The cosmetics industry covers a range of sectors from makeup and skincare to fragrances and hair care to cater to the diverse requirements of Canadian consumers. The cosmetics industry in Canada has grown in recent years, despite sales falling during the COVID-19 pandemic.
In this article, we look at the recent statistics on the Canadian cosmetics industry, including market size, spending on beauty products in Canada, and online sales among other data. We have also included key global cosmetics industry statistics for a wider view of the industry.
Cosmetics Industry Statistics for Canadians
- The beauty and personal care industry revenue in Canada is expected to be $10.7 billion in 2023.
- In 2019, Canadian households spent $1,384 on average on personal care products, including cosmetics products.
- Over half of Canadian consumers choose their beauty products based on quality.
- Lip makeup sales are predicted to reach $525.8 million and eye makeup $629.7 million by 2027.
- After falling by 17% in 2020, the luxury brands’ market revenue increased by 25% in 2022.
- In-store sales of beauty products increased by 34% from 2021 to 2022.
- Almost 35% of the industry’s sales were expected to come from online sales in 2022.
- 86% of Canadians would be happy to pay more for a product with eco-friendly packaging.
- China and the US account for almost 40% of the global cosmetics industry market share.
Market Definition of the Cosmetics Industry
There are several categories of consumer goods included within the cosmetics industry. The products produced by the cosmetics industry are used to maintain and enhance the appearance or fragrance of a person.
The industry includes, for example, makeup products for the face, lips, skin, and eyes, manicure and pedicure products, personal care products, fragrances, hair care products, and beauty tools such as sponges and brushes. It does not include professional beauty services such as beauticians, hairdressers, professional and electronic personal care products.
The Cosmetics Industry in Canada
During the COVID-19 pandemic, when people could not socialize, the sales of many cosmetics products decreased. The sales of fragrances fell by 7% and skincare sales fell by 9%. However, the biggest drop was in the sales of makeup, which fell by 33%.
Since restrictions have been lifted, the cosmetics market in Canada has been quick to recover. With over 2,500 cosmetics, beauty suppliers, and perfume stores in Canada in June 2022 and online sales, the cosmetics market is predicted to grow to approximately $2.239 billion by 2027. The per capita revenue of the cosmetics sector was $252.55 in 2021.
The beauty and personal care industry, which the cosmetics sector is a part of, will have a market revenue of $10.7 billion in 2023. The expected yearly growth is 1.98% between 2023 and 2027. Personal care products account for the largest share of the market, at $5.07 billion.
The revenue of the Canadian cosmetics and beauty product manufacturing industry was $3.5 billion in 2022, as the market size increased by 3.7%. The average growth of the manufacturing industry has been approximately 1% per year between 2017 and 2022. In 2022, the industry ranked 64th among Canadian manufacturing industries in terms of market size.
Spending on Cosmetics in Canada
According to Statistics Canada, based on answers to household spending surveys, the average Canadian household spent $1,384 on personal care in 2019, which includes products by the cosmetics industry. The spending was up compared to the previous survey from 2017 when the average household spent $1,189 on personal care.
Based on data published by Statista, the spending on makeup, skin care, and manicure products was $251 per household in 2019. It was more than in 2017, when Canadian households spent $233 o1 on makeup, skin care, and manicure products, but less than in 2015 when the spending was $284 per household.
Canadians’ Use of Cosmetic Products
About 54% of Canadians select their cosmetics and body care products based on quality. 78% of Canadian consumers say the beauty and personal care products they use most often are personal hygiene products, followed by oral care and skin care products. Over half, at 56% of Canadians, were ”necessity shoppers”, meaning they only bought the necessary cosmetics and body care products.
Lip and Eye Makeup Sectors
The lip makeup sector covers the sales of lip liners, lipsticks, lip gloss, and any other lip makeup products. The sector was worth approximately $445 million in 2020. Projections for the lip makeup sector include an increase of 9.09% between 2023 and 2027, with revenue reaching $525.8 million in 2027.
The eye makeup sector’s revenue decreased by 11.17% in 2020 compared to 2019. In 2020, the revenue was $500 million. In 2022, the sector had recovered from the pandemic revenues of $559.5 million. By 2017, the revenue is predicted to reach $629.7 million. Mascaras are the most popular eye makeup product, while eyeliners have the lowest sales.
Luxury Beauty Brands Grow Faster Than High-Street Brands
In 2020, during the pandemic restrictions, the revenues of luxury beauty brands fell by 17% in Canada to $2.2 billion. However, the luxury brands sector of the cosmetics industry has been quick to bounce back.
The high-end cosmetics market in Canada saw 25% growth in 2022 compared to 2021 and the sales reached $3.4 billion. makeup was the fastest-growing category in the sector, but hair, skincare, and fragrance categories also grew by more than 10%.
As Canadians resumed social activities, it had a direct impact on the sales of luxury makeup in Canada and the category’s sales revenue grew by 38% in a year. Sales of luxury fragrances grew by 24%, while luxury skincare product sales grew by 17% and hair category by 27%.
Canadians Returned to In-Store Shopping After Restrictions Were Lifted
With the COVID-19-related restrictions lifted, Canadians returned to brick-and-mortar stores for their beauty products. In-store sales grew by 34% from 2021 to 2022. In June 2022, Ontario had the most cosmetics, beauty supplies, and perfume stores in Canada with 1,056 stores. It was followed by British Columbia with 471, Quebec with 405, and Alberta with 308 stores. At the other end of the scale were Yukon and Nunavut with just one store each.
Cosmetics Industry’s eCommerce Market in Canada
Canadians might have returned to brick-and-mortar stores in 2022, but it has not meant the end of online beauty shopping. In 2022, 34.6% of the industry’s revenue was expected to come from online sales.
It is predicted that the eCommerce cosmetics market will reach $497 million by the end of 2023 and account for 55.7% of the beauty and personal care online market in Canada. The size of the eCommerce sector is expected to continue growing, and the predicted CAGR for 2023-2027 is 13% with the market volume reaching $810 million by 2027.
The body care sector’s eCommerce sales are expected to reach $748 million by the end of 2023, the hair sector $629 million, and skin care $940 million. The growth rate for body care products is predicted to be 12.8%, for hair 12.3%, and for skin care 13.5% between 2023 and 2027.
Trends in the Cosmetics Industry in Canada
It is expected that the popularity of natural and organic products will continue to grow fast together with the increasing awareness of the benefits of natural ingredients. Canadians are also increasingly demanding products that have not been tested on animals and are cruelty-free. In 2021, the revenue of the natural cosmetics sector was $187.25 million. The revenue is expected to grow to $246.25 million by 2026.
More consumers are also choosing products with innovative, eco-friendly packaging. The portion of Canadians who are prepared to pay more for products that use sustainable packaging went up from 83% in 2021 to 86% in 2022.
In 2021, there was more focus on cosmetics for men as part of their daily routine. The Canadian cosmetics market is expected to get a further boost from increased purchases among male consumers.
Global Cosmetics Industry
According to Oberlo, the global cosmetics market size dropped to just US$72.4% billion in 2020 from US$89.9 billion, a 19.5% drop and the lowest market size since 2015 when the industry size was $77.9 billion. The market began to recover in 2021 with the market size growing to US$80.7 billion, reaching US$93.1 billion in 2022.
In 2023, the market size is expected to be US$103.8 billion, which will be 11.6% higher than in 2021. It will also be the second-largest year-on-year growth the global beauty market has seen in at least 13 years.
The global cosmetics market is predicted to grow at a steady pace in the years ahead. The forecast annual growth rate for 2024 and 2025 is 4.4%, which would take revenues to US$108.4 billion in 2024 and US$113.2 billion in 2025.
The growth rate is set to accelerate after 2025 with 4.7% growth in 2026 and 5.8% in the following year. By 2027, the global market size is expected to reach US$125.4 billion. If the forecast proves to be accurate, in 2027, the cosmetics market will account for 18.9% of the revenue of the global beauty and personal care industry.
Global Beauty Industry
The global cosmetics sector is part of the global beauty and personal care industry and, just like in Canada, the global beauty and personal care industry on the whole has been recovering from the COVID years, too.
In 2022, the global market saw growth of over 15% compared to 2021. Skincare products were the leading beauty category in 2022 and accounted for approximately 27.3% of the global beauty market.
Haircare and makeup products came next with 22% and 16%, respectively. However, the biggest category within the beauty and personal care industry is personal care products, which account for 44.4% of the market.
China and the United States Are The Biggest Markets for Cosmetics
In 2021, China and the United States accounted for almost 40% of the global cosmetics market. China made up 20% and the US 18% of the global market. The next biggest markets were in Japan, Germany, and South Korea. The top five countries have a combined market share of 60%.
The COVID years were hard on the Canadian cosmetics industry. However, the industry has since recovered and is expected to see growth in the years ahead. After the pandemic, Canadians returned to in-store shopping with in-person sales figures up by 34% from 2021 to 2022. However, online shopping of cosmetics has remained popular despite the return to brick-and-mortar shops, representing over a third of the sales in 2022.
Globally, the market has recovered, too, and is expected to grow at a steady pace in the forthcoming years. China and the US are the two biggest cosmetics markets, making up 38% of the market.