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The Rise of Dallas-Fort Worth in the $62 Billion U.S. Beauty Industry

CEO Tinh Phung
The beauty industry is often associated with coastal cities, but there's a quiet revolution happening in the heartland of America. Dallas-Fort Worth is emerging as a powerful force in the $62 billion U.S. beauty market,...

The beauty industry is often associated with coastal cities, but there's a quiet revolution happening in the heartland of America. Dallas-Fort Worth is emerging as a powerful force in the $62 billion U.S. beauty market, with its impact extending from product development and packaging to logistics and retail sales. The region is home to both legacy and indie brands, making it a vibrant hub of innovation and creativity.

A Legacy of Beauty

Dallas-Fort Worth's journey in the beauty industry began in the 1960s when Mary Kay Ash launched her company with four skincare products and a foundation. Since then, the region has continued to attract major players. Sally Beauty moved its headquarters to North Texas twenty years later, contributing to the region's growing influence. Today, industry giants report annual sales of around $8 billion. The area is also home to over 15 notable beauty brands, including packaging giant FusionPKG, Swiss lab Galderma, and luxury skincare labels like BeautyBio and Natura Bissé.

Natura Bissé products With a celebrity following, prestige skincare brand Natura Bissé can be found in luxury spas all over the world, including Four Seasons Dallas at Las Colinas.

Dallas-Fort Worth: A Beauty Consumer Hotspot

Dallas-Fort Worth is not just a manufacturing and development hub; it is also a significant consumer market for many beauty brands. Barcelona's Natura Bissé established a North American office in Irving due to its partnership with Neiman Marcus, the region's top retailer. Curran Dandurand, co-founder and CEO of Jack Black, says that Dallas is a top producer for their men's skincare brand. With its lucrative beauty counters, the region has become an essential market for various beauty companies.

The COVID-19 pandemic has further accelerated the migration of beauty companies to Dallas-Fort Worth. The region's beauty industry has demonstrated resilience even during economic downturns. The industry's stability is reflected in several acquisitions of North Texas brands in recent years, highlighting their attractiveness and potential for growth.

Jamie O’Banion Founder and CEO, BeautyBio Jamie O’Banion, Founder and CEO of BeautyBio

The Changing Face of Consumer Behavior

The pandemic has caused a paradigm shift in consumer behaviors, creating new trends and priorities. Skincare has emerged as one of the fastest-growing segments within the beauty industry. Consumers are now looking for products with antioxidants, vitamins, and anti-aging compounds, driven by a heightened focus on health and well-being. This shift has opened up opportunities for brands that focus on clean, clinical skincare.

Stephanie Ortiz CEO Its a Secret Med Spa Stephanie Ortiz, CEO of It's a Secret Med Spa

Another significant trend is the rise of med spas, which are gaining popularity, particularly among younger millennials and Gen Z consumers. The "Zoom effect," where consumers pay closer attention to their facial features during virtual meetings, has resulted in increased interest in face and neck procedures. Aesthetic injectables, such as Botox, are experiencing significant growth in the market.

Embracing Inclusivity and Ethical Sourcing

Social media has played a pivotal role in driving inclusivity and ethical practices in the beauty industry. Consumers and retailers are now prioritizing clean ingredients and products explicitly marketed to women of color. Brands like Yangu Beauty and Curls are gaining traction, capturing the attention of major retailers like Neiman Marcus and Ulta Beauty.

Mahisha Dellinger Founder and CEO, CURLS Mahisha Dellinger, Founder and CEO of CURLS

Additionally, younger shoppers are leaning towards vegan and sustainable brands. Clean ingredients and ethical sourcing have become essential criteria for consumers. This shift in consumer preferences has led to the growth of the clean beauty market globally, expected to reach $22 billion by 2024.

Overcoming Challenges and Fueling Growth

Dallas-Fort Worth has overcome previous challenges such as talent shortages and limited private equity, making it an attractive destination for beauty companies. The region's central location, lower property taxes, and affordable warehouse space are appealing to coastal companies. The rise of remote work has also expanded the talent pool, attracting new players to the region. Moreover, increased financial investments and funding opportunities are driving innovation and growth in the beauty sector.

As the beauty industry evolves and adapts to new trends and consumer demands, Dallas-Fort Worth is establishing itself as a formidable player. With its vibrant ecosystem of beauty brands, commitment to ethical practices, and consumer-centric focus, the region is carving out its place in the $62 billion U.S. beauty industry.

The Business of Beauty Stephanie Ortiz, CEO of It's a Secret Med Spa