Description

This report provides comprehensive and current information and analysis of the online beauty retailing market including online beauty retailing market size, anticipated market forecast, relevant market segmentation, online beauty retailing market share, and industry trends for the online beauty retailing market in the US.

Current market landscape

During the height of the pandemic, consumers turned to shopping online out of need; today they are doing it as a choice. Within the last year, 96% of consumers shopped online overall and 70% of them did so a few times per month. The online channel has become a useful tool to make more informed and strategic purchasing decisions – behaviors that are getting further cemented with the current economic turmoil.

Beauty and personal care retail sales have continued to increase, driven by consumers paying more rather than buying more, highlighting the impact of inflation. Consumers are also simplifying their beauty routines in efforts to protect their time, budget and the planet.

Market share and key industry trends

  • The online channel has become a useful tool to discover and learn about BPC products and brands. More than half of consumers (54%) begin the shopping process online. This means that in order to be part of consumers’ journeys, brands and retailers will want to use an omnichannel approach to engage with them.
  • Customer reviews (51%), photos of products (40%) and ingredient information (40%) are the leading types of content beauty shoppers typically look for online. Consumers want to make informed purchasing decisions and ensure their money is well spent.
  • Nine in 10 beauty shoppers read product reviews (93%), compare prices (93%) and shop around for the lowest price (92%) at least sometimes when shopping for beauty or personal care items. The online channel is serving to make more informed purchasing decisions by helping consumers find products that sit at the intersection between quality and price.

Future market trends in online beauty retailing

Economic concerns will also make consumers more averse to paying for convenience. Options to avoid or minimize shipping costs, whether that is through free shipping, BOPIS options or incentives to pick up items instead of having them delivered will be critical to driving sales online.

While beauty shoppers enjoy shopping online due to the convenience and the community offered, there are still areas to improve. Consumers want the in-store experience replicated online. They want to easily find what they need and connect with customer service if it’s required. Moving forward, brands and retailers will need to look for ways to address shortcomings to serve beauty shoppers better.

This Report builds on the analysis presented in Beauty Retailing – US, 2022 and Online Beauty Retailing – US, 2021. Read on to discover more about the online beauty retailing consumer market, or take a look at our other Beauty and Personal Care Market research reports.

Quickly understand the online beauty retailing market

  • The impact of macroeconomic factors on the beauty and personal care market.
  • Beauty and personal care items purchased.
  • Online shopping behaviors for beauty and personal care items.
  • Content of interest online and social media behaviors.
  • Barriers to shopping online.
  • Attitudes toward online beauty retailing.

Covered in this online beauty retailing market report

Brands include: MAC, Kering, L’Occitane Group, Roblox, Pure Culture Beauty, Sephora, NARS, DoorDash, Glossier, Google, Alleyoop, PopShelf, Dollar General, JCPenney Beauty, Thirteen Lune, Nordstrom Rack, Inn Beauty Project, Klarna, ButtahSkin, CosrX, Merit, Boy Smells, Ulta Beauty, Neutrogena, TikTok, Instagram, Florence by Mills, Supergoop, Lush Cosmetics, Rhode.

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 on online beauty retailing market trends to highlight current trends and add expert context to the numbers.

Beauty shoppers are engaged shopping online; they enjoy the convenience and the community they find in the channel. They are also more in control of their purchases, as they can discover, learn and transact on their own schedule. However, there are still opportunities to innovate and enhance the online shopping experience.

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
          • Executive Summary

              • Top takeaways
                • Market overview
                  • Figure 1: Total US retail sales and forecast of beauty and personal care products, at current prices, 2017-27
                  • Figure 2: Online beauty retailing outlook, 2022-27
                • Opportunities and challenges
                  • Enhance the online shopping experience to not lose consumers
                    • Capitalize on the nature of the online channel to drive discovery and sales
                      • Build a community online to maximize loyalty
                        • Key consumer insights
                        • Market Size and Forecast

                          • Retail sales increase driven by rising prices
                            • Figure 3: Total US retail sales and forecast of beauty and personal care products, at current prices, 2017-27
                            • Figure 4: Total US retail sales and forecast of beauty and personal care products, at current prices, 2017-27
                        • Segment Performance

                          • Skincare and bodycare are leaders in market share
                            • Consumers’ desire to express themselves leads to a pent-up demand for cosmetics
                              • Haircare is impacted by consumers economical behaviors
                                • Shaving and hair removal retail sales continue with a sluggish performance
                                • Market Factors

                                  • The economic crisis impacts consumers’ spending on beauty and personal care
                                    • Figure 5: GDP change from previous period, Q1 2007-Q3 2022
                                    • Figure 6: Consumer Price Index change from previous period, 2007-22
                                  • There is still room to improve DEI efforts
                                    • Figure 7: Population, by race and Hispanic origin, 2017-27
                                    • Figure 8: Mac highlights its zero tolerance for hate on social media, 2022
                                  • Sustainability is becoming more important to consumers
                                    • Figure 9: Kering teams up with L’Occitane Group to launch a climate fund for nature, 2022
                                  • Technology is infiltrating beauty shoppers’ lives
                                    • Figure 10: Attitudes toward online beauty retailing, 2022
                                • Competitive Strategies and Market Opportunities

                                  • Pure Culture Beauty takes wholesale approach; opportunity for DTC brands to expand reach and minimize acquisition costs
                                    • Figure 11: DTC brand Pure Culture Beauty makes its way to retail, 2022
                                  • Sephora expands same-day delivery option and gives consumers delivery options to align with their demands and remain competitive
                                    • Figure 12: Sephora explores with various types of delivery, 2022
                                  • Cosmetics brand NARS launches digital brand ambassadors; opportunity to leverage digital innovation to engage with consumers
                                    • Figure 13: NARS launches digital brand ambassadors, 2022
                                • The Beauty and Personal Care Consumer Online – Fast Facts

                                  • Online Shopping Frequency

                                    • Consumers continue to choose to shop online
                                      • Figure 14: Online shopping frequency, 2022
                                      • Figure 15: Glossier accelerates its omnichannel strategy, 2022
                                  • The Starting Point

                                    • Online channels are useful tools to discover and learn about BPC products and brands
                                      • Figure 16: The starting point, by age, 2022
                                    • Multicultural consumers need guidance on where to start
                                      • Figure 17: The starting point, by race and Hispanic origin, 2022
                                      • Figure 18: Google enhanced the shopping experience for its search, 2022
                                  • Items Purchased and Shopping Methods

                                    • There are fewer beauty and personal care purchases
                                      • Figure 19: Items purchased, by year, 2019-22
                                      • Figure 20: Alleyoop launches Dream Team a multitasking moisturizer, 2022
                                    • Consumers shop for their beauty and personal needs where it is more convenient for them to do so
                                      • Figure 21: Item purchased by shopping method, 2022
                                    • Beauty and personal care meaning evolves throughout consumers’ lives
                                      • Figure 22: Item purchased by shopping method, by age, 2022
                                  • Retailers Shopped

                                    • Amazon dominates the online channel; there’s room for the category to improve the online shopping experience
                                      • Figure 23: Retailers shopped, by channel, 2022
                                    • There are opportunities to engage younger consumers with BPC online
                                      • Figure 24: Retailers shopped online, by age, 2022
                                      • Figure 25: Popshelf focus on trending product attributes and affordability to appeal to younger beauty shoppers, 2022
                                    • Multicultural consumers look for value in its various forms when shopping online
                                      • Figure 26: Retailers shopped online, by race and Hispanic origin, 2022
                                      • Figure 27: JCPenney expands its focus on beauty and inclusivity in partnership with Thirteen Lune, 2022
                                  • Retailer Drivers Online

                                    • Consumers want convenience, but they are not necessarily willing to pay for it
                                      • Figure 28: Retailer drivers online, by gender and age, 2022
                                    • Consumers’ priorities when deciding where to shop can reflect varying lifestyles, interests and financial means
                                      • Figure 29: Retailer drivers online, by race and Hispanic origin, 2022
                                  • Barriers to Shopping Online

                                    • Consumers want to make informed purchase decisions and convenient shopping experiences
                                      • Figure 30: Barriers to shopping online, by gender, 2022
                                    • Younger consumers evaluate retailers from the beginning of their journey until the end
                                      • Figure 31: Barriers to shopping online, by age, 2022
                                  • Online Shopping Motivators

                                    • Consumers want to explore products without commitments
                                      • Figure 32: Online shopping motivators, by age, 2022
                                      • Figure 33: Inn Beauty Project leverages social media to demonstrate the look of its products, 2022
                                    • Support multicultural financial worries to encourage them to shop more online
                                      • Figure 34: Online shopping motivators, by race and Hispanic origin, 2022
                                      • Figure 35: Klarna promotes the beauty brand Caudalie, 2022
                                  • Shopping Behavior

                                    • The online channel helps consumers make more informed and strategic purchasing decisions
                                      • Figure 36: Shopping behavior, 2022
                                    • Males are increasingly engaged with beauty and personal care
                                      • Figure 37: Shopping behavior – Exploration, by gender, 2022
                                      • Figure 38: Buttahskin leverages social media to engage males, 2022
                                    • Multicultural consumers do their best to economize
                                      • Figure 39: Shopping behavior – Cost-conscious behaviors, by race and Hispanic origin, 2022
                                      • Figure 40: Cosrx leveraged social media to inform consumers the brand was part of Black Friday, 2022
                                  • Desired Online Content

                                    • Consumers want to make informed purchasing decisions
                                      • Figure 41: Desired online content, by gender, 2022
                                      • Figure 42: Merit partners with Cameron Diaz to inspire consumers, 2022
                                    • Relatable and aspirational content is needed to resonate with Black beauty shoppers
                                      • Figure 43: Desired online content, by race and Hispanic origin, 2022
                                      • Figure 44: r.e.m.beauty promotes the 60 shades of its game-changing concealer with visual representation, 2022
                                  • Social Media Behaviors

                                    • Consumers utilize social media to support their purchase decisions
                                      • Figure 45: Social media behaviors, by gender and age, 2022
                                      • Figure 46: Boy Smells highlights its Hypebae Beauty Award, 2022
                                    • Social media is paramount to building relationships with multicultural consumers
                                      • Figure 47: Social media behaviors, by race and Hispanic origin, 2022
                                  • Brand Engagement

                                    • Specialty retailers lead in engagement online
                                      • Figure 48: Consumer sentiment toward Ulta Beauty, 2022
                                      • Figure 49: Ulta Beauty launches a retail media network, 2022
                                      • Figure 50: Brand engagement, by age, 2022
                                      • Figure 51: Neutrogena makes efforts to appeal to younger consumers, 2022
                                    • Multicultural consumers are more inclined to engage with established brands online
                                      • Figure 52: Brand engagement, by race and Hispanic origin, 2022
                                      • Figure 53: Mac cosmetics encourages self-expression through bold makeup trends, 2022
                                  • Attitudes toward Online Beauty Retailing

                                    • There are areas of opportunity to improve the online shopping experience
                                      • Figure 54: Attitudes toward online beauty retailing, by gender, 2022
                                    • The needs of younger consumers are not met yet online
                                      • Figure 55: Attitudes toward online beauty retailing, by age, 2022
                                      • Figure 56: Lush Cosmetics remains away from social media, 2022
                                    • Influencers drive knowledge and decision making among consumers active on social media
                                      • Figure 57: Attitudes toward online beauty retailing – Impact of beauty influencers, by age, race and Hispanic origin, 2022
                                      • Figure 58: Hailey Bieber enters the beauty industry with the skincare brand Rhode, 2022
                                    • Digital offerings contribute to better serve younger consumers, as well as keep them engaged online
                                      • Figure 59: Attitudes toward online beauty retailing – Digital offerings, by age, 2022
                                      • Figure 60: JCPenney partners with Revieve to enhance the shopping experience online, 2022
                                  • Appendix – Data Sources and Abbreviations

                                    • Data sources
                                      • Sales data
                                        • Forecast
                                          • Consumer survey data
                                            • Abbreviations and terms
                                              • Abbreviations
                                                • Terms
                                                • Appendix – The Market

                                                    • Figure 61: Total US retail sales and forecast of beauty and personal care products, at inflation-adjusted prices, 2017-27
                                                    • Figure 62: Average annual household spending on beauty products, 2017-22
                                                    • Figure 63: Total US retail sales and forecast of beauty products, by segment, at current prices, 2017-27
                                                    • Figure 64: Total US retail sales and forecast of skincare and bodycare products, at current prices, 2017-27
                                                    • Figure 65: Total US retail sales and forecast of cosmetics, at current prices, 2017-27
                                                    • Figure 66: Total US retail sales and forecast of haircare, at current prices, 2017-27
                                                    • Figure 67: Total US retail sales and forecast of shaving and hair removal products, at current prices, 2017-27
                                                • Appendix – The Consumer

                                                    • Figure 68: Online shopping frequency, by gender, age, race and Hispanic origin, 2022
                                                    • Figure 69: Median household income, by race and Hispanic origin of householder, 2020

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