All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
If you’re looking for a colourful addition to your investment portfolio, then makeup stocks might fit the bill. Makeup stocks are part of a wider category of stocks in cosmetic companies that produce makeup, lotions, perfumes and hair products.
A lot of makeup companies are owned by larger parent companies, so it will take a bit of research to find out how to invest in makeup stocks.
How to invest in makeup stocks
- Choose a share dealing platform. We’ve listed some below for you to compare. As a lot of cosmetics companies are based in the US, you’ll need to choose a provider that lets you trade US stocks.
- Open an account. You may need to provide details about your employment, your national insurance number and your address.
- Fund your account. Some providers let you fund your account with a debit card, by bank transfer or by Apple or Google Pay.
- Choose your makeup stock and search for it. See some of the stocks listed below, make sure you look at the some of the key financials like its performance, market capitalization and price-to-earnings (P/E) ratio.
- Submit an order. Choose how many you want to buy and review the price. When you’re happy, hit buy.
- Keep an eye on your investments. It’s as easy as that!
Compare trading platforms and invest in makeup stocks
Table: sorted by promoted deals first
List of makeup stocks
Here are some examples of makeup stocks or parent companies of makeup brands.
Why invest in makeup stocks?
Cosmetics are, to some extent, considered to be a staple. This means that, like other staples such as food, electricity and water, people will still continue to buy them even when stocks are falling.
This is helped by beauty bloggers and beauty vloggers on Instagram, TikTok and YouTube increasing the popularity of makeup and even influencing consumers to use more expensive brands. Makeup is now considered to be art, and its ability to improve confidence makes it an integral part of a self care routine.
In 2019, the global cosmetics market grew by an estimated 5.25% compared to the previous sales year. Research has discovered that those who use cosmetics aren’t willing to decrease what they spend on beauty products, even with less disposable income on hand.
The cosmetics industry has staying power — makeup has existed for hundreds of years and if recent market trends are anything to judge by, the industry isn’t going anywhere.
Risks of investing in makeup stocks
While makeup is considered a staple, it’s not necessarily an essential item. While these stocks did continue to perform well during the coronavirus pandemic, it may have been helped by a need for self care during such a difficult time.
Makeup isn’t immune to volatility – a shift to online shopping could give smaller independent companies a boost while hindering larger, well known brands. Make sure you look at long term plans for the companies you want to invest in, such as future innovation and product launches.
The bottom line
Makeup stocks can be a way of adding some diversification to your investment portfolio, even if you don’t highlight, contour or blend yourself. Cosmetics companies tend to perform well, and have done even during the coronavirus pandemic, so it’ll be exciting to see what’s next for them.
- Statista
This article offers general information about investing and the stock market, but should not be construed as personal investment advice. It has been provided without consideration of your personal circumstances or objectives. It should not be interpreted as an inducement, invitation or recommendation relating to any of the products listed or referred to. The value of investments can fall as well as rise, and you may get back less than you invested, so your capital is at risk. Past performance is no guarantee of future results. If you're not sure which investments are right for you, please get financial advice. The author holds no positions in any share mentioned.
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