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Beauty Fastest-Growing Industry in Canada

Published August 27, 2023
Published August 27, 2023
OSPAN ALI via Unsplash

Beauty continues to hold the top spot as the fastest-growing industry in Canada. Sales revenue grew by 19% to $1.7 billion in the first half of 2023, versus last year, according to Circana. Unit demand was also strong across all categories, with units sold increasing across the board.

“Amidst pricing pressures and financial uncertainty, Canadian consumers remain focused on health, wellness, and an overall investment in themselves, and they continue to see beauty products as an important component of these priorities,” said Alecsandra Hancas, Canadian beauty industry analyst at Circana. “Every beauty category is growing in terms of both revenue and units sold in 2023. The highest pricing increase came from fragrance, which is also telling of the consumer mindset and the high value they place on emotionally driven purchases.”


  • Fastest-growing category with sales revenue up 25% in the first half. 
  • The category contributed 40% of total beauty industry gains during this period. 
  • Face makeup sales grew by 33%, led by blush, bronzing and highlighting products, and setting sprays. 
  • Lip was the fastest-growing segment in makeup, with sales up 42% in the first half. The strongest growth came from hybrid products such as lip oils and balms. 
  • Collectively, these products, primarily intended to hydrate and moisturize with a tint of color, represent only one-quarter of lip makeup sales but contributed over 40% of the sales revenue gains in the first half.


  • The largest category in Canada and growing, with sales revenue up 16% in the first half.
  • The "skinification" trend continues with makeup products, with skincare benefits performing well. 
  • Complexion and healthy skin remain a focus in the region. 


  • Hair category sales revenue posted a 17% increase in the first half of 2023. 
  • Hair styling products grew the fastest, followed by haircare including shampoos, conditioners, and masks, as consumers prep to go out while continuing their at-home treatments and rituals.

Consumers returned to in-store purchasing and continued to spend more, on average, especially when shopping for makeup and fragrances. In-store sales outpaced the online channel, with sales up 20% in the first half, versus last year, and accounted for 75% of sales. Online sales, which remain elevated but have stabilized since pre-pandemic 2019 levels, grew across every category in the first half. Similar purchase patterns are happening online and in-store, with the strongest growth coming from the makeup segment, led by lip and face makeup.


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