13 High-Profit Cosmetics Business Ideas to Launch in 2025

The cosmetics industry is thriving, with a projected global market value of $129 billion by 2028, driven by rising demand for innovative, sustainable, and personalized beauty solutions. To help aspiring entrepreneurs seize this momentum, NextSky presents 13 pioneering cosmetics business ideas designed to help you launch a standout, future-ready brand.

Should you start a cosmetics business in 2025?

In a world increasingly focused on appearance and individuality, the beauty industry is experiencing robust growth. If you’re wondering whether selling cosmetics is still profitable, the answer is a resounding yes.

Google Trends data shows consistently high search volumes for cosmetics-related keywords over the years, clearly demonstrating the market’s enduring appeal. The numbers speak for themselves, highlighting the industry’s impressive growth:

• Global cosmetics revenue grew over 16% in 2022 compared to the previous year.
• The skincare segment reached a value of $163.5 billion, leading the industry.
• Online sales have surged and are expected to continue growing.
• The global cosmetics market is worth approximately $100 billion annually and continues to expand daily.
• This growth is fueled by the demand for self-care, social media influence, and consumer preferences for natural, safe, and gentle products.

Top 13 cosmetics business ideas for 2025

1. Personalized skincare with AI technology

In an era celebrating individuality, AI-powered personalized skincare is transforming the beauty industry with tailored solutions for issues like acne, dryness, or aging. Proven Skincare, uses AI to analyze skin data and create custom serums and creams. Since 2018, Proven has secured $6 million in funding and thousands of loyal customers, showcasing the potential of tech-driven personalization.

Market insight:

• Average annual revenue: $150,000–$500,000
• Profit margin: 25%–45%
• Startup costs: $50,000–$250,000
• Time to revenue: 6–12 months
• Annual market growth: 10.2% (per Grand View Research, personalized skincare market)
• Suitable for: Tech entrepreneurs, skincare specialists, data innovators

How to start:

• Partner with AI developers to integrate skin analysis tools into your Shopify store.
• Source high-quality, customizable ingredients from certified suppliers.
• Use NextSky’s API integrations for a seamless user interface and personalized product recommendations.
• Promote through social media campaigns, emphasizing AI-driven results and customer testimonials.

Read more: Top 15 AI Business Ideas That Will 10x Your Income

2. Sustainable cosmetics

Sustainability is no longer just a trend but a consumer expectation. Refillable cosmetics lead the way with eco-friendly packaging, reducing waste and appealing to environmentally conscious customers. Kjaer Weis, a luxury brand founded by Kirsten Kjaer Weis, has conquered markets in over 20 countries with its organic, refillable cosmetics.

Market insight:

• Average annual revenue: $100,000–$400,000
• Profit margin: 20%–40%
• Startup costs: $30,000–$150,000
• Time to revenue: 4–10 months
• Annual market growth: 9.8% (per Statista, sustainable beauty market)
• Suitable for: Environmentally conscious entrepreneurs, sustainable product developers

How to start:

• Source biodegradable or recyclable packaging from certified eco-friendly suppliers.
• Develop subscription-based refill programs to encourage repeat purchases.
• Use NextSky’s Shopify themes to highlight your sustainability mission with compelling visuals.
• Promote through eco-focused influencers and blogs, emphasizing certifications like USDA Organic.

See more: Start Your Own Bath Bomb Business and Make Profits

3. Vegan cosmetics

Vegan, cruelty-free cosmetics are increasingly popular among consumers, who prioritize ethical products. Founded in 2004, e.l.f. Cosmetics became a $1 billion empire with affordable, Leaping Bunny-certified vegan products. Through innovative social media strategies and transparency, it has become a leader in the mass market, proving the power of brand values.

Market insight:

• Average annual revenue: $120,000–$450,000
• Profit margin: 22%–42%
• Startup costs: $40,000–$200,000
• Time to revenue: 5–11 months
• Annual market growth: 8.7%
• Suitable for: Ethically minded entrepreneurs, beauty influencers

How to start:

• Source vegan ingredients (e.g., plant-based pigments) from PETA-certified suppliers.
• Create product kits for specific looks, like “Natural Glow” or “Night Glam.”
• Use NextSky’s Shopify themes for transparent product pages with certification badges.
• Promote through vegan influencers and ethical beauty communities on Instagram.

4. Men’s personal care subscription boxes

Men’s care is no longer a niche but a rapidly growing sector, as men increasingly prioritize skincare and grooming, with subscription boxes offering convenience. Dollar Shave Club, founded by Michael Dubin, disrupted the industry with its subscription model, reaching $200 million in revenue by 2016 before being acquired for $1 billion.

Market insight:

• Average annual revenue: $100,000–$350,000
• Profit margin: 20%–38%
• Startup costs: $30,000–$180,000
• Time to revenue: 4–9 months
• Annual market growth: 7.6% (per Grand View Research, men’s grooming market, 2023)
• Suitable for: Fitness influencers, male-focused marketers

How to start:

• Curate boxes with high-quality items like beard oils, serums, and grooming tools.
• Partner with natural ingredient suppliers for premium appeal.
• Use NextSky’s Shopify themes for a masculine, seamless website design.
• Promote through grooming tutorials on YouTube and targeted ads for men.

Read more: TOP 25 Profitable Wellness Business Ideas for Small Startups

5. Specialized haircare

With diverse hair types like curly or thick hair often underserved, specialized haircare brands are winning customer loyalty. SheaMoisture, starting as a family business, became a global brand worth over $100 million, focusing on curly hair, and was later acquired by Unilever, demonstrating the power of inclusive haircare innovation.

Market insight:

• Average annual revenue: $150,000–$500,000
• Profit margin: 25%–45%
• Startup costs: $50,000–$250,000
• Time to revenue: 6–12 months
• Annual market growth: 10.2%
• Suitable for: Tech entrepreneurs, skincare specialists, data innovators

How to start:

• Partner with AI developers to integrate hair analysis tools into your Shopify store.
• Source high-quality, customizable ingredients from certified suppliers.
• Use NextSky’s API integrations for a smooth user interface and personalized product recommendations.
• Promote through social media campaigns, highlighting AI-driven results and customer testimonials.

6. Virtual makeup try-ons with AR technology

Augmented reality (AR) is revolutionizing online cosmetics shopping by allowing customers to “try before they buy” through virtual makeup apps, reducing purchase hesitation. L’Oréal pioneered AR integration into its e-commerce platform, boosting sales by 20% and attracting millions of global users.

Market insight:

• Average annual revenue: $150,000–$600,000
• Profit margin: 20%–40%
• Startup costs: $60,000–$300,000
• Time to revenue: 6–12 months
• Annual market growth: 11.7%
• Suitable for: Tech-savvy entrepreneurs, beauty device innovators

How to start:

• Integrate AR makeup try-on tools into your Shopify store using NextSky’s API solutions.
• Offer cosmetics (e.g., lipsticks, foundations) with AR-compatible shade ranges.
• Partner with AR tech providers for seamless functionality.
• Promote through TikTok and Instagram Reels with virtual makeup demo videos.

Read more: How to Build Profitable Nail Business Ideas

7. Indie beauty brand incubation

The indie beauty movement is booming and driven by authenticity, creating opportunities for hubs that support new entrepreneurs with resources and mentorship. The Indie Beauty Expo (IBE), founded by Jillian Wright, has connected hundreds of indie brands with retailers, generating millions in revenue and establishing industry leadership.

Market insight:

• Average annual revenue: $200,000–$700,000
• Profit margin: 20%–35%
• Startup costs: $50,000–$250,000
• Time to revenue: 6–12 months
• Annual market growth: 10.8%
• Suitable for: Beauty consultants, brand mentors, industry connectors

How to start:

• Offer consulting, product development, or co-branding services for indie startups.
• Use NextSky’s Shopify themes to showcase client success stories on a professional platform.
• Provide educational content like webinars or e-books on beauty business strategies.
• Promote through industry events and beauty entrepreneur communities.

8. Functional fragrances for wellness

Fragrances are becoming wellness tools, with functional scents like essential oil therapies aiding stress relief. The Nue Co., founded by Jules Miller, tapped into this trend with products like “Mind Energy,” offering a multisensory experience and reaching $10 million in revenue in 2023.

Market insight:

• Average annual revenue: $100,000–$400,000
• Profit margin: 22%–40%
• Startup costs: $35,000–$180,000
• Time to revenue: 5–10 months
• Annual market growth: 8.9% (per Statista, fragrance market)
• Suitable for: Wellness entrepreneurs, fragrance specialists

How to start:

• Source natural essential oils and fragrance ingredients from certified suppliers.
• Develop scents with specific wellness benefits (e.g., lavender for relaxation, citrus for energy).
• Use NextSky’s Shopify themes for sensory-focused product pages with vibrant visuals.
• Promote through wellness blogs, yoga communities, and Instagram influencers.

9. Skincare for sensitive skin

Sensitive skin is gaining attention, driving demand for hypoallergenic, fragrance-free products that soothe and protect. Drunk Elephant, founded by Tiffany Masterson, leads this market with clean, gentle formulations, reaching a $845 million valuation before being acquired by Shiseido, proving the appeal of safe skincare solutions.

Market insight:

• Average annual revenue: $120,000–$450,000
• Profit margin: 25%–42%
• Startup costs: $40,000–$200,000
• Time to revenue: 5–11 months
• Annual market growth: 10.5% (per Grand View Research, sensitive skincare market)
• Suitable for: Skincare specialists, dermatology-focused entrepreneurs

How to start:

• Source hypoallergenic ingredients like niacinamide or centella asiatica from trusted suppliers.
• Partner with dermatologists to validate products and build credibility.
• Use NextSky’s Shopify themes for transparent product pages that foster trust.
• Promote through dermatology blogs and sensitive skin communities on social media.

Read more: 900 Beauty Business Name Ideas You Shouldn't Miss

10. Beauty tech accessories

Beauty tech accessories like LED masks or smart mirrors are revolutionizing at-home skincare, offering professional results with convenience. Foreo leads this market with its Luna cleansing device, generating over $1 billion in revenue since 2013, reflecting the growing global demand for innovative beauty tools.

Market insight:

• Average annual revenue: $150,000–$600,000
• Profit margin: 20%–40%
• Startup costs: $60,000–$300,000
• Time to revenue: 6–12 months
• Annual market growth: 11.7%
• Suitable for: Tech-savvy entrepreneurs, beauty device innovators

How to start:

• Source FDA-approved beauty tech devices from reputable manufacturers.
• Offer product bundles with complementary cosmetics to increase value.
• Use NextSky’s Shopify themes for a modern, tech-focused website with product demo videos.
• Promote through YouTube tutorials, beauty tech blogs, and influencer partnerships.

11. Teen skincare and cosmetics

Teen-focused skincare and cosmetics prioritize gentle, affordable, trendy products for sensitive skin and emerging routines. Bubble Skincare, founded by Shai Eisenman in 2020, captured Gen Z with vibrant designs, gentle formulas, and effective TikTok marketing, achieving $20 million in revenue.

Market insight:

• Average annual revenue: $80,000–$300,000
• Profit margin: 18%–35%
• Startup costs: $20,000–$120,000
• Time to revenue: 3–8 months
• Annual market growth: 7.8% (per Grand View Research, teen beauty market, 2023)
• Suitable for: Youth marketers, social media specialists

How to start:

• Develop non-comedogenic, gentle products for young skin.
• Use vibrant, trendy packaging to attract Gen Z.
• Promote through TikTok challenges and teen influencers.
• Launch a “teen beauty academy” with beginner-friendly tutorials.

Read more: Top 858 Makeup Business Names To Inspire Your Startup

12. Minimalist cosmetics for busy professionals

Minimalist cosmetics offer quick, long-lasting solutions for busy people, emphasizing natural beauty with multitasking products like tinted moisturizers. Glossier, founded by Emily Weiss in 2014, built a $1.8 billion empire with products like Boy Brow, appealing to time-strapped users with a “skin-first” philosophy and modern branding.

Market insight:

• Average annual revenue: $100,000–$350,000
• Profit margin: 20%–40%
• Startup costs: $30,000–$150,000
• Time to revenue: 4–9 months
• Annual market growth: 8.9% (per IBISWorld, minimalist cosmetics market, 2024)
• Suitable for: Professionals, efficiency-focused marketers

How to start:

• Develop multitasking products like lip-and-cheek tints.
• Focus on long-wear, low-maintenance formulas.
• Promote through LinkedIn with “5-minute makeup” tutorials.
• Use mobile-optimized Shopify themes for seamless shopping.

13. Mobile beauty services

Mobile beauty services deliver professional makeup and skincare experiences at the client’s chosen location, catering to the convenience needs of busy individuals. Glamsquad, founded by Alexandra Wilkis Wilson in 2014, capitalized on this trend with a flexible booking platform and skilled professionals, generating $25 million annually in major U.S. cities, highlighting the appeal of accessible beauty solutions.

Market insight:

• Average annual revenue: $100,000–$350,000
• Profit margin: 20%–40%
• Startup costs: $30,000–$150,000
• Time to revenue: 4–9 months
• Annual market growth: 8.3% (per IBISWorld, on-demand beauty services market, 2024)
• Suitable for: Beauty professionals, service entrepreneurs

How to start:

• Build a mobile-friendly booking platform with NextSky’s Shopify themes.
• Train certified professionals to ensure high-quality service.
• Promote through local SEO and community partnerships.
• Combine services with product sales to boost revenue.

Starting a cosmetics business on Shopify in 6 steps

Launching a cosmetics business can feel daunting, but it’s an advantageous and profitable venture with the right approach. Here are six simple steps to begin your journey:

Step 1: Research the market

Start by identifying which products customers are interested in, such as natural cosmetics, sensitive skin solutions, or non-irritating makeup. Use tools like Google Trends, beauty community groups, or small surveys to understand real demand.

Step 2: Analyze competitors

Study successful cosmetics brands, from their product positioning to social media engagement. These real-world lessons help you avoid common mistakes and identify gaps where your brand can stand out.

Step 3: Create a clear business plan

Your business plan doesn’t need to be lengthy, but should be comprehensive. Define:

• Business goals for the next 6–12 months
• Initial capital requirements
• Target customer demographic
• Marketing channels (e.g., Facebook, Instagram, TikTok)
• Projected operational costs and revenue
• This clarity helps you stay focused and attract investors or partners if needed.

Step 4: Choose your products

Start with high-demand products aligned with your target market. Options include private labeling, sourcing from manufacturers, or creating your own (if you have expertise). Prioritize quality, certified-safe products with attractive packaging to make a strong first impression.

Step 5: Build a brand and market smartly

To stand out, create a professional social media presence, share valuable content (e.g., skincare tips, makeup tutorials), and leverage influencers (KOLs) to boost brand awareness. Start with a small budget, ensuring content is engaging and relevant to your audience.

Step 6: Set up an online store on Shopify and start selling

Shopify enables you to create a professional e-commerce website without coding skills. Choose a theme, add products, configure shipping and payments, and start selling. Shopify offers clear, step-by-step guides for beginners.

2025 presents countless opportunities for cosmetics business ideas. We hope NextSky’s insights inspire diverse paths to success, helping you build a brand that resonates with modern consumers.