2018 Beauty and Skincare Benchmark Report - WhatCounts.pdf...

2018
Beauty & Skincare
Benchmark Report

2 | WhatCounts.com
Beauty and Skincare Marketers
Who Are Winning in the Industry
Are Creating Personalized Experiences for
Their Customers
The global cosmetics market was valued at $532.43 billion in 2017 and is expected
to reach a market value of $805.61 billion by 2023, with a compound annual
growth rate (CAGR) of 7.14% from 2018-2023
1
. In the United States, the prestige
beauty industry reached $17.7 billion in 2017, a 6% increase from 2016. Sales grew
9% in the skincare industry and contributed 45% of the industry’s total gains.
Makeup followed with a 6% increase and fragrance closed the year up 4% 2 .
The beauty and skincare industry has always been slightly impervious to
downward trends in the market that impact many of the other retail industries.
After all, people rely on these retailers to keep them looking their best. With the
advent of social media influencers, beauty vloggers, and the likes, the beauty
industry continues to grow at an impressive clip. Add to that the growing
category of men’s care which is showing sustained growth in the United
States, France, and China
3
, and you’ve got a relatively stable industry.
1.
2. -
2017-reports-the-npd-group/
3.

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However, the biggest industry shake-ups are coming from brands such as Sephora and ULTA stepping into a market that
used to be dominated by big box department stores.
While some department stores are working to build partnerships to boost sales and revenue, such as JCPenney and
Sephora, others aren’t adapting to the change as quickly and risk being left behind. More and more beauty stores are
embracing technology and making it even easier to purchase beauty and skincare products online rather than going into
the store. In fact, orders via smartphone increased to 1.53 billion in 2017 and are expected to continue to grow,
with skincare, hair care, and fragarances as the most sold products online
4
.
4.
US
81.1%
UK
5.4%
AU
5.4%
EU
8.1%
This Report Looks at Data for
Worldwide Beauty and Skincare
Brands That Are WhatCounts Clients.

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This Benchmark Report Looks at 6 Key Metrics
1 . Retention Rate
2 . Average Number of Purchases
3 . Percent Increase in Average Order Value (AOV) by Number of Purchases
4