Diversifying the beauty market

After weathering the COVID-19 pandemic and a turbulent macroeconomic environment, the market for beauty products is projected to grow by 6 percent a year to reach approximately $580 billion by 2027. But senior partners Achim Berg and Kristi Klitsch Weaver find that while brands have long focused on the top two markets—China and the United States—they should now be prepared to diversify geographically to other countries and regions, including the Middle East and India, which offer distinct potential for specific categories and price tiers.

Asia and North America are forecast to stay the two biggest beauty markets.

Image description:

A segmented bar graph shows the actual and projected growth in global beauty market retail sales from 2015–27, by geographic region, in billions of dollars. In 2015, the global market size was approximately $300 billion, and by 2027 it is projected to be close to $600 billion. Asia–Pacific, North America, China, and Western Europe represent nearly 80% of the projected 2027 beauty market, with Latin America, Africa and the Middle East, Eastern Europe, and Australasia each projected to gain a smaller market share. Asia and North America are forecast to remain the 2 largest beauty markets globally.

Footnote: Asia–Pacific excludes Australia, China, and New Zealand.

Source: Euromonitor; McKinsey analysis; McKinsey Global Institute analysis.

End of image description.

To read the article, see “The beauty market in 2023: A special State of Fashion report,” May 22, 2023.