The American beauty market is valued at nearly 98 billion US dollars in 2023 and epitomizes robust demand and evolving purchasing habits. The average household's annual expenditure on cosmetics, perfumes, and bath preparations reached an unprecedented 211.8 U.S. dollars in 2022—a significant leap from 134 U.S. dollars in 2010.
This growth trajectory is primarily driven by the dominance of skincare products, which lead in consumer preferences and command the highest sales figures. While physical stores remain the preferred shopping venues for most, the surge in e-commerce and the influence of social commerce platforms like TikTok Shop are reshaping how beauty enthusiasts indulge in their self-care rituals. Let's dive into five cosmetic trends uncovered by Statista in their 2024 consumer behavior report.
Skincare Leads the Way
Skincare remains a dominant category in the beauty and personal care sector. Survey data reveal that approximately 30 percent of North American consumers purchase skincare and hair care products. Notably, skincare items represent the largest segment within the global cosmetics market, outstripping hair care and makeup. In 2023, U.S. sales of skincare products, particularly facial cleansers and moisturizers, surpassed the one billion U.S. dollars mark, showcasing their substantial consumer base.
In-Store Shopping Preferences
Despite the surge in the digital age, American consumers still strongly prefer purchasing beauty products in physical stores. Nearly 80 percent of respondents in a recent survey reported buying beauty items from brick-and-mortar retailers. Pharmacies like CVS, Walgreens, and Rite Aid are popular venues for these purchases. Furthermore, specific consumer demographics have distinct preferences: Generation Z tends to favor Sephora and Ulta Beauty as their go-to beauty shopping destinations. This age group also shows a distinct preference for brands like e.l.f. and Rare Beauty.
Rise of Beauty E-Commerce
While in-store shopping remains prevalent, online beauty purchases have seen significant growth. As of 2023, around one-quarter of U.S. beauty shoppers reported buying cosmetics online monthly, with over ten percent doing so weekly. Monthly online expenditures for beauty products ranged from 51 to 100 U.S. dollars for nearly 30 percent of consumers. E-commerce's rise is bolstered by forecasts predicting online sales growth from approximately 15.6 billion U.S. dollars in 2021 to nearly 31 billion U.S. dollars by 2026.
Social Commerce the Norm
The growth of social commerce has also contributed to this trend. Platforms like TikTok Shop have become increasingly popular, with the health and beauty category performing exceptionally well. This seamless integration of shopping within social media offers consumers convenience and fosters a new age of online beauty shopping.
Future Beauty Category Growth
With a generational shift bringing younger consumers into the fold and the impact of social media and e-commerce steadily transforming purchasing habits, the market is expected to maintain its upward trajectory. Despite potential changes in shopping mediums, one thing remains clear: U.S. consumers' spending on self-care routines is at an all-time high, with many even willing to cut back on other expenses to maintain their beauty product purchases.
