Black Equity Guide: Black Buying Power is Shaping the Beauty Industry
Black Dollar Index
Empowering the Black consumer through corporate transparency. We rate corporations on their commitments to Black America
Whether you’re buying gifts or shopping for your holiday gathering, BDI’s Black Equity Guide is your guide to making a difference with every purchase. Let’s hold corporations accountable and support brands that advance Black equity, all while making your holiday season more meaningful.
So I never leave the house without make-up on. I keep mascara in my pocket if I'm running to the market' Cause you never know who's watching you. So I got to stay on, I got to stay on, I got to stay on, I got to stay on. Said I got to stay on! - Jazmine Sullivan, Mascara
BEAUTY! Let’s get into it. This is one of those categories that Black consumers OVER-INDEX. In fact, Nielsen reported the following in 2018:
But it doesn’t stop there:
Black consumers account for a disproportionate amount of product sales in a number of fast-moving consumer goods categories…
More importantly, the data suggests that Black consumer spending already significantly affects the bottom line in many categories and industries, and brands can’t afford to lose favor or traction with this segment without potential negative impact.
Y’all hear that?????
??? “brands can’t afford to lose favor or traction with this segment without potential negative impact.”
Last year, Black consumers spent $9.4 billion on beauty products, leading the charge in categories like fragrance, hand and body lotion, and hair care. Our buying power is shaping the beauty industry, and we’re making online shopping a major force—especially when it comes to skincare and fragrance, where we’re spending more online than in stores. It’s clear: when we show up, the beauty industry moves. Now it’s on these brands to prioritize us and meet our needs.
So now that we know the impact we make in this category, WHO will get our money?
We dug into a few product-based corporations and retailers to understand how they’ve supported Black consumers and communities — Estee Lauder, L’Oreal, Sephora, and Ulta Beauty. First, here’s more about their brand portfolio’s and Black-owned products carried:
And now for a look at all the ways they support Black consumers and communities:
Disclaimer: The data is a look at the past year and does not account for what may currently be happening behind-the-scenes, considering the DEI cutbacks. As of now, we have not heard any reports of these brands making major cuts.
Black Representation
Overall, there is a lack of transparency and seemingly leadership opportunities for Black professionals at major beauty companies. While Sephora reports 19% Black representation in its workforce, other metrics—like mid-management roles or senior leadership—are either underreported or reflect minimal inclusion; However, per Sephora’s ESG report, 12% of their Managers & above are Black. Estee Lauder stands out across the board, but overall, these numbers show that we still have a ways to go for true equity. And while Ulta’s 2023 EEO-1 report is not available, their 2022 EEO-1 report is, but they did report the following for 2023:
This data prompts the question: Are these brands doing enough to ensure that the people behind their products reflect the communities they profit from?
Supplier Diversity
Supplier diversity is key to supporting Black-owned businesses, yet most companies in the beauty space fall short in transparent reporting. Estee Lauder’s $44M spend stands out, but it’s unclear how this compares across other brands, as most don’t report these figures. Sephora currently carries 28 Black-owned brands, up from 8 in 2020 and they amplify these brands through dedicated monthly campaigns. And as of the end of fiscal 2023, Black-owned, -founded and -led brands made up ~9% of Ulta’s brand assortment store-wide.
CTA: Black consumers can use this data to push for accountability and prioritize brands that actively invest in the Black community.
DEI Initiatives
This breakdown shows which companies are taking active steps toward equity and inclusion within their organizations.
In fiscal 2024, Estee Lauder expanded its partnership with Spelman College, offering professional development and networking to freshmen through the Convocation Lecture Series. The "From Every Chair" program, led by the NOBLE ERG, has supported 230 Black employees across three cohorts. Additionally, a new partnership with AFROTECH enhances access to Black STEM talent at all levels.
While it is unclear whether Sephora and Ulta have official HBCU Pipeline Initaitives, they reported the following:
CTA: Black consumers should push for transparency around actions beyond marketing that center Black talent and leadership.
Community Investments
While dollar amounts aren’t always clear, we do see work being done. However, brands need to stop using broad terms like BIPOC, which hide how resources are distributed. Clear, community-specific reporting—showing exactly how much is invested in Black, Indigenous, and other groups—is key for real transparency, accountability, and ensuring every community gets the support it deserves.
The Estée Lauder Companies (ELC) has advanced several initiatives to support Black talent and communities:
In 2024, L'Oréal expanded its efforts to support inclusivity and innovation across beauty and education:
In 2023 and 2024, Sephora launched key initiatives to support Black beauty entrepreneurs, diverse talent, and inclusive retail practices:
领英推荐
In 2023 and 2024, Ulta Beauty reinforced its commitment to supporting BIPOC-owned brands and diverse communities:
Racial Discrimination Claims
Two things to note:
We hope this info helps guide your beauty and skin care journey. Drop a comment below to share thoughts or more Black-owned options!
Reminder: Be informed, not influenced.
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Sources:
Nielsen
Estee Lauder
L’Oreal:
https://news.bloomberglaw.com/litigation/loreal-defeats-ex-vps-racial-disability-discrimination-suit
Sephora:
Ulta: