The market for beauty products and services can be divided into segments, each with its own needs and wants.

The key to successful marketing is understanding these different segments and targeting them with the right products.

One of the most popular methods for performing market segmentation uses demographic factors like age, gender and income.

Other methods use psychographic factors like lifestyle, motivations, values, likes and dislikes as well as behavioral factors like purchasing habits, how someone intends to use a product or service, how often they will use it, the benefits they seek, or brand preference that they have.

In this article, we will perform beauty market segmentation using the following 7 variables: type of beauty product, price range, ingredients, organic (or not), the occasion of use, brand, and gender.

But first, let’s start by understanding why beauty market segmentation is important.

The Importance of Segmentation of the Beauty Market

The segmentation of the market for beauty products and cosmetics is essential because it allows beauty product manufacturers and retailers to target specific groups of consumers with laser precision.

By understanding the needs and wants of different segments, businesses can create products that are more likely to appeal to them and retailers can stock beauty products that their customers are most likely to buy.

The market for beauty ranges from those looking for an everyday makeup product to those seeking luxury beauty items.

Therefore, it is essential to have a good understanding of the beauty market and how it can be segmented before launching any beauty products.

There exist beauty products for every budget, but not all types of beauty products are suitable for all customers and their needs.

By segmenting the market, businesses can identify which type of beauty products are most popular with each group and target their marketing and sales efforts accordingly.

Variables for Beauty Market Segmentation

Beauty market segmentation can be performed along the following 7 axes:

  1. Type of beauty product
  2. Price range
  3. Ingredients
  4. Organic (or not)
  5. Occasion of use
  6. Brand and
  7. Gender

Different people have different needs, wants and motivations for purchasing a product or service.

And so most beauty product manufacturers do not cater to all buyers. Instead, they focus on those segments of the market that are most likely to buy their products.

With market segmentation, they can target specific groups of consumers with tailor-made products or services that satisfy their needs.

It is therefore essential that businesses decide which segments they want to target and then design their products, marketing, and sales strategy accordingly.

Let’s now look in detail at each of the 7 variables used in beauty market segmentation.

#1. Segmentation Based on Type of Beauty Product

People buy beauty products for different reasons. Some want to look good for a special occasion, while others want to feel more confident on a daily basis.

Some beauty products are used for specific purposes such as cleansing or moisturizing the skin, while others are used for general purposes such as makeup or hair care.

Therefore, the first step in beauty market segmentation is to identify the different types of beauty products that people use.

The most common types of beauty products are:

Different people have different beauty needs and so they will purchase different types of beauty products.

#2. Beauty Market Segmentation Based on Price Range

Price is, of course, always a factor that influences consumer behavior.

When it comes to beauty products, people are willing to spend different amounts of money depending on the product and their own personal budget.

Some beauty products are very expensive, while others are very affordable.

The price range is a key variable in beauty market segmentation as it allows businesses to target specific groups of consumers with different budgets.

For example, those who are willing to spend a lot of money on beauty products are more likely to buy luxury brands or high-end products.

On the other hand, those on a tight budget are more likely to go for drugstore beauty products or budget-friendly brands.

Beauty product manufacturers and retailers often use price segmentation techniques to maximize their revenue and profit by extracting the most revenue out of each customer based on their willingness to pay.

#3. Segmentation Based on Beauty Product Ingredients

Whenever a product is ingested or applied to the body, people want to know what it is made of.

This is especially true for beauty products, as people want to make sure that they are not exposing themselves to any harmful ingredients.

Nowadays, many beauty product manufacturers use natural and organic ingredients in their products to appeal to health-conscious consumers.

Those who are looking for beauty products made with natural or organic ingredients will usually be willing to pay more for these products.

On the other hand, those who are not as concerned about the ingredients in beauty products will be more price-sensitive.

Similarly, those with allergies or sensitivities to certain ingredients will only purchase beauty products that do not contain those ingredients.

Ingredients are therefore an important variable to consider in beauty market segmentation.

#4. Segmentation Based on whether the Beauty Product is Organic (or not)

Continuing the previous point, an important sub-segmentation of beauty products is based on whether they are organic or not.

Organic beauty products are made with ingredients that are grown without the use of pesticides or other chemicals. They are also not tested on animals.

People who choose organic beauty products tend to use similar products in other aspects of their lives. They will buy organic products and food for their households. They will buy organic or natural skincare products.

#5. Segmentation Based on Occasion of Use

Whether a consumer is an occasional user of a beauty product or a daily user is another important variable in beauty market segmentation.

People who only use beauty products on only special occasions, like before a big event, will be less price-sensitive than those who use them on a daily basis.

This is because the occasional users are willing to splurge on beauty products for a big event, whereas daily users are more likely to go for affordable beauty products that they can use on a regular basis.

#6. Beauty Market Segmentation Based on Brand

Brand loyalty is a big deal in the beauty industry.

People who find a beauty brand they like often stick with that brand for many years, only trying new products from that same brand.

But as people age, their beauty needs change and they may be willing to try new brands that offer products specifically designed for their current beauty needs.

Beauty product businesses use these transition points in a person’s life to try and convert them into users and eventually loyal customers of their brand.

#7. Beauty Market Segmentation Based on Gender

A customer’s gender is not an insignificant variable in beauty market segmentation.

Historically, beauty products have been marketed mostly to women and they still make up the vast majority of beauty customers.

However, the beauty industry is starting to see more men interested in their products.

This change in society’s perception of the target market for beauty products has been a dramatic one and beauty businesses have had to adapt their marketing strategies accordingly.


As you can see, the market for beauty products can be segmented using many variables and can be analyzed from different angles.

In this article, we performed beauty market segmentation following these 7 factors: type of beauty product, price range, ingredients, organic (or not), the occasion of use, brand, and gender.

Manufacturers and retailers of beauty products often use market segmentation to better understand their customers and figure out how to appeal to them.

With beauty market segmentation, they can better understand which of their products are likely to sell well and can target their audiences more effectively.