Beauty, Cosmetics & Fragrance Stores in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS 44612Revenue
$55.4bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
451k
Businesses
179k
Wages
$X.Xbn
Beauty, Cosmetics & Fragrance Stores in the US industry analysis
Many consumers purchase beauty products from large retailers like Sephora and Ulta because of their broad product range, expertise and loyalty programs. The pandemic resulted in significant slowdowns in revenue, as consumers were less likely to purchase new cosmetics. However, demand for skin and hair care products soared during this time, protecting the industry from revenue losses. Elevated inflation in 2022 negatively impacted demand for beauty products, as the discretionary nature of these products, combined with weaker disposable income, resulted in shrinking revenue. However, the ongoing economic recovery has largely benefited beauty stores. These factors caused revenue to grow at an estimated CAGR of 2.6% to $55.4 billion over the past five years, including a 1.5% jump in 2024 alone.
Trends and Insights
- The widespread popularity of skincare in recent years has contributed heavily to growth. Skincare sales cushioned retailers from severe pandemic losses and fueled growth, highlighting the segment's role in the overall market.
- Competition is fierce for personal care products like soap and deodorant. Many consumers opt for more affordable stores to cut costs.
- Proximity to population hubs boosts foot traffic for businesses. Increased customer visits lead to higher sales, so many companies operate near metropolitan areas.
- Online retailers benefit from lower operating costs, disrupting the retail market. This cost advantage has hindered the growth of traditional retailers, who face higher overhead expenses. Many retailers have moved to the online space to become more competitive.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 2.6 % over the past five years, to reach an estimated $55.4bn in 2024.
Trends and Insights
Macroeconomic conditions contribute to changes in demand
- Many cosmetics and beauty products are generally considered discretionary in nature. Because of this, beauty product sales are directly impacted by fluctuating macroeconomic conditions, including disposable income, inflation, consumer spending and economic uncertainty.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Overall trends impact industry performance
- The ongoing economic recovery is set to support growth in disposable income, allowing consumers to allocate more resources toward increasing discretionary spending and supporting demand for beauty stores.
Biggest companies in the Beauty, Cosmetics & Fragrance Stores in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Ulta Beauty, Inc. | 11,046.9 | 1,582.1 | 14.3 | |
Sephora | 3,685.2 | 292.7 | 7.9 | |
Bath & Body Works, Inc. | 2,974.4 | 515.4 | 17.3 |
To view the market share and analysis for all 8 top companies in this industry, view purchase options.
Products & Services Segmentation
Beauty, Cosmetics & Fragrance Stores in the US
Products & Services
Industry revenue is measured across several distinct product and services lines, including Haircare products, Skincare products and Cosmetics. Haircare products is the largest segment of the Beauty, Cosmetics & Fragrance Stores in the US.
Trends and Insights
Cosmetics continue to generate the most revenue
- Retailers carry a wide range of products, including foundation, eyeliner, eyeshadow, blush and bronzer. These products serve slightly different purposes, meeting the needs of consumers with varying preferences and skin types.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Pharmacies & Drug Stores in the US
- Hair & Nail Salons in the US
- E-Commerce & Online Auctions in the US
- Mail Order in the US
Complementors
- Cosmetic & Beauty Products Manufacturing in the US
International industries
- Beauty, Cosmetics & Fragrance Stores in Canada
- Cosmetic and Toiletry Retailing in Australia
- Pharmaceutical, Cosmetic and Toiletry Goods Retailing in New Zealand
- Cosmetics & Toiletries Retailers in the UK
- Pharmacies & Drugstores in China
Table of Contents
About this industry
Industry definition
This industry comprises stores that primarily retail cosmetics, perfumes, toiletries and personal grooming products. Operators in this industry include beauty supply stores, specialty cosmetics stores and fragrance stores.
What's included in this industry?
Retailing cosmeticsRetailing haircare productsRetailing skincareRetailing perfumes Retailing toiletries Retailing personal grooming productsCompanies
Ulta Beauty, Inc.SephoraBath & Body Works, Inc.Purchase this report to view all 8 major companies in this industry.
Related Terms
BRICK-AND-MORTARORGANICCOSMETICNUTRI-COSMETICE-TAILERIndustry Code
NAICS 44612 - Beauty, Cosmetics & Fragrance Stores in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The widespread popularity of skincare in recent years has contributed heavily to growth. Skincare sales cushioned retailers from severe pandemic losses and fueled growth, hig...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Competition is fierce for personal care products like soap and deodorant. Many consumers opt for more affordable stores to cut costs.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Proximity to population hubs boosts foot traffic for businesses. Increased customer visits lead to higher sales, so many companies operate near metropolitan areas.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Online retailers benefit from lower operating costs, disrupting the retail market. This cost advantage has hindered the growth of traditional retailers, who face higher overh...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Ulta teams up with Target to provide a unique shopping experience. The partnership will implement a "shop-in-shops" strategy to attract more consumers by integrating Ulta's o...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Ulta Beauty, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Sephora's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Bath & Body Works, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 5 additional companies
Detailed analysis
- Description and key data for Ulta Beauty, Inc., and factors influencing its performance in the industry
- Description and key data for Sephora, and factors influencing its performance in the industry
- Description and key data for Bath & Body Works, Inc., and factors influencing its performance in the industry
- Description, key data and performance trends for 5 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
E-commerce sales are expected to keep growing. Consumers are shifting their preferences to online shopping, which harms foot traffic at brick-and-mortar stores.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
High inflation makes products more expensive. However, because of prominent price competition, retailers often fail to pass on cost increases to consumers.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Beauty, Cosmetics & Fragrance Stores in the US industry in United States in 2024?
The market size of the Beauty, Cosmetics & Fragrance Stores in the US industry in United States is $55.4bn in 2024.
How many businesses are there in the Beauty, Cosmetics & Fragrance Stores in the US industry in 2024?
There are 179k businesses in the Beauty, Cosmetics & Fragrance Stores in the US industry in United States, which has grown at a CAGR of 5.3 % between 2019 and 2024.
Has the Beauty, Cosmetics & Fragrance Stores in the US industry in United States grown or declined over the past 5 years?
The market size of the Beauty, Cosmetics & Fragrance Stores in the US industry in United States has been growing at a CAGR of 2.6 % between 2019 and 2024.
What is the forecast growth of the Beauty, Cosmetics & Fragrance Stores in the US industry in United States over the next 5 years?
Over the next five years, the Beauty, Cosmetics & Fragrance Stores in the US industry in United States is expected to grow.
What are the biggest companies in the Beauty, Cosmetics & Fragrance Stores in the US market in United States?
The biggest companies operating in the Beauty, Cosmetics & Fragrance Stores market in United States are Ulta Beauty, Inc., Sephora and Bath & Body Works, Inc.
What does the Beauty, Cosmetics & Fragrance Stores in the US in United States include?
Retailing cosmetics and Retailing haircare products are part of the Beauty, Cosmetics & Fragrance Stores in the US industry.
Which companies have the highest market share in the Beauty, Cosmetics & Fragrance Stores in the US in United States?
The company holding the most market share in United States is Ulta Beauty, Inc..
How competitive is the Beauty, Cosmetics & Fragrance Stores in the US industry in United States?
The level of competition is high and increasing in the Beauty, Cosmetics & Fragrance Stores in the US industry in United States.
