Online Cosmetics Market Report 2026

The online cosmetics market size has grown strongly in recent years. It will grow from $14.52 billion in 2025 to $15.82 billion in 2026 at a compound annual growth rate (CAGR) of 8.9%. The growth in the historic period can be attributed to increasing internet penetration, growth of e-commerce platforms, rising urbanization, expansion of smartphone usage, increasing beauty awareness through social media.

The online cosmetics market size is expected to see strong growth in the next few years. It will grow to $22.18 billion in 2030 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to AI-driven personalization adoption, growth of omnichannel retail strategies, increasing demand for premium and niche brands, expansion of digital payment infrastructure, rising cross-border e-commerce regulations harmonization. Major trends in the forecast period include rapid growth of direct-to-consumer beauty platforms, rising influence of social commerce and live shopping, increasing demand for personalized product bundles, expansion of subscription-based cosmetics services, growing preference for cross-border online beauty purchases.

The growth of the online cosmetics market is anticipated to accelerate due to increasing internet penetration. This term describes the degree of internet access available to a population in a specific area, usually represented as a percentage. Factors contributing to greater internet penetration include expanded broadband and mobile networks, government initiatives, affordable services and devices, technological progress, public-private collaborations, digital literacy efforts, relevant content and services, and overall economic advancement. The rise in internet usage has transformed the cosmetics industry by making it more accessible, informative, and convenient for consumers globally. For example, in February 2024, the International Telecommunication Union, a specialized agency based in Switzerland, reported that the number of internet users increased from 5.1 billion in 2022 to 5.4 billion in 2023. This growing internet penetration is fueling the expansion of the online cosmetics market.

Leading companies in the online cosmetics market are increasingly emphasizing the use of advanced digital engagement technologies, particularly artificial intelligence (AI)-driven virtual try-on solutions, to boost consumer confidence, enable personalization, and improve online conversion rates. AI-powered virtual try-on solutions are digital tools that combine artificial intelligence, computer vision, and augmented reality to realistically apply cosmetic products to a user’s image in real time, offering features such as accurate shade matching, realistic color visualization, and tailored product discovery. For example, in January 2025, Revieve, a Finland-based beauty technology company, introduced Hair Color Artist, an AI-enabled virtual hair color try-on solution that allows consumers to preview potential hair color outcomes prior to purchasing online, incorporating real-time color simulation, sophisticated AI-based color precision, and scalable cloud infrastructure supported by Google Cloud. Hair Color Artist enhances the online cosmetics shopping experience by minimizing purchase hesitation, increasing consumer interaction, and contributing to higher conversion rates for hair color products sold through digital platforms.

In April 2024, Clariant, a Switzerland-based manufacturer of cosmetic products, acquired Lucas Meyer Cosmetics for $810 million. This acquisition is part of Clariant's strategy to broaden its specialty chemicals portfolio, with a particular focus on the cosmetics sector. Lucas Meyer Cosmetics Canada Inc., based in Canada, produces and markets innovative ingredients for the cosmetics and personal care industries.

Major companies operating in the online cosmetics market are LVMH Moët Hennessy Louis Vuitton SE, Johnson & Johnson, Parfums Christian Dior, L'Oréal S.A., Chanel S.A., Hermès International S.A., Kao Corporation, Shiseido Company Limited, Avon Products Inc., Clinique Laboratories LLC, Amorepacific Corporation, Clarins Group, Kosé Corporation, MAC Cosmetics, L'Occitane Groupe S.A., Elizabeth Arden Inc., Fenty Beauty by Rihanna, e.l.f. Cosmetics, Anastasia Beverly Hills LLC, Kiehl's LLC, Charlotte Tilbury Beauty Ltd., Bobbi Brown Professional Cosmetics Inc., NARS Cosmetics, SK-II, Kylie Cosmetics LLC.

North America was the largest region in the online cosmetics market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the online cosmetics market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the online cosmetics market report are Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.

The online cosmetics market includes revenues earned by entities by providing services such as personalized recommendations, online consultations, subscription services, and product browsing and discovery and related natural and organic beauty products, travel and sample size products, and bath and body 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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