The U.S. beauty market is expected to grow from today’s $80 billion to $90 billion in 2020, according to a report by Euromonitor International.
If the market grows in line with predictions, it will have expanded by 45 percent in 10 years. At this point, growth has been spurred by the luxury and makeup categories, with sales coming from BB and CC creams, lipsticks, premium skin care and mascara, according to the report.
The premium beauty category grew 7 percent for 2015, according to Euromonitor. In the category last year, premium foundation sales increased 14.2 percent, compared with just 3 percent in the prior-year period, while BB and CC creams grew 40 percent year-over-year. For the year, sales in the U.S. – about $14 billion – made up 25 percent of all global color cosmetics sales.
“The U.S. cosmetics market has shifted markedly to premium products, as consumers are now looking for higher quality products at a variety of price points,” said Euromonitor analyst Amanda Hartzmark. “Cosmetics manufacturers can capitalize on this trend by examining shifting consumer attitudes and considering the changes in the premium and mass markets.”
The report is a preview of findings that Euromonitor plans to present at In-Cosmetics North America, the first In-Cosmetics trade show to hit the U.S. The organization is partnering with the Independent Cosmetics Manufacturers and Distributors Association for the show, which is scheduled for Sept. 7-8 in New York at Pier 36. The trade show caters to international cosmetics and personal-care businesses. Attendees are expected to hear about consumer trends, attend formulation lab sessions and go to innovation seminars.
Hartzmark will be joined by other speakers, including Nikola Matic of Kline, who will talk about consumer beauty trends, and David Tyrrell of Mintel, who will discuss products. The show is scheduled for the same dates as MakeUp in New York, which is taking place at Center548. A shuttle will run between the two trade shows.