INDUSTRY STRUCTURE

To first understand the cosmetic industry structure, its important to understand what constitutes this
broad term called cosmetics.

It’s a common misconception that cosmetics constitutes only makeup products. Cosmetics infact vary in
a range of products from makeup to soaps, shampoos and consitioners.

Cosmetics therefore are personalcare goods for everyday use.

Cosmetic industry thus is the producer of these personal care items.

MARKET SEGMENTATION

the market is segmented on the basis of the following

1. By category- hair care, skin care, makeup, others (perfumes, deorants, colognes, mouth
fresheners)
2. By gender- women, men,unisex
3. By distribution channels –hypermarkets, supermarkets, speciality stores, online channels
INDUSTRY SUMMARY

Revenues (2020) $15.07 billion

Employees (2020) 172,700
Annual Revenue Growth Rate (2020) -8.00%
Data from plunkettresearch.com Cosmetics, Beauty Products and Beauty Supply Stores Industry
(U.S.)Analytics, Extensive Financial Benchmarks, Metrics and Revenue Forecasts to 2027, NAIC 446120
Published April 09, 2021

Top US firms operating within the industry

Retail stores Net sales Gross Profit

Ulta Beauty 1264 $6.2 billion $2.7 billion
Bath and Body Work 1633 $$6.4 billion $4.6 billion
Sally Beauty 2753 $3.5 billion $1.7 billion
Bare escentuals $471 million
Data from company annual reports and plunkettresearch.com

Industry compared to GDP

US GDP The industry as a percentage of US GDP

$20,936,600 1.67%
 Top Cosmetic Firms Operating within US
3000 $7,000,000,000

2500 $6,000,000,000

$5,000,000,000
2000
$4,000,000,000
1500
$3,000,000,000
1000
$2,000,000,000
500 $1,000,000,000

0 $0
Ulta Beauty Bath and Body Sally Beauty Bare escentuals
Work

Retail stores Net sales Gross Profit

Industry vs US GDP

US GDP The industry as a percentage of US GDP

Factors driving demand of the industry

The major factor driving demand for the industry is the desire to look good. On top of that increase in
number of working women and beauty clinics in the US also adds to the demand.

Due to Social Media, there has been an increase in number of social media beauty influencers, bloggers
and vloggers which has resulted an increase in awareness with respect to personal care.

Also the changing mindset of millenials and Gen Z around the typical “male image” has lead to an
increased number of male consumers indulging in personal care and makeup products.
Substitutes and Complements

The major substitute of cosmetic industry products are at home self care remedies and DIY skincare.

Products using natural ingredients such as herbs and oils are also on the increase due to new genertions
opting for less chemically harsh and cruelty free products.

Supporting Industries

The service industry like the salon and spa and beauty clinics are the supporting industries for
Cosmetics.

With different brands having various range of products for different purpsoses (ex: loreal professional,
kerastase- the professional salon range products) increase the sales and revenue of the cosmetic
industry.

The beauty clinics, paying more attenton on skin and hair care brands rather than makeup etc are also
responsible for driving demand and acting as a supporting industry for cosmetics.