Looking good: Product innovation and new markets will lead to industry growth

Over the past five years, expansive product selections and skilled staff have driven revenue for the Beauty, Cosmetics and Fragrance Stores industry. An increase in youth-targeted cosmetics, the expansion of male-specific products and the reformulation of antiaging staples have given specialty beauty stores a new array of items to offer customers. Over the next five years, per capita disposable income will continue to rise and industry revenue will similarly trend upward, as industry operators concurrently develop new, more ecofriendly products. However, competition from online retailers is anticipated to curb growth opportunities...read more.

Industry Statistics & Market Size
Revenue
$22bn
Annual Growth 12-17
4.9%
Forecast Growth 17-22
Profit
Employment
250,978
Businesses
109,674
What Our Customers Say

Industry Threats & Opportunities

  • Accelerated by economic growth, product innovation and market expansion, industry revenue is expected to increase
  • The industry has lost customers in recent years to low-priced retailers, such as drugstores
  • IBISWorld expects more shelves to be stocked with environmentally friendly products
  • Industry Report - Starting a New Business Chapter

    Barriers to entry for the Beauty, Cosmetics and Fragrance Stores industry are on the rise, as major players Sephora and Ulta continue to capture a growing share of the market. Moreover, capital costs may pose a barrier to some entrants, as new operators must secure the resources to rent a highly visible storefront and acquire a large selection of inventory.New operators need extensive advertising resources to compete against established players that already have successful brand names supported by promotional resources. Therefore, the ability to financially support intensive advertising and marketing strategies to psychologically influence potential customers is of strategic significance...purchase to read more.

    Additional Insights for the Beauty, Cosmetics & Fragrance Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Beauty, Cosmetics & Fragrance Stores Industry are

  • Ability to control stock on hand
  • Production of goods currently favored by the market
  • Having a clear market position
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Number of adults aged 20 to 64 in the Beauty, Cosmetics & Fragrance Stores industry impact industry performance..

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    What is the Beauty, Cosmetics & Fragrance Stores Industry?

    This industry comprises stores that primarily retail cosmetics, perfumes, toiletries and personal grooming products. Establishments include beauty supply stores, specialty cosmetics stores and fragrance stores.

    Industry Products
  • Hair care products
  • Skincare products
  • Cosmetics
  • Nail products, deodorants and other products
  • Fragrances
  • Industry Activities
  • Retailing cosmetics
  • Retailing perfumes
  • Retailing toiletries
  • Retailing personal grooming products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Number of adults aged 20 to 64
  • commerce sales
  • Trade-weighted index

  • Current Performance
  • Upgrading product portfolios
  • Shifting competitive landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Expanding opportunities
  • Challenges emerge
  • Table: Beauty, Cosmetics & Fragrance Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Beauty, Cosmetics & Fragrance Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Cosmetic & Beauty Products Manufacturing
  • Drug, Cosmetic & Toiletry Wholesaling
  • Soap & Cleaning Compound Manufacturing

  • Products & Services
  • Skincare products
  • Hair care products
  • Nail products, deodorants and other products
  • Cosmetics
  • Fragrances
  • Chart: Beauty, Cosmetics & Fragrance Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest income quintile
  • Fourth income quintile
  • Third income quintile
  • Second income quintile
  • Lowest income quintile
  • Chart: Major Market Segmentation for the Beauty, Cosmetics & Fragrance Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesMarketing and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Beauty, Cosmetics & Fragrance Stores

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Beauty, Cosmetics & Fragrance Stores Industry

  • Industry Globalization
    Ulta Beauty Inc.L Brands Inc.SephoraSally Beauty Holdings Inc.
  • Table: Ulta Beauty Inc. - financial performance
  • Table: L Brands Inc. - financial performance
  • Table: Sephora - financial performance
  • Table: Sally Beauty Holdings Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Beauty, Cosmetics & Fragrance Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Beauty, Cosmetics & Fragrance Stores Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per Capita Disposable Income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Brick-And-Mortar
  • A store that has a physical location, as opposed to an online retailer.
  • Cosmetic
  • A powder, lotion, lipstick or other preparation for beautifying the face, skin, hair or nails.
  • E-Tailer
  • A retailer that primarily sells goods and services via the internet. Many of these companies do not have brick-and-mortar locations.
  • Nutri-Cosmetic
  • A nutritional supplement that supports the function and appearance of the skin.
  • Organic
  • A cosmetic made from mineral and plant ingredients rather than derived chemical compounds.
  • Why buy this report?

    IBISWorld’s industry research report on Beauty, Cosmetics & Fragrance Stores can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Beauty, Cosmetics & Fragrance Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Beauty, Cosmetics & Fragrance Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Beauty, Cosmetics & Fragrance Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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