Insight Flash: CE data reveals surge amongst beauty brands advertising cruelty-free, clean, dermatologist-recommended, and celebrity-created

An analysis of the top 25 fastest-growing DTC beauty brands reveals key trends of cruelty-free/clean beauty, dermatologist-recommended beauty, and celebrity-owned beauty. These trends suggest potential competitors or profitable partners for corporations and high-growth investment opportunities for private investors.

Fastest-Growing Beauty Brands: Skincare, Makeup, Hair, and Fragrance

Amid a challenging macro environment for the beauty industry, we leverage CE data to uncover the biggest bright spots and the key themes that unite the winners. By analyzing the top 25 beauty product brands with the highest year-over-year growth for the 35-day period ending in March 9, 2024, various trends reveal themselves amongst these big winners. When looking at all 25 brands, CE data shows us that the majority of them classify as skincare brands (13 brands), followed by makeup (6 brands), hair products (2 brands), fragrance (2 brands), and a combination of multiple product types (2 brands). These takeaways might suggest that consumers are increasingly interested in buying skincare products and that these types of brands will continue to grow in the future.

*Consumer Edge CE USA1+USA2 eMax panel Transact data. The top 25 brands are limited to beauty product brands that directly sell their product to customers and not brands that sell multiple other branded products to customers.

Percentage of Fastest-Growing Beauty Brands by Trend

Using CE data, we are also able to take this analysis a step further and dig into more specific trends among these 25 brands. The three categories that stand out within these brands are cruelty-free and clean brands, dermatologist-recommended brands, and celebrity brands. Of the 25 brands, 36% are cruelty-free/clean, 28% are dermatologist-recommended, and 8% are celebrity brands. This breakdown could signify to merchants that these types of brands should be watched as potential up-and-coming competitors or potential partners. Additionally, private investors may want to keep an eye on these types of brands as potential investment opportunities.

*Consumer Edge CE USA1+USA2 eMax panel Transact data.

Beauty Brands Growth by Age Group

When looking at trend-level demographics, CE data also reveals the breakout of different age group brackets amongst the individual customers for each trend.  The customer base of the celebrity brands leans heavily towards the younger age groups, with over 50% of their customers falling into the younger two age brackets. The dermatologist-recommended brands, on the other hand, have a customer base that leans towards the older age groups, with the bulk of shoppers being 35 and older. The customers of the clean/cruelty-free brands encompass a wide range of age groups, with a more even split amongst customers within the different age brackets.

*Consumer Edge USA1 Cohort panel Transact data; discrete three years ending 03-9-2024.

Fastest-Growing Beauty Brands Year Over Year Growth by Trend

Looking at the top 25 fastest growing beauty brands, CE data reveals the individual brand names, as well as which trends they follow. The companies that are growing their DTC spend >200% y/y are Agency, Cover FX, Summer Fridays, RMS Beauty, and Rhode Skin.

*Consumer Edge USA1+USA2 eMax panel Transact data.

By analyzing customer and brand-level trends, we are able to get a well-rounded understanding of the competitive landscape among the biggest beauty winners.  As increasingly educated consumers drive growth in the beauty industry, Consumer Edge data will be critical for identifying potential up-and-coming competitors or partnerships for corporate brands, as well as high-growth investment opportunities for private investors.

Consumer Edge is the leading provider of alternative data for consumer spending behavior, and the only provider of global revenue signals. If you’d like to benefit from using CE Transact US, CE Vision, or other products for beauty insights, retail data, and other industry data year-round to track trends like these, reach out to schedule a demo.

About the Authors

Katherine Bjorkman is the Director of Insights for the CEIC. Explore more of her insights here and follow her on LinkedIn.

Katie Ryan is an Insights Analyst for the CEIC. Follow her on LinkedIn.