For the past five years, consumer analysts noticed the Makeup market in the United States was experiencing a boom. Recent information indicates that this may be about to change.

Causes for the Market Boom

Some of the Makeup Boom in the United States comes from bloggers and Instagram pages that promote cosmetics and offer makeup tutorials. This increased exposure to advertising in new ways while also providing millennials with more confidence in using makeup products.

Analysts have been praising the makeup boom for several years now, citing trends like celebrities launching successful makeup brands. Examples include Fenty Beauty from Rihanna and Kylie Cosmetics from Kylie Jenner.

L’Oreal Indicates the Market Is Sluggish

As one of the biggest cosmetics companies in the world, L’Oreal should have a strong understanding of the Makeup Market. Jean-Paul Agon, the Chief Executive and Chairman of the company, indicated that despite the makeup boom, the United States never had a steady trading environment. According to Agon, the makeup industry is vulnerable to the various economic cycles in the country.

This led to the company missing its second-quarter sales growth estimates due to weak demand. Agon said that L’Oreal’s journey has never been easy. They went from just starting 50 years ago to being the number one brand. Agon indicated that some years go better than others do, and this is a tough year.

Based on Agon’s recent interview, the makeup market has experienced significant slowing down. That information suggests that it may have already peaked. Even so, Agon does not think that this slowing of the market will last for long. He also indicated that it is simply possible that people bought so much makeup during the boom that they do not need any more right now. If that is the case, people would have to restock their makeup cases.

What Analysts Say

Some analysts indicate that the United States makeup market may be experiencing a fatigue within the past year to year and a half. This fatigue has led to some consumers leaving the mass-market offerings and opting for luxury or niche products instead.

L’Oreal is also not the only brand to experience recent downturns from changes to beauty trends. Gucci from Kering also had faltering sales in the United States recently.

The Future

Time will tell if this is simply a small dip in an otherwise booming makeup market or if it really is the end of the boom. The presence of factors like influencers and makeup tutorials will remain, encouraging the market to make a return.

Source:

https://www.cnbc.com/2019/07/31/loreal-says-sluggish-us-makeup-market-has-hit-sales.html

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