ENTREPRENEURSHIP
McKinsey Declares Price-Fueled Growth Is Over In Beauty. How Should Brands Respond?
In a recent report on the business of beauty, McKinsey & Co. forecast that the global beauty industry will proceed at an annual growth rate of 6% to reach $590 billion by 2028, up from $446 billion in 2023, which saw a 10% increase from 2022. While the industry’s growth potential
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Rachel Brown·October 31, 2024·1 min read
The 30-second read
In a recent report on the business of beauty, McKinsey & Co. forecast that the global beauty industry will proceed at an annual growth rate of 6% to reach $590 billion by 2028, up from $446 billion in 2023, which saw a 10% increase from 2022. While the industry’s growth potential remains meaningful, the management consultancy projected it with a warning that the “era of de facto price-fueled growth is over.”
Based on McKinsey’s warning, for the latest edition of our ongoing series posing questions relevant to indie beauty, we asked 12 beauty investors and investment bankers the following: Do you believe McKinsey’s characterization of the next era of the beauty industry is correct? What front-facing and behind-the-scenes strategies will be crucial for beauty brands as they seek to drive sales in an industry in which price-fueled growth will be over? How does price stabilization with the cooling of inflation affect beauty investment philosophies?
The players
3 mentionedBrand
AS Beauty
Founded2019
HQNew York, New York, United States
Revenue Range$150M+
Brand
Too Faced
Investor
T Investment
Founded2021
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