In this guide, we discuss the fundamentals that drive success in the global cosmetics industry. The global cosmetics industry has changed dramatically in the last decade thanks to the rise of social media and the demand for online beauty retailers. Consumers are buying beauty online at a rapid pace, with an annual sales growth of 11.5% in the US alone. On and offline, skincare remains the top beauty category globally, with a 36.4% market share, while China dominates the entire beauty eCommerce market, taking in an 18.1% share of all online cosmetics sales worldwide.
Born from the social media revolution, today’s beauty consumer is savvier than ever. They seek recommendations from trusted sources and rely on word of mouth to make purchase decisions, which has led to the decline of magazines and department stores. Instead, shoppers interact with influencers, intuitive mobile beauty apps, and perhaps most crucially: YouTube cosmetic reviews.