With the release of organic and high-quality skincare products, and the removal of Covid-19 travel restrictions, the demand for cosmetics has increased. Prominent cosmetic retailers Estée Lauder (EL) and Coty (NYSE:) should benefit from the rising consumer spending this holiday season. Which stock is better to buy right now? Read more to find out.The Estée Lauder Companies Inc. (EL) and Coty Inc . The two most prominent global companies in cosmetics are COTY (COTY). EL markets, manufactures and sells a broad range of products for hair and skin care, including skincare, perfume, cosmetics and makeup. It also offers ancillary products, services and goods. COTY, on the other hand is a company that makes, markets and sells beauty products. This includes prestige perfumes and skin care products. COTY also supplies professional-grade hair and nail care products. The companies’ products are sold through specialty multi retailers and department stores as well as drug and pharmacy stores. They also sell to salons and spas.

Last year, the industry saw a 8% drop in sales due to COVID-19-related lifestyle changes and lockdowns. The cosmetics industry was able to survive thanks to efforts to create high-quality skin products, and to sell through ecommerce platforms.

Due to the relaxation of restrictions, cosmetics stores will see increased foot traffic in the lead up to Christmas. This is expected to drive solid growth for the industry. Global cosmetics sales are expected to increase at 5% annually and hit $415.29 million by 2028. COTY and EL should both benefit.

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