The cosmetics & toiletries market displayed outstanding resilience during an unprecedented year. Despite a marginal drop in 2020 sales, the market grew at a compound annual growth rate (CAGR) of 3%, registering increases, just as it had done since 2015, according to our Cosmetics & Toiletries USA report.
Other toiletries and hair care were the only product classes to experience growth, while skin care and fragrances declined for the first time during the five-year historical period. Makeup was challenged even more as color cosmetics became a “can-wait” item.
Brands leaned heavily on digital strategies and new marketing tools, like TikTok, to engage with consumers and provide them with opportunities to purchase products. This propelled growth for the e-commerce channel, which experienced booming sales in 2020.
Key trends seen in previous years, like the move toward natural, clean, and sustainable products as well as wellness and self-care, have been amplified by consumers’ shifted values during the pandemic. What changes are likely to stay post-pandemic? How can beauty brands and retailers rejuvenate their strategy for continued growth?
This highlights report dives into:
- The current and future state of the U.S. beauty industry
- Shifts in product classes and retail channels
- E-commerce performance and new developments in brick-and-mortar
- Key trends that are likely to grow in importance
The insights and data in this highlights report represent select excerpts from our in-depth Cosmetics & Toiletries USA and Beauty Retailing USA reports, offering a 360-degree view of the industry’s performance, with forecasts to 2025.