Cosmetic and Beauty Supply Stores

The 7,981 Cosmetic and beauty supply retailers in the US sell cosmetics, perfumes, toiletries, and personal grooming products. Stores may carry a wide selection of products or a limited number of brands or categories. Some stores offer salon services. Full-service or exclusive distributors serve salons and salon professionals by selling “salon-only” or “professional-only” products at wholesale prices. Open-line stores serve retail consumers and salon professionals and carry a mix of products. The industry includes national and regional chains, franchises, and independent operators.

Trends and Fads Drive Demand

Fashion-related trends and fads drive demand for new cosmetics and beauty supplies.

Competition from Alternative Sources

Cosmetic and beauty supply stores compete with a variety of alternative sources, including traditional retailers (mass merchandisers, drug stores, department stores, supermarkets), salons, direct sales organizations, manufacturer-operated retailers, home shopping networks, and online-only retailers.

Oct 1, 2026 - More Beauty Shoppers Turn to AI

• A new August 2026 survey shows AI is already influencing how US women shop for skincare and bodycare, creating a new opportunity for cosmetic and beauty stores to shape purchase decisions, according to a Global Cosmetic Industry report. Haut.AI found 32% of 1,238 women surveyed already use AI for skincare or bodycare advice, while another third are interested. Half said they would trust AI for product recommendations, and 34% for personalized routines or identifying skin concerns from photos. For beauty retailers, AI-powered consultations and recommendation tools could help customers navigate crowded product assortments, match products to specific concerns, and reduce purchase uncertainty. That could support higher conversion and cross-selling, especially as 45% of respondents said cost complicates bodycare routines and 36% struggle with overly complex regimens. Retailers that integrate credible AI guidance may gain an advantage by simplifying decisions and personalizing the shopping experience.
• Ulta Beauty’s raised 2026 outlook points to continued resilience in the broader US cosmetic and beauty store industry, even as consumers remain value-conscious. The retailer now expects full-year sales growth of 6.7% to 7.2% and comparable sales growth of 3.2% to 3.7%, citing strong first-half performance and continued market-share gains. Industry demand appears healthy but uneven. Fragrance posted high-teen comparable growth and hair care rose at a high-single-digit pace, while makeup was flat and skincare and wellness declined modestly overall. Ulta also expects second-half comparable sales growth of 2% to 3%, indicating continued expansion but slower growth against tougher comparisons. Rising fuel costs, greater promotional activity, and consumer focus on value remain key pressures for beauty retailers.
• Global K-Beauty sales jumped 53% year over year and 131% over the past two years, while North American consumers purchase 76% of K-Beauty products online, highlighting the growing competitive challenge for US cosmetics and beauty suppliers, according to NIQ data in Premium Beauty News. The trend is raising consumer expectations for affordable, high-performance skincare and accelerating demand for faster product innovation. Demand is broadening for sheet masks, acne patches, essences, serums, ampoules, and ingredient-led products such as snail mucin and Centella Asiatica. For US beauty suppliers, the trend favors companies that can identify emerging products quickly, refresh assortments faster, and capitalize on digital product discovery. NIQ expects the next phase of growth to extend into adjacent categories such as haircare and wellness, creating additional opportunities for retailers and distributors that can respond quickly to evolving consumer preferences.
• Physical stores remain central to beauty shopping for Gen Alpha—the generation born roughly between 2010 and the mid-2020s—even as digital discovery grows, according to Ulta Beauty's "Smart Beauty" study with NielsenIQ. Per the study, 73% prefer to buy fragrance in-store, 70% makeup, and 66% skincare, haircare, and nail products, while 78% discover products online and 77% still seek in-store validation before purchasing. AI is driving store traffic rather than replacing it: 57% of AI users visit stores to browse and try products, compared with 36% of non-users. For US cosmetic and beauty supply retailers, the findings highlight the need to combine AI-powered personalization with engaging in-store experiences that seamlessly connect digital discovery, product testing, and personalized recommendations. Retailers that create a cohesive omnichannel shopping journey will be best positioned to build loyalty and capture spending as Gen Alpha's purchasing influence continues to grow.

Industry size & Structure

The average cosmetic and beauty supply store operates out of two locations, employs about 25 workers and generates $4 million annually.

• The cosmetic and beauty supply retailing industry consists of about 7,981 firms that employ about 204,400 workers and generate about $33 billion annually.
• The industry is concentrated; the top 50 companies account for nearly three-quarters of industry revenue.
• Large companies include Sally Beauty Holdings; Sephora; Ulta Salon, Cosmetics, and Fragrance; and Perfumania Holdings. Large companies may have international operations.
• Some cosmetic and beauty supply manufacturers have retail operations. Estee Lauder has retail stores for M.A.C, Origins, and Aveda brands.
• The industry includes national and regional chains, franchises, and independent operators.