By Claire Moraa
- Inclusive brands grew three points faster than their less inclusive competitors for the 2nd year in a row
- The beauty and personal care industry is projected to reach $677B in 2025
Since the Trump crackdown, a lot of companies have eradicated their DEI initiatives and the response from their clients has sent their sales on a downward spiral. A few have taken a stand and still have their DEI initiatives in place. Diverse beauty brands that cater to a wide range of skin tones, hair textures, and cultural backgrounds that have historically been marginalized or underserved in the beauty industry are part of this wave.
Why This Matters: If diverse beauty brands chose to scale back on DEI initiatives, this would erase years of progress since they already captured a significant market share that caters to the diverse needs and preferences of their clientele. Presently, 45% of Gen Zs and 50% of millennials are conscious of representation and authenticity and would abandon brands that don’t prioritize diversity and inclusivity.
And the success of diverse beauty brands is not pegged on skin tones and hair textures alone. People living with disabilities have also been considered. In fact, brands that design products for people with disabilities doubled in just a year from 11% to 22%. Afterall, factoring in this market has led to the rapid growth of diverse and inclusive companies which grow 1.5 times faster than those that don’t have the DEI initiatives in place. With such considerations for all walks of life, it is no surprise that the beauty industry is projected to reach $677 billion in 2025.
What’s Next: What was once seen as a niche or progressive approach is now emerging as a proven strategy for mainstream market success. It implies that inclusivity is no longer just a moral or cultural imperative but a powerful business advantage that’s driving future growth. As more consumers demand representation, the brands that prioritize DEI are not only aligning with values but also outperforming the competition. Even with attempts to erase years of hard work, it is refreshing to see brands side with their clients and taking a stand.
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