AI In Beauty and Cosmetics Market By Product Category (Skincare, Makeup, Haircare, Fragrances, Men’s Grooming, Personal Care), By Device Type (Smartphones, Smart Mirrors, AR Glasses, Desktop & Kiosks, Wearable Devices), By Application (Personalized Beauty & Skincare, Virtual Try-On Tools, Skin Diagnostics & Monitoring, Beauty E-commerce Optimization, Product Development & R&D, Retail & In-Store Experience, Hair & Nail Analysis), By Technology (Computer Vision, Natural Language Processing (NLP), Machine Learning (ML), Deep Learning, Augmented Reality (AR) & Virtual Try-On, 3D Facial Mapping & Skin Analysis, Others), By Distribution Channel (Brand-Owned Apps & Websites, E-commerce Marketplaces, In-Store Retail Tech, Social Media Platforms, Beauty Subscription Boxes), and By End User (Individual Consumers, Beauty Brands & Manufacturers, Cosmetic Retailers, E-commerce Platforms, Dermatologists & Skin Clinics, Beauty Salons & Spas, Others), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

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What trends will shape AI In Beauty and Cosmetics Market in the coming years?

The AI In Beauty and Cosmetics Market accounted for USD 3.95 Billion in 2024 and USD 4.66 Billion in 2025 is expected to reach USD 24.08 Billion by 2035, growing at a CAGR of around 17.86% between 2025 and 2035. The AI in beauty and cosmetics market refers to the integration of technologies for customization and improvement of the customer experience and product development. It can be found in virtual makeup tools, skin analysis applications, and smart mirrors that suggest products according to a specific need. Another issue AI can assist the brands in is consumer behaviour analysis, shopping cart optimisation, and personal marketing campaigns. The technology enhances precision in the detection of skin diseases and the prescription of skin care solutions. AI is changing the ways of marketing, selling, and personalising beauty goods.

What do industry experts say about the AI In Beauty and Cosmetics market trends?

“Pioneering virtual try‑on technology has transformed beauty shopping by allowing consumers to experiment with products virtually before committing to a purchase…It’s about personalisation and empowerment.”

• Tanuj Mishra, Country Head at Perfect Corp (virtual try‑on technology)

“When consumers can see how their skin will evolve, they can keep this motivation…Knowing what the effects will be and in what time frame…this can build positive reinforcement.”

• Anastasia Georgievskaya, Co‑founder & CEO, Haut.AI

Which segments and geographies does the report analyze?

What are the key drivers and challenges shaping the AI In Beauty and Cosmetics market?

How does personalization enhance customer satisfaction using AI?

In the AI in beauty and cosmetics market, personalising products, skincare routines, and virtual try-ons based on user preferences, skin type, and problems increases customer satisfaction. The success and relevance of products are increased by AI's ability to make precise, data-based recommendations based on information from extensive user interaction and biometric submission records. Selfies can be analysed by AI-based technologies to identify skin conditions like wrinkles or acne and then provide customised routines.

In a National Institute of Standards and Technology (NIST) study, facial recognition systems showed an accuracy level of over 99% with the right training, increasing the accuracy of personalisation. Here we must also add that a study by the Computer Science and Artificial Intelligence Laboratory (CSAIL) at MIT shows that users trust platforms that allow AI-based customisations and are 80% more likely to buy again. Such personalisation also helps generate better customer trust, customer satisfaction, and strong brand loyalty in a highly competitive market since it is AI-driven.

Can virtual try-ons increase conversion rates in online sales?

Virtual try-ons can significantly boost online sales conversion rates for beauty and cosmetic products by boosting confidence and reducing product uncertainty. Because they allow users to see how particular products, like lipstick, foundation, or hair colour, appear on their faces using augmented reality, virtual try-ons offer personalised and contextual shopping experiences. Custom computer modelling and video that allow digital interfaces to input real-life results, like virtual try-ons, boost customer confidence and sales, according to a study by the U.S. National Institute of Standards and Technology (NIST).

According to MIT's Initiative on the Digital Economy, individualised digital experiences can increase conversion rates by up to 20%. In that specific industry, appearance and fit have a significant impact on conversion rates. Because customers are more likely to be satisfied with their purchases, the tools reduce returns and boost retailer profitability. Today's brands are leaders in digital innovation due to the desire to implement AI-powered virtual try-on features and the rapid expansion of online beauty sales.

Why is algorithm bias a risk in cosmetic product selection?

The risks of using algorithm bias in the selection of cosmetic products are quite high since the AI-based ones are mainly obtained using training data that is not sufficiently diverse in the skin colour range, ethnic backgrounds, and cultural tastes. Its application can cause the wrong recommendations to be made, especially for people whose complexion is darker or who have other demographic deficiencies. The U.S. National Institute of Standards and Technology (NIST) analysed 25 facial recognition algorithms in a 2020 study, concluding that all exhibited increased error rates (as much as 100 times) when recognising people of colour than when recognising white people.

With beauty tech biased by these variables, the corresponding biases may lead to foundation color mismatches or the absence of appropriate products. Besides, a 2021 MIT study reported that light skin tones were represented better with commercial AI systems and showed severe performance decreases when darker skin tones were present. Such differences may encourage inequality and decrease the degree of trust in these AI-based beauty services, and building diverse datasets and promoting transparency are also essential factors in ethical deployments to this market.

Can AI predict future beauty trends using real-time analytics?

AI can be successfully used with the help of real-time analysis to estimate future beauty trends based on the analysis of consumer behaviour, social media trends, and dermatological information. Using the example of academic institutions such as MIT and Stanford, research on how machine learning models could look at the visual and text-based data of platforms such as Instagram and TikTok and identify new skincare or makeup preferences as they start to become mainstream, before they become more widespread, has been studied.

The Electronics and Telecommunications Research Institute (ETRI), a government-subsidised organisation of South Korea, has created AI algorithms to recognise skin conditions and suggest personalised products, which facilitate the House of Beauty's proactive innovation in cosmetic compositions. The fact that AI can process climatic data, the UV index, and the pollution data allows it to predict skincare requirements in various locations. This reduces logs and aligns product development with consumer demand. With such applications, AI is totally changing the industry, and AI is moving the industry out of reactive product development and into predicting products based on trends and based on real-life data and research rather than speculations in the market.

Might AI-driven diagnostics revolutionize dermatological consultation services?

Diagnostics based on artificial intelligence can transform dermatological consultation services by ensuring the service can be elicited faster, more precise skin tests are administered, and conditions such as melanoma are diagnosed early. Using large sets of images in the training of AI models enables it to examine skin lesions and reach near-dermatology or better accuracy than humans. According to one published in Nature in 2020, a deep learning system alone was as capable of identifying 134 types of skin diseases in 17 categories as dermatologists.

The National Institutes of Health (NIH) is investing in AI-based skin imaging research and speculates on the potential of the algorithm to eliminate healthcare disparities due to higher availability in underrepresented communities. AI applied in virtual consultation will help reduce the increasing burden of needing dermatological care, since more than 85 million American citizens are affected by skin diseases each year (American Academy of Dermatology), as patients seek medical care and attention to improve their skin health issues, spurred by the surrounding environment and lifestyle choices.

What are the key market segments in the AI In Beauty and Cosmetics industry?

Based on the Product Category, the AI In Beauty and Cosmetics Market has been classified into Skincare, Makeup, Haircare, Fragrances, Men’s Grooming, and Personal Care. The skincare segment is the leading segment in the AI in Beauty and Cosmetics market. The demand of the consumers is high due to the needs of skincare accommodated to personal conditions such as skin type, tone, and skin issues (e.g., acne or ageing), which creates this dominance. AI tools like skin analysis applications, computer vision, and machine learning-based diagnostic systems enable brands to propose hyper-individualised choices of products and regimens. Moreover, the interest in the health of the skin and prophylaxis increases, which is why it is a good target of innovation. The presence of AI in skin diagnostics media is convincing, as the major beauty companies invest lots in this segment to reinforce their dominant position.

Based on the Device Type, the AI In Beauty and Cosmetics Market has been classified into Smartphones, Smart Mirrors, AR Glasses, Desktop & Kiosks, and Wearable Devices. The greatest device type in the AI in Beauty and Cosmetics market is smartphones. They are used widely and are portable enough, which, with the integration of the AI-powered beauty apps, makes them the main channel of personalised beauty experiences. They are able to give access to virtual fits, skin tests, and personal recommendations based on their phones in real time. The beauty industry explores its potential to become more customer-focused and convenient with the help of smartphone cameras and machine learning. The ease of acquiring smartphones and user familiarity have spearheaded their leadership in the provision of AI-based beauty solutions.

Which regions are leading the AI In Beauty and Cosmetics market, and why?

The North American AI in the beauty and cosmetics market is in the dominant position, since this region boasts both a well-developed technological infrastructure and high purchasing capacities, as well as a willingness to adopt new solutions quickly. The availability of big tech and beauty players with high investments in AI-powered personalisation, virtual makeup applications, and skin diagnosis has stimulated the development of the region. The population of North America favours individual experiences and products, and AI technologies are close to personalised consumption. Moreover, the emergence of e-commerce and digital marketing platforms enables the collection of huge amounts of data that can be used by AI algorithms to achieve better customer targeting. The U.S. and Canada possess a well-developed regulatory framework that promotes innovation with the requirement of consumer safety. Having adopted the technology early and spending further funds on research and development, North America remains a leader in terms of beauty and cosmetic AI integration.

The Asia-Pacific AI in beauty and cosmetics market is growing due to rapid technological uptake and strong consumer demand to combine the power of AI with skincare. The leading countries include South Korea, Japan, and China, which have access to sophisticated tools of AI to analyse the skin, use virtual try-ons, and make product choices. Innovation and market development are being boosted further by a tech-savvy younger generation, rising disposable incomes, and robust e-commerce systems.

The fastest-growing beauty brands in the region will incorporate AI in the mobile experience and the retail process to boost customer engagement. Moreover, the state is encouraging the use of AI and creating an enjoyable start-up environment that increases competitiveness and creativity. A desire to take care of the skin and look good is also culturally imposed, and the region proves to be a place filled with AI-driven beauty solutions.

What does the competitive landscape of the AI In Beauty and Cosmetics market look like?

The AI in beauty and cosmetics market has recently taken off, owing to the growing consumer demand for personalisation and technology-enabled beauty. Major corporations, including L'Oréal, Estée Lauder, Shiseido, and Procter & Gamble, are spending heavily on AI-based skin diagnostics, virtual try-on, and product recommendations to engage customers. Autonomous innovators such as Perfect Corp. and Revieve are still trying to expand the limits of AR and AI solutions that allow consumers to apply makeup in real-time and analyse their skin too.

L'Oréal has bought companies to strengthen its AI capabilities, and Shiseido introduced AI-driven skincare systems, offering personalised treatment. Other firms, such as AmorePacific, are using AI to devise personalised cosmetic formulas, the combination of technology and age-old beauty knowledge. This is an environment that highlights an evolving trend towards more participatory, data-based beauty experiences, and AI as a key differentiator in a rapidly growing industry.

AI In Beauty and Cosmetics Market, Company Shares Analysis, 2024

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Which recent mergers, acquisitions, or product launches are shaping the AI In Beauty and Cosmetics industry?

• In June 2025, L’Oréal partnered with Nvidia to enhance its AI content studio, CreAItech. The collaboration focused on improving the studio’s capabilities and advancing personalized recommendation tools. This partnership aimed to deliver more tailored beauty experiences using cutting-edge AI technology.
• In May 2025, Albert Invent launched its BeautyCreations platform, which used AI and molecular modeling to speed up the formulation of cosmetic products. This innovation aimed to make product development faster and more efficient. By leveraging advanced technology, the platform helped create new beauty products with greater precision. It represented a significant advancement in applying AI to the cosmetics industry.

Report Coverage:

By Product Category

• Skincare
• Makeup
• Haircare
• Fragrances
• Men’s Grooming
• Personal Care

By Device Type

• Smartphones
• Smart Mirrors
• AR Glasses
• Desktop & Kiosks
• Wearable Devices

By Application

• Personalized Beauty & Skincare
• Virtual Try-On Tools
• Skin Diagnostics & Monitoring
• Beauty E-commerce Optimization
• Product Development & R&D
• Retail & In-Store Experience
• Hair & Nail Analysis

By Technology

• Computer Vision
• Natural Language Processing (NLP)
• Machine Learning (ML)
• Deep Learning
• Augmented Reality (AR) & Virtual Try-On
• 3D Facial Mapping & Skin Analysis
• Others

By Distribution Channel

• Brand-Owned Apps & Websites
• E-commerce Marketplaces
• In-Store Retail Tech
• Social Media Platforms
• Beauty Subscription Boxes

By End User

• Individual Consumers
• Beauty Brands & Manufacturers
• Cosmetic Retailers
• E-commerce Platforms
• Dermatologists & Skin Clinics
• Beauty Salons & Spas
• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• L’Oréal
• Beiersdorf AG
• Procter & Gamble
• Estée Lauder
• Shiseido Company, Limited
• Coty Inc.
• LVMH (Sephora)
• Givaudan
• Symrise
• Perfect Corp
• Revieve
• Haut.AI
• Myavana
• LULULAB
• AmorePacific

Frequently Asked Questions (FAQs)