Hello beauty lovers! Are you looking to turn your passion, and love for beauty into a profitable business, are you looking to start your own beauty product business, but are confused about how to break into an overly saturated industry, and if it’s even worth exploring.
Today’s blog is going to answer all your questions regarding starting your own online beauty product business, and present to you expert insights, plus facts and figures to give you both sides of the equation of starting a business.
What is a Beauty Product Business?
A Beauty Product Business doesn’t mean a Cosmetic Business. The beauty industry has expanded far beyond beauty, covering skincare, body care, and hair care products instead of just face cosmetics.
A Beauty Product business is selling products related to beauty(like hairsprays, makeup palettes, perfumes, etc) on your own eCommerce website or on a shared eCommerce Website like Shopify, or platforms like Nykka.
If you don’t know whether to start your own website or take the help of other platforms, here’s what Taylor Volk has to say-
“Having your products spread out across multiple platforms is great, but you can never go wrong in having your own storefront.”
What do Statistics Say about starting a beauty product business?
If you’re anything like a rational customer, then you might need a little persuasion from our side. Let’s take a look at all the latest statistics, and facts to see if it’s worth starting a beauty product business.
- The beauty industry makes over $100 billion in revenue worldwide, Statista
- L’Oréal is the leading beauty products business company with over $27 billion in global sales, Chemist’s Corner
- North Asia represents 35% of the global beauty market, L’Oréal
- 1 in 5 women changed their skincare routine because of the COVID-19 pandemic, NPD
- American women spend an average of $3,756 per year on beauty products, Groupon
- The men’s skincare market is projected to hit $276.9 billion by 2030, Allied Market Research
- The skincare industry is worth an estimated $163.5 billion globally, Statista
- Skincare is the dominant segment of the beauty industry with 42% of the market share, Statista
These are some of the latest statistical figures for the Beauty Products Market. Now you must have a clear idea if it’s profitable or not.
But here’s our take on the profitability and scalability of the market.
Is the Cosmetics Business profitable?
The Cosmetics or beauty product business is on a boom right now. The industry saw a certain backlash in the 2020s but now it’s all ready to be back in form.
Here are what some experts have to say-
“The beauty industry is a very profitable industry as a whole. However, it is very competitive and you really need to niche down into a small segment to get started. With massive brands spending a lot of money on advertising, it’s important that you carve out your small segment in the market.” Catherine Wilson
According to Rohit Bimbra, CEO of Home Healthcare Shoppe, “There are many opportunities for profit in the beauty product business. The key is to find a niche market and develop a unique selling proposition. Beauty products that are natural, organic, or eco-friendly are in high demand. Products that offer innovative solutions to common problems are also popular. There is a lot of competition in the beauty product market, but there is also a lot of potential for profit.”
There you have your answer from us, as well as other established brands in the industry.
What Beauty Businesses Make the Most money?
There are many niches in the beauty business industry that are very less saturated, and easier to break into. We’ve compiled a list of the best beauty niches you can choose for your product business.
- Natural Skin Care Product Business
- Online Cosmetic Selling
- Skin Care Consulting
- Stretch Mark Removal
- Tan Removal Salon.
- Tattoo Parlor
- Wigs Making & Selling.
There are more than 100 niches you can choose from. Just make sure you select one that aligns with your business and passion.
“As more studies show that beauty products contain harmful ingredients, new beauty brands should focus on clean ingredients. They can also differentiate by focusing on sustainable packaging and practices, as well as efficacy. Many consumers are looking for beauty products with high performance.” Lelian
Top 10 Beauty Brand and Product Owners you can learn from.
Here’s a list of the 10 best beauty brands in 2022, and product owners whom you should follow for inspiration!
- Margarita Arriagada, founder and CEO of Valde Beauty
- Sharon Chuter, founder, creative director, and CEO of UOMA Beauty
- Alisia Ford, founder, and CEO of Glory Skincare
- Jenna Lyons, co-founder, and CEO of LoveSeen
- Bobbi Brown, founder of Jones Road Beauty
- Ron Robinson, founder, and CEO of BeautyStat
- Lesley Thornton, founder of Klur
- Simedar Jackson, founder of Skin Folks
- Dr. Robb Akridge, founder of Opulus Beauty Labs
- Amy Liu, Founder of Tower 28 Beauty
Trends Dominating the Beauty Business Industry in 2022
There are many trends that are dominating the beauty industry, but here are some trends and best practices that you should know before you start a beauty product business.
- The natural and Sustainable product market is growing with each passing day.
- As consumers are becoming more aware of the ingredients used in these makeup products,-products with essential oils and natural ingredients will be more preferred in the future.
- The Anti-ageing and Sun protection coverage market is about to boom.
- Brands need to include and present different varieties of their product to gain the trust of their customers.
“Natural products that actually work will continue to be a hot market. People are tired of looking at products that have 700 ingredients of pointless chemicals. Simplicity is the key and is the best option for long-term skin health”- Catherine Wilson, CEO of Essential Derma
How do Beauty Products Businesses leave a mark?
When asked by beauty experts, and brand owners, how to leave mark on the already saturated industry, they said-
“Brands can always do well and leave a mark in this industry, but the days of creating a product, listing it on Amazon, and selling thousands of units is no longer possible. Brands need to have a good understanding of their target customers in order to design products, craft messages that are relatable to their pain points, and solve specific problems. Customers always feel appreciated when they are getting a personalized experience, and that can only be done with a deep understanding of the target market.”- Duy Nguyen, Co-Founder of Nightingale
“Brands can leave a mark in the beauty product industry by developing unique selling propositions and offering innovative solutions to common problems.”- Rohit Bimbra, founder and CEO of Home Healthcare Shoppe
From these experts’ conversations, we’ve realized that finding a niche, and creating products that are natural and sustainable is the perfect way to leave an impact on your customers, and the industry.
Should you start your beauty product business on your website or in eCommerce Stores?
A very commonly asked question by beauty brand owners is whether they should start their own store by getting a domain, or get listed on platforms like Nykka or Etsy.
The experts at Jungleworks believe that you should start by doing both. As a newcomer in a saturated market, it’s important to get the most exposure that you can. POnce you’ve established yourself a little, and have a loyal customer base, you can move to your own eCommerce website, and start selling.
However, we got a mixed response from the experts we interviewed.
“Having your product’s spread out across multiple platforms is great, but you can never go wrong in having your own storefront”- TaylorVolk, Founder of lashfx
“Starting my own website has given me full control of my pricing, marketing, customer data, and processing speed. I definitely prefer having my own website. However, eCommerce sites are wonderful for bringing in a customer base from day 1. So it is worth exploring.”- Leila Noelliste, Founder of BGLH Marketplace
As you can see it’s probably worth exploring both, before settling down to one.
Liked what you just read? If you want more expert insights, tips, and strategies to grow your beauty product business, then consider booking a demo with our experts at Jungleworks.
Our Hyperlocal Stack will help you meet all your on-demand beauty business needs.
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