Beauty retailers should remain in the pink for the next five years.

According to IBISWorld, the economic recovery will be the most powerful driver for the beauty, cosmetics and fragrance stores industry—including major players such as L Brands, Sally Beauty Supply, Ulta and Sephora—over the five years to 2018. The research firm forecasts that consumer confidence will continue growing, prompting additional spending on discretionary goods such as cosmetics.

Consequently, from 2013 to 2018, industry revenue is forecast to grow at an average annual rate of 5.2% to $16.8 billion. Also, the number of store locations is expected to rise at an annualized rate of 4.3%, reaching 126,534 stores in 2018. IBISWorld projects that the top four companies will maintain their position in the market and account for an even larger portion of the industry by 2018 (compared to the 70% in 2013). Smaller players and potential entrants will have a difficult time establishing themselves in this environment, according to the research gathered.