This report explores evolving global beauty and personal care retail trends. It highlights the rise of e-commerce, social selling via TikTok Shop, and the resilience of offline retail through premium experiences. Consumers seek value, convenience, and “little luxuries” amid economic strain. Retailers are adapting through innovation, omnichannel strategies, and personalised engagement to drive growth.
Delivery
This report comes in PPT.
Key Findings
Global beauty and personal care sales declined in real value terms in 2022
Beauty and personal care sales declined in 2022, with consumer confidence, sustained momentum in digital beauty engagement and the increase of travel and social occasions insufficient to compensate for high inflation, rising unit prices and strained supply chains.
Consumers’ channel loyalty disrupted by downtrading
Price-sensitive consumers started downtrading between categories, discovering private label and alternative retail channels. The one-stop shop is in the past, and with new virtual tools, consumers are now looking for convenience, switching from one channel to another for any purchase they make.
Retailers increasingly adopt omnichannel strategies
Consumers are increasingly adopting multichannel shopping approaches. Post pandemic, in-store sales have rebounded, as consumers prefer to try products; however, they gain product knowledge through online channels. This makes omnichannel a crucial strategy for retailers. Beauty and personal care retailers are ramping up their phygital solutions to provide a seamless experience for their customers.
E-commerce keeps growing, especially for colour cosmetics and fragrances
Fragrances and colour cosmetics continue to be the most dynamic beauty and personal care categories for e-commerce. While fragrances have added science and repurposed products towards emotions, colour cosmetics manufacturers have developed hybrid approaches and multi-benefit products. Both categories have continued to improve the consumer experience and engagement through technology.
Specialist retailers continue to invest to remain competitive
Specialist health and beauty retailers are investing in innovative store strategies to attract consumers. This includes expanding store-in-store formats in partnership with modern grocery retailers, as well as widening product portfolios to reach a diverse customer base.
Key findings
Key facts to share
Beauty and personal care snapshot
Dermocosmetics and sun care grow, fuelled by shifting consumer priorities
Amid economic uncertainty, consumers reallocate their budget or seek small luxuries
Offline retail remains dominant as the growth of e-commerce starts to moderate
Health and beauty retailers benefit from consumers’ demand for expertise
Warehouse clubs and discounters grow through increasingly cost-conscious consumers
Grocery retails are adapting to the opportunities emerging through BPC brand expansion
“Recession-proof” BPC is performing well in grocery channels through everyday luxuries
Consumers are polarised by desires for human interaction and technology
Supermarkets capitalise on consumer demands for affordable efficacy
SKIN1004 opts for offline channel strategy as a point of difference to support US expansion
E-commerce continues to outpace industry growth through social selling and dynamic pricing
The impact of gifting holidays shifts as consumers look to year-round deals
LATAM consumers are benefitting from increased availability through e-commerce
Innovation in product recommendations increases per item online spend
Marketplaces’ appeal grows beyond APAC through social commerce
Amazon focuses on monopolising the beauty and personal care market through investment
TikTok Shop becomes pivotal platform, gaining share through social selling
Evolution of distribution within industry
Recommendations/How to win
Euromonitor Passport E-Commerce: Coverage and methodology
Beauty and Personal Care
This is the aggregation of baby and child-specific products, bath & shower, colour cosmetics, deodorants, depilatories, fragrances, hair care, men's grooming, oral care, skin care and sun care. Black market sales and travel retail are excluded.
See all of our definitionsNEW REPORT GUARANTEE
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!