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Health and Beauty Products

Royalty Profile for Licensed Health and Beauty Products

 

Sector value, U.S. & Canada, 2017: $7.94 billion

  • Fragrance: $3.98 billion
  • Hair Accessories: $0.26 billion
  • Cosmetics/Nail Polish/Other: $3.69 billion

Proportion of retail sales of licensed merchandise, U.S. & Canada, 2017: 7.3%

  • Fragrance: 3.7%
  • Hair Accessories: 0.2%
  • Cosmetics/Nail Polish/Other: 3.4%

Average royalty, U.S. & Canada, 2018: 9.01%

  • Fragrance: 9.24%
  • Cosmetics, Hair Accessories, Other: 8.50%

Royalty range, U.S. & Canada, 2018: 5%–18%

  • Fragrance: 5%–18%
  • Cosmetics, Hair Accessories, Other: 6%–14%

Average royalty, U.S. & Canada, (10 years) 2009–2018: 8.99%

  • Fragrance: 9.25%
  • Cosmetics, Hair Accessories, Other: 8.41%

Analysis

There can be a broad range of royalty rates in the health and beauty category, depending on the property involved, from fashion to celebrity and beyond.

Fragrance programs generally involve the manufacturer committing to major packaging and marketing expenditures to support the brand.

Property-identified cosmetics—a growing sector of late—often are limited-edition, promotional, and royalty-free. The last couple of years have seen an influx in entertainment/character properties and digital celebrities.


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