McKinsey has published a new analysis of the cosmetics sector and its distribution channels. The finding is that growth remains strong, but the competitive landscape is undergoing profound change.
The global beauty market is projected to grow by 5% annually through 2030, reaching $590 billion. Emerging markets, particularly Latin America and Southeast Asia, are driving this growth as consumers become more affluent. In Europe, price increases are slowing, and growth will rely more on volume.
Perfume is growing more steadily than other categories across all price points. It has now surpassed makeup to become the third-largest beauty category, behind skincare and hair care.
Another key trend: the beauty sector is expanding beyond its traditional boundaries. Purchases are extending into wellness categories (functional nutrition, sleep, dietary supplements) and medical and aesthetic services. At-home treatments are also on the rise, particularly LED masks and radiofrequency devices.
Another notable phenomenon: households using GLP-1-type weight-loss treatments spend 30% more on beauty products than others, particularly on treatments targeting facial volume loss or hair loss.
Social media and AI: new drivers of sales
E-commerce is expected to account for the majority of beauty sales growth by 2030, driven by social media sales and the emergence of AI-powered commerce.
AI-assisted shopping is still in its infancy. It could account for up to 35% of e-commerce transactions within three to …
