The U.S. beauty and personal care market topped $85 billion in 2021 (in retail sales prices), up $7 billion from 2019, according to Kline. This is the best performance in the past 10 years, but growth is expected to continue, with the research firm predicting CAGR  by 6% until 2026.
Fragrance and makeup boom
Some categories, such as perfumes and make-upare once again attracting interest from consumers and retailers, with soaring sales of these products fueling growth in the sector, explains Dana Kreutzer, Project Lead, Consumer Products, at Klinein a recent blog post.
” the makeupwhich jumped 12% in 2021, is moving towards hybrid experiences with skincare innovations becoming more mainstream Dana Kreuzer points out, citing recent launches such as Kosas’ Revealer Skin-Improving Foundation SPF 25, with brightening and plumping claims, and Chanel’s new Revitalizing Foundation N°1, with hydrating and plumping claims.
the scent recorded even higher activity last year, with a 25% increase within the luxury segment. The category has also seen an influx of male consumers.
According to Dana Kreutzer, the importance of makeup and fragrance is also supported by recent results from market leaders. Thus, make-up was one of the main contributors to L’Oréal’s sales growth in the first quarter of 2022, with the fragrance portfolio continuing to drive the performance of the Luxury division in North America.
Retailers invest in beauty
More generally, growth in sales of beauty products is driven by the return of consumers to the store. Based on traffic data from SafeGraph, Kline saw a 25% uptick in the first quarter from a year earlier and 14% from 2019 levels at retailers like Sephora, Ulta and Bath & Body Works. .
Against this backdrop, major retailers are transforming their beauty departments to retain shoppers. According to Kreutzer, mass market players like Target and Walmart are investing more in this segment by revamping their stores and partnering with specialty retailers, including Ulta (Target) and Space NK (Walmart).