AI in Beauty and Cosmetics Global Market Report 2024

The AI in beauty and cosmetics market size has grown exponentially in recent years. It will grow from $3.27 billion in 2023 to $3.97 billion in 2024 at a compound annual growth rate (CAGR) of 21.5%. The growth observed in the historical period can be attributed to personalized beauty recommendations, skin analysis and diagnostics, virtual makeup artists, the influence of social media, and efforts to enhance customer engagement in the beauty industry.

The AI in beauty and cosmetics market size is expected to see rapid growth in the next few years. It will grow to $8.1 billion in 2028 at a compound annual growth rate (CAGR) of 19.5%. The anticipated growth in the forecast period can be attributed to the integration of AI in product formulation, AI-generated content creation, the use of AI in augmented reality (AR) shopping experiences, the adoption of smart beauty devices, data-driven personalization strategies, and the application of AI in sustainability practices within the beauty industry. Major trends expected in the forecast period include the advancement of color matching technologies, the implementation of virtual try-on technologies, personalized beauty recommendations driven by AI, the utilization of chatbots for customer support, and the creation of AR-based beauty content.

The surging demand for personalized beauty and cosmetic products is anticipated to drive the advancement of AI in the beauty and cosmetics sector. These customized products cater specifically to individual customers' unique preferences, encompassing ingredients, textures, fragrances, and packaging choices. AI plays a pivotal role in shaping personalized beauty experiences by harnessing data analysis, image recognition, formulation optimization, and virtual try-on technologies. For instance, statistics from Euromonitor International 2023, featured on the official website of the International Trade Administration, U.S. Department of Commerce, highlighted that China's beauty and personal care sales surged to $88 billion in 2021, reflecting a substantial 10% growth from the preceding year. Consequently, the escalating demand for personalized beauty and cosmetic products serves as a driving force propelling the integration of AI within the beauty and cosmetics market.

The burgeoning popularity of social media is poised to drive the expansion of AI in the beauty and cosmetics industry. Social media platforms, comprising online networks and websites facilitating content creation, sharing, and virtual social interactions, serve as fertile ground for AI integration within the beauty and cosmetics sphere. AI applications in this domain leverage social media for personalized product recommendations, virtual try-ons, and heightened customer engagement strategies. For example, as reported by DataReportal, a Singapore-based online reference library, global social media users reached 4.62 billion in January 2022, marking a noticeable surge from 4.19 billion in January 2021. Consequently, the escalating prevalence of social media platforms stands as a significant driver propelling the integration of AI technologies within the beauty and cosmetics market.

Technological advancements stand as a prominent trend gaining traction in the AI for beauty and cosmetics market. Companies within this domain are actively embracing new technologies to fortify their standing in the market. For example, in January 2023, The Estée Lauder Companies, Inc., a leading US-based manufacturer and marketer of makeup, skincare, fragrances, and hair care products, unveiled the Voice-Enabled Makeup Assistant (VMA) application. The VMA leverages voice teaching technology to assist users in their makeup application process, offering audio guidance and tips for achieving even application of lipstick, eyeshadow, or foundation. Employing artificial intelligence, the ELC VMA detects makeup on the user's face, estimating uniformity, application thresholds, and coverage. It identifies areas requiring more precise application and provides prompts for touch-ups to achieve optimal results.

Major players in the AI in beauty and cosmetics industry are heavily invested in the development of AI-powered technologies, specifically virtual try-on technology, to enhance the beauty shopping experience and bolster profitability within the market. Virtual try-on technology relies on augmented reality (AR) to digitally replicate the appearance of products, enabling users to virtually preview and experience them before making a purchase. For example, in December 2021, Nykaa, an e-commerce beauty company based in India, partnered with L'Oreal, a renowned cosmetics company based in France, to introduce ModiFace, an AI-powered virtual try-on technology. Accessible through Nykaa's website and mobile app, this technology delivers photo-realistic results and precise shade calibration, catering to makeup enthusiasts. Utilizing an advanced face tracker algorithm, it employs Augmented Reality (AR) to seamlessly simulate each shade in real-time, providing an authentic representation of the products based on AI analysis sourced from makeup brands and social media data.

In April 2021, Givaudan, a Switzerland-based manufacturer specializing in flavorings, perfumes, and active cosmetic components, completed the acquisition of Myrissi for an undisclosed amount. This strategic move enhances and diversifies Givaudan's portfolio, offering customers innovative ways to evoke scents in their products, aiding consumers in finding the ideal fit for their preferences. Myrissi, a France-based company, brings expertise in an intelligent sensory translator focused on creating aromatic products within the AI-driven beauty and cosmetics market.

Major companies operating in the AI in beauty and cosmetics market report are Procter & Gamble Company, Pure & Mine, L'Oréal S.A., Sephora Inc., Beiersdorf AG, Shiseido Co. Ltd., InsightAce Analytic, Elizabeth Arden Inc., OpenAI LP, GAN-powered solution, Anokai, EpigenCare Inc., Novi, Perfect Corp., ChatGPT, Lottie London, Banuba Inc., Luna Fofo, Revieve, Ciaté London, mySKIN, Haut.AI, YOU’R Personalized Skincare, My Beauty Matches, Youth Laboratories, Brand Agency London, Econsultancy, Opte Wand, Perso Limited,


North America was the largest region in the AI in beauty and cosmetics market in 2023. The regions covered in the AI in beauty and cosmetics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the AI in beauty and cosmetics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary categories within the AI in beauty and cosmetics market include personalized recommendation tools, performance marketing measurement platforms, demand forecasting and supply chain tools, real-time customer service platforms, and AI-powered beauty devices. Personalized recommendation tools encompass software systems or algorithms analyzing user data to offer tailored suggestions based on individual preferences, behaviors, and choices. These tools find distribution through various channels such as specialist retail stores, supermarkets, online retail, and others, catering to skincare, haircare, makeup, fragrances, and related segments.

The AI in beauty and cosmetics market research report is one of a series of new reports that provides AI in beauty and cosmetics market statistics, including the AI in beauty and cosmetics industry global market size, regional shares, competitors with an AI in beauty and cosmetics market share, detailed AI in beauty and cosmetics market segments, market trends, and opportunities, and any further data you may need to thrive in the AI in beauty and cosmetics industry. This AI in beauty and cosmetics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The Artificial intelligence in the beauty and cosmetics market includes revenues earned by entities through personalized product suggestions, skin analysis chatbots, smart mirrors, and virtual assistants. 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. Artificial intelligence in the beauty and cosmetics market also includes sales of smart skincare devices, smart mirrors, smart makeup tools, smart hair tools, and custom fragrance creation. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.