According to the US Beauty Consumer Study, the cosmetics and beauty industry grew at the quickest rate in the US last year, with $94.36 billion spent by consumers.
As per another data, the global cosmetics market was estimated to be worth over $262 billion in 2022 and is expected to expand at a CAGR of 4.2% by 2030. People’s increasing demand for sustainable products, innovation and new formulations and packaging, and ever-evolving beauty trends are all contributing to the market’s positive growth. There are several other factors driving this growth. A few of them include:
- The lipstick effect: Consumers are actively spending on beauty even while they cut back on other areas because it’s seen as an affordable luxury. The lipstick effect has happened in previous recessions, but this time it’s intensified by a persistent tendency brought on by the latest COVID pandemic, which has increased focus on wellness and self-care.
- Increment in Social Media Beauty Community: The increasing impact and discussion of beauty on social media has led to beauty awareness becoming much more common, particularly among younger consumers. Compared to other generations at those ages, Gen Z and even Gen Alpha have a far more nuanced understanding of beauty.
- Digital Impact: Consumers are willing to purchase things online without testing them in-store based on recommendations from creators and influencers. According to The Beauty Path to Purchase study, an eMarketer survey found that nearly half (48.0%) of US beauty shoppers bought new items based on online reviews from other people.
- Experiments Driven by Product Dupes: Due to the emergence of dupes and businesses that specialize in more reasonably priced replicas of high-end goods, consumers are not only spending more money but also experimenting with other brands and product categories. Starting with a dupe and working their way up to the most costly—and genuine—option of the goods is also boosting the growth in the cosmetic business.
- The Millennials Effect: The millennial generation is at that sweet spot of beauty and having more discretionary income than younger demographics. In their lifestyle, there’s a strong connection between beauty and real-world experiences like travel and dining, and they’re also going out a lot.”
So these are the latest trends making 2026 a prime year of cosmetic business growth. It is a perfect time to launch your own cosmetic business. Whether you want to launch a physical store, create a business website, or provide mobile beauty services. The next section will provide you with a thorough guide for starting a cosmetic business and provide the groundwork for sustained success.
3 Steps for Starting a Cosmetics Business
These are the five basic steps to launching a profitable cosmetics company.
Step 1: Determine Your Position in the Market
Because the cosmetics industry is so diverse, it’s critical to identify your niche. Start by asking yourself what you value in a brand. Is there a market segment of customers who struggle to locate high-quality cosmetics? What are the latest trends in the market? What is the current market gap? Answering these types of questions can give you valuable insights into how you should start your business.
Step 2: Make a Stand Out Brand
There’s lots of competition in the cosmetics and skincare market, but don’t let that discourage you. Start by creating two lists: one for the things that existing brands are already doing well, and another for any gaps in the market and how your brand can fill them.
Step 3: Select Your Suppliers and Business Plan
Next, you need to be smart in choosing a reputable manufacturer for your skin care or cosmetics. White-label or private-label cosmetic companies manufacture and sell stock cosmetics based on their own formulas, or can produce custom blends based on your requirements.
Another option is to make your own cosmetics or beauty products to market. For this, you need to find a manufacturer with all the required tools and machines. Next, start looking for a company to print your cosmetics packaging and labels.
These are the three easy steps to starting a cosmetic business. With the right planning and approach, you can ensure continuous growth in your new beauty business. Just stay consistent and keep working for them!
