The US beauty market is continuing its streak of annual glow-ups—that is, year over year dollar sales boosts—and e-commerce sales may be stealing some of brick-and-mortar retailers’ sparkle.
Composed of hair, skin, cosmetics, and nail products, the market is on a five-year growth streak, with overall beauty sales rising over 6% last year to $107.5 billion, according to a new State of Beauty report from NielsenIQ. Last year, e-commerce sales increased 11.1% to $45.7 billion, while in-store sales rose 2.8% to $61.8 billion.
Online’s share of the total US beauty market has now reached 43%, up two percentage points YoY. In the next three to five years, that number is likely to blossom to 50%, Anna Mayo, VP of NIQ’s beauty vertical, told Retail Brew.
“We’re definitely seeing this transition to a digital-first industry,” she said, a move which has impacted not only where consumers shop, like Amazon and TikTok, but also how they shop, what they buy, and how loyal they are to brands.
Eye catching: Growth in e-commerce over the last five years has been driven by innovation in the channel, Mayo noted, with the advent of options like click and collect, social selling on platforms like TikTok, and the expansion of Amazon’s beauty assortment.
Keep reading here.—EC
|