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.

Aug 3, 2026 - K-Beauty Growth Accelerates

• 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.
• Prestige beauty sales rose 6% to $8.1 billion in the first quarter of 2026, while mass beauty sales increased 7% to $18.1 billion, signaling broad-based strength for the US cosmetic and beauty supply retailer industry, according to Circana data. The similar growth rates marked the first time in five years that prestige and mass beauty expanded at nearly the same pace. Fragrance, skincare, hair treatments, and personal care products led growth as consumers continued prioritizing self-care, wellness, and high-performing products. Retailers also benefited from the continued shift toward digital shopping, with beauty accounting for 20% of TikTok Shop spending and representing 10% of total beauty e-commerce sales. The results suggest retailers with strong omnichannel capabilities and exposure to high-growth categories such as fragrance, skincare, and hair care are well positioned for continued growth.
• Ulta Beauty's strong first-quarter results suggest the US cosmetic and beauty supply industry remains resilient despite economic uncertainty and inflation pressures. Ulta reported 11.1% sales growth to $3.16 billion, 5.3% comparable sales growth, and a 15.5% increase in earnings per share, with growth occurring across stores, e-commerce, and all major beauty categories. The retailer also gained market share in prestige beauty while maintaining its position in mass beauty, indicating broad consumer demand. Ulta's results point to continued consumer willingness to spend on beauty products, supported by loyalty programs, new product launches, and omnichannel shopping. However, management noted that consumers remain value-conscious due to inflation and rising fuel costs, while competition and promotional activity remain elevated. Overall, the earnings reinforce that beauty remains one of the more resilient retail categories, though retailers must continue balancing growth with pricing and value considerations.

Industry size & Structure

The average cosmetic and beauty supply store operates out of two locations, employs about 23 workers and generates $4 million annually.

• The cosmetic and beauty supply retailing industry consists of about 7,981 firms that employ about 184,100 workers and generate about $34 billion annually.
• The industry is concentrated; the top 50 companies account for about 74% 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.