U.S. Beauty and Personal Care Products Market To Reach $128.7 Billion by 2030
- Published: November 2020
The U.S. beauty and personal care products market accounted for $81.1 billion revenue in 2019, and it is expected to reach $128.7 billion in 2030. This would be due to the increasing number of working women, rising disposable income, and growing consciousness about personal healthcare. According to an article published by the U.S. Bureau of Labor Statistics, the number of women in the labor force was 66 million in 2000, which is projected to reach 92 million in 2050 in the U.S. Further, as of 2019, the global average for women in the labor force is 39.0%, whereas it was over 46% in the U.S. All these factors are set to boost the beauty and personal care products industry in the U.S.
The market has witnessed a major drop in sales in 2020 owing to the COVID-19 pandemic. This pandemic forced the closure of physical stores, which are one of the major distribution channels for beauty products in the U.S. Further, the closure of hair salons, department stores, travel retail stores, perfumeries, and other shopping places has resulted in a major market drop in 2020. However, the gradual lifting of the lockdown is predicted to result in a rebound in sales, and the market is expected to record growth from 2021 onward.
Skin Care – Highest-Revenue-Generating Category
Based on type, skin care was the highest-revenue-generating category in the U.S. beauty and personal care products market in 2019. This can be credited to the rising demand for beauty products from the younger population in the country. Millennials dominate the labor workforce of the country, and there has been a rise in the sales of skincare products to this section. Further, the increasing geriatric population and growing volume of skin disease treatments are fueling the U.S. beauty and personal care products industry.
The marketplace platform category, which primarily comprises major platforms such as Amazon and Walmart, generated the highest revenue in the U.S. beauty and personal care products market in 2019, under segmentation by distribution channel. These platforms offer a one-stop solution, wherein all beauty products can be purchased at affordable rates, which is why this distribution channel has gained significant popularity among consumers. Further, these companies have created a robust distribution channel across the country, which has enabled faster delivery of beauty products, thus attracting more customers with every passing day.
Mergers and Acquisition Are Most-Important Strategic Developments
The U.S. beauty and personal care products market is highly fragmented in nature, with a diverse range of mass, standard, and premium beauty products being offered by numerous market players. The competition among the players in the market is based on product pricing, product portfolio, product quality, and brand reputation. Considering all these pointers, the major beauty giants are focused on acquiring firms with better product offerings and expanding their reach, in order to further consolidate their market position.
For instance, in November 2019, The Estée Lauder Companies Inc. announced that it has signed an agreement to acquire Seoul-based Have & Be Co. Ltd., a global skincare company behind Dr. Jart+ and men’s grooming brand Do the Right Thing. The acquisition was expected to help strengthen the former company's position in the skincare segment and expand its consumer reach in Asia-Pacific (APAC), North America, and the U.K.
Similarly, in October 2019, Shiseido Americas Corporation, a subsidiary of Shiseido Company Limited, acquired DRUNK ELEPHANT, a fast-growing skincare brand. The acquisition was aimed at strengthening Shiseido’s position in the U.S. skincare market.
Johnson & Johnson, L’Oréal S.A., Koninklijke Philips N.V., The Procter & Gamble Company, Kimberly-Clark Corporation, The Estée Lauder Companies Inc., Coty Inc., Unilever Group, Shiseido Company Limited, Revlon Inc., Avon Products Inc., and Oriflame Holding AG are the major players operating in the U.S. beauty and personal care products market.