Cosmetics Stores Market Report 2026

The cosmetics stores market size has grown strongly in recent years. It will grow from $117.36 billion in 2025 to $124.33 billion in 2026 at a compound annual growth rate (CAGR) of 5.9%. The growth in the historic period can be attributed to rising demand for skincare and haircare products, growth of specialty retail stores, increasing urbanization and disposable income, expansion of global beauty brands in emerging markets, rising awareness of personal grooming and appearance.

The cosmetics stores market size is expected to see strong growth in the next few years. It will grow to $160.29 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to growth of online beauty retail and direct-to-consumer channels, rising demand for clean and sustainable beauty products, adoption of ai and digital technologies in retail, expansion of premium and luxury beauty segments, increasing beauty personalization and customization services. Major trends in the forecast period include AI-powered personalized beauty solutions, eco-friendly and sustainable product offerings, e-commerce and omnichannel expansion, virtual try-on and ar-based customer experiences, smart inventory and automated store operations.

The growing demand for cosmetic products is expected to drive the growth of the cosmetic store market in the coming years. Cosmetic products are defined as any preparations intended for application to the skin and other body parts to enhance their appearance and appeal. This demand is primarily fueled by increased awareness of personal hygiene and skin health, a wide range of affordable and effective cosmetic offerings, and rising disposable incomes. Many consumers prefer purchasing cosmetic and beauty care items from cosmetic stores due to the availability of personalized products, enhanced in-store experiences, attractive discounts, and convenient product placement. For example, in December 2023, the Cosmetic Toiletry & Perfumery Association (CTPA), a UK-based trade association for the cosmetic and personal care industry, reported that the color cosmetics sector sold 118,178 units in 2022, which increased to 123,056 units in 2023, representing a growth of approximately 4.1%. Similarly, the skincare sector saw sales rise from 456,401 units in 2022 to 460,868 units in 2023, indicating a growth of around 1%. Thus, the increasing demand for cosmetic products is expected to fuel the growth of the cosmetic stores market.

Major players in the cosmetics stores market are strategically forging partnerships to widen their array of products and secure a competitive advantage. These collaborations among key industry participants serve to bolster their growth trajectory, amplify brand presence, and furnish consumers with a broader spectrum of products. These partnerships play a pivotal role in augmenting brand visibility, facilitating access to new customer segments, and facilitating market expansion into unexplored territories. For instance, in May 2023, Elizabeth Arden Inc., a US-based company specializing in cosmetics, skincare, and fragrances, joined forces with Obsess, a US-based experiential e-commerce platform, to unveil a virtual store. This virtual platform offers interactive features allowing users to engage in browsing, gaming, and shopping. Users can partake in games and quizzes to gain insights into skincare products, earn tokens while navigating the site for winning rewards, and immerse themselves in historical imagery depicting the company's journey and its founder. This augmented reality (AR) or virtual reality (VR) experience is designed to simulate an in-store browsing sensation for shoppers.

In November 2023, Aurelius Group, a Germany-based asset management company, acquired The Body Shop International Limited for an undisclosed amount. This acquisition aims to revitalize The Body Shop, improve operational efficiency, and leverage its iconic brand heritage to capitalize on favorable trends in the rapidly growing beauty market. The Body Shop International Limited is a UK-based company that offers cosmetic products through retail stores.

Major companies operating in the cosmetics stores market are Ulta Beauty Inc, Sephora USA Inc, Douglas GmbH, A S Watson Group, Boots UK Limited, Superdrug Stores plc, DM Drogerie Markt GmbH, Rossmann GmbH, Marionnaud Parfumeries, Sa Sa International Holdings Limited, Guardian Health and Beauty, Nykaa FSN E Commerce Ventures, Mecca Brands Pty Ltd, KIKO Milano, Rituals Cosmetics Enterprise BV, Lush Cosmetics, Bath and Body Works LLC, The Body Shop International Limited, Kiehl’s LLC, MAC Cosmetics, Inglot Cosmetics, Etude House, Innisfree, Kose Corporation Retail, Shu Uemura Cosmetics Inc, Kanebo Cosmetics Inc, SK II Brand Boutiques, Yves Rocher International.

North America was the largest region in the cosmetics stores market in 2025. Asia-Pacific is expected to be the fastest-growing region in the cosmetic stores market report during the forecast period. The regions covered in the cosmetics stores market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the cosmetics stores market report are Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.

The cosmetic stores market includes revenues earned by entities by providing various store services to the customers such as makeup training, makeovers, hair services, product customization, and testing of products. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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