NEWS > 06 May 2021
North America is a key player for the development of the international cosmetics industry, with a turnover of $101 billion in 2019. The pandemic has certainly harmed the region, causing revenue to drop 2.5% at the close of 2020. However, recent analysis by Euromonitor International, international market trends and research company, has noted early signs of recovery: by the end of 2022, the sector will once again be worth close to $99 billion.
The powerhouse in North America is the USA. The world's number one market in terms of cosmetic product consumption was worth $93.2 billion at the end of 2019 and had averaged nearly 3% annual growth since 2016. The United States have paid a high price in the health emergency. The lockdowns of the past few months, as well as social distancing and other restrictions, have hampered the beauty sector – one of the worst hit last year, with a 2.5% drop in revenue compared to 2019. According to analysts at Euromonitor International, at the close of 2021 the sector will still see a 0.5% reduction, but the trend will be inverted in 2022 (+0.5%), reaching a market size of nearly $91 billion.
The US plays a crucial role in the dynamics of the cosmetics industry. On the one hand, it is a key recipient of global exports: premium products are imported from Canada and from Europe, especially France and Italy, while China and Mexico are the main suppliers for the mass market categories. On the other, the US is the birthplace of innovative trends: the East Coast has over time become the home of the most influential Indie Brands, a source of cutting edge research and new solutions for the industry. The US is therefore a strategic market for full-service suppliers as well as for distributors and trend scouts searching for the most original solutions.
Market development continues to be driven by the constant growth of e-commerce, which has compensated retail hardship since the start of 2020. Several start-ups and brands in the United States have benefitted from the growth of online sales, making skillful use of artificial intelligence, augmented reality, and virtual reality to launch services and solutions that respond to consumer demand for personalization, safety and transparency. Digitalization is also simplifying the sustainable evolution of the US cosmetics industry, especially the search for new materials, recycling systems and solutions that improve the management of environmental resources.
The rebirth of the sector in the United States is also deeply tied to movements for the advancement of inclusivity and diversity in American society. The topic is particularly relevant for consumers in the US and has focused increasing attention on trends like black beauty and genderless beauty. “The cosmetics industry is experiencing a radical transformation in terms of how beauty is represented,” notes Kayla Villena, Beauty and Fashion Consultant for Euromonitor International, “The protests that started after George Floyd and other African Americans were killed by the police have had a powerful impact: what was initially a debate about policing has grown into deep thinking about the principles of workplace equality, the historical effects of slavery, and diversity and inclusivity in cosmetics. The renewed attention on racial matters has had a domino effect, resulting in a negative perception of products for whitening the skin, for example, and there is increased interest in knowing the percentage of Black, Indigenous and People of Color (BIPOC) who have decision-making roles in a company. BIPOC brands are in the spotlight, as are the needs of non-Caucasian consumers. Today, users in the United States expect companies to take stand on matters of social and racial equality. They expect a transparent, consistent approach rather than a statement posted through social media every now and then.”
When learning about the evolution of the US market, and other markets in North and Central America, Cosmoprof North America is the go-to B2B event for buyers, distributors and operators thinking about doing business in the region. The in-person fair will be held in Las Vegas, from 29 to 31 August 2021: for further information click HERE.
As we wait for the real-life event in Las Vegas, if you are interested in learning about trends, changes and opportunities in the North American market, sign up for WeCosmoprof International, Cosmoprof's digital event!
Get in touch with the top players and with the Indie Brands in the region, to give your business a new boost.