2022
9
US Online Product Discovery: Beauty and Personal Care Market Report 2022
2022-01-28T03:11:50+00:00
OX1046353
3695
147428
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Report
en_GB
"How consumers discover and engage with new products continues to evolve. Digital channels and tools have become essential to the modern consumer journey. Moving forward, curated content and product assortments,…

US Online Product Discovery: Beauty and Personal Care Market Report 2022

£ 3,695 (Excl.Tax)

Report Summary

This report provides comprehensive and current information and analysis of the US Online Product Discovery: Beauty and Personal Care market including US Online Product Discovery: Beauty and Personal Care market size, anticipated market forecast, relevant market segmentation, and industry trends for the Online Product Discovery: Beauty and Personal Care market in the US.

Current market landscape

Consumers have a tendency to buy what is familiar to them; that said, over two thirds of consumers are open to buying new beauty and personal care products (66%) and brands (63%). COVID-19 has forced consumers to pivot to ecommerce and adopt digital shopping behaviors, creating a major behavior shift that will stick beyond the pandemic. Consumers are getting used to the convenience and infinite possibilities they can find in the digital world. As a result, brands and retailers must look to bring the streamlined elements of discovery and exploration from the in-person shopping experience to the digital world.

56% of beauty shoppers find it is not as easy to discover new brands and products online as it is in-store. This highlights the opportunities for improvement brands and retailers have to better appeal to the evolving and modern consumer. By leveraging technology at its fullest, brands and retailers would be better prepared to cater to consumers and at the forefront of digital retail.

Future market trends in US Online Product Discovery: Beauty and Personal Care

There are major shifts in how consumers shop for beauty and personal care resulting from combined effects of the COVID-19 pandemic. The direct impact to consumers’ health and finances together with limited activities outside of home have led consumers to adjust beauty routines. Essential products that support consumers’ self-care are thriving while occasion-based categories (makeup, fragrances) are being challenged to recover their pre-pandemic growth. The economic uncertainty steaming from the pandemic has driven consumers to be more cautious with their money. As a result, affordable beauty and personal care products are getting their attention. Yet, they are not making purchasing decisions on a whim; consumers are doing research to not compromise product functionality.

There is also a shift to shop more online, driven by initial nonessential retailers’ closures and prolonged concerns about exploring and shopping in stores. This shift highlights the importance of strong digital strategies that allow discovery, exploration, and transactions online.

Read on to discover more about the US Online Product Discovery: Beauty and Personal Care consumer market, read our Beauty Retailing – US – 2021 report, or take a look at our other Beauty and Personal Care Market research reports.

Quickly understand

  • The impact of COVID-19 on how consumers discover beauty and personal care products online.
  • How consumers learn about and shop for beauty and personal care items.
  • Considerations when buying new beauty and personal care products online.
  • Attitudes toward new beauty and personal care products.
  • Online Product Discovery for the BPC market report.
  • The product lifecycle in the BPC market.

Covered in this report

Brands include: Macy’s, LOUM Beauty, Philosophy, Benefit, Rare Beauty, Addison Rae, The Quality Edit, Farmacy, Meri, and Sol de Janeiro, Marc Jacobs, Coty, Florence by Mills, Bubble, K18 Hair, Summer Fridays, Flamingo, Sephora, Harry’s, Colour Pop, Byrdie, Amazon, CeraVe, Root to End, e.l.f, Laura Mercier, Colorism, Credo Beauty, Pattern Beauty, RadSwan.

Expert analysis from a specialist in the field

This report, written by Marisa Ortega, a leading analyst in the Retail and eCommerce sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

How consumers discover and engage with new products continues to evolve. Digital channels and tools have become essential to the modern consumer journey. Moving forward, curated content and product assortments, together with features that offer ease and control will be critical in driving discovery for beauty and personal care products online.

Marisa Ortega, Cross-category analyst
Marisa Ortega
Retail and eCommerce Analyst

Table of Contents

  1. Overview

    • What you need to know
      • This Report looks at the following areas
        • Definition
          • Market context
            • COVID-19: US context
              • Economic and other assumptions
              • Executive Summary

                  • Top takeaways
                    • Market Overview
                      • Figure 1: Online product discovery: beauty and personal care outlook, 2022-27
                    • Opportunities and challenges
                      • Leverage diverse forms of technology
                        • Lean on trending ingredients
                          • Focus on sustainability to differentiate
                            • Bridge the on and offline worlds
                              • Key consumer insights
                                • The pandemic has created shifts in the way consumers shop
                                  • Consumers are trading up and down across categories
                                    • Attract consumers through sustainable efforts
                                      • Third parties are curating products to consumers
                                      • Market Factors

                                        • The pandemic continues to impact consumers’ needs and behaviors
                                          • Technology helps to stay at the forefront of digital retail
                                            • Figure 2: Macy’s implements Google Cloud Retail Search
                                          • A value-focused mindset makes consumers vulnerable to new products and brands
                                            • Figure 3: GDP change from previous period and consumption expenditures, Q1 2010-Q3 2021
                                          • Consumers want to make more meaningful purchases
                                            • Figure 4: Beauty brands partner to drive mental health awareness
                                          • Adopt initiatives to go green
                                            • Figure 5: Addison Rae Fragrance utilizes upcycled ingredients
                                        • Competitive Strategies and Market Opportunities

                                          • Competitive Strategies
                                            • The Quality Edit highlights beauty items from DTC brands
                                              • Figure 6: Cyber Monday deals by The Quality Edit
                                            • Thingtesting gets consumers attention
                                              • Figure 7: Beauty brands highlighted by Thingtesting
                                            • Marc Jacobs fragrance leverages Pinterest to drive discovery through gifting
                                              • Figure 8: Marc Jacobs interactive holiday campaign
                                            • Market Opportunities
                                              • Leverage social commerce
                                                • Expand reach through partnerships
                                                  • Figure 9: Florence by Mills partners with Converse
                                                • Offer smaller formats of items
                                                  • Figure 10: Bubble drives trial through mini-size items
                                              • The Consumer: Fast Facts

                                                • Consumers are open to new beauty and personal care, but discovery is not as easy as it used to be
                                                  • Affordability piques curiosity
                                                    • The price tag can be a barrier to drive trials
                                                      • Think of streamlined shopping experiences as the goal
                                                      • Openness to New Products

                                                        • Consumers are open to new beauty and personal care products
                                                          • Figure 11: Openness to new products, 2021
                                                        • Consumers’ age drives them to new products for different reasons
                                                          • Figure 12: Openness to new products, by generation, 2021
                                                          • Figure 13: K18 promotes hair flip challenge on TikTok discover tab
                                                      • Discovery Across Channels

                                                        • Brands have a challenge to drive discovery online
                                                          • Figure 14: Attitudes toward new beauty and personal care products – channel discovery, 2021
                                                        • Provide educational content to uncover opportunities online among Gen Z
                                                          • Figure 15: Attitudes toward new beauty and personal care products – channel discovery, by generation 2021
                                                          • Figure 16: Ways to use… by Summer Fridays
                                                      • Sources of Discovery

                                                        • The path to discovery is disrupted, and evolving
                                                          • Figure 17: Sources of discovery, 2021
                                                          • Figure 18: Beauty editors’ pick by Flamingo
                                                        • Diversify and leverage user-generated content to appeal to younger generations
                                                          • Figure 19: Sources of discovery, by generation, 2021
                                                        • Be consistent to appeal to Asian consumers
                                                          • Figure 20: Sources of discovery, by race and Hispanic origin, 2021
                                                      • Discovery Drivers

                                                        • Showcasing value is the hook
                                                          • Figure 21: Discovery drivers, 2021
                                                          • Figure 22: New and exclusive products by Sephora
                                                        • Women are more prone to discover new BPC products
                                                          • Figure 23: Discovery drivers by gender, 2021
                                                          • Figure 24: New skincare line by Harry’s
                                                        • Consumers needs and desires for discovery vary by age
                                                          • Figure 25: Discovery drivers by generation, 2021
                                                          • Figure 26: Holiday look ideas by Colour Pop
                                                      • Starting the Shopping Process

                                                        • Consumers can start and finish their journey in one place
                                                          • Figure 27: Starting the shopping process, 2021
                                                          • Figure 28: Byrdie highlights products discovered on TikTok
                                                        • Each generation starts its journey in a different way
                                                          • Figure 29: Starting point by generation, 2021
                                                        • Leverage social media platforms to resonate with multicultural consumers
                                                          • Figure 30: Starting point by race and Hispanic origin, 2021
                                                          • Figure 31: Hairitage by Mindy Ambassador
                                                      • Channel and Retailers Shopped

                                                        • A streamlined journey is key to drive sales
                                                          • Figure 32: Channel and retailers shopped, 2021
                                                        • Establish the foundation for a relationship with the next generation of shoppers
                                                          • Figure 33: Channel and retailers shopped – online, by generation, 2021
                                                          • Figure 34: Cerave and Charli D’Amelio
                                                        • Offer tangible value to appeal to Black consumers
                                                          • Figure 35: Channel and retailers shopped – online, by race and Hispanic origin, 2021
                                                          • Figure 36: Acquisition email by Dollar General
                                                      • Purchase Considerations

                                                        • Consumers want to make informed decisions
                                                            • Figure 37: Purchase considerations, by generation, 2021
                                                            • Figure 38: e.l.f email highlights customer reviews and special offer
                                                          • Key factors to earn the heart of multicultural consumers
                                                            • Figure 39: Purchase considerations, by race and Hispanic origin, 2021
                                                        • Price Sensitivity

                                                          • The willingness to spend on new items varies across generations
                                                            • Figure 40: Price sensitivity, by generation, 2021
                                                        • Technology Enables Discovery

                                                          • Consumers are interested in diverse solutions to learn about beauty and personal care
                                                            • Figure 41: Technology in beauty and personal care, by gender, 2021
                                                          • Millennial beauty shoppers find the most value in technology
                                                            • Figure 42: Technology in beauty and personal care, by generation, 2021
                                                            • Figure 43: Makeup tutorial by Laura Mercier
                                                        • Attitudes toward New Beauty and Personal Care Products

                                                          • Support Gen Z in their introductory phase to the category
                                                            • Figure 44: fresh highlights products’ benefits to drive discovery
                                                            • Figure 45: Attitudes toward new beauty and personal care products – category knowledge, by generation, 2021
                                                          • Consumers want to drive positive change through their purchases
                                                              • Figure 46: Attitudes toward new beauty and personal care products – shopping preferences, by race and Hispanic origin, 2021
                                                              • Figure 47: Colorism’s Impact on BIPOC by Eadem
                                                              • Figure 48: Recycling program by Credo Beauty
                                                          • Content Type

                                                            • Consumers want to effortlessly learn about beauty
                                                              • Figure 49: Content type by generation, 2021
                                                              • Figure 50: Product review on reels by Pattern Beauty
                                                            • Multicultural consumers are willing to spend their time to get to know brands and products
                                                              • Figure 51: Content type by race and Hispanic origin, 2021
                                                              • Figure 52: Radswan encourages user-generated content
                                                          • Appendix – Data Sources and Abbreviations

                                                            • Data sources
                                                              • Consumer survey data
                                                                • Consumer qualitative research
                                                                  • Marketing creative
                                                                    • Abbreviations and terms
                                                                      • Abbreviations
                                                                        • Terms

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