NAICS 456120 Quarterly Industry Report
Cosmetics, Beauty Supplies, and Perfume Retailers
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 456120Sector: 45Updated: Q1 2026
About This Report
This NAICS 456120 industry report compiles data from the U.S. Census Bureau[4] Annual Retail Trade Survey, Bureau of Labor Statistics[5] employment statistics, and Small Business Administration[6] size standard tables. Fair Market Value researchers integrate these federal datasets with beauty industry trade data and state business registration records to deliver quarterly updates. The NAICS 456120 report tracks employment trends, revenue patterns, and market structure changes specific to cosmetics and beauty product retailing.
Industry Definition & Overview
Cosmetics, Beauty Supplies, and Perfume Retailers (NAICS 456120) encompasses establishments primarily engaged in retailing cosmetics, perfumes, toiletries, and personal grooming products. Specialty beauty retailers, perfume shops, and cosmetics stores that focus on personal care product sales all fall under this classification. These businesses range from single-location boutiques to national chains like Ulta Beauty and Sephora.
The U.S. Census Bureau[4] separates this industry from pharmacies (456110) and health supplement retailers (456191) based on the primary merchandise focus. Beauty supply stores carry extensive selections of makeup, skincare, haircare, fragrance, and grooming products that go well beyond what drugstores stock. Professional beauty supply retailers serve both consumers and licensed cosmetologists, stocking salon-grade products not available through mass-market channels.
Retail formats include standalone beauty stores, mall-based cosmetics counters operated as independent retail units, fragrance specialty shops, and ethnic beauty supply stores. E-commerce has reshaped competitive dynamics, with direct-to-consumer beauty brands and subscription box services creating new distribution channels. Brick-and-mortar operators increasingly invest in experiential retail, offering in-store makeup application, skin analysis technology, and product sampling to differentiate from online competitors. Product margins vary substantially across categories, with prestige cosmetics and fragrances carrying higher markups than mass-market personal care items. Private label beauty products have gained traction among retailers seeking to improve profitability while offering exclusive merchandise not available at competing stores.
What's Included in This Industry
- Operating specialty cosmetics and makeup retail stores
- Running beauty supply stores serving consumers and licensed professionals
- Managing fragrance and perfume specialty retail locations
- Selling skincare, haircare, and personal grooming products through dedicated retail outlets
- Operating ethnic and multicultural beauty supply retail stores
- Retailing salon-grade and professional beauty products to both stylists and consumers
- Running nail care and nail art supply retail stores
- Managing bath and body product specialty retail locations
- Operating beauty product sampling and experiential retail concepts
- Selling wigs, hair extensions, and hair accessories through beauty supply stores
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Health and Personal Care Retailers | 456 |
| Industry Group | Health and Personal Care Retailers | 4561 |
| NAICS Industry | Cosmetics, Beauty Supplies, and Perfume Retailers | 45612 |
| National Industry | Cosmetics, Beauty Supplies, and Perfume Retailers | 456120 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 456110 | Pharmacies and Drug Retailers | Pharmacies and drugstores carry cosmetics and personal care products alongside prescription medications, competing with beauty specialty retailers on mass-market items |
| 456199 | All Other Health and Personal Care Retailers | All other health and personal care retailers sell overlapping personal grooming and hygiene products through formats that may include beauty items |
| 325620 | Toilet Preparation Manufacturing | Toilet preparation manufacturing produces the cosmetics, skincare, and fragrance products that beauty retailers purchase from manufacturers and distributors |
| 424210 | Drugs and Druggists' Sundries Merchant Wholesalers | Drug and sundries wholesalers distribute beauty and personal care products from manufacturers to retail beauty supply stores and cosmetics retailers |
| 812112 | Beauty Salons | Beauty salons provide hair and skin services that create demand for retail beauty products, with some salons operating adjacent retail sections |
| 812199 | Other Personal Care Services | Other personal care services including skin care and nail salons drive consumer interest in professional-grade beauty products sold at specialty retailers |
SBA Lending Summary
2,040
Total SBA Loans
$756.5M
Total Loan Volume
$371K
Average Loan Size
10 yrs
Average Loan Term
10.79%
Average Interest Rate
12,040
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[3]
Key Insight: The Small Business Administration[7] sets the size standard for NAICS 456120 at $34 million in average annual receipts. Independent beauty supply stores, boutique cosmetics retailers, and fragrance shops below this threshold qualify as small businesses. SBA 7(a) loans[8] can finance inventory acquisition, store buildouts, and working capital for beauty retailers. The SBA 504 loan program[9] supports real estate purchases and major fixture investments for owner-operated beauty retail locations.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Metro City Bank | 32 | $67.5M | $2.1M |
| 2 | Live Oak Banking Company | 24 | $45.6M | $1.9M |
| 3 | Newtek Bank, National Association | 144 | $39.1M | $272K |
| 4 | Community Bank & Trust-West Georgia | 16 | $37.4M | $2.3M |
| 5 | East West Bank | 16 | $36.0M | $2.2M |
Frequently Asked Questions
Common questions about this industry.
What businesses are classified under NAICS 456120?
NAICS 456120 includes specialty cosmetics stores, beauty supply retailers, perfume shops, and personal grooming product stores. Both consumer-facing and professional beauty supply operations qualify. The U.S. Census Bureau[4] provides the official industry definition and scope.
How does NAICS 456120 differ from pharmacies and drugstores?
Pharmacies (NAICS 456110) primarily dispense prescription medications and sell health products, while 456120 retailers focus specifically on cosmetics, beauty supplies, and fragrances without pharmacy operations. The Census Bureau classification[10] draws clear boundaries between health-focused and beauty-focused retailers.
What is the SBA size standard for beauty supply retailers?
The SBA sets the small business size standard at $34 million in average annual receipts for NAICS 456120. Most independent beauty supply stores operate well below this threshold. Current standards appear in the SBA table of size standards[6].
Which NAICS codes relate most closely to 456120?
Key related codes include 456110 for pharmacies that sell beauty products, 325620 for cosmetics manufacturers, 812112 for beauty salons, and 424420 for cosmetics wholesalers. Each code represents a different stage in the beauty product value chain from manufacturing through distribution to retail and services.
What industries does beauty product retailing connect with?
Cosmetics manufacturing (325620) supplies products, beauty salons (812112) drive demand, drugstores (456110) compete in mass-market segments, and wholesalers (424420) handle distribution. Department stores (455110) also compete through prestige cosmetics counters and dedicated beauty departments.
What specific activities does NAICS 456120 cover?
Covered activities include retailing cosmetics, skincare products, haircare items, fragrances, nail care supplies, and professional beauty products. Beauty supply stores serving licensed cosmetologists and consumer-facing beauty boutiques both qualify. The Census definition[4] covers all specialty beauty retail formats.
Can beauty supply store owners get SBA loans?
Beauty retailers with annual receipts under $34 million qualify for SBA 7(a) loans for inventory, equipment, and operating expenses. The 504 program covers real estate and major improvements. Application information is available through the SBA funding programs page[11].
Where are beauty supply retailers most concentrated?
Beauty supply stores concentrate in metropolitan areas with dense populations, particularly in California, New York, Texas, and Florida. Ethnic beauty supply stores cluster in communities with large African American, Hispanic, and Asian populations. Mall-based beauty retailers locate in high-traffic shopping centers across suburban markets.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [4]U.S. Census Bureau census.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]Small Business Administration sba.gov
- [7]Small Business Administration sba.gov
- [8]SBA 7(a) loans sba.gov
- [9]SBA 504 loan program sba.gov
- [10]Census Bureau classification census.gov
- [11]SBA funding programs page sba.gov
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