Black founders are making their mark in the beauty industry.
Consumer spending on new beauty and wellness products created by Black entrepreneurs hit $142M, a marked increase according to the 2024 Economic Advancement Report by BrainTrust Founders Studio.
“The robust U.S. beauty and wellness industry grew again as overall venture funding to Black founders declined again, to less than one-half of one percent,” the report writes. “During this period, the BrainTrust Founders Studio nearly doubled its membership of Black-founded beauty and wellness companies. These 209 founders – 91% Black women – collectively achieved nearly $142.6 million in sales, up 42.5% from the prior year, selling 39,000+ product SKUs4 across more than 47,000+ retail “doors” and online. While 25 of these founders have successfully raised $114.9 million in venture capital or angel investment since inception, venture-backed companies drove just 69% or $98.5 million of sales.”
The report points out that “everyone,” bought Black created beauty products, meaning consumers of all races purchased the items. The only exception is Black hair care, unsurprisingly since the products’ formulations specifically target Black hair types.
“These data further prove Black entrepreneurs create beauty and wellness products that everyone buys,” said Co-founders Kendra Bracken-Ferguson, CEO, and Lisa Stone, Chief Investment Officer, the BrainTrust Fund in a news release. “Despite the fact that venture funding to Black founders has fallen to a three-year low. Black beauty and wellness entrepreneurs are growing the American economy with new, innovative products and services that drive sales by leading retailers, online and in-store, and create jobs. We are celebrating this commercial and cultural leadership by our members, most of whom are Black women!”
