With makeup and cosmetics ranking among the top beauty products consumers buy, it’s certainly one niche to consider if you’re thinking about starting an ecommerce business.

But before jumping into it, it would help to know a few facts about the global cosmetics industry. That begins with answering the question: How much is the cosmetics industry worth?

Start selling online now with Shopify

Start your free trial

Global cosmetics industry worth

According to the latest statistics, total revenues from the global cosmetics market are set to hit $93.8 billion in 2022. This represents a whopping 16.2% year-over-year increase, which is the biggest annual growth in at least 13 years.

Despite the surge, cosmetic products remain the third-biggest revenue-generating products in the global beauty market. Their overall contributions make up 17.6% of the beauty industry’s total revenues in 2022, behind personal care and skin care products, with 45.2% and 27.2% of the market share, respectively.

From 2014 to 2026, the global cosmetics market is set to follow a growth trend. With the exception of 2015 and 2020, it’s forecast to increase its revenues year after year. In 2015, the industry shrunk by 5.3% to $77.9 billion. It rebounded quickly and recorded positive growth rates for the next four years, before falling drastically by 19.5% in 2020 as a result of the COVID-19 pandemic. The $72.4 billion revenue recorded that year was also the lowest in the period from 2014 to 2026.

Analysts predict the cosmetics market will continue to register positive growth rates in the years to come. In 2023, it’s expected to increase its total revenues by 15.9%, to $108.7 billion. This will be the second-fastest annual growth rate in the period analyzed, and also the first time the cosmetics market’s total revenue is expected to surpass $100 billion. 

From then on, growth is set to continue but at a slower pace. Revenues are forecast to increase by 5.6% and 5.7% in 2024 and 2025, respectively. By 2026, the global cosmetics market is expected to hit $128.3 billion, making up 19.1% of the global beauty industry’s revenues. 

From 2014 to 2026, the global cosmetics market’s annual revenues increased by $46.1 billion, or 56%, with an average annual growth rate of four percent.

Start selling online now with Shopify

Start your free trial

Want to learn more?