Cosmetics Stores Market Report 2025

The cosmetics stores market size has grown strongly in recent years. It will grow from $125.94 billion in 2024 to $135.62 billion in 2025 at a compound annual growth rate (CAGR) of 7.7%. The growth in the historic period can be attributed to changing beauty trends, social and cultural influences, economic conditions, marketing and branding strategies, e-commerce growth.

The cosmetics stores market size is expected to see strong growth in the next few years. It will grow to $175.18 billion in 2029 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to sustainability and ethical consumerism, digital marketing and online presence, personalization and customization, innovations in beauty products, wellness, and self-care trends. Major trends in the forecast period include inclusive beauty, wellness and beauty integration, pop-up stores and limited editions, social media influencer collaborations, contactless shopping experiences, subscription services.

The growing demand for cosmetic products is expected to drive the growth of the cosmetic store market in the coming years. Cosmetic products are defined as any preparations intended for application to the skin and other body parts to enhance their appearance and appeal. This demand is primarily fueled by increased awareness of personal hygiene and skin health, a wide range of affordable and effective cosmetic offerings, and rising disposable incomes. Many consumers prefer purchasing cosmetic and beauty care items from cosmetic stores due to the availability of personalized products, enhanced in-store experiences, attractive discounts, and convenient product placement. For example, in December 2023, the Cosmetic Toiletry & Perfumery Association (CTPA), a UK-based trade association for the cosmetic and personal care industry, reported that the color cosmetics sector sold 118,178 units in 2022, which increased to 123,056 units in 2023, representing a growth of approximately 4.1%. Similarly, the skincare sector saw sales rise from 456,401 units in 2022 to 460,868 units in 2023, indicating a growth of around 1%. Thus, the increasing demand for cosmetic products is expected to fuel the growth of the cosmetic stores market.

Anticipated growth in the cosmetics stores market is expected due to the escalating instances of hair loss. Hair loss, also known as alopecia or baldness, signifies the loss of hair from specific regions of the body or head. Cosmetics stores offer various hair care products such as shampoos, conditioners, hair dyes, and henna, aiding in enhancing patient compliance with alopecia and scalp treatments. According to the Hair Society's March 2022 report, an estimated 35 million men and 21 million women in the US suffer from hair loss. The prevalence of hair loss starts at the age of 35, with a 40% occurrence rate in men, escalating to 70% among 80-year-old men. By the age of 60, approximately 80% of women experience hair loss. Therefore, the rising incidence of hair loss is a significant driver for the growth of cosmetics stores.

Technological advancements emerge as a pivotal trend in the cosmetic stores market. Leading market players concentrate their endeavors on developing innovative technologies to solidify their market standing. For example, in November 2022, Tata Group, a conglomerate based in India, unveiled plans for 'beauty tech' stores in the country. These stores will leverage digital skin testing and virtual cosmetics kiosks to attract young, affluent shoppers seeking high-end cosmetic products. Tata aims to integrate technology within the stores, enabling customers to virtually experiment with numerous shades of lipstick and undergo digital skin testing to identify the most suitable products.

Major players in the cosmetics stores market are strategically forging partnerships to widen their array of products and secure a competitive advantage. These collaborations among key industry participants serve to bolster their growth trajectory, amplify brand presence, and furnish consumers with a broader spectrum of products. These partnerships play a pivotal role in augmenting brand visibility, facilitating access to new customer segments, and facilitating market expansion into unexplored territories. For instance, in May 2023, Elizabeth Arden Inc., a US-based company specializing in cosmetics, skincare, and fragrances, joined forces with Obsess, a US-based experiential e-commerce platform, to unveil a virtual store. This virtual platform offers interactive features allowing users to engage in browsing, gaming, and shopping. Users can partake in games and quizzes to gain insights into skincare products, earn tokens while navigating the site for winning rewards, and immerse themselves in historical imagery depicting the company's journey and its founder. This augmented reality (AR) or virtual reality (VR) experience is designed to simulate an in-store browsing sensation for shoppers.

In November 2023, Aurelius Group, a Germany-based asset management company, acquired The Body Shop International Limited for an undisclosed amount. This acquisition aims to revitalize The Body Shop, improve operational efficiency, and leverage its iconic brand heritage to capitalize on favorable trends in the rapidly growing beauty market. The Body Shop International Limited is a UK-based company that offers cosmetic products through retail stores.

Major companies operating in the cosmetics stores market include Avon Beauty Products India Private Limited, Kao Corporation, L'Oréal S.A., Oriflame Cosmetics S.A., Revlon Inc., Shiseido Company, The Estée Lauder Companies Inc., Bluemercury Inc., Estée Lauder Companies Inc., Sugar, Ulta Beauty Inc., Natura & Co., Christian Dior SE, The Cosmetics Company Store, Sephora USA Inc., The Procter & Gamble Company, Coty Inc., Beiersdorf AG, Chanel Limited, Unilever plc, Johnson & Johnson Services Inc., Henkel AG & Co. KGaA, Amorepacific Corporation, LVMH Moët Hennessy Louis Vuitton SE, Colgate-Palmolive Company, Mary Kay Inc., Yves Rocher Spol. S R.O., Clarins Group, Elizabeth Arden Inc., Kose Corporation, Shu Uemura Cosmetics Inc., Kanebo Cosmetics Inc., SK-II, OPI Products Inc.

North America was the largest region in the cosmetics stores market in 2024. Asia-Pacific is expected to be the fastest-growing region in the cosmetic stores market report during the forecast period. The regions covered in the cosmetics stores market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cosmetics stores market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Cosmetic stores, also known as beauty stores or beauty supply stores, are specialty retail establishments dedicated to the sale and display of cosmetic products. Cosmetic products encompass any preparation intended for application to the skin and other body parts, aiming to enhance their appearance and make them more appealing. This category includes skincare, haircare, oral care, sun care, decorative cosmetics, body care, and perfumes.

The main products offered by cosmetic stores include skincare items, hair care products, makeup, fragrances, and various other cosmetic products. Skincare involves practices related to overall hygiene, maintenance, support of skin integrity, enhancement of its appearance, and the relief of skin conditions. Products are often categorized into premium and economy price ranges, catering to men, women, and unisex consumers. These products are distributed through both offline and online distribution channels.

The cosmetics stores market research report is one of a series of new reports that provides cosmetics stores market statistics, including cosmetics stores industry global market size, regional shares, competitors with cosmetics stores market share, detailed cosmetics stores market segments, market trends, and opportunities, and any further data you may need to thrive in the cosmetics stores industry. The cosmetics stores market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The cosmetic stores market includes revenues earned by entities by providing various store services to the customers such as makeup training, makeovers, hair services, product customization, and testing of products. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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