How Has The AI in Beauty And Cosmetics Market Size Evolved Historically?
The ai in beauty and cosmetics market has seen considerable growth due to a variety of factors.
• In recent times, the AI in beauty and cosmetics industry has experienced significant expansion. The market is set to increase from $3.72 billion in 2024 to $4.4 billion in 2025, following a compound annual growth rate (CAGR) of 18.3%.
Factors contributing to this progression during the historic era include personalized beauty suggestions, skin diagnosis and inspection, virtual make-up professionals, the influence of social media, and improved customer interaction.
What Is The Forecast For The AI in Beauty And Cosmetics Market By 2029?
The ai in beauty and cosmetics market is expected to maintain its strong growth trajectory in upcoming years.
• The beauty and cosmetics market size, infused with Artificial Intelligence (AI), is projected to experience remarkably rapid expansion in the coming years. The market is predicted to soar to $9.44 billion by 2029, with a Compound Annual Growth Rate (CAGR) of 21.0%.
The expected growth can be linked to several factors including the use of AI in product formulation, the generation of AI-based content, the application of AI in Augmented Reality (AR) shopping, smart beauty gadgets, data-led customization, and AI's role in sustainable practices. The forecast period will see significant trends such as color-matching technologies, virtual try-on facilities, personalized beauty suggestions, customer service chatbots, and AR-driven content creation in the beauty sector.
Which Drivers Are Accelerating Growth In The AI in Beauty And Cosmetics Market?
The escalating need for tailored beauty and cosmetic items is anticipated to stimulate the advancement of AI in the beauty and cosmetics industry. Such products are tailored to individual customers' particular preferences and requirements, encompassing ingredients, textures, fragrances, and packaging. AI plays a crucial role in crafting personalized beauty and cosmetic experiences through the use of data analysis, image recognition, formulation improvement, and virtual try-on technologies. For example, data from the International Trade Administration, a US-based government entity, shows that over 60% of consumers in Vietnam use skincare products daily, indicating strong demand. A 2022 report by Q and Me revealed that 95% of women between 25 to 45 years habitually use these products, spending an average of 740,000 VND (approximately US$30) per month. Consequently, the amplified demand for tailored beauty and cosmetic items is fueling the expansion of AI in the beauty and cosmetics industry.
How Is The Globa AI in Beauty And Cosmetics Market Divided Into Key Segments?
The AI in beauty and cosmetics market covered in this report is segmented –
1) By Type: Personalized Recommendation Tools, Performance marketing Measurement Platforms, Demand Forecasting And Supply Chain Tools, Real-Time Customer Service Platforms, AI-Based Beauty Devices
2) By Distribution Channel: Specialist Retail Stores, Super markets And Hyper markets, Convenience Stores, Pharmacies, Drug Stores, Online Retail, Other Distribution Channels
3) By End-User: Skincare, Haircare, Make-up, Fragrances, Other End-Users
Subsegments:
1) By Personalized Recommendation Tools: Skin Analysis Applications, Hair Color and Product Matching Tools, Makeup Shade and Style Advisors
2) By Performance marketing Measurement Platforms: Analytics Tools For Campaign Performance, Customer Engagement And Retention Metrics, Social Media Performance Analysis
3) By Demand Forecasting And Supply Chain Tools: Inventory Management Solutions, Sales Prediction Tools, Trend Analysis And market Insights
4) By Real-Time Customer Service Platforms: AI Chatbots for Customer Support, Virtual Assistants For Product Information, Automated FAQ and Troubleshooting Systems
5) By AI-Based Beauty Devices: Smart Skin Care Devices, AI-Powered Makeup Applicators, Hair Care Devices with AI Technology
Pre-Book The AI in Beauty And Cosmetics Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
What Trends Are Reshaping The AI in Beauty And Cosmetics Market?
The advent of technological innovations is a prevailing trend amplifying its resonance in the AI in beauty and cosmetics market. Corporations within the AI beauty and cosmetics field utilize these technological strides to secure their stance in the industry. For example, The Estée Lauder Companies, Inc., an American firm manufacturing and marketing makeup, skincare, fragrance, and hair care products, introduced a Voice-Enabled Makeup Assistant (VMA) application in January 2023. The VMA system employs voice guidance technology to assist users in applying cosmetics, furnishing them with audio suggestions and advice when applying lipstick, eyeshadow, or foundation uniformly. The Estée Lauder Companies' VMA scrutinizes the presence of makeup on a user's face and deploys AI to assess its uniformity, application limit, and coverage. It spotlights all facial regions necessitating meticulous application and conveys clear instructions where touch is required.
Who Are the Key Players in the AI in Beauty And Cosmetics Market?
Major companies operating in the AI in beauty and cosmetics market include:
• Procter & Gamble Company
• Pure & Mine
• L'Oréal S.A.
• Sephora Inc.
• Beiersdorf AG
• Shiseido Co. Ltd.
• Elizabeth Arden Inc.
• OpenAI LP
• GAN-powered solution
• Anokai
• EpigenCare Inc.
• Novi
• Perfect Corp.
• Lottie London
• Banuba Inc.
• Luna Fofo
• Revieve
• Ciaté London
• mySKIN
• Haut.AI
• YOUS Skincare
• My Beauty Matches
• Youth Laboratories
• Opte Wand
• Perso Limited
What are the Regional Insights into the AI in Beauty And Cosmetics Market?
North America was the largest region in the AI in beauty and cosmetics market in 2024. The regions covered in the AI in beauty and cosmetics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
