Beauty, beyond the key segments
Beauty continues to be an exciting and thriving category.
Beauty
continues to be an exciting and thriving category. McKinsey reports that the
sector will be worth $590 billion by 2030, considering the four main segments:
cosmetics, skincare, fragrances, and haircare, with a growth rate of 5% over
the next five years—a slightly lower rate than the 7% recorded between 2022 and
2024, a period that saw exponential growth in volumes and prices driven by
inflation. Overall, experts predict a positive trend in all major segments,
although skincare will account for 40% of the total value of the sector. Growth
will continue to shift online, with global e-commerce penetration exceeding 30%
by 2030, driven by a combination of pure plays, online retailers, and the
resurgence of marketplaces.
Geographically,
in addition to North America, eyes are also on India and the Middle East.
Africa and the Middle East, which each accounted for about 3% of global beauty
sales in 2024, are expected to grow at a rate of about 10%. In Latin America,
overall growth of 7% is expected, driven by both price and value. In Brazil,
there is a strong push for trade-up and experimentation in all categories and
price ranges, and live commerce is beginning to spread.
According
to experts, another interesting fact is the continued expansion of the beauty
sector into categories outside the four main ones. This means that, in addition
to the $590 billion generated by its core business, the beauty industry can
count on another $820 billion generated in categories related to the beauty
sector, such as aesthetic injectables, men's shaving, sun protection, bath
& shower, supplements, and spa services. Some of these are growing even
faster than the four main categories.
Men’s
interest in cosmetics and self-care continues to grow. This interest is driving
male shaving and sunscreen sales. The latter, which has surged in the last two
years, is expected to continue growing at an impressive rate of nearly 8%,
driven largely by innovation.
McKinsey
has identified five dynamics that are influencing the industry. The first
central theme is the fragmentation of consumer behavior and purchasing power
around the world. The second is the rediscovery of the importance of true
value. The third theme is what is referred to as “beyond the founder.” The
fourth theme, which we call “the marketing balancing act,” concerns the return
to brand-centric and originality-focused marketing. Finally, because beauty is
the darling of the consumer goods industry and everyone wants a piece of it,
channels are at a crossroads.
