Inclusive Beauty Brands Grow 1.5X Faster than Less Inclusive Brands

Based on new research conducted by Circana and SeeMe Index, beauty brands that are more inclusive are growing faster than less inclusive brands.

SeeMe Index is a company that uses AI to measure brand inclusivity by measuring gender expression, skin tone, age, observed sexual orientation, body size and visible disability.

A new report—Inclusive Beauty Drives Sales: An AI-Powered Road Map for the Beauty Industry—analyzes the point-of-sale growth rates of 40 beauty brands included in the inaugural SeeMe Index for Beauty compared to less inclusive brands.

The study integrated Circana’s beauty sales data from leading US beauty, general merchandise, and mass retailers during the same time period.

Brands including M·A·C, Dove, L’Oréal Paris, Maybelline New York, NYX Cosmetics, Fenty, and Estée Lauder Companies saw an 18% collective growth rate compared to 12% for less inclusive brands, outpacing the industry, according to Circana and SeeMe Index.

“The beauty industry plays a significant role in driving inclusivity, and today’s consumers want to be truly seen by the brands they support,” said Larissa Jensen, senior vice president and global beauty industry advisor, Circana. “Our research with SeeMe Index highlights the importance of genuine inclusivity from both a human and business perspective. The data is clear: beauty brands that are inclusive at every level grow faster, and inclusivity is a key component for business success.”

Three Key Traits of Inclusive Brands

According to Circana and SeeMe, the research found that the most inclusive brands share three key traits. These brands:

•  view inclusivity as an organizational approach, consistently demonstrating it across all consumer touchpoints;

•  meaningfully engage with diverse consumer identities by integrating intersectional thinking into their long-term commitments, ensuring inclusivity is sustained and authentic; and

•  maintain transparency by regularly reporting progress on identity-specific product testing and long-term brand commitments. 

“Becoming a truly inclusive brand requires consistency throughout every customer interaction,” said Asha Shivaji, chief executive officer and co-founder, SeeMe Index. “Our findings show that the most successful brands embed inclusivity into their ads, product positioning, and external commitments, not just during special months, but year-round. Consumers can easily distinguish between brands that talk about inclusivity and those that genuinely embody it.”

More Takeaways

Additionally, Circana says certified inclusive brands were 2.5x more likely to have ads featuring adults with perceived age over 55, and showed gay and straight relationships in equal percentages while less inclusive brands were 12x more likely to show straight versus gay relationships.