$30 Billion Lipstick Industry:Asia-Pacific to North America a Regional Breakdown of the Growing Industry

As manufacturing market leaders, ECC is excited to share insights into the booming lipstick industry and the "lipstick index."

The lipstick index is a term coined by Leonard Lauder, former Chairman of Estée Lauder, who noticed that lipstick sales increased during tough economic times. This trend is rooted in the idea that consumers tend to spend on small indulgences, like lipstick, during economic downturns, rather than larger luxury items.

Today, the lipstick industry is growing at an unprecedented rate, with global sales expected to reach $30 billion by 2025. This growth is driven by the rising demand for high-quality, long-lasting, and sustainable lipsticks. Additionally, the pandemic has accelerated the shift towards e-commerce, leading to an increase in online sales for lipstick brands.

When we break down the market growth by regions, the numbers tell an interesting story.

1. The Asia-Pacific region is expected to be the fastest-growing region in the lipstick market, with a projected compound annual growth rate (CAGR) of 7.2% from 2020 to 2027. In 2020, the region accounted for over 40% of the global lipstick market share, with China being the largest consumer of lipsticks in the world.

• North America is also seeing steady growth in the lipstick market, with a projected CAGR of 5.8% from 2020 to 2027. In 2020, the region accounted for over 25% of the global lipstick market share, with the United States being the largest consumer of lipsticks in the region.
• In Europe, the lipstick market is expected to grow at a CAGR of 5.1% from 2020 to 2027. In 2020, the region accounted for over 20% of the global lipstick market share, with the United Kingdom, Germany, and France being the largest consumers of lipsticks in the region.
• Latin America and the Middle East and Africa are also key markets for lipstick brands, with projected CAGRs of 4.6% and 4.2%, respectively, from 2020 to 2027. In 2020, Latin America accounted for over 8% of the global lipstick market share, with Brazil being the largest consumer of lipsticks in the region. In the Middle East and Africa, the region accounted for over 6% of the global lipstick market share, with Saudi Arabia being the largest consumer of lipsticks in the region.

By keeping an eye on the lipstick index and market growth across different regions, businesses can stay ahead of the curve and capture the attention of their target audience. Brands that focus on sustainability, inclusivity, and social responsibility are likely to see higher growth rates in the coming years.?

In conclusion, the lipstick industry is growing at an unprecedented rate, and businesses that stay ahead of the curve by paying attention to regional growth rates and consumer trends are likely to see success in this thriving market.

Contact ECC today to learn more about our solution-based manufacturing services.