Black Beauty brands are a hit with shoppers of all races

A brand new report has revealed a rise in sales of Black-owned beauty brands amongst customers from all walks of life. However, the upward trend appears within the face of a decline in enterprise capital financing for these firms.

Economic Progress Report by Braintrust Founders Studio he recorded it Consumer spending reached $142 million in 2023. The data was collected due to the studio’s cooperation with 209 founders of cosmetic firms whose sales reached this amount. Black women made up 91% of this group.

These numbers are up 42% from 2022, with venture-backed company sales only reaching just below $100 million. Customer racial diversity and increased profits are assumed to result from social media following of founders and their firms. The racial makeup of follower lists reflects the demographic makeup of buyers.

The news also comes at a time when enterprise capital funding is scarce for diverse entrepreneurs, especially women, as enterprise capital funding for Black founders has dropped to 0.05%. While this hurdle has prevented newer Black-owned beauty brands from growing, it hasn’t stopped established firms from growing.

Fortunately, the information confirms that these firms’ profits don’t depend upon majority black consumers. In fact, Asian, Latino and white customers combined purchased more products than their black counterparts.

“This data further proves that Black entrepreneurs create the beauty and wellness products they buy,” explained Kendra Bracken-Ferguson and Lisa Stone, co-founders of the BrainTrust Fund. “Despite the fact that venture capital funding for Black founders has dropped to a three-year low, Black beauty and wellness entrepreneurs are growing the U.S. economy with innovative new products and services that are driving sales among leading retailers, online and in stores stationary, and create jobs. We celebrate the commercial and cultural leadership of our members, the majority of whom are Black women.”

This achievement demonstrates the profitability and longevity of Black Beauty brands. By finding latest ways to advance in beauty and wellness, they are also paving the best way for more diverse founders.