Beauty products by Black founders gain traction across ethnicities

Black founders are making significant strides in the beauty industry, with consumer spending on their products reaching $142 million. This increase is highlighted in the 2024 Economic Advancement Report by BrainTrust Founders Studio. The report indicates that while overall venture funding to Black founders has declined, the membership of Black-founded beauty and wellness companies in the BrainTrust Founders Studio nearly doubled. These companies, led by 91% Black women, achieved $142.6 million in sales, up 42.5% from the prior year. They sold over 39,000 product SKUs through more than 47,000 retail locations and online platforms. Despite challenges in venture funding, these entrepreneurs have shown remarkable growth and success.

The report also notes that consumers of all races have contributed to the success of Black-founded beauty products, with the exception being Black hair care, which is specifically formulated for Black hair types. The data underscores the broad appeal and quality of products created by Black entrepreneurs in the beauty and wellness industry. Kendra Bracken-Ferguson, CEO, and Lisa Stone, Chief Investment Officer of the BrainTrust Fund, emphasize the significant impact of these entrepreneurs on the American economy, highlighting their innovation, sales growth, and job creation. They celebrate the commercial and cultural leadership of their members, most of whom are Black women, despite the challenges they face in funding.

Repurposed article originally published in Essence