BeautyInsights

Price Hikes Fuel Beauty’s Boom—But Can Brands Sustain the Glow?

The beauty industry demonstrated remarkable resilience in 2023, growing to $446 billion in global retail sales - a 10% increase from 2022 according to McKinsey's latest report.

Published: Jul 7, 2025 4:34 PM

By Jeanel Alvarado

BeautyInsights

Add RETAILBOSS as Preferred Source

BeautyInsights

Price Hikes Fuel Beauty’s Boom—But Can Brands Sustain the Glow?

The beauty industry demonstrated remarkable resilience in 2023, growing to $446 billion in global retail sales – a 10% increase from 2022 according to McKinsey’s latest report. However, this impressive headline figure tells only part of the story. While the sector outperformed other consumer categories like apparel, McKinsey’s analysis reveals that global volume growth reached just 2%, indicating that price increases rather than expanded sales drove most of this expansion.

Regional Variations Paint Complex Picture The Asia-Pacific region (excluding China and Australia) led growth at 10%, with India emerging as a particularly strong market showing 4% volume growth alongside 6% price growth. North America (20% of global market) grew 9%, while Europe expanded 10%.

The most dramatic growth occurred in the Middle East and Africa (18%) and Latin America (17%). China presented a contrasting scenario with just 3% growth – entirely from price increases – reflecting broader economic challenges.

McKinsey projects China’s market will grow at 6% CAGR through 2028, driven by Gen Z and millennial consumers, though this remains contingent on economic recovery. Category Performance and Consumer Behavior Skincare, representing 44% of the market, grew 6% in 2023.

The fragrance category, while smallest, showed the strongest growth at 14%. Makeup sales rebounded above pre-pandemic levels. Consumer behavior revealed a mix of trade-down and premiumization trends…

Price Hikes Fuel Beauty’s Boom—But Can Brands Sustain the Glow?

Members-only article

Unlock the rest of this story

Join free to keep reading RetailBoss beauty coverage, industry analysis, and market intelligence.

Company

Account name Used publicly if you comment. We encourage your real first name.

Password

Send me RetailBoss newsletter emails through Substack. I can unsubscribe anytime. Confirm that I want to create a free RetailBoss account.

Free access. No credit card required. Your account is created after you verify your email.

RetailBoss is an independent global news publication and business insights platform built for executives, founders, operators, analysts, marketers, investors, and brand leaders. Our reporting covers the retail shifts across luxury, fashion, beauty, technology and marketing strategy.

Since: 2011
Audience: 50 Million+
Coverage: Global Markets

Our editorial stance

We prioritize news value, evidence, attribution, and practical relevance to retail decision-makers. Sponsored work is identified, and editorial coverage is kept distinct from commercial partnerships.

More from Beauty

Model holding BYOMA LONGEVIT-8 Peptide Serum

BYOMA Takes LONGEVIT-8 Serum Into International Beauty Retail

BYOMA is bringing its barrier-first skincare positioning into the longevity category with LONGEVIT-8 Peptide Serum, supported by a rollout across Ulta Beauty, Cult Beauty and Sephora markets. The brand says the serum is available through those retailers, with a Boots UK launch planned for September 16.

BeautyNews

Ifrah Nadeem1 hour ago

Jo Malone London and WildWash dog-shampoo launch video still

Jo Malone London Enters Scented Pet Care With WildWash Dog Shampoo

Jo Malone London has teamed with pet-care specialist WildWash on Orange & Cedarwood Dog Shampoo, extending its fragrance world into a new household category. The brand introduced the collaboration with a launch gathering at its Townhouse centered on dogs and their owners.

BeautyNews

Shipra Bohara1 hour ago

Bobbi Brown Launches Desert Dreamer With a Six-Shade Lip Tint Liner

Bobbi Brown Cosmetics has introduced Desert Dreamer, the second collection by its Global Artistic Director Hannah Murray, with a new Lip Tint Liner available globally for the first time. The hybrid liner-stain comes in six shades inspired by natural lip tones, according to the brand.

BeautyNews

Alyssa Jade Mann2 days ago

Diptyque Brings Its Body-Care Collection to a Shanghai Pop-Up

Diptyque is presenting Les Rituels de Soin at a pop-up in Shanghai’s Somekh Building through September 13. The temporary space introduces its fragranced body-care collection through a concept inspired by ancient Greek and Roman bathing traditions.

BeautyNews

RETAILBOSS Team2 days ago

View all Beauty

Recommended Articles

Coty Connects Chloé Le Parfum’s Sephora India Launch With a Mumbai Experience

Coty marked the launch of Chloé Le Parfum at Sephora India with a gathering in Mumbai, bringing beauty and fragrance voices together around the perfume. The event paired a dinner-table presentation with a custom-charm activity, according to the company.

BeautyMarketing

Ifrah Nadeem2 days ago

Vegamour haircare products arranged against pink tiles.

Belle Brands Acquires Vegamour, Adding Hair Wellness to Its Portfolio

Belle Brands has acquired Vegamour, adding the haircare business to a portfolio that includes JVN Hair, Pipette, KVD Beauty and Versed. The Windsong Global-backed platform announced the deal on September 9 without disclosing financial terms.

BeautyNews

Shipra Bohara2 days ago

Zendaya explores a Prada Beauty product display at the New York photo studio.

Zendaya Makes Surprise Appearance at Prada Beauty’s New York Photo Studio

Prada Beauty brings its Paradoxe campaign into a two-city experience combining fragrance discovery, professional portraits and personalized consultations.

BeautyFeatured

Jeanel Alvarado2 days ago

Hair Syrup Rapunzel shampoo and conditioner bottles against a pink background.

Hair Syrup Makes U.S. Retail Debut as More Beauty Brands Join Target Studio

British haircare brand Hair Syrup is entering U.S. physical retail through more than 600 Target stores and Target.com on September 10. CLEARSTEM and VT Cosmetics separately confirmed their participation in the same Target Beauty Studio launch.

BeautyNews

RETAILBOSS Team3 days ago

Kristin Ess Hair products arranged with pink flowers.

Kristin Ess Hair Launches at REVOLVE as It Expands Beyond Beauty Retail

Kristin Ess Hair has launched at REVOLVE with more than 30 haircare and styling products, adding a fashion-led retailer to the Maesa brand’s distribution network.

BeautyNews

Ifrah Nadeem3 days ago

Guerlain L’Heure Bleue Paris experience — image 1

Guerlain Takes L’Heure Bleue Back to the Pont-Neuf With a Paris Experience

Guerlain is bringing L’Heure Bleue to the banks of the Seine with a three-day Paris experience that combines fragrance discovery, the perfume’s origin story and bottle personalization. The activation runs September 11–13, 2026, at 50 quai de la Mégisserie in the city’s first arrondissement.

BeautyEvents

Shipra Bohara3 days ago

Loewe source video — cover frame — image 1

LOEWE Introduces Five Fragrances in Its 2026 Crafted Collection

LOEWE has introduced five new fragrances in its 2026 Crafted Collection, extending the range through scents inspired by the natural world. The house says the collection is available through its website.

BeautyNews

Ifrah Nadeem3 days ago

BREAKOUT Beauty founders visiting Boots in Nottingham — image 1

Boots Welcomes Emerging Founders Through BREAKOUT Beauty

Boots has welcomed the latest BREAKOUT Beauty cohort to its Nottingham head office, giving emerging, founder-led beauty businesses access to retail teams and sessions focused on preparing for growth.

BeautyCareers

Shipra Bohara3 days ago

View all Beauty

Price Hikes Fuel Beauty’s Boom—But Can Brands Sustain the Glow?

The beauty industry demonstrated remarkable resilience in 2023, growing to $446 billion in global retail sales - a 10% increase from 2022 according to McKinsey's latest report.

Unlock the rest of this story

More from Beauty

BYOMA Takes LONGEVIT-8 Serum Into International Beauty Retail

Jo Malone London Enters Scented Pet Care With WildWash Dog Shampoo

Bobbi Brown Launches Desert Dreamer With a Six-Shade Lip Tint Liner

Diptyque Brings Its Body-Care Collection to a Shanghai Pop-Up

Recommended Articles

Coty Connects Chloé Le Parfum’s Sephora India Launch With a Mumbai Experience

Belle Brands Acquires Vegamour, Adding Hair Wellness to Its Portfolio

Zendaya Makes Surprise Appearance at Prada Beauty’s New York Photo Studio

Hair Syrup Makes U.S. Retail Debut as More Beauty Brands Join Target Studio

Kristin Ess Hair Launches at REVOLVE as It Expands Beyond Beauty Retail

Guerlain Takes L’Heure Bleue Back to the Pont-Neuf With a Paris Experience

LOEWE Introduces Five Fragrances in Its 2026 Crafted Collection

Boots Welcomes Emerging Founders Through BREAKOUT Beauty

What are you looking for?

Start exploring

Unlock the rest of this story

More from Beauty

Recommended Articles

Sign up for RetailBoss Daily Newsletter