Nail Care Industry Paints Pretty Picture for Investors

3 Min Read

Opportunity follows as U.S. nail care market grows from one-time luxury to weekly routine

The nail care industry is seeing growing demand as​​ ​beauty​ products turn into dollars. The United States market for nail care is experiencing robust growth, valued at $3.58 billion in 2023, ​and is ​projected to exceed $6.10 billion by 2030.¹ Globally, the same market is expected to nearly double, from $12.3 billion in 2023 to $23.5 billion in 2032.² 

The growth is being driven primarily by a rising focus on self-care³ and personal grooming⁴ by Millennial buyers and changing social norms for all genders. Regular trips to the salon and purchases of elaborate home-based nail care systems are on the rise, ​​focusing on health-conscious, long-lasting, and high-quality products. In the United States, large urban populations and large distribution channels make it easy for consumer​s​ to buy nail care product​s​ ​and ​​​service​s​,​ delivered directly to their homes.​ ​     ​ 

Consumer Investor Insights 

Sectors Driving Market Growth 

Do-It-Yourself: The DIY or household market currently holds the largest share of business worldwide, at 65%, a preference attributed to cost savings as well as ​​a holdover from pandemic shutdowns, when customers discovered the ease of doing it themselves. T​​he DIY market is divided into nail polish (the largest product segment), top & base coats, nail polish remover, cuticle care, and others.⁵  

Salons: The salon market is growing in numbers as well, projected to increase at a CAGR of 4.8% from 2022 to 2030.⁶  The salon market is segmented into manicure, pedicure, nail art & design, nail extensions and others, with manicure​s​ generating the highest revenues.⁷ This is due to a general acceptance of manicures for all genders as a necessary form of personal hygiene. Additionally, manicures often serve as an introductory service to customers who are new to nail care.  

Premium Products: Demand is growing for more complex, equipment-based applications such as durable gel polishes and nail art.⁸ ​​Plant-based formulas, eco-conscious products​​, and premium brands are growing in popularity and the industry is responding. OPI introduced Nature Strong by OPI, with up to 75% natural origin color and 65% natural origin topcoat. 

Industry Landscape and Challenges 

Competitive Landscape: The global nail care market is highly competitive, driven primarily by big players, with notable regional and national brands also in the game.⁹ Dominant players in the market are: 

• L’Oréal S.A.  
• Coty, Inc. 
• Estée Lauder Companies Inc 
• Revlon, Inc., LLC
• Wella International Operations Switzerland S.à.r.l (OPI).  

Mid-sized companies are focusing on strategic acquisitions of small and medium-sized businesses to grow their influence. In 2021, MiniLuxe, Inc., a Boston-based nail salon chain acquired Paintbox​, a ​New York-based nail care brand to expand the certified pool of empowered nail designers and collaborations.¹⁰ 

Risks and Restraints: The regulatory landscape for cosmetics is complex, with increased Food and Drug Administration (FDA) scrutiny focused on specific areas like interstate commerce and color additives.¹¹ The FDA will now have increased regulatory control over the cosmetics industry in accordance with the Modernization of Cosmetics Regulation Act of 2022 (MoCRA). MoCRA requires the FDA to develop strict new regulations for companies that manufacture and market cosmetics in the United States. 

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Resources:
¹United States Nail Care Market Size, Growth & Analysis by 2030 (marketsandata.com)
²Market.US: Nail Care Products Market Size, Share & Industry Analysis
³Ibid.
⁴Grandview: Nail Care Products Market Size, Share & Trends Analysis Report By Product
⁵Fortune Business Insights: Nail Care Products Market Size, Share & Industry Analysis
⁶Grandview: Nail Care Products Market Size, Share & Trends Analysis Report By Product
⁷GMI Insights: Nail Salon Market
⁸Markets and Data: U.S. Nail Care Market
⁹SkyQuest: Nail Care Products Market
¹⁰Grandview: Nail Care Products Market Size, Share & Trends Analysis Report By Product
¹¹Markets and Data: U.S. Nail Care Market