited production activities. This further decreased the sale of make-up products, including color cosmetics due to reduced social life and remote work. However, the online sales of products supported market growth in the U.S. during the pandemic.

LATEST TRENDS

Shift toward Shopping through E-commerce Portals to Propel Industry Expansion 

Advancements in technologies have created remunerative growth opportunities for small-scale and large-scale color cosmetics businesses for increasing consumer awareness about the products. Digitization at a large scale has enabled consumers to experience brands in a completely new manner. The onset of the pandemic has shifted consumer preference from retail stores to e-commerce platforms that offer a wide range of products. The ability provided by online platforms to consumers to compare products has increased sales through these channels.

Additionally, the availability of premium and prestige products at discounted rates, annual discount festivals, and offers on a combination of products has fueled the consumption of color cosmetics. According to the annual report of L’Oréal, 28% of its sales are from e-commerce with a well-balanced growth between volume and value.

DRIVING FACTORS

Rising Demand for Organic Cosmetic Products to Boost Market Growth

The growing consciousness among consumers regarding the advantages of organic products resulted in an increasing demand for sustainable and natural substitutes in the cosmetics industry. The rise of consumers’ interest in holistic health has fueled the demand for organic color cosmetics. The growth in awareness about natural products and their features has led to an increase in demand for natural products.

Cosmetic manufacturers are incorporating raw materials derived from natural sources in their formulations. L'Oréal launched a plant-based hair dye branded Botanea as a step toward becoming part of the change in the cosmetic industry. The surge in demand for organic products has driven manufacturers to increase their expenditure on the research & development of natural products. L’Oréal stated that 95% of materials used in its product ranges and brands would be plant and flower-based that could be replanted or renewed and minerals that are available in abundance in the next 10 years.

RESTRAINING FACTORS

Rising Awareness about Environment and Animal Protection to Hinder the Market Growth

Palm oil is extensively used in cosmetic products for applications ranging from moisturizing, texturizing, and changing the viscosity of the products. The rising demand for palm oil from cosmetic manufacturers resulted in rapid deforestation, wildlife endangerment, and climate change. Clearing of rainforests has contributed to global warming, climate change, and dislocation of citizens indigenous to the areas.

Furthermore, several manufacturers of color cosmetics are pretending to use natural ingredients to manufacture their products. These companies use a few natural raw materials in their formulations, containing various toxic chemicals, and implicate their product to be completely organic. The increasing awareness amongst consumers regarding the environment is likely to hinder market growth.

SEGMENTATION

By Target Market Analysis

Based on target market, the market is segmented into prestige products and mass products.

The prestige products segment accounted for a significant U.S. color cosmetics market share in 2022 and is likely to maintain its dominance significantly during the forecast period. The luxurious brands provide high-end and expensive cosmetic products. The rising demand for high-quality products is due to consumers being influenced by movie cultures and increasing beauty standards leading to the use of cosmetic products for beauty features.

Mass products are made in large numbers due to cheap production and the overall cost of the product. The rising beauty and personal care trend among consumers to maintain the quality of skin and hair has increased the demand for products such as hair gels, essential oils, and shampoos.

By Distribution Analysis

Based on distribution, the market is segmented into online and offline.

The offline segment held a larger market share in 2022. This was due to the increasing consumer preference for buying cosmetic products from retail stores, drugstores, and malls as they can test out the product quality before buying.

The rapid growth in the cosmetic industry and digitalization of society are driving the online segment growth. The boom in the e-commerce business sector is making it easy for consumers to buy beauty and make-up products at a click.

By Application Analysis

Based on application, the market is segmented into nail product, lip product, hair product, face product, and others.

The face product segment held a larger share in 2022, owing to rising beauty products demand to enhance facial features. The high demand for foundation and eye shadow by customers has fueled the growth of this segment. Nowadays, many consumers also switch their preferences to organic color cosmetics products, such as kajal, mascara, and eye shadow, owing to increasing skin consciousness. Hence, these factors will further drive the U.S. color cosmetics market growth during the forecast period.

KEY INDUSTRY PLAYERS

Considering the competitive landscape, the U.S. color cosmetics market depicts the presence of established and emerging color cosmetics companies. Key players include L’Oréal S.A, Unilever, Estée Lauder Inc., and Avon Products Inc., among others. Industry players compete primarily based on the price and application characteristics of the product. Companies are focusing on product innovation, social marketing, acquisition, and collaborations. For instance, in October 2020, Avon opened its first in-person, completely immersive experience center called Studio 1886 with Avon’s top educators for skincare, color, personal care, and more.

LIST OF KEY COMPANIES PROFILED:

• L'Oréal S.A (France)


• Unilever (U.K.)


• Avon Products Inc. (U.K.)


• Estée Lauder Inc (U.S.)


• Revlon, Inc. (U.S.)


• Coty Inc. (U.S.)


• Amway (U.S.)


• KRYOLAN (Germany)


• CIATÉ (U.K.)


• CHANEL (France)

KEY INDUSTRY DEVELOPMENTS: 

• April 2023 – The Estée Lauder Companies Inc. completed the acquisition of the TOM FORD brand for USD 2.8 billion and is the sole owner of the brand now.


• October 2021– Coty announced the expansion of direct to the consumer website of the cosmetic brand Kylie Skin in the U.K., Germany, Australia, and France. The initiative will allow consumers to purchase products in regional currencies and languages excluding the customs duties and fees. This would help the company to serve its consumers efficiently.

REPORT COVERAGE

The market research report thoroughly examines key aspects such as leading companies, applications, and products. It also provides market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market growth in recent years and the factors listed above. It examines the market dynamics and opportunities and historical data and revenue growth estimates at the country level.

Report Scope & Segmentation