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Outlook good for beauty, cosmetics & fragrance stores


Los Angeles – Beauty, cosmetics and fragrance stores should experience 2.7% growth in sales to $13.1 billion during 2013. Industry revenue is expected to grow at an average annual rate of 0.8% from 2008 to 2013, according to business intelligence firm IbisWorld.

The number of stores in the industry is also expected to grow, averaging 1.3% annual increases to reach 102,447 during the five years to 2013. IbisWorld also forecasts that revenue will grow at an average annual rate of 5.2% to $16.8 billion during the five years to 2018. Consumers will buy more cosmetics, and the proliferation of naturally derived products will spur growth in new markets.

Ibisworld says the industry faces possible saturation, though, and competition from other specialty beauty stores and alternative retailers will slightly curb growth opportunities. E-commerce will be one of the fastest-growing competitive threats to this industry.

Other Ibisworld statistics on the beauty, cosmetics and fragrance channel include:

  • Skin care products (27%) and cosmetics (22%) are the largest products/services segments.

  • The industry is expected to earn a $1.3 billion profit in 2013.

  • Wages will total $3.7 billion in 2013.

  • There are 93,529 businesses in the beauty, cosmetics and fragrance channel.

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