2020
9
UK Beauty Online Market Report 2020
2020-10-07T04:03:34+01:00
OX989014
2195
125699
[{"name":"Beauty and Cosmetics","url":"https:\/\/store.mintel.com\/industries\/beauty-personal-care\/beauty-cosmetics"}]
Report
en_GB
“Although growth in the online beauty market was strong prior to the COVID-19 outbreak, it was slowing as retailers were struggling to increase engagement with the channel. However, 2020 marked…

UK Beauty Online Market Report 2020

£ 2,195 (Excl.Tax)

Report Summary

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the UK Beauty Online market including the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

Online demand for beauty has surged in 2020 and Mintel predicts that value sales of beauty/grooming products through the channel will rise 24% to £1.9 billion in 2020. The channel was gaining popularity prior to the outbreak as it gives consumers more choice; 67% of online BPC shoppers say the channel gives them access to beauty/grooming brands that are not sold in stores. COVID-19 has fuelled growth in the online beauty market as it has significantly increased consumer comfort with buying beauty/grooming products via the channel, driving purchase frequency and volumes.

 

Expert analysis from a specialist in the field

Written by Samantha Dover, a leading analyst in the Beauty & Personal Care sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Although growth in the online beauty market was strong prior to the COVID-19 outbreak, it was slowing as retailers were struggling to increase engagement with the channel. However, 2020 marked a turning point as online demand surged amidst disruption. Whilst a reluctance to visit physical stores and an eroded in-store experience will benefit online sales for some time, retailers can more fully take advantage of the new reliance beauty consumers have on the online channel.
Samantha Dover
Senior Retail Analyst

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • COVID-19: Market context
          • Economic and other assumptions
            • Products covered in this Report
            • Executive Summary

                • The market
                  • Online penetration in beauty reaches record levels
                    • Figure 1: Central forecast for online consumer expenditure on beauty (prepared 19 August 2020), 2015-25
                  • The impact of COVID-19 on beauty online
                    • A boost in 2020 will set the channel up well for future growth
                      • Figure 2: Expected impact of COVID-19 on the online beauty market in the short, medium and long term, 19 August 2020
                    • Companies and brands
                      • Online innovation ramps up amidst COVID-19 disruption
                        • The consumer
                          • An ongoing preference for store-based shopping
                            • Figure 3: Channels used to purchase beauty/grooming products in the last 12 months, by category, June 2020
                          • Mobile commerce can drive purchase frequency
                            • Figure 4: Frequency of online beauty/grooming purchases in the last 12 months, June 2020
                          • Consumers stick to stores they know during the pandemic
                            • Figure 5: Changes in online beauty/grooming purchases since the start of the COVID-19/coronavirus outbreak, 11-22 June 2020
                          • Innovation is needed to improve convenience
                            • Figure 6: Issues encountered when purchasing beauty/grooming products online in the last 12 months, June 2020
                          • Technology can reduce the channel’s reliance on repeat purchasing
                            • Figure 7: Factors to encourage online beauty/grooming purchases, June 2020
                          • Lifestyle content needs authenticity to resonate
                            • Figure 8: Beauty/grooming advice desired online, June 2020
                          • Brand differentiation is essential to online’s popularity
                            • Figure 9: Online beauty/grooming purchase behaviours, June 2020
                        • COVID-19 and Beauty Online

                          • The impact on the market
                            • COVID-19 accelerates online beauty growth
                              • Store closures will further boost online demand
                                • Trust and convenience influenced where consumers shopped
                                  • Financial hardship will drive savvy shopping habits
                                    • The impact on companies and brands
                                      • Retailers increase investment to keep pace with demand
                                        • Online improvements increase the channel’s influence
                                          • The impact on the consumer
                                            • Consumers reduce spend on discretionary beauty
                                              • COVID-19 will drive savvy shopping habits
                                                • Online spend benefits from reduced retail footfall
                                                  • Supply and demand issues hold back online spending
                                                    • An eroded in-store experience will continue to boost online demand
                                                      • Online sampling initiatives will resonate now more than ever
                                                      • Issues and Insights

                                                        • COVID-19 shifts online buying behaviours permanently
                                                          • Innovation will be necessary to maintain heightened demand
                                                            • Multichannel habits present opportunities to drive long-term growth
                                                            • The Market – Key Takeaways

                                                              • The online channel reaches new consumers
                                                                • Store-based retailers regain online ground
                                                                  • Economic turbulence will intensify price competition
                                                                    • Online engagement will see new brands come to the forefront
                                                                    • Market Size and Forecast

                                                                      • COVID-19 boosts online beauty engagement
                                                                        • Figure 10: Expected impact of COVID-19 on the online beauty market in the short, medium and long term, 19 August 2020
                                                                      • Growth was strong, but slowing prior to COVID-19
                                                                        • Figure 11: Market size and forecast for online consumer expenditure on beauty (prepared 19 August 2020), 2015-25
                                                                      • Record growth estimated in 2020
                                                                        • Innovation could minimise the shift back in-store in 2021
                                                                          • Strong growth forecast long term
                                                                            • Figure 12: Central forecast for online consumer expenditure on beauty (prepared 19 August 2020), 2015-25
                                                                          • The lipstick effect will look different this time around
                                                                            • Figure 13: Consumer expenditure on beauty and personal care products (excluding professional services), 2007-12
                                                                          • Online outperformed during the financial crisis
                                                                            • Figure 14: All online retail sales, 2007-12
                                                                          • Market drivers and assumptions
                                                                            • Figure 15: Key drivers affecting Mintel’s market forecast, 2015-2025 (19 August 2020)
                                                                          • Forecast methodology
                                                                          • Channels to Market

                                                                            • Store-based specialists gain ground in 2020…
                                                                              • …but the grocers are the real winners
                                                                                • Figure 16: Retail share of online consumer expenditure on beauty products, 2018-20 (est)
                                                                              • Fashion retail’s woes extend into beauty
                                                                                • Amazon outperforms in the online-only space
                                                                                • Market Drivers

                                                                                  • Ageing population remains untapped
                                                                                    • Figure 17: Projected trends in the age structure of the population, 2018-28
                                                                                  • BLM movement drives demand for more diversity and inclusion
                                                                                    • Figure 18: Definition of a diverse beauty brand, August 2019
                                                                                  • Retail footfall decline existed pre-COVID-19
                                                                                    • Consumer confidence has taken a hit in 2020
                                                                                      • Figure 19: Mintel’s financial confidence index, January 2015-August 2020
                                                                                    • Income squeeze will see beauty priorities change
                                                                                      • Figure 20: Real wage growth – average weekly earnings vs inflation, June 2018-May 2020
                                                                                    • Touchpoints to reach consumers are expanding
                                                                                      • Figure 21: Channels and devices used to purchase BPC products in the last 12 months, October 2019
                                                                                    • Online is becoming a primary source of information
                                                                                      • Figure 22: Sources used for BPC information, March 2020
                                                                                    • New social platforms outperform in beauty
                                                                                      • Figure 23: Social media networks used in the last 3 months, March 2020
                                                                                    • Peer to peer recommendations are important
                                                                                      • Figure 24: BPC influences on social media, March 2020
                                                                                    • Eco-concerns are heightened online
                                                                                      • Experimentation is driving women online
                                                                                        • Figure 25: Categories women indicate an interest in experimenting with unfamiliar brands, October 2019
                                                                                    • Companies and Brands – Key Takeaways

                                                                                      • Online growth increases competition
                                                                                        • Making online beauty shopping easier is a priority
                                                                                          • Physical trial remains important
                                                                                          • Launch Activity and Innovation

                                                                                            • New market entrants increase competition
                                                                                              • Delivery investment speeds up service
                                                                                                • Figure 26: Superdrug Stuart Delivery, 2020
                                                                                              • The rise of virtual consultations
                                                                                                • Figure 27: Bobbi Brown Virtual Services Homepage, August 2020
                                                                                              • Product recommendations continue to evolve
                                                                                                • Figure 28: The Inkey List #askINKEY Campaign, 2020
                                                                                                • Figure 29: Boots No7 Personalised Skin Analysis, 2020
                                                                                              • Breaking down barriers with sampling services
                                                                                                • Virtual testing gains momentum in 2020
                                                                                                  • Figure 30: Pinterest Try-On Experience, 2020
                                                                                                • Livestreaming comes to the forefront
                                                                                                  • Figure 31: Facebook Shops Live Shopping Features, 2020
                                                                                                • Expanding the online wellbeing proposition
                                                                                                  • Putting a spotlight on new and niche brands
                                                                                                    • Online retailers leverage own-label opportunities
                                                                                                      • Figure 32: Glossybox Skincare, 2020
                                                                                                  • The Consumer – Key Takeaways

                                                                                                    • Opportunities to further expand online’s reach
                                                                                                      • New strategies are needed to encourage first-time purchases
                                                                                                        • Innovation will drive online frequency and repertoires
                                                                                                          • Retailers need to respond to conscious consumerism
                                                                                                          • The Impact of COVID-19 on Beauty Consumers

                                                                                                            • Store anxieties boost online demand
                                                                                                              • Figure 33: Level of concern regarding exposure to COVID-19, 20 March – 14 August 2020
                                                                                                            • Cautious spending habits are kicking in
                                                                                                                • Figure 34: Change in BPC spending since the start of the COVID-19/coronavirus outbreak, by age, 18-30 June 2020
                                                                                                              • Health and wellbeing comes to the forefront
                                                                                                                  • Figure 35: Reasons for reduced spend on BPC since the start of the COVID-19/coronavirus outbreak, 18-30 June 2020
                                                                                                                • Reduced demand will drive discounting activity
                                                                                                                  • Figure 36: Feelunique newsletter, August 2020
                                                                                                                • A cautious approach to marketing will be necessary
                                                                                                                  • Figure 37: Ways in which BPC spending habits will change in the face of an income squeeze, 18-30 June 2020
                                                                                                                • The lipstick effect will rely on newness
                                                                                                                    • Figure 38: Reasons for increased spend on BPC since the start of the COVID-19/coronavirus outbreak, 18-30 June 2020
                                                                                                                  • An eroded in-store beauty experience will benefit online
                                                                                                                      • Figure 39: Beauty/grooming purchase behaviours since the COVID-19/coronavirus outbreak, 18-30 June 2020
                                                                                                                    • Help consumers replace experiences with “insperiences”
                                                                                                                        • Figure 40: Guy Morgan DIY Face Mask Workshop, 2020
                                                                                                                        • Figure 41: Earl of East DIY Bath Salts Workshop, 2020
                                                                                                                    • Channels Used to Purchase BPC Products

                                                                                                                      • Shift online is more pronounced in electrical goods
                                                                                                                        • Figure 42: Channels used to purchase beauty/grooming products in the last 12 months, by category, June 2020
                                                                                                                      • Replacement purchases drive online beauty sales
                                                                                                                        • Figure 43: Online purchase of beauty/grooming products amongst buyers, by category, June 2020
                                                                                                                      • Women over-55 are embracing the online channel
                                                                                                                        • Figure 44: Channels used to purchase beauty/grooming products in the last 12 months, by age and gender, June 2020
                                                                                                                      • Use delivery passes to strengthen the online repertoire
                                                                                                                        • Figure 45: Repertoire of beauty/grooming products bought in-store and online in the last 12 months, June 2020
                                                                                                                    • Frequency of Online Purchases

                                                                                                                      • Encourage smartphone usage to boost frequency
                                                                                                                        • Figure 46: Frequency of online beauty/grooming purchases in the last 12 months, June 2020
                                                                                                                      • Choice boosts purchase frequency amongst young shoppers
                                                                                                                        • Figure 47: Frequency of online beauty/grooming purchases in the last 12 months, by age, June 2020
                                                                                                                      • Purchase frequency boosted by COVID-19
                                                                                                                        • Figure 48: Changes in online beauty/grooming purchases since the start of the COVID-19/coronavirus outbreak, June 2020
                                                                                                                      • Youth engagement heightened by COVID-19
                                                                                                                        • Figure 49: Changes in online beauty/grooming purchases since the start of the COVID-19/coronavirus outbreak, by age, June 2020
                                                                                                                    • Issues Encountered When Shopping Online

                                                                                                                      • COVID-19 disruption impacts online availability
                                                                                                                        • Figure 50: Issues encountered when purchasing beauty/grooming products online in the last 12 months, June 2020
                                                                                                                      • Online capabilities will be make or break during Christmas 2020
                                                                                                                        • Address excess packaging sooner rather than later
                                                                                                                          • Online purchase frequency influences experience
                                                                                                                            • Figure 51: Issues encountered when purchasing beauty/grooming products online in the last 12 months, by age and gender, June 2020
                                                                                                                        • Factors to Encourage Online Purchases

                                                                                                                          • Technology aids new purchases
                                                                                                                            • Figure 52: Factors to encourage online beauty/grooming purchases, June 2020
                                                                                                                          • Engage consumers with creative promotions
                                                                                                                            • Figure 53: Cult Beauty Haul of Fame Awards, 2020
                                                                                                                          • Samples expand online’s reach
                                                                                                                            • Figure 54: Factors to encourage online beauty/grooming purchases, by gender, June 2020
                                                                                                                          • Go beyond discounts to reach a wider audience
                                                                                                                            • Figure 55: TURF analysis – beauty online, June 2020
                                                                                                                            • Figure 56: Table – TURF analysis – beauty online, June 2020
                                                                                                                          • TURF analysis methodology
                                                                                                                          • Beauty and Grooming Advice Desired Online

                                                                                                                            • Incorporate lifestyle guidance into content
                                                                                                                              • Figure 57: Beauty/grooming advice desired online, June 2020
                                                                                                                            • Target men with a holistic approach to grooming
                                                                                                                              • Demand for age-related content is strong
                                                                                                                                • Figure 58: Beauty/grooming advice desired online amongst women, by age, June 2020
                                                                                                                              • Women need guidance at each life stage
                                                                                                                                • Figure 59: Balance – menopause support app, 2020
                                                                                                                            • Online Research Behaviours

                                                                                                                              • Offset price competition with payment solutions
                                                                                                                                • Figure 60: Online beauty/grooming research behaviours, June 2020
                                                                                                                              • Drive app usage to engage women in-store
                                                                                                                                • Figure 61: Agreement with online beauty/grooming research behaviours, by gender, June 2020
                                                                                                                                • Figure 62: Boots UK Shopping App, 2020
                                                                                                                              • Use livestreaming to engage young consumers
                                                                                                                                • Figure 63: Agreement with online beauty/grooming research behaviours, by age, June 2020
                                                                                                                              • Catering to eco-conscious young consumers
                                                                                                                                • Figure 64: Cult Beauty Provenance Partnership, 2019
                                                                                                                            • Online Shopping Behaviours

                                                                                                                              • Exclusive brands drive consumers online
                                                                                                                                • Figure 65: Online beauty/grooming purchase behaviours, June 2020
                                                                                                                              • Using physical spaces to support online
                                                                                                                                • Figure 66: Glossier Pop-Up, London, 2019
                                                                                                                              • Create relatable online content to drive sales
                                                                                                                                • Figure 67: Online beauty/grooming purchase behaviours, by gender, June 2020
                                                                                                                              • Savvy shopping behaviours are widespread
                                                                                                                                • Figure 68: Online beauty/grooming purchase behaviours, by age, June 2020
                                                                                                                            • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                • Abbreviations
                                                                                                                                  • Consumer research methodology

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