The United States is one of the countries at the forefront of cosmetic products innovation, entrepreneurship, and regulation. Boosted by makeup and premium offerings from some of the best makeup brands in the US market, the country’s beauty industry is growing at an unprecedented rate. Indeed, the cosmetic industry is rapidly evolving with the constant shifts in trends and the wave of mergers and acquisitions (M&A) which shows no signs of slowing down in the near future.
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The US Cosmetics Industry Revenue
We are entering an exciting era in which the American cosmetics industry is staking its claim and thriving as more and more cosmetic brands are manufacturing beauty products to fit the unique needs of multicultural consumers. In 2017, the U.S. was considered one of the most valuable regions for the beauty and personal care industry in the world with a market contribution of more than 16 percent. The latest market report by Technavio shows that the color cosmetics market in the US will earn a revenue of nearly US$15 billion by 2022, at a CAGR of more than 4 percent from 2018 to 2022.
A surge of existing vendors and newcomers are making themselves recognized as top contenders in the beauty industry. By driving innovation, disrupting the traditional way of doing business, delivering cutting-edge formulas and establishing devoted fan bases, the evolution of American beauty brands is poised to spur lasting change around the globe.
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The Best Makeup Brands in the US
Having recently completed the acquisition of P&G’s beauty business, which doubled the firm’s annual revenue, Coty has become a global leader in color cosmetics, fragrances, and professional hair care and styling. With this merger, Coty has brought together a strong portfolio of much-recognized cosmetic brands and some of the world’s most capable people in beauty and consumer goods, making Coty one of the best makeup brands in the USA. Coty is now arranged by division: Coty Professional Beauty, Coty Luxury, and Coty Consumer Beauty. Within each of these divisions, the firm is focusing on a mix of categories, brands, and channels.
Since being founded in 1946, Estee Lauder has risen to immense prominence in the global beauty market, most importantly in the US market. In 2016, Estee Lauder was one of the largest beauty manufacturers with more than 11.4 billion dollars in revenue. Skincare and makeup are the company’s two largest product categories. Although the makeup market is highly competitive with new brands entering the space every few months, it is a sign of Estee Lauder’s power that?it still holds a major?share of the US makeup products market, making it one of the best makeup brands in the US.
L’Oréal is one of the largest cosmetic companies in the world?with a portfolio of brands that covers all the lines of cosmetics. The Paris-based conglomerate responds to the diverse needs of customers around the world and has developed some of the best makeup products. Under the L’Oréal umbrella, there’s a bevy of popular Parisian hair care, skincare, and makeup brands such as Kérastase, Lanc?me, and La Roche-Posay. Further, L’Oréal’s big-ticket acquisitions of companies like NYX Cosmetics are ensuring that the company grows inorganically and maintains a top position in the makeup brands list.
LVMH (Louis Vuitton Mo?t Hennessy) is one of the world’s largest luxury goods companies. It makes cosmetics (Nude, Fresh, and?Benefit), perfumes (Guerlain, Christian Dior, and Givenchy), watches and jewelry (Bulgari, TAG Heuer), and leather goods (Givenchy, Kenzo, Donna Karan, and Louis Vuitton). LVMH’s retail division includes Le Bon Marché Paris department stores and Sephora cosmetics stores.
Avon is one of the oldest cosmetic brands in the US, having grown from a modest line of fragrances sold house-to-house to one of the world’s leading makeup brands. It manufactures and sells a wide range of apparel, accessories, fragrances, toiletries, decorative home furnishings, and cosmetics under brand names such as Avon True Color, Skin So Soft, ANEW, and Espira. This social selling beauty company utilizes direct selling, with sales representatives across Canada, the United States, and Puerto Rico. New Avon is a separate brand from Avon Products, Inc., and operates in the rest of the world.
Ulta Beauty, a salon chain and specialty beauty retailer carrying over 500 brands, has surpassed its competitors in the past two years to become one of the nation’s largest beauty retailers. The chain has consistently achieved strong?sales growth, opening more than 200 new stores, even when other retailers are closing doors amid the significant rise of online shopping. Ulta’s engaging in-store experience is a major contributor to the company’s revenue boost in the past few years.
Revlon is one of the leaders in the United States mass-market cosmetics business. Aside from its beauty tools and makeup brands like Almay, the company manufactures and sells Mitchum antiperspirants and deodorants, Revlon ColorSilk hair color, Ultima II and Gatineau skincare products, and Charlie and Jean Naté fragrances. The current Revlon’s board of directors has sold off several poor performing product lines and returned the firm to its core brands. Revlon launched a new prestige cosmetic brand this year – Flesh, which features over 40 shades of foundation in stick packaging.
Glossier is one of the best makeup brands in the US, and goes against the proverbial grain of the cosmetic business. The company has been clear in its approach to snub the beauty industry’s fictitious glamour story and marketing of a sense of sincerity and belonging. The company spawned in 2014 through the exceptional popularity of Weiss’s beauty blog ‘Into the Gloss,’ and since then it has been a favorite brand among millennials across the United States. The company tailors its packaging and enhances the in-store experience in a constant manner to satisfy its customers.
Shiseido is a?Japanese brand that has achieved a top position in the global beauty, cosmetics, and fashion landscape. The company utilized acquisitions as a primary medium to gain a foothold in the growing cosmetics markets of the United States and Europe. Another reason for Shiseido’s success has been its ability to span markets from the value segments to the premium segment by creating distinct brand identities for its product lines.
Chanel, a cosmetics and perfume company which began several years ago with a little fragrance called No. 5, has grown into one of the world’s leading high-end makeup brands. Chanel has a wide range of makeup products with seasonal launches and exclusive collections that come thick and fast. The skin care treatment and color cosmetics line of Chanel includes over 400 products today. It’s speculated that its cosmetics and perfume sales, mainly its No. 5 scent, is Chanel’s biggest business.
To browse more leading cosmetic brands in the US market, check our latest report on the?Color Cosmetics Market in the US 2018-2022
Cosmetics Market in the US: Future Trends
Many of the best makeup brands in the US are increasingly offering organic and natural cosmetics owing to the growing awareness of the health consequences of synthetic chemicals used in makeup products. Apart from that, the leading and most expensive makeup brands in the US are adopting augmented reality software that aid customers in identifying their most photogenic angles. The use of augmented reality facilitates the virtual application of cosmetics. In 2014, L’Oréal created its augmented reality app Makeup Genius, which allows the virtual application of cosmetics prior to selecting the final look.
These 10 best makeup brands in the world are likely to maintain their leadership in the global cosmetic market and generate higher revenues from targeted regions like the US thanks to their constant innovations, a growing number of M&As, and many other driving factors that are explained in detail in this report.
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Frequently Asked Questions?in the US Cosmetics Industry
- What is the current US cosmetics market size?
- What are the major challenges in the cosmetics market in the USA?
- Who are the major vendors in the cosmetic market?
- What are the cosmetics market trends?
- What are the factors influencing the market share of cosmetics industry in the USA?
Detailed answers can be found in the following report: