During recessions, there’s a phenomenon known as the ‘lipstick effect’. It refers to people occasionally buying smaller treats like lipstick instead of splurging on bigger and more expensive items. This theory is based on the idea that consumers would always find the means to purchase luxury goods regardless of the economic situation.
But in 2020, due to face masks, even lipstick sales took a plunge. Luckily, our need for beauty and health products remains strong. So, when in 2021, the restrictions relaxed a bit, customers started investing in their new and improved self-care routines.
Read our beauty industry statistics to find out the newest trends and developments in the sector.
Facts About the Beauty Industry (Editor’s Choice)
- The UK organic cosmetics market size is expected to grow to £339 million by 2025.
- The global beauty industry is estimated at $603 billion in 2021.
- Ecommerce accounted for roughly 22% of beauty market sales in 2020.
- Skincare products accounted for 42% of the cosmetic market in 2020.
- Lipstick sales in 2021 are up 80% compared to the same period in 2020.
- In 2020, the most popular brands in Europe were Nivea, Colgate, and Dove.
- Worldwide, waterless cosmetics sales will grow at a 13.3% rate by 2031.
- 45% of consumers find new beauty purchase inspiration on social media.
Beauty Industry Statistics for the UK
1. The cosmetics industry in the UK is the third-largest in Western Europe.
Statistics show that the UK, along with Germany and France, has among the biggest cosmetics markets. The latest figures estimate the industry value at €9.8 billion.
2. Cosmetics industry statistics reveal the 2020 UK skincare market size was worth £2.17 billion.
(Statista, Premium Beauty News)
Beauty industry statistics for the UK show that the market’s largest segment is facial care, estimated at £860 million in 2019. It has gained even more attention since the beginning of the pandemic, as consumers focused more on self-care. Namely, 30% of customers used moisturiser more often last year.
3. The UK natural and organic beauty market is expected to reach £339 million by 2025.
Natural cosmetics industry statistics show that in 2020, its market value was £221 million in the UK. The products are gaining popularity due to shoppers’ increased concern with certain ingredients’ environmental and health effects.
While 34% of customers prefer organic products, 44% buy them occasionally, with their choices differing from product to product.
4. 73.9% of UK households bought Colgate products in 2020.
Health and beauty industry statistics for the UK show Colgate was the brand with the highest penetration rate in the country and the world last year. It was followed by Nivea at 61.4%, and Dove, with 57.6% of UK households.
5. The most popular health and beauty brand in the UK is Dettol.
Beauty industry statistics for 2021 show in the UK, the hygiene brand Dettol is the most popular choice, with 84% of respondents having a favourable opinion of its products. Oral-B, Colgate, and Boots are also among the most commonly chosen brands.
Global Beauty Industry Statistics for 2021
6. The 2021 global beauty industry market size is $603 billion.
The cosmetics market remains strong even in times of recession. In 2018, the beauty industry’s worth was $507.8 billion, and in 2025, it’s projected to grow to a staggering $758.4 billion.
7. The global cosmetics market decreased by 8% in 2020.
Cosmetic industry growth was consistent for five years before it plunged by 8% in 2020. The effect of the pandemic was felt differently across various product categories. The skincare market held up best, with a less pronounced loss of 3%.
8. Ecommerce accounted for roughly 22% of the beauty market sales in 2020.
The share of ecommerce in beauty sales rose from 14% in 2019 to 22% in 2020. Beauty industry statistics show that online sales increased by around 40% globally last year due to the pandemic. According to the latest ecommerce data, there is a rise in all industries.
9. The global fragrance industry will be worth $46.5 billion in 2021.
(Statista, The MBS Group)
Perfume industry statistics show that the fragrance market is constantly growing. In 2020, its worth was estimated at $45.2 billion. The sector also includes deodorant and other fragrances.
10. Prestige beauty sales rose by 33% in the first quarter of 2021 compared to the same period in 2020.
Prestige beauty sales in the UK fell by 24% last year due to lockdowns. Physical stores showed a drastic drop in revenue, and the makeup sector got hit the hardest due to mask mandates.
However, beauty industry growth looks better in 2021 as brick-and-mortar store sales are rising by a modest, yet positive, 3%. Because of the increasing need for self-care in times of crisis, luxury shopping has evolved.
Hair Care Industry Statistics
11. The global hair care market is worth $77.15 billion in 2021.
(Fortune Business Insights, Statista)
In 2020, the hair care market was estimated at $75.06 billion. Although it experienced a 4.6% dip that year, it’s expected to reach $112.97 billion by 2028. When it comes to Europe, cosmetics industry statistics evaluated its hair care market at $27.09 billion.
12. The global shampoo market was worth $35.1 billion in 2020.
(MarketWatch, Grand View Research)
The market is expected to grow at a CAGR of 1.6% by 2027 and reach $39.2 billion. The global improvement in living conditions will drive the demand for the product in general. Similarly, the solid shampoo will become more popular due to its reduced environmental impact.
13. The dry shampoo market was estimated at about $2.3 billion in 2020.
Dry shampoo is increasing in popularity due to people’s lifestyles becoming more hectic and the rising demand for waterless products. Consequently, the market is estimated to reach $3.5 billion by 2027.
14. Hair colour industry statistics show that colourants make up 19.94% of the hair care industry.
(Fortune Business Insights, Mordor Intelligence)
After shampoo, hair dyes are the next largest segment in the hair care industry. As more young people dye their hair, the global market is expected to keep growing. In Europe, the industry is projected to expand at a 4.1% rate, as almost 70% of women and 10% of men use such products.
Skincare Industry Statistics
15. Skincare products accounted for 42% of the cosmetic market in 2020.
Skincare products have the largest market share of all beauty industry segments. It’s followed by hair care at 22% and makeup at 16%. Hygiene and fragrances come next, with equal shares of 10%.
16. The global skincare market size is estimated at $155.8 billion in 2021.
Skincare market statistics show that the market is expected to grow, especially as more and more younger consumers use such products. In 2022, the industry is expected to reach $163.5 billion. It will further focus more on natural products, and the projected number for 2025 is $189.3 billion.
17. In 2020, the largest global skincare market was the US.
Last year, the US brought in $17.5 billion in revenue, accounting for 24% of the world’s skincare market. It was closely followed by Japan, with $17 billion. China came in third with $14.1 billion.
Makeup Industry Statistics
18. The global makeup market was estimated at $42.7 billion in 2020.
As the makeup industry recovers after the pandemic in 2021, it’s expected to keep growing by 2026. A beauty industry report states that foundation is the most popular product.
19. Makeup sales fell by 40% in 2020 compared to 2019.
Makeup sales statistics portray a sharp drop in 2020. For example, lip makeup sales fell by a dramatic 50%. Shoppers had fewer reasons to purchase such products, with stay-at-home orders and focusing on skincare rather than makeup.
20. Lipstick sales in 2021 are up 80% compared to the same period in 2020.
While eye cosmetics sales increased by 150% in February 2020, lip makeup dropped in response to mask-wearing. However, cosmetic industry statistics show that in 2021, it began recovering. Still, if another Covid-19 wave hits in 2021, the makeup market could drop again by between 20% and 30%.
21. Sales of makeup products returned to 78% of their 2019 levels in May 2021.
In 2020, 60% of makeup users said they were wearing less makeup than before the pandemic. As the situation gradually improved, the makeup market recovered in 2021. Now, 61% of consumers say they would return to their pre-pandemic makeup-wearing habits once the crisis is over.
Beauty Advertising Statistics
22. The beauty industry’s digital advertising spending increased by 2.8% in 2020.
On average, beauty brands spent 34.1% of their budgets on digital advertising in 2020. That is significantly less than the 53.1% typical for the market in general. Beauty brands spent 42.2% of their budgets on television advertising or 1.6 times more than brands in general.
A beauty industry analysis reports that 18.3% of advertising budgets went to magazines, which is 4.3 times more compared to other brands. All in all, beauty brands are expected to speed up their implementation of digital advertising. In 2020, they made a notable 2.8% step towards this goal.
23. In 2021, the beauty and personal luxury industry would spend around $7.5 billion on advertising.
Compared to the previous year, the beauty industry will spend slightly more on advertising in 2021. It is expected to invest even more in 2022 and reach $7.7 billion in marketing spending.
New Trends in the Cosmetic Industry
24. In 2020, the most popular brands in Europe were Nivea, Colgate, and Dove.
Consumer reach points determine the number of households that bought the product and the frequency of purchase. Health and beauty industry statistics show that Nivea is immensely popular among European consumers.
Last year, the German brand reached 546 million consumers. Colgate follows with 465 million and Dove, with 305 million.
25. 51% of the beauty brands will implement digital strategies to adapt to the new ‘phygital’ reality.
(Euromonitor, L’Oreal, Olay)
The most frequently mentioned technical innovation is the virtual try-on. The pandemic encouraged retailers to introduce it, and 20% of US retailers currently wish to implement it. Before the pandemic, only 8% of retailers said the same.
Another example of beauty industry business trends we can expect soon is Olay’s Skin Advisor App. The AI-powered app helps consumers understand their skin type and potential problem areas and suggests solutions.
26. Consumers increasingly seek out sustainable beauty products.
This is true across all generations, but more so among the younger consumer bases. A noteworthy 86% of Gen Z and 80% of Millennials list sustainability as a significant shopping factor.
27. Globally, waterless cosmetics sales are expected to grow at a 13.3% rate between 2021 and 2031.
(Future Market Insights)
Hair and beauty industry statistics for the UK show that waterless cosmetics are here to stay. The sales of products, such as shampoo bars and balms, are expected to grow at a 4.6% rate. The appeal of waterless cosmetics is that they’re more concentrated, last longer, and often don’t require plastic or any packaging at all.
28. 45% of consumers find new beauty purchase inspiration on social media.
The younger the base, the more influential social media becomes. 52% of Millennials and 63% of Gen Z use social media to discover new products. Beauty industry statistics show 56% of consumers say the influencers they follow affect their choice.
The presence of beauty brands on social media is essential. For example, people in the UK spend around 53 minutes a day just on Instagram.
29. Yuya is the most popular beauty content creator on YouTube, with 24.8 million subscribers.
Just in 2018, beauty content on YouTube had a mesmerising 169 billion views. Social media is proving to be essential and not only for marketing purposes. Beauty tutorials and live streaming played a decisive role in preserving the beauty industry during the pandemic.
For example, 70% of millennials watched an online tutorial last year, paving the way for social commerce to rule the beauty industry’s future.
The beauty industry suffered a drastic revenue loss in 2020. Still, it has shown signs of recovery since followed by a wave of innovation that had to be implemented overnight. Beauty industry statistics in 2021 illustrate just how much the industry has changed in the last year.
Social commerce is already indispensable, and beauty brands embrace AI, virtual try-on, and ecommerce more than ever. At the same time, environmental concerns are driving new trends, and the industry is trying to adapt to a new reality that is more digital, more sustainable and more transparent.
How much is the beauty industry worth in the UK?
While different sources estimate the size of the UK beauty industry differently, European Cosmetic, Toiletry and Perfumery Data puts it at €9.8 billion.
How much is the beauty industry worth worldwide in 2021?
In 2021, the global beauty industry market size is expected to reach $603 billion. Similarly, by 2025, it’s projected to grow to $758.4 billion.
How much did the beauty industry make in 2020?
According to estimates, the beauty industry made $569.4 billion in 2020.
How much money does the beauty industry spend on advertising?
According to beauty industry statistics, the industry will spend $7.5 billion on advertising in 2021 and around $200 million more in 2022.
- Business Wire
- Fortune Business Insights
- Future Market Insights
- Grand View Research
- The MBS Group
- Mordor Intelligence
- Mordor Intelligence
- Premium Beauty News
- Brand Equity